By David Chaplin,Mint Asset Management
Copyright investmentnews
More than a dozen fund managers have thrown their weight behind a move for NZ to introduce modern slavery legislation in line with global peers.
The statement endorsed by 28 entities including investment managers, community trusts, industry groups and a handful of other firms calls on parliament to “ensure passage of new laws without undue delay” to mandate transparent modern slavery reporting standards for NZ businesses.
Both National and Labour have floated modern slavery legislation this year as member bills awaiting selection via the ballot roulette wheel.
However, the previous Labour-led government outlined a modern slavery bill in 2022 but failed to progress the law before losing the 2023 election.
The Ministry of Business, Innovation and Employment (MBIE) website says: “Work on modern slavery supply chain legislation in New Zealand is on hold while the Government focuses on its current Workplace Relations and Safety priorities. Decisions on whether to progress modern slavery supply chain legislation will be made in due course.”
Under the broadly similar National and Labour member bills, businesses with at least $50 million of annual revenue would have to publish modern slavery statements detailing information such as supply chain risks and complaints relating to the issue.
Dean Hegarty, Responsible Investment Association of Australasia (RIAA) co-chief, said in a statement that investors were “watching closely” for NZ to update the modern slavery legislative backdrop.
“Having laws which allow for better information and mitigation of modern slavery risks in New Zealand businesses will not only give investors confidence to bring their money here, but also prevent New Zealand from becoming a dumping ground for compromised goods made by poor labour practices,” Hegarty said.
“With 28 signatories representing more than $215 billion, the call from businesses and investors could not be clearer. Two years into its three-year term, the government needs to show urgent leadership on an issue that has already seen private bills introduced from both major parties.”
Parliament can bypass the member bill random selection process “if 61 or more non-executive” MPs support introducing the legislation, according to legal firm, Ropes & Gray.
“To date, the Labour Party bill has received formal support from 34 non-executive members, while the National Party bill has only one supporter,” Ropes & Gray lawyers note in a report.
Among other countries, Canada, Australia and the UK have put in place modern slavery reporting regimes.
Last year a group of local fund managers, led by Mint Asset Management, wrote to Workplace Relations and Safety Minister, Brooke van Velden, urging the government to strengthen the-then proposed modern slavery legislation designed by the previous Labour-led government.
Mint is also a signatory to the latest joint communiqué along with AMP, ANZ, ASB, Aurora, Booster, Devon, Harbour, Kernel and Pathfinder.
Modern slavery includes practices such as child and forced labour as well as human trafficking.
