Media Coverage
Source: ESG Investor
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
04.14.25
This year marks the tenth anniversary of the UK’s Modern Slavery Act (MSA). Once hailed as pioneering legislation, the act is now facing criticism for its lack of enforcement and limited impact. Under the law, companies with more than £36 million in global turnover are required to report the steps taken to combat slavery and human trafficking—an industry that generates an estimated USD$236 billion in illegal profits annually.
While some legislators advocated for stronger laws and mandatory centralized reporting, others warned that harsh penalties could discourage transparency.
In an interview with ESG Investor, Pillsbury senior associate Iris Karaman noted that some companies subject to reporting obligations under the MSA simply copy and paste reports prepared by other companies.
“This means they haven’t assessed the risks in their supply chains nor taken steps to adequately mitigate those risks,” she said.
Recognizing the growing financial and ethical stakes, Karaman emphasized that some UK investors are stepping in to fill the accountability gap.
“As such, some shareholders are taking on a more activist role in encouraging companies to adequately mitigate modern slavery risk in their supply chains, as well as the potential reputational and legal liability risks that come from failing to do so,” she concluded.
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