Avetta launches digital tool to tackle modern slavery

Avetta has launched a digital social responsibility assessment product for supply chains in Australia, following a partnership with sustainability consultancy ReGen Strategic.

Avetta said the product, called the Avetta ESG Social Desktop Audit, sits within its Avetta One platform. It uses an offsite assessment approach and reduces reliance on onsite audits.

The company positioned the product around social responsibility risk assurance for hiring organisations and their suppliers and contractors. It includes checks linked to the Modern Slavery Act 2018.

Regulatory pressure

The launch follows developments around Australia's Modern Slavery Act. Businesses must publish annual modern slavery statements that describe risks in operations and supply chains and set out actions taken.

In the wake of the 2023 statutory review of the Act, the government agreed to implement 25 of 30 recommendations in December 2024. Consultations on potential future reforms remain underway, with possible changes expected to increase obligations and penalties.

"Our goal is to help our customers move beyond simple, lagging indicators of compliance to not only reduce key supply chain risks but also make lasting positive impact in the world," said Katie Martin, Director, Sustainability and Innovation at Avetta. "Our new ESG Social Desktop Social Audit is designed to eliminate the blind spots of traditional, slow-moving audits, allowing customers to more quickly achieve proactive assurance and truly safeguard the human rights of every worker in modern supply chains," added Martin.

Desktop auditing

Avetta described the ESG Social Desktop Audit as a digital assessment tool that collects information from suppliers and contractors through a question set and supporting documentation. Avetta then applies its own review process through auditors in its Risk Advisory practice.

The company said the assessment covers modern slavery policy and controls, supply chain risk and transparency, labour policies and practices, supplier audits and assessments, training and awareness, and remediation practices.

Avetta said it rates supplier and contractor readiness against industry standards. It also said suppliers and contractors that do not meet the required level receive feedback and guidance.

Partner role

ReGen Strategic worked with Avetta on the development of the product. ReGen Strategic said the Australian regime already signals higher expectations on due diligence.

"The Modern Slavery Act already requires businesses to conduct due diligence to identify and address human rights risks across their supply chains, said Colin Davies, General Manager for Sustainability and ESG at ReGen Strategic. "The 2023 independent review highlighted opportunities to strengthen these practices, noting enhanced risk-based due diligence and greater transparency. While these recommendations have been noted rather than enacted, the existing requirements suggest expectations are likely to increase, making it prudent for businesses to act now. Among other changes, this represents a significant shift, requiring rigorous processes to ensure full visibility and control across the supply chain," added Davies.

Davies also pointed to the risk profile for organisations that fail to meet obligations under the Act.

"There are also now increased penalties for not acting in accordance with the Act, making it paramount for businesses to take a proactive approach to risk management. The Avetta ESG Social Desktop Audit is designed to enable businesses to mitigate risk, as well as go beyond compliance to operate ethically and sustainably in preparation for potential future regulatory shifts," noted Davies.

Market backdrop

Supply chain assurance has become a more prominent operational and board-level issue for Australian companies, particularly in sectors with large contractor workforces and complex tiers of suppliers. Many organisations have also expanded ESG reporting processes alongside existing safety, quality and procurement controls.

In that context, Avetta framed the new assessment as part of its broader supply chain risk management offering. The company sells software used by hiring organisations and contractors across industries including construction, energy, facilities, manufacturing, mining and telecoms.

Avetta said the audit model can be used by businesses with mandatory reporting obligations and by those that report on a voluntary basis. It also said the approach can identify risks earlier in the supplier onboarding and management process.

The company said its auditors review supplier submissions and documentation and then apply a rating, along with improvement actions where needed. Avetta did not disclose pricing or customer adoption figures for the new product.