By Luke Geary, Partner, Georgia Davis, Senior Associate and Law Graduate Madeleine Adgo

Transport for NSW has ordered 510 Electric Vehicle (EV) Buses, anticipates ordering 7,500 more, and, alongside other agencies, collectively spent approximately $270 million on EVs and associated infrastructure between January 2022 and April 2025. In February 2025, the NSW Parliament was questioned about government procurement of these vehicles. Particular concerns were raised that the batteries in these vehicles are manufactured by companies linked to forced and child labour in China and the Democratic Republic of Congo (DRC). The Hon. Damien Tudehope MLC requested that the Office of the NSW Anti-Slavery Commissioner (OASC) “investigate this procurement and take whatever steps [it] considers necessary to help ensure that the NSW Government does not purchase electric buses from companies with a high risk that forced labour is used in any part of their supply chain”.

We have now reached the conclusion of the OASC’s probe into Government procurement of EVs, the results of which sit within three separate reports:

Report 1 – details the obligations of the NSW Government agencies to identify, manage and remediate modern slavery harms in their supply chains when buying EVs and related infrastructure. Key related reading is the OASC’s Guidance on Reasonable Steps to Manage Modern Slavery Risks in Operations and Supply Chains (GRS).

Report 2 – analyses the steps actually taken by Transport for NSW in its management of this procurement.

Report 3 – identifies areas where capabilities need strengthening and offers a series of recommendations.

These reports detail that Transport NSW has taken a number of commendable initial steps needed to develop the capabilities and leverage to effectively manage modern slavery risks associated with the procurement of EVs and that these processes have evolved since 2022. However, the OASC does identify that there is significant work in seven key areas that must be done rapidly to ensure these contracts do not contribute to modern slavery (and the NSW Government does not breach its own legal obligations). This probe is the first of its kind showing genuine engagement between the government and the independent OASC and in future will help lift the risk and compliance culture of government agencies towards best practice. For all businesses that supply to the NSW Government, take heed as agencies’ expectations of their own suppliers continue to evolve.

Importantly, this project also demonstrates how competing tensions in two incredibly key areas (environmental and human rights) can successfully reach a conclusion where both ends can be achieved. Indeed, the OASC anticipates a likelihood that actual modern slavery harms (and not just risks) will at some point emerge in NSW Government supply chains. The probe details how government can prepare for the provision of remedy and foster consultation with affected stakeholder groups.

Finally, the publishing of the OASC’s three reports comes at a time where there is ongoing consultation around legislative reform regarding the Modern Slavery Act 2018 (Cth)(MSA). Key in this consultation, is discussion around the introduction of mandatory due diligence obligations for reporting entities under the MSA, similar to those the NSW Government is required to comply with currently under separate legislation (discussed in detail in the above reports). This would significantly change the obligations upon Australian businesses that report under the MSA, requiring them to take more proactive steps in this space than ever before. This recent probe by the OASC is arguably Australia’s preeminent piece to date on the requirements and practical reality of due diligence in the modern slavery space in Australia and all reporting entities will benefit from the considerable efforts of the OASC and Transport NSW to lay bare these learnings for the progress of us all.

With respect to hopeful progress, Mills Oakley this week was pleased to have hosted the International Organization for Standardization (ISO) working group as it gathered in Sydney to finalise the development of a Modern Slavery standard which will speak directly to due diligence issues in this space. The Standard is to be titled: Managing the risk of modern slavery: Guidance for the prevention, identification and response to human trafficking and forced labour. Speaking at a networking event during the week, Dr James Cockayne reminded us how key standardisation is in creating systemic change “Many debate the pros and cons of globalisation but whatever your views, a key catalyst for globalisation was the standardisation of shipping containers around the world. This enabled countries around the world to seamlessly move cargo between ships, trucks and trains creating the global supply chains we know today. A global standard aligned with existing human rights and international labour standards could work in a similar way to those shipping containers – giving confidence to market actors around the world that workers have been appropriately protected in the production and distribution of goods worldwide.”

It is hoped this work can contribute further to pushing the wheels of change for the many lives that are impacted by the heinous crimes that we call modern slavery.