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KnowTheChain Investor Snapshot: Forced Labor in Forestry (incl. Paper & Forest Products)

Author: KnowTheChain, Published on: 13 November 2019

KnowTheChain assessed 39 of the largest publicly listed companies in the paper and forestry and home furnishing retail sectors on their efforts to address forced labour risks in their supply chains, based on publicly disclosed information. The findings show a stark lack of action.

Most of the world’s largest forestry companies producing paper or wooden furniture are failing to protect their workers from forced labour:

  • Just 3/39 companies ban suppliers from charging workers recruitment fees, which can lead migrant workers into debt bondage
  • None of the 39 companies disclose engaging with supply chain workers’ groups such as trade unions
  • While 59% of the companies disclose a supplier code of conduct that includes provisions on forced labor, only 5% disclose having a remedy process in place for workers who are found to have been subjected to forced labor or other labor rights abuses.

Responsible investors have a role to play in ensuring that forestry companies are making efforts to eradicate forced labour from their supply chains. This briefing provides investors:

  • Evidence of forced labor in the global forestry sector
  • Questions to ask portfolio companies
  • Red flags in corproate reporting to watch out for

Download the full document here

Related companies: Aaron's Inc Ahlstrom-Munksjö Oyj Aracruz Celulose (now Fibria Celulose) Bed Bath & Beyond Canfor Corporation Domtar Duratex SA Empresas CMPC Fibria Floor & Decor Holdings Inc Holmen Home Depot Home Product Center Public Company Limited Howden Joinery Group Plc International Paper Kingfisher Lee and Man Paper Manufacturing Limited Louisiana-Pacific Lowe's Metsä Fibre Oy (formerly Metsä-Botnia) Mondi (part of Anglo American) Nine Dragons Paper Nippon Paper Industries Co Ltd Nitori Holdings Co Ltd Norbord Inc Oji Paper Sappi Shandong Chenming Paper Holdings Ltd Siam Global House Public Company Limited Stella-Jones Inc Stora Enso Suzano Papel e Celulose The Navigator Company SA UPM Via Varejo SA West Fraser Timber Co Ltd WestRock Weyerhaeuser Williams Sonoma