This document sets out investor guidance and expectations on corporate respect for workers’ rights in global supply chains that investors can communicate to portfolio companies.

Specifically, it addresses how binding agreements between trade unions or worker representatives and companies can uphold fundamental labour rights and thus mitigate related risks for companies and their investors. The document is a tool to support investors in engaging companies on supply chain due diligence, particularly in the garment and textile sector, where binding agreements are most developed.

The guidance provides evidence and arguments for why binding agreements bring benefits to workers, companies and investors that voluntary initiatives such as social audits are not designed to generate. We encourage issuers to support the development of these agreements in the garment and textile sector, as well as other sectors, and to join initiatives where available.