Rathbones, a provider of investment management services for individuals, charities and professional advisershas launched its fourth Votes Against Slavery engagement, securing support from a record 132 investors with assets under management totalling £8.17tn at time of writing.
This iteration builds on the success of last year’s Votes Against Slavery campaign which won the ‘Stewardship Initiative of the Year’ award at the PRI Awards 2022.
In 2022, Rathbones, on behalf of the Votes Against Slavery group of investors, contacted 44 FTSE 350 companies which had fallen short of the reporting requirements, and 41 have now become compliant.
The 2023 engagement, led by the Rathbones stewardship team and co-ordinated through the PRI Collaboration Platform, comprises asset managers and institutional investors and will target 29 FTSE 350 companies which fail to comply with Section 54 disclosure requirements of the Modern Slavery Act (2015).
While the Act requires all companies above a certain size operating in the UK to report on how they find and eliminate modern slavery within their supply chains, there is currently no legal redress for companies that fail to comply.
Latest data suggest that the issue is becoming more serious, as increasing geopolitical tensions, conflicts and impending recessions around the world further stress global supply chains. Revising its previous estimates, the International Labour Organisation (ILO) reported that 50 million people* were living in modern slavery in 2022, with some 28 million in forced labour and 22 million trapped in forced marriage.
Taking AIM
In a standalone Rathbones initiative this year, Rathbones has initiated contact with FTSE AIM companies, having assessed that 59 of the 100 largest** have non-compliant statements or have failed to produce statements. The firm will be following up in due course.
Leading investor response to Modern Slavery Bill
To maintain pressure on eliminating this appalling and often hidden human tragedy, Rathbones will co-ordinate the investor response supporting proposed changes to the Modern Slavery Bill, which have been put forward by organisations Anti-Slavery International, Justice & Care, and Unseen UK. The Modern Slavery Bill aims to “reduce the prevalence of modern slavery in supply chains” by “building on the strong foundations” laid down by the Modern Slavery Act 2015.
The proposed changes to the Bill include strengthening Section 54 of the 2015 Act, which was put forward by Rathbones and CCLA to the Transparency in Supply Chain Consultation*** in 2019, but more broadly call for the establishment of a legal framework for the transparent imposition of import controls.
Such a framework would target specific companies and goods affected by forced labour, and encourage the remediation of forced labour practices as well as preventing goods from entering the UK market. The framework should exhibit features such as a formalised complaints procedure; published guidance on assessment criteria; and a clear and published process for the imposition of an import ban on specific goods, entities (e.g., importers, manufacturers) or industries from specific geographical regions.
Archie Pearson, ESG and stewardship analyst – voting lead, said: “When first passed, the UK Modern Slavery Act was globally very advanced; however, issues around the quality of disclosure remain and the UK is at risk of lagging. While the Bill is seeking to address some issues, we don’t believe it goes far enough. Rathbones is very proud to co-ordinate the investor response in relation to the proposed – and hugely significant – improvements proposed by Anti-Slavery UK, Justice & Care and Unseen UK.”
Matt Crossman, stewardship director, Rathbones said: “With global – and UK – incidences of modern slavery still increasing, there is so much more to be done and we will continue to tackle this issue, both through our Votes Against Slavery collaboration, and through co-ordination of the investor response to proposed changes to the Modern Slavery Bill. We are delighted that we have secured 132 investors to Votes Against Slavery this year, the highest number yet: and an indication of the growing relevance of this collaboration.”
