House of Commons · Westminster Hall
26 October 2021 · 3 other contributors · 4,462 words
Opened by Gareth Davies Con Grantham and Bourne
Responding minister: Rachel Maclean
Summarised by AI from the official record, so it can contain mistakes.
Gareth Davies raised concerns about investment industry exposure to modern slavery in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The Government should broaden section 54 of the Modern Slavery Act to include requirements for investment portfolios and issue statutory guidance on assessing modern slavery risks. They should also work globally to establish a taskforce modelled after the climate-related disclosures initiative.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Modern slavery is one of the most prevalent human rights violations, affecting an estimated 136,000 people in the UK alone. The investment industry has not fully integrated modern slavery risks into their processes, with only 27% of asset managers disclosing due diligence on such risks.
Mr Mangnall praised the Modern Slavery Act 2015 for its global influence and highlighted the need to ensure businesses are not merely complying superficially. He suggested replicating models from illegal wildlife trade initiatives to combat modern slavery, advocating for data analysis involving financial institutions to identify money transfers linked to slave labour. The report by the Independent Anti-Slavery Commissioner encouraged collaboration with financial entities and stressed the importance of addressing a $150 billion annual industry.
Jim Shannon congratulated the lead MP for bringing forward this debate and emphasised the importance of ensuring that investment portfolios are mindful of modern slavery risks, especially concerning young girls. He agreed that legislative change is necessary to address these issues. Asked about guidance concerning investment in Chinese companies suspected of using Uyghur Muslims as slave labour, expressing concern and seeking ways to address this issue further.
Welcomed the Minister to her new role and highlighted the importance of ethical investments by customers and consumers. Emphasised that modern slavery is an economic crime affecting around 40 million people globally, with 25 million victims of forced labour. Pledged support for strengthening section 54 of the Modern Slavery Act and expanding it to more businesses. Advocated for transparency in supply chains on climate change through a private Member's Bill.
Government Response
Rachel MacleanIt is a huge pleasure to be here serving under your chairmanship, Mr Robertson. I very much thank my hon. Friend the Member for Grantham and Stamford (Gareth Davies) for securing this vital debate and for bringing with him a wealth of experience from his distinguished career in the investment industry, which informs us all and helps us all to move further. I also thank my predecessor, my right hon. Friend the Member for Staffordshire Moorlands (Karen Bradley). We have taken important strides forward in recent years but must continue to evolve as modern slavery continues to evolve. During our G7 presidency, we agreed joint action on forced labour in global supply chains and reaffirmed commitment to upholding human rights and international labour standards. Last week, we marked Anti-Slavery Day, reflecting on the trauma victims suffer, cruelty of exploiters, and bravery of survivors rebuilding their lives. We have invested £379 million over five years for a new modern slavery victim care contract and £1.4 million this year to support police response to modern slavery, bringing total investment in policing to £15 million since 2016. Following the recognition that the nature of modern slavery has evolved, we announced a review of the 14 modern slavery strategy to adapt our approach and maintain leadership. We will publish a new strategy next spring setting strategic direction for years to come. Through the Modern Slavery Act 2015, we became the first country in the world requiring businesses to report on actions taken to address modern slavery risk in their operations and supply chains. The Government committed to introducing an ambitious package of measures to strengthen our world-leading legislation on transparency in supply chains. We will extend reporting requirements to public bodies, mandate specific reporting topics, set a single deadline for reporting, require organisations to publish statements to a new Government registry, introduce financial penalties for non-compliance. Investors must scrutinise investment portfolios and engage companies on their response to modern slavery. The Home Office is working with investors to understand how we can encourage and incentivise businesses and investors to place the same emphasis on social issues as environmental challenges. We will consider extending the scope of section 54 as part of our strategy review.