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2 Oct 2018

KnowTheChain: Ranking of 40 ICT companies on efforts to address forced labour in supply chains

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As technology companies bring the world together, they are failing to connect with the workers in their own supply chains to address forced labor risks, KnowTheChain found in its second information and communications technology (ICT) benchmark. The benchmark ranks the top 40 global ICT companies—with a combined market capitalization of $4.7 trillion—on how they address forced labor in their supply chains.

Intel, the leader of the benchmark, overtook both Apple and HP since 2016. Overall, major companies, including Intel, HP, Apple, Hewlett Packard Enterprise, scored highest in the benchmark, but other important players, notably Amazon, did not perform as well. Similarly, Broadcom reduced its public disclosure dramatically, resulting in an 81% decrease in their score compared to 2016. While the majority of companies have taken steps to improve compared to 2016, the sector as a whole needs to take stronger actions to protect vulnerable workers.

Issue areas that have the most impact on workers’ lives, such as worker voice and recruitment, are among the lowest scoring themes for all companies. The report urges companies to engage with workers, give them access to effective grievance mechanisms, and tackle the exploitation of migrant workers by implementing ethical recruitment practices and repaying workers for recruitment fees they may have paid.

The companies were selected for the benchmark based on their size (market capitalization) and the extent to which they derive revenues from physical products, where the risks of forced labor are high. KnowTheChain assessed information available on each company’s website, additional public disclosure that companies provided, and forced labor allegations and companies’ responses. 

In addition to ranking 40 ICT global companies and providing an analysis of company policies, the benchmark provides recommendations for companies on a path forward. It also provides a valuable framework for investors to inform their decision making and active ownership practices. For this reasons, KnowTheChain is supported by global investors representing more than $3 trillion in assets who also committed to taking action to eradicate forced labor in their portfolios.

KnowTheChain will release two additional benchmarks in the second half of 2018 on the food and beverage, and the apparel and footwear sectors. 

See the press release for more details.