FRC publishes report on Modern Slavery

Of general interest to members, but especially those in the corporate sector

On 25 April, the Financial Reporting Council (FRC) published, in conjunction with the UK Anti-Slavery Commissioner and Lancaster University, new research, which has identified significant shortcomings in the quality of companies’ modern slavery reporting.

According to the FRC, “the research looked at a sample of 100 major companies’ modern slavery statements and their strategic and governance reports. One in ten companies do not provide a modern slavery statement despite it being a legal requirement. Where companies did comply, only one third of these statements were considered clear and easy to read.

The majority of modern slavery statements reviewed were fragmented, lacked a clear focus and narrative, and often contained boilerplate language. Disclosures about key performance indicators (KPIs) which measure the effectiveness of steps to minimise modern slavery risks were particularly poor. Only a quarter of companies disclosed KPI results and just 12% confirmed they have made informed decisions based on those KPIs.

The review suggests that too many companies appear not to view human rights issues in their workforce and supply chain as a principal source of risk for their business, and that modern slavery considerations are still not a mainstream concern for many boardrooms.

The findings of this research are an opportunity for companies to present a more joined up approach to reporting and provide information on the effectiveness of their policies.”

The full report can be read here.

ESG Summit: 2 May 2024 Download this year's course catalogue

Search CGI