Avetta, a provider of supply chain risk management (SCRM) software, has launched the Avetta ESG Social Desktop Audit, a new digital assessment tool developed in partnership with ReGen Strategic. Integrated into the AI-powered Avetta One platform, the tool aims to assist clients in identifying, managing, and mitigating social responsibility risks, including non-compliance with Australia’s Modern Slavery Act 2018 (Cth), within their supply chains. It also supports suppliers and contractors in enhancing their environmental, social, and governance (ESG) maturity and demonstrating adherence to responsible business practices.
Following updates to the Modern Slavery Act and a 2023 statutory review, Australian businesses face increased penalties, stricter reporting criteria, and heightened due diligence requirements. In December 2024, the government agreed to implement 25 of 30 recommendations from the review and is currently consulting on potential future reforms that could introduce further actions or more severe penalties for non-compliance.
Katie Martin, Director, Sustainability and Innovation at Avetta, stated, “Our goal is to help our customers move beyond simple, lagging indicators of compliance to not only reduce key supply chain risks but also make lasting positive impact in the world. Our new ESG Social Desktop Social Audit is designed to eliminate the blind spots of traditional, slow-moving audits, allowing customers to more quickly achieve proactive assurance and truly safeguard the human rights of every worker in modern supply chains.”
Colin Davies, General Manager for Sustainability and ESG at ReGen Strategic, noted that the Modern Slavery Act already mandates businesses to conduct due diligence to identify and address human rights risks across their supply chains. Davies added, “The 2023 independent review highlighted opportunities to strengthen these practices, noting enhanced risk-based due diligence and greater transparency. While these recommendations have been noted rather than enacted, the existing requirements suggest expectations are likely to increase, making it prudent for businesses to act now. Among other changes, this represents a significant shift, requiring rigorous processes to ensure full visibility and control across the supply chain.”
The ESG Social Desktop Audit provides independently reviewed ESG oversight, supporting both mandatory and voluntary reporters in identifying risks early, demonstrating compliance, and avoiding reputational or regulatory consequences. Avetta states that this offers a proactive pathway to strengthen governance and achieve impact.
Davies further emphasized the increased penalties for non-compliance with the Act, making a proactive approach to risk management crucial. He stated, “The Avetta ESG Social Desktop Audit is designed to enable businesses to mitigate risk, as well as go beyond compliance to operate ethically and sustainably in preparation for potential future regulatory shifts.”
The ESG Social Desktop Audit facilitates due diligence by requiring suppliers and contractors to respond to questions and provide documentation across several key areas: Modern slavery policy and controls, supply chain risk and transparency, labor policies and practices, supplier audits and assessments, training and awareness, and remediation practices.
Avetta’s trained ESG auditors, part of the company’s Risk Advisory practice, assess and rate supplier and contractor readiness against industry standards. Suppliers and contractors found to be deficient receive specific feedback and guidance to improve their ESG maturity and mitigate social risks.
