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Month: May 2020

How Informed 365 can Partner with Sustainability Consultants to Customise Reporting Applications

Posted on by Tim_Admin

Over the last few years, we’ve developed a close relationship with the team at Edge Environment This culminated in us working together to deliver the Property Council of Australia’s supplier platform for modern slavery reporting.

Edge Environment interviewed our CEO, Nicholas Bernhardt, about the the project, the partnership, and what the future looks like for modern slavery action in Australia.

What does Informed 365 do, in a nutshell?
Informed 365 has one simple mission: we want to help users see and understand their ESG (Environment, Social and Governance) and CSR (Corporate Social Responsibility) data. If we can help our clients – from non-profits to global enterprises and governments – to visualise critical data in a meaningful way, we believe it will help them make more informed decisions, and ultimately drive better outcomes.

How did the PCA project come about?
During conversations with some of Australia’s largest property groups, it quickly became apparent that there were huge synergies to be gained, and duplication to be avoided, if companies worked together. A few key partners took the bull by the horns and defined a shared approach, and managed to get others on board with the idea. We were lucky enough to be selected – along with Edge! – as the ones to help them put that vision into practice.

Why did you partner with Edge?
We’re, first and foremost, a technology company. We’re not modern slavery experts! As such, we needed a partner we could work whose skills and knowledge could complement our tech solutions. We had already been in discussion with the Edge team about their work on sustainable procurement and modern slavery for a while when the PCA opportunity came up, and it was the ideal chance to put our ideas into practice. We focused on designing the IT solution, while Edge led the risk assessment and supplier questionnaire development. It was the perfect match!

What other industries do you see as having potential for collaboration on modern slavery?
It’s an approach that, frankly, could benefit everyone. Whether it’s with us or another company, there’s no doubt that there are benefits to businesses working together. By doing so, they can reduce the cost and administration burdens on suppliers, reduce risk, share knowledge and, perhaps most importantly in the context of Modern Slavery, increase impact.

We’re about to launch two more industry shared applications: one in the health care insurance space, and another covering energy/utilities. But hopefully that’s just the tip of the iceberg. People are increasingly realising that Modern Slavery isn’t about gaining a competitive edge, and that there’s everything to gain by collaborating.

What does Informed365 see as the big focus for year 2 of the Modern Slavery Act?
This year most organisations are focusing on the basics such as data collection, visualisation, and initial staff and supplier engagement. But we’re already seeing progressive organisations moving onto the next step – i.e. delving deeper into risk hotspots that they find and putting in place processes to eliminate modern slavery if and when it is identified in supply chains.

We’re constantly building out and enriching our platform to help clients monitor progress against key metrics, and with so many clients in place we’re in a position to rapidly roll out innovations across our network. It’s a pretty fast-moving space to be working in, so we’re all learning from each other as we go.

By Richard Griffiths

Modern slavery and COVID-19: The importance of addressing the increased risks in supply chains

Posted on by Tim_Admin

Pay cuts, reduced hours, staff stood down or retrenched – this is the confronting reality for workers and business owners across the nation – the economic consequences of COVID-19 throwing supply chains into chaos.

The Institute for Supply Management has found that nearly 75% of companies have reported supply chain disruption. While some industries like supermarkets and grocery stores, alcohol and home office supplies have seen a surge in demand, others are or have been exposed to often significant negative consequences of unstable supply chains. The International Labour Organization has reported that due to catastrophic economic downturn, an additional 63.9 million workers across the world will work in poverty as a result of the pandemic. The additional pressure of “normal production” is threatening livelihoods and increasing the risk of modern slavery in Australian businesses and organisations.

Modern slavery describes serious exploitation in the workplace, such as human trafficking, slavery, servitude and forced labour, amongst others. Findings from the Global Slavery Index estimate there were approximately 15,000 people living in “conditions of modern slavery” in Australia in 2016.

The coronavirus crisis is different from others. Looking past the imminent threat to public health, mandatory lockdowns and the closure of international borders have resulted in a sharp decline in income-generating activities. This has caused cash-strapped businesses to cut costs, potentially pushing their workforce into ethically questionable situations.

Industries such as agriculture, construction and property, and garments and textiles all involve high-risks of modern slavery in Australia – and this was already the case well before large queues were forming outside of Centrelink. Opportunities to exploit at-risk workers are heightened during times of crisis where people may:

  • Experience loss of income;
  • Have low awareness of workplace rights;
  • Are required to work excessive overtime;
  • Have increased work demand due to supply chain shortages; and 
  • Have the inability to return safely for home countries.

To avoid subjecting at-risk workers to heightened risks of modern slavery, Australian organisations and companies need to take a collaborative, solutions-focused approach to this human rights issue. This starts with transparency.

Transparency is key in creating and maintaining a socially, environmentally, and economically sustainable supply strategy. Supply chain visibility and traceability allows companies to identify and address risks. The disclosure of information helps tackle inequities head-on and avoid the reputational costs that come with unsociable practice.

While risks of modern slavery have accelerated and expanded in reach since the initial disruptions to day-to-day life, it is up to companies and business owners to maintain supplier relationships and foster open communication channels around COVID-19. This includes honoring ongoing contracts and avoiding short production windows, last-minute orders, onerous terms and conditions or unreasonable cost reduction demands to keep third-party workers in stable employment.

Suppliers, workers, business peers, investors and guidance groups also need to band together to identify a best practice approach to protect and support vulnerable workers. Just look to Woolworths who – early in the outbreak – offered to redeploy some of QANTAS’s 20,000 redundant staff to help serve the influx of customers in-store, restock shelves and drive delivery vans. This collaborative decision provided a lifeline and source of income for thousands.

Australian businesses and entities should look for longevity in their approach and take this opportunity to commit to positive, sustainable and enduring change. Key international resources such as the Business and Human Rights Resource Centre and the Ethical Trading Initiative should be used on an ongoing basis to guide business practices. These legislations and policies support the application of relevant changes in line with the current trading climate, strengthening strategy and process development.

This time of uncertainty has exposed the need for entities – big and small – to take proactive steps to assess and address their modern slavery risks and report on actions in accordance to the Commonwealth Modern Slavery Act 2018. Practicing human rights, fair trade and following ethical labour guidelines should be an ongoing part of every business strategy and process. It is imperative that we, as a society, move towards a structure that eradicates injustices and promotes ethical, economic, social and environmental sustainability.

By Nicholas Bernhardt, CEO of Informed 365

Photo by perry c on Unsplash

How COVID-19 can push modern slavery into the Australian supply chain

Posted on by Tim_Admin

This year we have seen a complete overhaul of everyday life due to COVID-19. The ever-changing restrictions and abrupt changes to society have meant most industries have had to adapt and meet regulatory operating guidelines. Under pressure, standards of quality and morality can often be weakened and the phrase ‘desperate times call for desperate measures’ can begin to take effect.

COVID-19 has turned international and national trade on its head as boarders are shut, factories halt production, and demand for essential products far outweighs supply capabilities. The Institute for Supply Management has found that nearly 75% of companies have reported supply chain disruption. The repercussions can be debilitating as workers, who are often already on minimum wage, are left seeking alternative income putting the defenseless at a greater risk of modern slavery.

Modern slavery describes serious exploitation in the workplace, such as human trafficking, slavery, servitude and forced labour, amongst others. Findings from the Global Slavery Index estimate there were approximately 15,000 people living in “conditions of modern slavery” in Australia in 2016.

With countries like America using prison labour to create medical-grade facemasks and hand sanitiser in exchange for less than minimum wage, the Western world is certainly not immune to exploitation. Opportunities to exploit Australians are heightened during times of crisis where people may:

  • experience loss of income
  • have low awareness of workplace rights
  • are required to work excessive overtime
  • have increased work demand due to supply chain shortages and
  • have the inability to return safely to home countries.

The ‘desperate times call for desperate measures’ mindset can lead to exploitation of workers as they look for a secure source of stable income. Unfortunately, it is common for the vulnerable to be deceived and led into manipulative circumstances, only to realise their situation when it is too late. Thus, the cycle continues.

To avoid subjecting vulnerable workers to this kind of treatment, it requires both big and small organisations to seek transparency from their suppliers and third-party operators. Transparency is key in creating and maintaining a sustainable supply strategy – socially, environmentally, and economically sustainable.

It is crucial that businesses maintain supplier relationships and keep communication open around the risks associated with COVID-19. It is essential that organisations are liaising with their suppliers to ensure vulnerable workers are supported by being flexible and adapting to the current situation. Communication is key in reinforcing rights and roles with all operational parties – that is from the CEO down to the line workers. Access to sick and carers leave, the correct protective equipment, the availability of grievance mechanisms and whistleblowing options, and the confirmed knowledge of increased cleaning in workplace facilities are all within employee rights.

Collaborating with support networks such as employees, investors, civil society, peak bodies and suppliers is the best method in creating a solutions-based approach – particularly when adapting to industry changes to safeguard ethical workplaces. This includes educating staff around the current situation and identifying what modern slavery is and how it can happen during the existing pandemic.

Finally, being aware of both national and international legislation and resources in line with the current trading climate will support operations and assist practical application of any relevant changes. Staying up to date with human rights, fair trade and fair labour guidelines should be an ongoing practice in day-to-day trading. If we can learn anything from COVID-19, it is the importance of ethical and transparent trade.

The current pandemic has exposed imperfections in the stringent money-saving processes that put thousands of workers at risk just by going to work every day. Now is a time to inflict change on the current supply chain format to sustain ethical Australian businesses practices long into the future.

By Nicholas Bernhardt,CEO of Informed 365

Image by Logan Weaver