We expect investee companies to recognise that their workforce is a key source of value for the business and that they respect International Labour Organisation (ILO) Core Conventions, the ILO Fundamental Principles on Rights at Work and promote ‘decent work’.
We expect all companies to be operating in line with the ILO Core Conventions and local labour laws in all jurisdictions in which they are operating, and that they should expect the same of suppliers and business partners. Furthermore, they should recognise the need to be transparent about their workforce policies and practices with investors.
Our better work stewardship covers modern slavery. Modern slavery is an umbrella term encompassing slavery, servitude, human trafficking and forced or compulsory labour. Victims are controlled by punishment, debt bondage, threats, violence, deception and coercion. Whilst the true extent of this crime is hidden from view, the ILO now estimates that 50 million people worldwide are in a state of modern slavery.
While this is clearly a key issue for law-enforcement, it also impacts the business and investment community. Against a backdrop of increasing public scrutiny, a risk that may once have been reputational and short-term in nature is becoming financially material.
Modern slavery infiltrates the supply chains of many everyday products and commodities, including food, electronics and clothing. It is also rife in construction and hospitality. While some companies are more exposed than others, we believe that all businesses are linked to modern slavery in some way; either directly, or indirectly via their supply chains. Large, listed companies are in an influential position to set standards, implement policies, and take action to find, fix and prevent modern slavery.
Initiatives
Addressing modern slavery
We believe that businesses can play a key role in the fight to end modern slavery. We aim to use the power of investors to encourage more effective action to find, fix and prevent modern slavery.
Examples
Amazon
Sustainable Development Goal 8: Decent work and economic growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
In 2022, Amazon workers in Staten Island formed the first Amazon Union which has faced opposition and anti-union interference from the company. In 2023 and 2024 we co-filed a resolution at Amazon, urging an independent assessment of its commitment to workers’ rights as per its Global Human Rights Principles. The 2024 proposal achieved 32% of the shareholder vote. The rights to Freedom of Association and Collective Bargaining are International Labour Organisation (ILO) Core Conventions and a key part of the ILO Declaration on Fundamental Principles and Rights at Work. This means that they are internationally recognised as Human Rights norms that should be upheld, regardless of local legislation. The resolution may not have passed, but we will continue to seek to engage Amazon on the issue and have subsequently led a group of 50 investors, with $1.2 trillion in assets under management, in writing to the company to reiterate our concerns.
Addressing Modern Slavery in UK Companies
Sustainable Development Goal 8: Decent work and economic growth