Australia is not immune to sustainability risks: smart due diligence is critical
When you think of ‘safe’ sourcing markets, who comes to mind? Australia may have been top of mind, but recent developments challenge that assumption. Media reports allege a well-known Australia retailer’s supply chain is tied to unethical sourcing, linking its products to potential forced labour violations. While the retailer denies these claims, the case highlights the costs of low supply chain visibility and gaps in risk management. Meanwhile, a UN report published this year notes the enforcement gaps of Australia’s Modern Slavery Act and highlights the issues surrounding human rights for migrant workers, signaling more stringent due diligence requirements for business may be ahead.
While Australia is historically connected to ‘low risk’ indicators, data from EiQ, derived from more than 30,000 onsite audits, showed Australia’s risk exposure rising in the last year. Sustainability risks aren’t limited to domestic suppliers; they extend across Australia’s top trading partners. The question is: Is your programme equipped to pinpoint and mitigate risk at the source? Organisations must urgently implement more robust due diligence tools and enhance responsible sourcing standards to mitigate risk exposure and prepare for potential new requirements.
Migrant worker exploitation: A growing concern
A recent report from the UN Special Rapporteur highlights systemic exploitation of temporary migrant workers in Australia. These workers, often employed in high-risk sectors such as agriculture, food processing, hospitality, and cleaning, face exploitative conditions including:
- Deceptive recruitment and debt bondage
- Underpayment and contract manipulation
- Unsafe housing and hazardous working environments
- Sexual and gender-based violence
- Threats, harassment, and dismissal due to pregnancy
EiQ data reflects these findings. Australia’s migrant worker risk in EiQ showed critical indictors in 2024, as forced labour risk was identified as high. These slightly improved in 2025, but migrant worker vulnerabilities remain high and a key labour risk in the country.
Weak regulatory enforcement creates further gaps
Australia currently lacks targeted forced labour bans, similar to that of the United States, which enforces the Uyghur Forced Labor Prevention Act (UFLPA), or the European Union, which has its own forced labour ban in place. Australia’s Modern Slavery Act, now under government review, has faced criticism for weak enforcement and limited scope.
The UN report called for reforms to its legislation, including:
- Mandatory human rights due diligence legislation
- Lowering reporting thresholds to AU$50 million
- Sector-specific human rights guidelines
- Public access to customs and trade data
- Import bans on goods linked to forced and child labour
- Enhanced international cooperation on enforcement
Until these measures are enacted, the burden falls on businesses to lead with integrity. Don’t wait for headlines to dictate your next mov. Build end-to-end due diligence frameworks that protect workers and future-proof your brand.
Empowering total supply chain confidence with EiQ
Businesses must shift their mindsets to more proactive, targeted risk mitigation to avoid damage control. Without proactive monitoring, brands may unknowingly source from high-risk suppliers, within Australia or beyond. With EiQ, businesses can improve visibility, strengthen data-driven decision-making to target high-risk areas and achieve ongoing monitoring to understand the health of their supply chain consistently.
A simplified workflow of EiQ’s approach includes:
Identify
Leverage EiQ’s proprietary supplier database and AI-driven equivalency mapping to surface high-risk geographies, commodities and audit findings.
Monitor
Use real-time incident scanning across global media channels and 100+ languages to flag emerging controversies - everything from worker protests and fire incidents to forced labour flags and emissions issues.
Mitigate
Deploy data-backed, targeted remediation workflows and supplier engagement tools to address non-compliance, track corrective actions and demonstrate continuous improvement.
For a deeper dive into how EiQ can help you achieve total supply chain confidence, get in touch to request a tailored demo.