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<p>Under the landmark transparency provisions contained in section 54 of the Modern
Slavery Act 2015, the UK became the first country in the world to require certain
commercial organisations to report annually on the steps they have taken to prevent
modern slavery, including institutional investors who fall within scope of the requirement.</p><p>The
Government regularly engages with businesses, investors, civil society and industry
experts to collaborate on best practice and promote key measures to tackle modern
slavery. The Home Office’s statutory guidance,<em> ‘Transparency in Supply Chains:
a Practical Guide’</em>, emphasises that it is crucial that large organisations are
transparent and accountable, not just to investors but to other groups including employees,
consumers and the public, whose lives are affected by their business activity. The
Government also supports ShareAction’s Workforce Disclosure Initiative (WDI) and provided
£200,000 of funding in 2020/21. The initiative has mobilised investors with $6.5 trillion
of assets under management to call for transparency from multinational companies on
how they manage their workforce.</p><p>In the meantime, to further enhance transparency,
in March 2021 the Government launched an online GOV.UK registry for modern slavery
statements. This new service enables investors, consumers, NGOs and others to scrutinise
the effectiveness of the actions being taken and monitor progress across sectors over
time. Within the first month of launching, statements covering c. 8,000 organisations
have already been submitted to the registry.</p><p>If an organisation fails to publish
a statement, the Secretary of State can seek an injunction to require compliance.
This power has not been used to date. However, following the transparency in supply
chains consultation, the Government has committed to an ambitious package of changes
to section 54, including introducing financial penalties for organisations who fail
to meet their statutory obligations to publish annual modern slavery statements. These
measures require primary legislation and will be introduced when parliamentary time
allows.</p>
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