Under Section 54 (Transparency in Supply Chains) of the Modern Slavery Act 2015, certain commercial organizations must publish an annual statement setting out the steps they take to prevent modern slavery in their business and their supply chains. This reporting obligation applies to any body corporate or partnership (wherever incorporated or formed) carrying on a business or part of a business in the United Kingdom, which supplies goods or services and whose total annual turnover is over £ 36 million ($ 46 million). Each parent and subsidiary organization meeting the requirements must produce a statement. To assist companies, the government of the United Kingdom has published guidance (Transparency in supply chains: a practical guide) explaining “who” is required to publish a slavery and human trafficking statement, and “how” to write, approve and publish such a statement either individually or as a group. If a business fails to produce a slavery and human trafficking statement for a particular financial year the United Kingdom Secretary of State may seek a judicial injunction requiring the organization to comply with its obligation. Failure to comply with the injunction may expose the organization to an “unlimited fine”. The guidance provides that “it will be for consumers, investors and non-governmental organizations to engage and/or apply pressure where they believe a business has not taken sufficient steps”.
Source: United Kingdom Modern Slavery Act 2015, Section 54 (Transparency in supply chains), https://www.legislation.gov.uk/ukpga/2015/30/section/54/enacted , Transparency in supply chains: a practical guide, https://www.gov.uk/government/publications/transparency-in-supply-chains-a-practical-guide
