Avetta Bolsters Supply Chain ESG Assurance Amidst Australian Regulatory Scrutiny

Event summary

  • Avetta has launched the 'Avetta ESG Social Desktop Audit' in partnership with ReGen Strategic, integrated into its Avetta One platform.
  • The new audit tool aims to help clients manage and mitigate social responsibility risks, particularly concerning compliance with Australia's Modern Slavery Act.
  • The Australian government recently implemented 25 out of 30 recommendations following a statutory review of the Modern Slavery Act, with further reforms under consultation.
  • The audit assesses suppliers and contractors across key areas like modern slavery policy, labor practices, and remediation processes.
  • Avetta’s Risk Advisory practice provides trained auditors to assess and rate supplier readiness against industry standards.

The big picture

The announcement highlights the growing pressure on businesses to proactively manage social responsibility risks within their supply chains, particularly in the wake of stricter regulatory enforcement and increased stakeholder expectations. Australia's Modern Slavery Act, and the government's ongoing review, are setting a precedent for other nations, creating a significant market opportunity for specialized SCRM providers like Avetta. The partnership with ReGen Strategic suggests a strategic focus on providing deeper, more specialized ESG assurance services.

What we're watching

Governance Dynamics
The pace of further reforms to Australia’s Modern Slavery Act will dictate the level of investment required by businesses to maintain compliance and avoid escalating penalties.
Regulatory Headwinds
Increased scrutiny of supply chain due diligence will likely extend beyond Australia, prompting similar regulatory changes in other jurisdictions and increasing the demand for solutions like Avetta’s audit tool.
Execution Risk
Avetta’s ability to scale its Risk Advisory practice and effectively onboard suppliers into the new audit process will be critical to realizing the full revenue potential of the ESG Social Desktop Audit.

Related topics

Product Launch ESG