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Article

8 Dec 2015

Author:
Finance Against Trafficking

Forced Labour, Human Trafficking and the FTSE 100: A review of company disclosure and recommendations for investor engagement

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As the Modern Slavery Act 2015 comes into force, companies face unprecedented scrutiny in ensuring their supply chains are free from forced labour and human trafficking. New guidance, released in November 2015 by Finance Against Trafficking in partnership with ECCRUs and Rathbone Greenbank Investment, will give investors the knowledge to challenge companies and ensure they are working to the highest standards in this area and in so doing, help protect some of the world's most vulnerable people. As shareholders of a company, investors can play an important role in supporting a companies' progress in the area of human rights and companies who choose to embed these practices in their core operations are likely to provide higher quality investment opportunities and improved investor returns. ‘Forced Labour, Human Trafficking & The FTSE 100’ investigates the risk of human trafficking and forced labour within two 'high-risk' industries and two 'high-risk' commodities. It examines the disclosure of relevant FTSE 100 companies within these sectors to assess how these companies are managing and disclosing forced labour and human trafficking risks in their businesses and supply chains.  The report helps investors to identify the core areas of concern that they should inspect before making an investment decision and offers advice and guidance to both companies and investors on how these risks can be addressed, helping companies meet their corporate social responsibilities.