In the Asia-Pacific (APAC) region, supply chains are under the spotlight. From shifting trade agreements to escalating geopolitical tensions, the stakes are rising. At the same time, the enforcement of international labour conventions is intensifying, placing heightened scrutiny on how businesses source, operate, and govern their supply chains.
For companies with operations or sourcing hubs in APAC, proving compliance is no longer a retrospective exercise. It demands real-time transparency, deep supplier engagement, and the ability to identify and act on hidden risks not just on paper, but on the ground.
The Pressure to Prove Compliance
As regulations like the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) come into focus, import regulations such as the Uyghur Forced Labour Prevention Act (UFLPA) and regional Free Trade Areas (FTAs) continue to evolve, businesses across APAC are increasingly expected to demonstrate progress through action. Aligning with ILO conventions and ethical labour standards is not just about compliance; it also plays a vital role in maintaining market access and building long-term partnerships.
Recent on-site audits conducted by Achilles across the region indicate that even mature and well-regulated markets can have hidden gaps. While desktop reviews are a useful starting point, they often miss the operational realities that only on-site verification can reveal. Our audits go beyond checklists to offer deeper insight and greater confidence that supplier practices are aligned with stated policies and ethical expectations.
Boots on the Ground: The Achilles Approach
Achilles’ Ethical Business Programme stands out for its boots-on-the-ground approach, combining:
- Site inspections
- Management system audits
- Confidential worker interviews
Since 2018, Achilles auditors have conducted many thousands of worker interviews across 30+ countries, including 200+ operational sites, spanning 10 key industries, offering real visibility into hidden employment risks.
Some standout findings:
- 33% of workers reported receiving employment terms informally.
- 32% of UK construction workers weren’t given formal contracts with similar issues flagged across Asia.
- While 80% of workers were unaware of modern slavery indicators in 2021, that number dropped to 52% in 2024 proof that awareness efforts are starting to work, but there’s still a way to go.
Risk-Based Auditing: From Many to the Few That Matter Most
Achilles utilises a risk-based approach allowing businesses to zero in on the “critical few” instead of spreading resources thinly across the “compliant many” ensuring resources are used where they have the biggest impact protecting brand reputation and workers alike. The outcome? Sharper insights, faster interventions, and more strategic risk mitigation.
For example, in APAC, audits have uncovered issues ranging from:
- Forced labour in Southern Asia
- Hazardous conditions in Southeast Asia
- Gaps in worker protections within accommodation sites
- Ineffective grievances mechanisms and wage related issues
In parallel, governance-related challenges are increasingly coming to light. These include limited internal audit structures, developing compliance frameworks, and inconsistent documentation practices. Such findings are instrumental in helping organisations move from reactive compliance to a more proactive, structured approach to supply chain risk management.
Audit as a Differentiator: Protecting and Elevating Your Brand
In an era where brand reputation is shaped as much by a company’s supply chain as its marketing, ethical audits aren’t a cost they’re an investment.
- CaixaBank, which uses Achilles audits to ensure ESG compliance across its supplier network, boosting transparency and preparing for future EU due diligence laws.
- Tesco, which engaged Achilles to audit its Central European sites, conducting 412 worker interviews across 12 locations. The findings gave Tesco actionable insights on aging workforce risks and agency labour trends – areas directly linked to ethical employment challenges.
In both cases, on-site auditing became a tool not just for risk mitigation, but brand elevation building trust with stakeholders, regulators, and customers.
Global Standards, Local Insight
Achilles employs over 200 auditors worldwide, fluent in 30+ languages and certified to ISO audit standards. This ensures each audit reflects local realities while meeting global expectations a key capability in the diverse APAC market.
Closing the Loop: From Risk to Resilience
With audit findings integrated into a digital platform, Achilles clients can:
- View non-conformance reports in real-time
- Track corrective actions
- Benchmark progress over time
The impact is measurable: participating suppliers show a 10% average improvement in audit scores.
Audits: A Smarter Way to Build Resilience
With regulatory scrutiny rising and brand reputation on the line, audits are no longer optional. On-site, risk-based audits deliver the kind of clarity, credibility, and compliance that businesses need to thrive under pressure providing a strategic advantage – one that forward-thinking companies are already leveraging to protect people, profits, and their future in global markets.
