NZ is lagging disappointingly behind on modern slavery - Rob Fyfe

NZ faces pressure to pass modern slavery laws amid $8b in risky imports. Photo / Getty Images

THE FACTS

• New Zealand is lagging in addressing modern slavery, with $8 billion in imports linked to forced labour.
• Proposed legislation aims to require businesses to report on steps taken to address slavery risks.
• There is bipartisan support and backing from businesses and investors for introducing modern slavery laws.

New Zealand has always had outsized influence on the world stage. We are a nation that competes, that leads, is fiercely independent, that prides itself on doing the right thing.

But on combating modern slavery, we are lagging disappointingly behind, our voice is weak and our actions even weaker! It’s time we stepped up and introduced legislation that matches our values and protects our economic interests.

Let’s be clear: modern slavery is not some distant issue confined to faraway places. It’s happening within New Zealand. It’s also embedded within the global supply chains that feed our economy – and yes, that includes the products we import, the materials we use, and the services we consume on a daily basis.

In 2022 alone, we estimate that New Zealand imported nearly $8 billion worth of goods linked to forced or child labour. That’s 10% of our total imports. Every week, the average Kiwi household unknowingly spends around $77 on products likely tied to extreme exploitation of the people involved in the production of those products.

That’s not just a moral failure – it’s a reputational and economic risk.

Here in Europe, where I have been living this year, legislation and standards to limit modern slavery are not seen as optional but business as usual. Markets here treat transparency and accountability on human rights as baseline requirements, and Governments and businesses across the EU are working together to establish human rights due diligence as a mandatory requirement.

Australia, the UK, and Canada already have modern slavery frameworks in place. Many New Zealand companies are already reporting under these regimes because they operate in those markets. But here at home, we’ve yet to create a consistent, credible framework.

This isn’t just about compliance. It’s about competitiveness, market confidence, and investor certainty. If we want to maintain access to global markets, attract investment, and protect the “New Zealand Inc” brand, we must meet international expectations.

Throughout my career – at Air New Zealand, Icebreaker and beyond, I’ve seen how quickly customer expectations, investor scrutiny, and stakeholder demands reshape the business environment. Modern slavery is no different.

Companies that fail to act on this front face escalating risks: legal exposure, investor flight, reputational damage and erosion of social licence. Addressing modern slavery is not a distraction from commercial performance – it is essential to it.

Businesses that embed transparency and accountability in their supply chains will be stronger, more resilient, and offer a more attractive investment. In my experience, focusing on addressing modern slavery risks creates added purpose and engagement with employees and is value accretive for customers and investors.

Now we have a practical way forward. The proposed modern slavery members’ bills currently in the ballot are pragmatic, balanced and business-friendly. They simply ask businesses to do what responsible companies are already doing – report transparently on their steps to identify modern slavery risks and corresponding actions taken to address those risks.

Legislation would create a level playing field. It would reward businesses that are doing the right thing and ensure those that aren’t don’t get a free pass, hiding in the shadows. It will give investors the clarity they need to assess risk. And it will give consumers confidence that the products they buy aren’t built on the backs of exploited workers.

There’s bipartisan support for this legislation. That’s rare – and valuable. A parliamentary mechanism exists to bring one of these bills forward and it’s time we used it. We can’t afford to let this opportunity slip through our fingers.

The private sector is ready: 28 signatories representing institutional investors and New Zealand businesses accounting for more than $215b have shown public support for modern slavery laws to be introduced. What we need now is for political leaders to match that resolve.

Let’s not waste this moment. Let’s set New Zealand business up for success in the global economy.

Because in the end, addressing modern slavery isn’t just the right thing to do. It’s the smart thing to do.

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