Globalisation has created sprawling supply chain networks that extend into nearly every corner of the world.
While these have become increasingly intricate and complex, there are few legal requirements asked of companies to ensure the myriad actors in their supply chains are not exploitative or causing harm. In theory, suppliers must follow legal requirements in their own country or region - such as on minimum wages, or health & safety. However, much depends on enforcement, and there are countless instances where organisations fail to meet minimum legal standards. Therefore, as responsible investors, our first task is surely to understand the risks and impacts throughout any supply chain...
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