SupplyESChange Social Impact Insights: Recent Episodes

Kate Larsen SupplyESChange

Updates and insights from our experienced global network into how Environmental Sustainability and Social Impact can be caused in company supply chains in China, Asia and around the world for ESG Investors, Companies Responsible Sourcing, Sustainable Procurement and Ethical Trade, policy makers and others helping deliver biz human rights due diligence, modern slavery elimination and the SDGs.

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The EU CSDDD Corporate Sustainability Due Diligence Directive was passed on 24 April 2024, meaning that large multinational companies operating in Europe will need to act on human rights risks in their global operations and supply chains, and report on this in coming years.

A Story from one incident which was an impetus for the CSDDD and other human rights due diligence HREDD legislation is shared in this podcast, and what we can learn from this about the importance of rights-holder stakeholder voice to deliver positive social impact and the environmental protection we need and which is demanded of business.

(*CORRECTION: Over 200, not over 1200 companies joined the Bangladesh Accord on Fire and Building Safety, my apologies!).

Kate A Larsen shares insights from over 20 years working on human rights and environmental due diligence, especially in global supply chains, and especially in China and Asia.

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New laws are coming through against import of goods made under conditions of forced labour so we discuss the many places this can be found in supply chains, what it looks like, but most importantly, what to do about it for business human rights due diligence towards ESG, SDG, social impact outcomes to improve lives.

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A quick comment 28 February 2022 on what I was hearing early on about Ukraine crisis impacts for business, and how the thinking behind new business human rights due diligence legislation can not only help reduce risk from such exposure, reduce risk of complicity in supporting human rights abusing regimes, and help ESG performance.  

Thoughts with Ukrainian, Afghani, Yemeni, and any peoples under siege of their homes, or Syrians and some Palestinians who have already lost theirs. 

ESG is about ultimately about Peace as we good Governance is pointless if we don't deliver Environmental and Social stability.

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Quick Analysis of supplier ESG assessment tools and platforms

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Kate A Larsen interview's Rich Brubaker, Founder and Managing Director of Collective Responsibility and "HandsOn" Shanghai in China.

Kate and Rich discussed:

  • Emerging laws and regulations for modern slavery, forced labour and business human rights due diligence (HRDD) in supply chains (since the podcast the German human rights due diligence in supply chains law has passed 11 June 2021, the EU draft is under development, and USA and Canada laws been developing);
  • The situation of Left behind Children of migrant workers in international supply chains that we've both seen in China and around the world, including in the UK especially for Eastern Europeans, for Bangladeshis to Malaysia factories and Middle East construction, for Chinese who go to work in manufacturing in Japan and more;
  • How companies should and can influence respect for human rights for parent workers and children in supply chains;
  • What leading responsible businesses are doing to support suppliers to help migrant parents and families and gain business benefits.

Rich has been in China almost 20 years, and worked with companies, charities, non-profits.

Rich and Kate met through Corporate Social Responsibility networks circa 2005 when Kate, now SupplyESChange Director, worked in Beijing, China in social risk management for consultancy ERM.

Rich started "Hands-On Shanghai" for social innovation, a charity on the side, which now has about 150-200 events a month building awareness and catalysing social impact efforts locally. Rich also founded the "Collective Responsibility" consultancy to work wth corporates on CSR and social impacts, and is Chair of the American Chamber of Commerce Sustainability Committee in Shanghai, China.

LINKS to People and Orgs Discussed, Contacts:

Rich Brubaker can be reached at https://www.linkedin.com/in/richbrubaker/

and Kate A Larsen at https://www.linkedin.com/in/katelarsen/

HandsOn Shanghai is at https://handsonshanghai.org/

and SupplyESChange UK (for China supply chain labour standards insights, investigation projects and trainings) https://www.supplyeschange.com/

Also mentioned was INNO Guangzhou who run Handshake worker helpline https://www.innointernational.org/

and

SaveTheChildren's The Centre for Child Rights and Business (formerly CCRCSR: the Centre for Child Rights and Corporate Social Responsibility) founded in China https://www.childrights-business.org/

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SupplyESChange discuss how Companies can be doing Supply Chain Human Rights risk assessment, and of risk that Uyghurs may be in forced labour conditions in China supply chains (as migrant workers are sometimes in suppliers in other countries like Malaysia, Japan, Taiwan, UK, Italy, etc).

We discuss nuance in desk based on onsite risk assessing, what SupplyESChange Founder has personally seen on the ground in China and other countries, what new laws expect companies to be doing in terms of supply chains human rights due diligence, and how to do it well. 

Insights are relevant to a broad range of industries from apparel to tech to autos to pharma and all household goods, solar, wind and all exports. Risks have also been seen in construction, warehousing and logistics, and other processes globally. We describe what forced labour modern slavery looks like on sites and versus labour law/ standards violations that companies are expected to, and do, ongoing influence remediation of. 

Collaboration, and why it helps and to reduce cost is a final aspect briefly touched on.

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What do we mean by Rigour in Social Audits? What does good investigation of forced Labour and exploitation risk look like? What should companies be doing and why? SupplyESchange.com Founder Kate Larsen shares insights from experience in China, Asia, the U.K., Italy, etc and working in business and civil society and for investors; about new legislation, and a sneak peak from upcoming Responsible Sourcing and ESG courses.

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After a new BBC report today of more growth in forced labour of Uyghurs in China supply chains this quick podcast discusses what companies can do, and investors should expect them to do to manage risk and ensure Decent Work conditions.

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Quick update on new reports of forced Labour of Uyghur people in China supply chain factories in Xinjiang Uyghur region and coastal export provinces like Guangdong, the new laws expecting companies to do business human rights due diligence on these issues, and highlights of how by Kate Larsen SupplyESChange Online Course and Advisory initiatives network.

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A quick discussion about what companies can do to know the supplier labour conditions better and reduce modern slavery and labour risk. Hear how other companies have looked harder to get ahead of Social risk, clean up and have a more stable supply chain and deliver social impact and SDGS.

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We discuss the new Investor call for laws that companies must do human rights due diligence on supply chains labour conditions and environmental performance and Sustainability, as Activists and business have also called for to level the playing field and clarify expectations.

We discuss the Leather Working Group as a model of collaborative industry initiatives which do great supply chain Environmental and chemical safety monitoring, and have involved stakeholders such as Greenpeace to realise traceability to prevent leather from farms cutting down rainforest. We reference more steps companies can take to help prevent rainforest and other environmental destruction: https://supplyeschange.com/coronavirus-and-6-sustainability-steps-businesses-can-take-to-prevent-more/

Why Social Audit and Environmental Auditing and training expertise is different to monitor water and air (carbon, greenhousegas) emissions and more, and the difference should be respected, and why so many industry initiatives exist, many with strengths in one or the other, and the overlap of safety conditions monitoring. And more! Join SupplyESChange enewsletters for more Updates: https://supplyeschange.com/ or follow https://twitter.com/ESChange1/ or http://www.linkedin.com/in/katelarsen . Thanks!