Modern Slavery 2022-23 - Flipbook - Page 11
Supply Chains
Various factors can contribute to modern slavery risks and practices, including sector and industry risks, product and services risks,
geographical risks and entity risks. All these factors must be considered when analysing risks of modern slavery.
Introduction
For Hindmarsh, risks of modern slavery may be heightened in third parties that are connected to us via our business relationships.
Particular risks are more likely to present deeper in our supply chains where we have less visibility. For the purposes of this statement,
our process has been to analyse with our Tier 1 suppliers, with the view to extend our analysis deeper into our supply chains as our
compliance framework progresses.
Hindmarsh is particularly focused on identifying modern slavery risks in its supply chains that involve material sourced from:
•
overseas regions that have a heightened risk or history of modern slavery;
•
domestic industries that can attract unskilled and migrant workers, such as cleaning, security and labour hire; and
•
commodities that have a higher risk of modern slavery, including solar panels and bricks.
Criteria Two
Structure, operations and
supply chains
Criteria Three
Risks of Modern Slavery
As an example of the risks associated with certain commodities that have a higher risk of the involvement of modern slavery practices,
polysilicon is used in solar panels and recent estimates suggest that the Xinjiang region in China is the source up to half of the world’s
solar grade polysilicon. Given the prevalence of modern slavery in the Xinjiang region of China, Hindmarsh recognises that the
supply chains of solar panels present material modern slavery risks. Further, since the commencement of the Uyghur Forced Labour
Prevention Act (US), US Customs has seized 1,053 shipments of solar equipment from China on the basis of forced labour concerns.
2
3
Additional supply chain related modern slavery risks arose during the reporting period in connection with supply chain delays,
created by external factors such as COVID-19 and the war in Ukraine. Hindmarsh recognises that unforeseen delays such as these
can cause entities to put pressure on suppliers to meet deliverables and can potentially lead to extreme working conditions or
exploitation of workers.
Criteria One
Reporting Entity
Criteria Four
Actions taken to assess
and address Modern
Slavery risks
Criteria Five
Effectiveness of Actions
Criteria Six
Consultation
Looking Forward
2 Centre
for Strategic & International Studies, 7 June 2021: Addressing Forced Labor Concerns in Polysilicon Produced in Xinjiang | Center for Strategic and International Studies (csis.org)
3 Reuters:
Exclusive: U.S. blocks more than 1,000 solar shipments over Chinese slave labor concerns, 12 November 2022: Exclusive: U.S. blocks more than 1,000 solar shipments over Chinese slave labor concerns | Reuters
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