AustralianSuper is supporting transparency and accountability in Australian cleaning supply chains through the Cleaning Accountability Framework.
Opportunity
As an investor, AustralianSuper believes that fair and transparent employment conditions support long term-value creation in the companies and assets we invest in.
With $7.2 billion invested in the Australian property sector, and approximately 90,000 AustralianSuper members employed in the Australian cleaning sector (as at 31 December 2024), AustralianSuper expects the companies managing the commercial properties it invests in are prioritising labour conditions and human rights.
The cleaning industry has been identified as being at high risk of modern slavery due to several factors including the reliance on, often vulnerable, migrant workers and subcontracting practices, resulting in limited transparency in cleaning supply chains.
AustralianSuper co-founded the Cleaning Accountability Framework (CAF) with the United Workers Union (UWU) in 2012, to protect cleaners from exploitation by driving responsible contracting and procurement practices.
By supporting CAF, AustralianSuper seeks to improve the working conditions and retirement outcomes for its members and contribute towards improving conditions for workers in the industry more broadly.
"CAF allowed me not only to learn about my own rights but also to support other workers in similar situations, helping them understand their rights and advocate for their interests. Through providing this support, I discovered a true passion for helping and ensuring that people in this sector have access to fair and dignified working conditions. CAF’s mission to promote transparency, accountability, and ethical labour standards in the cleaning sector deeply resonates with my own values and my desire to contribute to a more just and equitable industry.”
– John Nunez. CAF Rep, Spring Place, Victoria
Approach
Through our representation on the Board of CAF and our involvement in working groups, AustralianSuper has supported CAF in developing a due diligence framework to help protect cleaners from exploitation through responsible contracting and procurement practices.
CAF certifies commercial and retail real estate assets through its set of labour standards which seek to ensure that cleaning staff are compensated according to law and appropriate labour practices are upheld. CAF's model is based on education and ongoing engagement with workers to identify early warning signs of modern slavery-like practices and to raise vulnerable workers’ expectations and experience of decent work in Australia.
In September 2024, AustralianSuper presented at the launch of CAF’s Portfolio Certification, which has moved the CAF model from a building-by-building approach to a larger-scale certification. The certification is expected to increase CAF’s ability to engage with cleaners on a broader scale, by enabling CAF Certification to cover property portfolios, as opposed to individual buildings.
A key distinguishing feature of CAF’s approach is its worker voice component. This enables cleaners to raise issues, which in turn can lead to multi-stakeholder dialogue to design solutions.
“CAF has cemented its place as an innovative model to assess supply chain risks of modern slavery in the cleaning industry and is an invaluable part of risk management. Central to CAF’s success is that it involves all stakeholders, cleaning contractors, property owners, investors, facility managers, regulators, unions and most importantly workers.”
– Antonia Parkes, Senior Director, ESG & Stewardship, AustralianSuper
Outcome
Just over a decade since AustralianSuper co-founded CAF, it is now recognised for implementing a successful multi-stakeholder initiative, based on a certification system which has had a positive impact on preventing worker exploitation. This certification system involves a due diligence model for the retail and commercial property services sector.1
Between 2019 and 2024, CAF has reported, identified and investigated 1,000 compliance issues2 across the cleaning services supply chains of 56 commercial buildings3 and retail precincts in Australia. Over this period, 70% of compliance issues were identified through CAF’s worker engagement, as compared to only 30% found through desk-based audits.4 This highlights the effectiveness of engaging workers directly in the certification process.
CAF Building Certification is expected to reach more than 1,700 cleaners3 who work at CAF-Certified buildings in Australia, some of which AustralianSuper is indirectly invested in through ISPT (now a property division of IFM Investors).
In addition, CAF Contractor Prequalification recognises a cleaning contractor’s employment systems, policies and procedures being set up to promote compliance with labour standards. This involves direct worker engagement with a company’s employees. Over 17,000 cleaners are employed by CAF-Prequalified cleaning companies and are part of this industry transformation.3
AustralianSuper’s support of CAF forms part of its broader industry engagement on modern slavery. As part of the Fund’s Modern Slavery Statement, AustralianSuper is also undertaking a number of initiatives within its own operations and investments within its portfolio. For more information, see here: australiansuper.com/investments/how-we-invest/esg-management and Cleaning Accountability Framework Ltd.
56
CAF-certified commercial buildings and retail precincts in Australia since CAF founded3
1,000
Compliance issues reported, identified and investigated by CAF between 2019 - 20242
17,000
Cleaners employed by CAF-Prequalified cleaning companies at the end FY243
References:
- UN Special Rapporteur Recognises CAF’s Role in Preventing Exploitation – Cleaning Accountability Framework Ltd.
- The Cleaning Accountability Framework Submission to UN Special Rapporteur on contemporary forms of slavery, September 2024
- Cleaning Accountability Framework Annual Report FY24
- CAF blog, If you aren’t doing worker engagement, you’ve got blind spots in your supply chain, 14 February 2022
The views expressed are those of the member based on their particular circumstances, reproduced with their continuing consent.
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