Multinational corporations under scrutiny for human rights violations and supply chain issues, with Candriam highlighting seven key offenders.

Multinational corporations under scrutiny for human rights violations and supply chain issues, with Candriam highlighting seven key offenders.

The current state of human rights disclosure in the supply chains of major food and beverage companies, particularly concerning coffee and cocoa, reveals ongoing but incomplete efforts towards transparency and risk mitigation.

Companies like Marubeni Corporation have actively expanded human rights due diligence in supply chains, investigating suppliers in high-risk regions for forced and child labor. Their efforts in 2024 included desktop and on-site investigations of suppliers of beverage ingredients, vegetable oils, and grains – products closely related to coffee and cocoa supply chains. These investigations extend beyond primary suppliers to indirect and secondary levels, demonstrating increasing depth in scrutiny.

Consumer goods companies such as Campbell’s acknowledge challenges in supply chain visibility beyond the first tier but implement policies such as Codes of Conduct and Human Rights Principles, which prohibit forced and child labor and promote safe workplaces. Campbell’s actively conducts audits and enforces supplier compliance through its Responsible Sourcing Supplier Code, including rights to audit factories and verify records related to human rights compliance.

However, disclosure of labor abuses remains limited overall, with many companies not providing fully detailed transparency on supply chain human rights violations, especially in the coffee and cocoa sectors. For instance, the Modern Slavery Registry points out that while some companies like Tesco have disclosed abuses under legislations like the UK Modern Slavery Act, such disclosures are "still a rarity" across the industry.

Regulatory and legal trends are evolving, with increased scrutiny and requirements for supply chain transparency under laws such as the UK Modern Slavery Act and California Transparency in Supply Chains Act, which impact reporting practices of major food and beverage companies.

Challenges persist due to the complexity of supply chains and difficulties in tracing beyond first-tier suppliers, which is critical in coffee and cocoa supply chains typically sourced from multiple countries with high human rights risks.

In summary, major food and beverage companies have made progress in human rights due diligence and policy frameworks focusing on high-risk food ingredients like coffee and cocoa, but full transparency and comprehensive supply chain disclosures are still developing. Their exposure to human rights risks remains considerable given regional challenges, though ongoing efforts through audits, traceability improvement, and third-party investigations aim to mitigate these risks.

It is worth noting that there is a lack of international standardization of reporting requirements. Candriam, an asset management company with €144 billion in assets under management, conducted a research to investigate the level of human rights protection in the food sector. The research used Cdp Forest data and corporate documents from seven consumer goods companies, aiming to evaluate their revenue dependence on certain commodities and assess their exposure to human rights risks.

References:

1. Marubeni Corporation Sustainability Report 2024
2. Campbell's Corporate Responsibility Report 2021
3. Modern Slavery Registry: Food and Agriculture
4. California Transparency in Supply Chains Act
5. The international community is still grappling with the issue of human rights disclosure in the supply chains of major food and beverage companies, particularly focusing on coffee and cocoa.
6. In an effort to address these concerns, companies like Marubeni Corporation are beefing up human rights due diligence in their supply chains.
7. In 2024, Marubeni expanded its investigations to include suppliers of beverage ingredients, vegetable oils, and grains.
8. These investigations extend beyond primary suppliers to indirect and secondary levels, demonstrating increased depth in scrutiny.
9. Consumer goods companies such as Campbell’s have also acknowledged the challenges in achieving complete supply chain visibility.
10. To mitigate these challenges, Campbell’s has implemented policies like Codes of Conduct and Human Rights Principles.
11. These policies prohibit forced and child labor and promote safe workplaces in their supply chains.
12. Campbell’s also actively conducts audits and enforces supplier compliance through its Responsible Sourcing Supplier Code.
13. However, disclosure of labor abuses remains limited overall, with many companies not providing fully detailed transparency on supply chain human rights violations.
14. For instance, the Modern Slavery Registry points out that disclosures under legislation like the UK Modern Slavery Act are "still a rarity" across the industry.
15. Regulatory and legal trends are evolving, with increased scrutiny and requirements for supply chain transparency under laws such as the UK Modern Slavery Act and California Transparency in Supply Chains Act.
16. These laws impact the reporting practices of major food and beverage companies, pushing for more transparency in their operations.
17. The complexity of supply chains and difficulties in tracing beyond first-tier suppliers present significant challenges, particularly in coffee and cocoa supply chains.
18. These supply chains are typically sourced from multiple countries with high human rights risks.
19. In summary, major food and beverage companies have made progress in human rights due diligence and policy frameworks, but full transparency and comprehensive supply chain disclosures are still developing.
20. There is a lack of international standardization of reporting requirements, which makes it difficult to compare the efforts of different companies.
21. Asset management companies like Candriam are conducting research to investigate the level of human rights protection in the food sector.
22. Candriam used Cdp Forest data and corporate documents from seven consumer goods companies to evaluate their revenue dependence on certain commodities and assess their exposure to human rights risks.
23. With €144 billion in assets under management, Candriam's research provides valuable insights into the human rights practices of major food companies.
24. The food and beverage industry is not only about international finance and business, it also intertwines with lifestyle, food-and-drink, and personal-finance concerns.
25. As consumers become more aware of the sources of their food and beverages, trends in global-cuisines, food-and-drink, and cultural-travel continue to grow.22.Consumers are increasingly interested in understanding the provenance of their food and beverages, leading to a focus on recipes and sustainable sourcing practices.
26. Meanwhile, sports, outdoor activities, and adventure-travel have become popular for those seeking to connect with new cultures and experiences, offering opportunities for exploration of local food and drink traditions.

Read also: