Global brands fail to address modern slavery risks in supply chains

There is an urgent need for stronger action to protect vulnerable workers across the world.

Research by Walk Free and WikiRate has uncovered that while many businesses claim to conduct due diligence, few are transparent about identifying and addressing forced labour cases.

This lack of transparency raises concerns about whether companies are taking meaningful steps to combat modern slavery.

Since 2016, Walk Free and WikiRate have tracked corporate reporting under the UK and Australian Modern Slavery Acts.

The research shows that only 14% of companies have disclosed incidents related to forced labour in their supply chains between 2016 and 2024.

This low rate of reporting contradicts evidence from civil society groups highlighting forced labour prevalence in high-risk industries.

The failure to disclose cases suggests either a lack of effective due diligence or an unwillingness to be transparent about findings.

Even when companies report labour rights violations, they often stop short of explicitly recognising cases of forced labour.

Instead, they report indicators such as excessive working hours or wage violations.

Data from the research found that incidents related to wages and working hours accounted for half of all disclosures.

While these factors don’t always meet the definition of modern slavery, they are clear risk indicators that contribute to worker exploitation.

The level of transparency varies by sector, with some industries more likely to disclose incidents than others. The study compared disclosure rates across key industries:

• Electronics – 28% of companies disclosed incidents
• Garment – 25% of companies disclosed incidents
• Hospitality – 9% of companies disclosed incidents

While the electronics and garment industries demonstrated relatively higher disclosure rates, the hospitality sector lags.

However, these figures do not reflect the actual prevalence of forced labour. They represent the willingness of companies to report it.

The study examined whether companies are transparent about how they respond to cases of forced labour.

Findings reveal that only 49% of companies provide details on remediation measures.

Even when companies report remediation, few focus on worker-centric solutions that directly benefit affected workers.

This lack of commitment to meaningful remediation raises concerns about the effectiveness of corporate responses to forced labour cases.

While modern slavery reporting laws exist in the UK and Australia, they currently lack enforcement mechanisms.

Despite facing some implementation hurdles, recent legislative developments, such as the German Supply Chain Due Diligence Act (LkSG) and the EU’s Corporate Sustainability Reporting Directive (CSDDD), were benchmarks for mandatory incident reporting.

Inquiries have been held into the effectiveness of the UK and Australia Modern Slavery Acts, with key recommendations including:

• Strengthening enforcement mechanisms
• Introducing financial penalties for non-compliance
• Expanding mandatory reporting criteria

To combat modern slavery effectively, companies must go beyond surface-level commitments and demonstrate genuine accountability.

Transparent incident reporting should not be viewed as a reputational risk but as an opportunity to build ethical supply chains and restore trust.

By publicly disclosing forced labour cases and remediation efforts, businesses can contribute to real change.

This helps to ensure workers are protected and exploitation is eliminated at every level of the supply chain.

Article written in collaboration with Wikirate and the Australian National University.