Mater Modern Slavery statement

Modern Slaver y Statement

Modern Slavery Statement 2020

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mater.org.au

Modern Slaver y Statement

This Modern Slavery Statement was approved by the Board of Mater Misericordiae Ltd.

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Francis Sullivan Executive Chair, Mater Misericordiae Ltd. Board of Directors Disclosure Note This statement has been made on behalf of Mater Misericordiae Ltd. ACN – 096708922 ABN – 83096708922.

This Statement covers all entities owned or controlled by Mater Misericordiae Ltd. All patient and spend statistics referred to within this report are based on our 2019/2020 Financial Year.

However, in order to align our Modern Slavery Statement to other ACAN members, our modern slavery risk mitigation strategies are reported for the calendar year 1 January 2020 to 31 December 2020.

Contents About us

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Our Mission and Values

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2020 modern slavery risk management Initiatives

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Our plans for 2021

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Our plans beyond 2021

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Brief statement from our Executive Chair

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Reporting criteria 1 & 2: About Mater

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Our organisational structure

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Our governance framework

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Our operations

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Our supply chain

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Reporting criteria 3: Modern slavery risks in operations and supply chain

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Operational risks

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Modern slavery gap analysis

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Supply chain risks

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Reporting criteria 4: Actions taken to assess and address risk

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Modern slavery action plan and road map

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Reporting criteria 5: Effectiveness assessment

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Reporting criteria 6: Process of consultation with entities owned or controlled 20

Modern Slaver y Statement

Reporting criteria 7: Other

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About us Mater is Queensland’s largest Catholic, not-for-profit network of hospitals and healthcare services, bringing together our collective expertise across health, education and research with a shared vision to live better lives through improved health and wellbeing.

Modern Slaver y Statement

Mater is committed to a culture of compassion and care inspired by God’s mission of mercy to help those in need. In the spirit of Catherine McAuley

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and her legacy which has been carried forward by the Sisters of Mercy, we embrace opportunities to provide healing and hope to the communities we serve.

In delivering the healing ministry of Jesus, Mater not only responds to, but actively seeks to support individuals and families disadvantaged by health or social circumstances.

Our Mission and Values

Our Mission, Values and Strategic Vision guide everything we do at Mater.

They are foundational to our work to transform healthcare, and are reflected in strategic priorities as well as the behaviours that guide our interactions with each other, everyone we serve in our ministries, and within our communities.

Modern Slaver y Statement

Our Mission

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We serve together to bring God‘s mercy to our communities through compassionate, transforming, healing ministries.

Our Values We honour and promote the dignity of human life and of all creation.

We act with compassion and integrity.

We strive for excellence.

Our Strategic Vision Empowering people to live better lives through improved health and wellbeing.

2020 modern slavery risk management initiatives Mater strives to embed ethical and sustainable practices into every aspect of our business.

This statement, pursuant to the Australian Modern Slavery Act 2018 (Cth), sets out the actions taken

by Mater to address modern slavery in our business and supply chain over the financial year ending 30 June 2020 and beyond.

The practice of medicine is inextricably linked with the philosophical belief that every human life is valuable and should be respected as such. This belief is enshrined in our Mission and Values, which promote the dignity of human life and of all creation. This concept of dignity and respect is also embedded into our policies and procedures, and extends to all our stakeholders, both internal and external.

By engaging external expertise and aligning ourselves with the Australian Catholic Anti-Slavery Network (ACAN), in 2020 Mater implemented numerous strategies to mitigate the risk of modern slavery within our operations and supply chain. Key areas of focus include:

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• Our supply chain We strengthened our supply chain risk assurance mechanisms by setting our minimum standards of behaviour within our Ethical and Sustainable Procurement—Supplier Code of Conduct and working with suppliers who provide high-risk commodities.

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• Our operations We conducted a governance gap analysis and updated policies and procedures to assess and mitigate the risk of modern slavery.

• Our people We provided training for staff to recognise, prevent and respond to concerns of modern slavery.

Our plans for 2021

Our plans beyond 2021

• Continuing to support our suppliers to implement modern slavery risk mitigation strategies and to further our understanding of our suppliers’ supply chain.

• Continually improving our approach to identifying, assessing and managing modern slavery risks in our operations and supply chains. We have identified measurable actions to address modern slavery risks beyond 2021, including a commitment to improve our understanding of the categorisation of our expenditure data throughout our supply chain and mapping suppliers of key, high-risk medical consumables such as masks, gloves and isolation gowns.

• Working with our partner Catholic Negotiating Alliance (CNA) hospitals to undertake more in-depth assessments of our common high-risk suppliers.

• Promoting further awareness and training for our operational team, including focusing on our English Second Language Speakers—both staff and volunteers to recognise signs of potential modern slavery victims.

• Delivering modern slavery awareness online training modules for all staff and targeted training for management. These online modules will aim to increase knowledge of the impacts of modern slavery on a global economy and examine how modern slavery affects healthcare in Australia.

Brief statement from our Executive Chair As a not-for-profit Catholic ministry in healthcare, Mater is committed to ethical business practices.

We take our responsibility to the broader community seriously and seek to ensure ethical and sustainable practices are inherent in our business partners.

Mater’s commitment to transparent, fair and responsible procurement practices must naturally extend through to our suppliers in the responsible sourcing and trading of goods and services.

Working together to identify and understand the risks of modern slavery, including in operations and supply chains, is crucial to mitigating modern slavery and related practices.

We look forward to working with our supply partners in 2021 and beyond to tackle these important ethical issues and establishing best practice in mitigating modern slavery and preserving human dignity.

Modern Slaver y Statement

Francis Sullivan AO Executive Chair – Mater Misericordiae Limited Board of Directors

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Reporting criteria 1 & 2: About Mater Our organisational structure Mater‘s organisational structure reflects our commitment to the strategic and consistent integration of health, education and research.

Mater Boards and sub-committees

In July 2019, a single Board of Governance was established to unify all Mater hospitals and health services across Queensland to further our vision—empowering people to live better lives through improved health and wellbeing. Our Head Office is located in Brisbane, Queensland.

Mater Board Sub-Committees of Board Mater Misericordiae Limited

Mater Clinical and Business Systems Committee Mater Finance and Audit Committee

Mater Education Ltd

Mater Research Ltd

Mater Foundation Ltd

Mater Major Projects and Infrastructure Committee Mater People, Culture and Mission Committee

Our governance framework

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Mater takes an organisation-wide approach to managing modern slavery risks in its operations and supply chains.

This Modern Slavery Statement is a joint statement made by the whole of Mater Misericordiae Limited.

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Our operations Mater comprises of an extensive network of both public and private hospitals, health centres and related businesses, a nationally accredited education provider, a world-class medical research institute and philanthropic support.

education

Mater Health comprises all our hospitals and healthcare services across Queensland. These services combine to help Mater offer comprehensive healthcare which meets identified community need.

Mater Education is a nationally accredited, hospital-based independent Registered Training Organisation—the only one of its kind in Queensland. It offers a range of courses for students, through to highly experienced practising clinicians.

By combining our collective expertise and resources across health, education and research, we are able to deliver new services in new ways, and to continue to fulfil our Mission to meet the healthcare needs of our community in delivering safe, high-quality, compassionate care.

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Mater‘s Chief Executive Officer has governance over Mater Health, Mater Education, Mater Research and Mater Foundation, in addition to corporate services.

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Mater Research is an internationally recognised leader in medical research, which connects its findings from bench to bedside, translating medical research into clinical practice to deliver better outcomes for our patients and the wider community.

Mater Foundation raises funds by engaging people and businesses to partner with Mater to improve health through a wide range of fundraising and philanthropy opportunities.

Operations during 2020

Townsville

Mackay

Rockhampton Bundaberg

Brisbane Redland Springfield

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Figure 1: Mater locations across Queensland

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599 459 patients seen

10 439 babies born

996 students graduating from Mater Education‘s RTO Figures are for SEQ only.

68 298 emergency attendances

7041 paid employees

$18 311 004 Mater Research secured funding

58 888 hours contributed by Mater volunteers

Our supply chain Mater’s procurement and supply chain operations activities are delivered through a centre-led procurement operating model in partnership with our divisions. All high value clinical procurement is managed centrally through the clinical procurement team. Organisation-wide non-clinical categories such as waste, uniforms or electricity are also managed centrally.

Mater is a member of the Catholic Negotiation Alliance—a network of Catholic healthcare facilities that are authorised to collectively bargain with suppliers.

~5 000 Suppliers during FY19/20

~$500 M Total addressable spend FY19/20

43 Suppliers engaged through CNA contractual arrangements

We procure goods and services from an international supply chain across 13 broad procurement categories.

Medical Equipment R&M 2%

Hospitality 2% Utilities 3% Medical Equipment 3%

Medical & Surgical Consumables 17%

Facilities Equipment 4%

CAPEX Facilities 5%

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Pharmacy 15%

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ICT 7%

Category Spend FY 19/20 Miscellanrous 8%

Prosthetics 13%

Business Services 10%

Medical Services 11%

Our largest categories of supplier spend (56 per cent) involves the purchasing of medical and surgical consumables, pharmacy, prosthetics and medical services. An overview of the products procured under each category has been listed below:

What we buy—clinical: Medical / Direct

Medical and Surgical Consumables Anaesthesia Cosumables Custome Sterile Dental Consumables Dialysis Hygiene Care and Products IV and Arterial Administration M&S Medical Gases Medical Aids Medical Consumables Medical Operator Protection Medical Research Needles and Syringes Orthopaedic Consumables Opthopaedic Equipment Pathology Patient Examination/Monitoring Radiology Respiratory Consumables Respiratory Equipement Resuscitation Consumables Resuscitation Equipment Sterilisation Products Surgical Consumables Surgical Instruments Sutures Wound Care

Pharmacy

Prosthesis

Medical Equipment

Drugs - General CapexPharmacy Pharmacy Consumables

Prosthetics - Craniofacial Prosthetics - ENT Prosthetics - General Prosthetics - Gynaecology Prosthetics - Maxillary-Facio Prosthetics - Neurosurgery Prosthetics - Ophthalmic Prosthetics - Orthopaedic Prosthetics - Orthotics Prosthetics - Plastic Prosthetics - Spinal Prosthetics - Urology Prosthetics - Vascular Prosthetics - Gastroenterology Loan Kit Service Fees

CapexMedical and Surgical Medical Equipment Lease & Rental Diagnostic Equipment X-Ray Equipment Medical Equipment Repairs M&S Lease & Hire Equipment Rehab Aids Dental Equipment

The remaining 44 per cent of expenditure consists of non-clinical categories including business services, ICT and construction. An overview of the products and services procured is listed below:

What we buy—non-clinical:

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Indirects

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CAPEX Facilities

Facilities Management

Business Services

Medical Services

CAPEX Facilities

Cleaning Facilities Furniture Facilities Supplies Health & Safety Pest Control R&M Facilities R&M Grounds Security Service Contracts Facilities Waste Management

Administration Expenses Advertising & Promotions Adult Fees Business Consultants Fleet Freight and Courier Insurance Premium Interpreter Services Legal Newspapers & Journals Office Supplies Patient Ambulance Transport Printing Recruitment & Temp Labour Training & Education Travel & Accommodation Uniforms

Outside Medical Fees Nursing Agency Service Contracts Radiology Pathology

ICT

Utilities

Hospitality

CAPEX ICT ICT Consumables ICT Service Contracts IT Charges OpexIT R&M IT Equipment Software Licences Software Maintenance Telecommunications

Electricity Coal Gas

Beverages Catering Food Food Service Consumables Housekeeping Consumables Linen

Medical Equipment R&M Medical Equipment Repairs & Maintence

Supplier Code of Conduct Mater is committed to the responsible engagement of suppliers. This commitment extends to suppliers sharing a consistent view to the ethical sourcing and trading of goods and services. We require that all suppliers comply with our Ethical and Sustainable Purchasing—Supplier Code of Conduct. New suppliers are selected based upon their compliance with Mater’s standards and their ability to provide and maintain high-quality products and services. We expect our suppliers and their supply chains to share our Values and adhere to the same principles. These include:

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• Complying with international human rights laws and norms set out in the International Bill of Human Rights and the International Labour Organisation Declaration on Fundamental Principles and Rights at Work.

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• Managing all operations and supply chains to assess the risk of modern slavery practices and implement mitigation strategies to reduce this risk.

• Ensuring compliance with relevant laws affecting forced or involuntary labour, child labour, discrimination and security practices. This includes freedom of employees to leave their workplace after their shift ends or to resign giving reasonable notice.

• Allowing freedom of association and collective bargaining for workers to join or form trade unions of their own choosing and to bargain collectively.

Reporting criteria 3: Modern slavery risks in operations and supply chain Mater is committed to ensuring that our procurement practices are transparent, fair and responsible and uphold high standards of integrity and honesty that align with our Values.

We also recognise that instances of modern slavery are often complex and hidden.

Operational risks Our COVID-19 response As a healthcare provider, COVID-19 impacted our operations substantially. In a short space of time, our clinical consumable supply chain was placed under significant stress. The safety and wellbeing of our staff and patients were our highest priority and obtaining sufficient supplies of high-quality personal protective equipment (PPE) became challenging.

In addition, the increase in demand resulted in an unprecedented increase in cost. Regular monthly orders of gloves, face masks and isolation gowns were placed at risk as some countries diverted shipments to their own shores and others were forced into lock-down. We worked tirelessly to mobilise new COVID-19 wards and ensure they were adequately stocked.

Through this time, we were cognisant that the unprecedented pressure on global supply chains meant we had to be twice as vigilant in our approach to identify and manage the risk of modern slavery in our operations and supply chain. We responded to these challenges by continuing to purchase, where possible, consumables through known, long term suppliers who had publicly stated their zero-tolerance position towards modern slavery.

Our people Mater has more than 9 500 full-time, part-time and casual employees, and volunteers throughout Queensland.

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Agency suppliers

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As a healthcare provider, we engage a range of agency healthcare professionals daily to ensure we have adequate resources.

Our nursing agency spend during 2020 was $2.648 M, distributed over six suppliers throughout Queensland. Our agency suppliers have been provided with a copy of the Mater Ethical and Sustainable Procurement—Supplier Code of Conduct. All contracts from January 2020 onwards include Mater’s standard Terms and Conditions that require suppliers to actively mitigate the risk of modern slavery within their own supply chains.

Modern slavery gap analysis In September 2019, our Procurement and Supply Chain Operations division established a cross-functional working group for Mater to develop and implement our Modern Slavery Risk Mitigation Strategy.

In February 2020, Mater joined the Australian Catholic Anti-Slavery Network (ACAN). As part of this membership, Mater undertook a review of its existing processes and practices and was provided with a gap-analysis report which helped us understand our areas for improvement.

In March 2020, COVID-19 escalated dramatically with significant impacts on operations. Resources within Procurement and Supply Chain Operations

were diverted to focus on responding to the pandemic including sourcing personal protective equipment to protect staff and patients from the spread of the virus.

Due to Mater’s response to COVID-19, a number of operational and strategic programs were delayed including Mater’s implementation of the Modern Slavery Risk Mitigation Plan. Despite this setback, many of our strategies were able to be successfully implemented. More work will be undertaken in 2021, during the second reporting period, as we progress the remaining initiatives.

A gap analysis demonstrating implementation progress of our Modern Slavery Risk Mitigation strategies is shown in the table below:

Table 1: Risk Mitigation Modern Slavery Gap Analysis Category

Topic

Result Feb 2020

Management Systems

Governance Commitment Business System Action Monitor/Report

Risk Management

Risk Framework Operational Risk Identifing External Risks Monitoring and Reporting Risks

Human Resources and Recruitment

Awareness Policies and Systems Training

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Labour Hire/Outsourcing

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Customers and Stakeholders

Customer Attitude Information Provision Feedback Mechanisms Worker Voice

Procurement and Supply Chain

Policy and Procedures Contract Management Screening and Traceability Supplier Engagement Monitoring and Corrective Action

Legend:

not started I

in progress I

completed/on track

Result Jan 2021

Supply chain risks To assess our supply chain risks and as part of our ACAN membership, we provided information to understand the level of modern slavery risk within our supply chain. The information provided for analysis included categorisation of the types of goods and services of our top fifty suppliers (by expenditure). We also provided information about suppliers outside the top fifty that we believed may have a higher level of modern slavery risk.

To determine the suppliers’ level of risk, the following key indicators were applied: • Commodity/product Specific products and commodities deemed as high risk by the US Department of Labor’s 2018 List of Goods Produced by Child and Forced Labor, the Global Slavery Index (GSI) and other international guidance materials.

• Workforce profile In undertaking our supplier analysis we considered the type of labour involved in the production of our goods and services, particularly where low-skilled, vulnerable or migrant labour is used, or where the work is deemed as ‘3D’ work (dirty, dull or dangerous).

• Industry sector Specific industry sectors deemed as high risk in international and national guidance documentation.

• Geographic location Based on estimated prevalence of modern slavery and the government responses as outlined in the 2018 Global Slavery Index.

While we predominantly use Australian based suppliers, we recognise that our goods and services may come from countries other than those where suppliers’ headquarters are based.

The information which ACAN provided to Mater included a customised supplier risk assessment that identified high risk, medium risk and low risk categories of expenditure (refer to Tables 2 and 3 on the next page).

High risk categories are indicated by red , medium risk categories are indicated by orange low risk categories are indicated by green .

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Mater’s highest risk is in the medical equipment and consumables category. Other categories which are considered high risk include: • Building construction and fabrication • Property facility maintenance • Food and hospitality.

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Medical equipment and medical supplies are Mater’s highest-risk categories and we recognise that further work needs to be undertaken to understand more about these suppliers and the countries in which they manufacture their products.

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In 2021, we will be focusing on improving categorisation of our suppliers and expenditure. This will provide us with clearer insights into which areas of our supply chain should be mapped as a priority.

CNA supplier self-assessment survey The Catholic Negotiating Alliance (CNA) members (of which Mater is a member) agreed to collectively issue a supplier self-assessment survey to 25 of their shared, high-risk suppliers. Responses from the survey were collated and scored. Many of our international shared suppliers have been reporting their modern slavery position in California and the United Kingdom for several years and were able to provide significant evidence into their understanding of their supply chains. However, some suppliers were unable to demonstrate their commitment to mitigating the risk of modern slavery and their scores were reflective of this. CNA members agreed to provide support to these suppliers throughout reporting period two. This will include tools and training as well as an agreed management plan to ensure accountability.

Mater Health Modern Slavery Supply Chain Risk (July 2020) Table 2: Modern Slavery Risk by Spend Category ($M)

Medical equipment and consumables Allied Health Building, construction fabrication services Labour hire Utilities Government and agency fees Professional services Property and facility maintenance Drugs/pharmaceuticals Food and hospitality Financial expenses Office supplies and services Waste management $

$40 000 000

$80 000 000

$120 000 000

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Table 3: Modern Slavery Risk Analysis by Spend %, by Supplier Numbers and Category Numbers

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High Risk Categories

Medium Risk Categories

Low Risk Categories

Spend Risk ($AUD)

$144 636 482

$28 796 049

$84 685 348

Supplier Risk (No.)

43

12

15

70

Category Risk (No.)

6

3

4

13

Risk by spend ($AUD)

Risk by supplier number

15

33%

$258 M

56%

12

$258 117 879

Risk by category number

3

70

13

43 4

11%

Legend:

TOTAL

High risk categories I

Medium risk categories I

Low risk categories

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Reporting criteria 4: Actions taken to assess and address risk In 2020, Mater focused on strengthening its understanding of potential modern slavery risks in our operations and supply chain and implementing modern slavery risk mitigation strategies.

We reviewed our Procurement Governance Framework and updated policies and procedures, evaluation guides and tendering templates, tendering and contract terms and conditions. We drafted our remediation policy and regularly provided the Executive Leadership team with implementation updates.

Procurement and Supply Chain Operations worked with Human Resources to update our Behavioural Guidelines and we provided face-to-face training to our operational staff on how to recognise the signs of a potential modern

slavery victim. We updated our mandatory orientation training material and we are currently progressing the implementation of online Modern Slavery training modules for all staff and material on the impacts of Modern Slavery in the health industry for managers.

We published and sent our Ethical and Sustainable Code of Conduct to our suppliers.

We publicly stated our zero-tolerance position to modern slavery on our external and internal websites and we raised awareness of modern slavery throughout Queensland by participating in several speaking engagements.

We provided specialised training to our procurement, purchasing and finance teams and we will follow up with information sessions throughout 2021.

Modern slavery action plan and road map Our 2021 action plan and road map will continue to build upon the foundations laid during 2020.

We have scheduled more training for our operational staff throughout Queensland, both face-to-face and by encouraging the completion of on-line modules. We will continue to work closely with our procurement and purchasing team to increase awareness and due diligence activities in our supplier engagements.

Modern Slaver y Statement

We are committed to improving our supply chain data analytics. This will provide improved insights into our high-risk suppliers for targeted discussions and desk-top audits.

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We will continue to work with our fellow ACAN and CNA members to support high-risk suppliers to mitigate modern slavery risks.

We will continue to deliver awareness and updates throughout the state and provide regular updates to our Board and Executive Leadership team on our progress.

Reporting criteria 5: Effectiveness assessment Mater understands the importance of assessing the effectiveness of the actions we are taking to assess and address modern slavery risks.

We have implemented a program review and evaluation process as part of our reporting requirements to the CEO and Executive Directors. Measurements include the number of internal awareness communication initiatives delivered, the number of supplier engagement conversations held, the number of participants engaging in face-to-face or online training for the month and key performance indicators focusing on suppliers responsive to modern slavery throughout the tender process.

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We will continue to consider how we can better define measures of our effectiveness as part our 2021 program.

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Reporting criteria 6: Process of consultation with entities owned or controlled Our Board also governs Holy Cross Laundry, a world-class, leading commercial laundry and linen hire service for the aged and personal care, commercial and medical industry.

Representatives from Holy Cross were consulted throughout reporting period one and support, tools, guidance and training were provided.

Reporting criteria 7: Other Mater commits to internationally recognised human rights frameworks, standards and goals including:

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• International Bill of Human Rights

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• International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work

• UN Guiding Principles on Business and Human Rights

Francis Sullivan AO Executive Chair, Mater Misericordiae Limited Board of Directors

• Sustainable Development Goals—including Target 8.7 to eradicate modern slavery.