Global supply chains are in need of a transformation, one that benefits all stakeholders, but especially workers and their communities, who are vulnerable to wage theft, exploitative and oppressive working conditions, human trafficking, race and gender discrimination and environmental injustice.

In their engagements with global brands, ICCR members engage companies with a higher risk of forced labor in their global supply chains across several sectors, including apparel and footwear, food and agriculture, and electronics.  ICCR members press these companies to conduct comprehensive human rights and environmental due diligence, in line with the UN Guiding Principles for Business and Human Rights, and to adopt risk prevention, mitigation and remediation practices to reduce the adverse impact of their business operations.  Included among such practices should be full supply chain traceability, responsible contracting principles that task both buyer and supplier with human rights obligations, systems for grievance reporting, retroactive and prospective remedy/compensation, and robust stakeholder engagement.

The emergence of new German and EU legislation will further compel companies doing business in these jurisdictions to comprehensively assess and respond to human rights risks in their entire supply chains.  Recently revived enforcement of the U.S. prohibition on the import of goods made with forced labor should also increase the pressure on companies that import into the U.S. to understand and mitigate their supply chain risks.

Investors expect companies to be aware of racial inequality inherent in or that may be exacerbated by their supply chains.  They should demonstrate any steps being taken to address racial equity risks in their operations and their supply chain and consider the impact of business decisions on racial equality.