Aussie investor body warns against criminalising corporate modern slavery failures

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Responsible Investor or enjoy below:

🗞️ Driving the news: Australia is consulting on a new criminal “failure to prevent” modern slavery offence for companies with more than A$100 million in annual consolidated revenue
• The Responsible Investment Association Australasia (RIAA) is warning that criminalising failures could unintentionally discourage companies from disclosing problems, reducing the quality of information available to investors

🔭 The context: Australia’s existing Modern Slavery Act requires large companies to publish annual statements explaining how they identify and address slavery risks
• The government’s proposed reforms would add criminal liability, with a defence for companies able to demonstrate they took reasonable preventive steps; civil penalties for existing reporting obligations are also planned

🌍 Why it matters for the planet: Modern slavery is primarily a human-rights and supply-chain issue rather than a direct environmental one
• However, stronger supply-chain transparency can also improve companies’ ability to identify broader social and sustainability risks

⏭️ What’s next: The Australian government is using stakeholder feedback to shape the offence, including its scope, defences and possible deferred-prosecution arrangements
• The consultation closed on September 25, 2026, so the next step is consideration of the feedback before legislation is finalised

💬 One quote: Australian Anti-Slavery Commissioner Chris Evans said: “The introduction of criminal provisions sends the right signal to business that they should be treating modern slavery with the seriousness it deserves”

📈 One stat: A$100 million — the annual consolidated-revenue threshold proposed for companies covered by the new criminal “failure to prevent” offence

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