How companies can address human rights risks in global supply chains

Despite the popular belief that slavery is a thing of the past, it is estimated that slavery affects around 50 million people globally. Human exploitation for labour and other forms of modern slavery are embedded within the supply chains of many of the products and services that we choose to consume regularly, whether we are buying clothes, electronics, or even a bar of chocolate.

This is becoming an increasing concern for business as well. Mounting pressure from both legislative bodies that introduce new regulations and a new generation of consumers, who seem to be willing to pay more for sustainable products, signals a need for a change.

In this episode of the EY Sustainability Matters podcast, host Bruno Sarda explores this topic further with Tom Veit, CEO of Asahi Global Procurement – a large Japanese consumer goods company, and Kate Skattang, Director in the Climate Change and Sustainability Services practice at EY Australia (Ernst & Young Services Pty Limited). The guests discuss the challenges posed by the issue of forced labor across global supply chains and the recent legislative changes that compel organizations to scrutinize their procurement.

Tom and Kate share industry insights about how EY worked with Asahi Global to create their own human rights due diligence framework, emphasizing the importance of a top-down approach as well as putting people first across all areas of business processes.

• Protecting human rights is a fundamental responsibility for companies, as forced labor impacts tens of millions of people globally.
• Leadership commitment is essential for prioritizing human rights and implementing effective due diligence frameworks within organizations.
• Recent laws, such as modern slavery regulations in the UK and Australia, or Corporate Sustainability Due Diligence Directive (CSDDD), are driving companies to assess and proactively disclose human rights risks in their supply chains.

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