A group of 87 global institutional investors has expressed its support for a European Commission legislative proposal which aims to prohibit products made with forced labor from entering the EU.
The alliance, representing over $2.4 trillion in assets under management, has moved to highlight the urgent need for meaningful action and laws to tackle the exploitation of workers around the world.
In a March 21 press release, the group made a series of recommendations for robust forced labor regulation.
This includes Incorporating a worker and remedy-centered approach, with companies remediating the harm suffered by the affected communities and the inclusion of mandatory human rights due diligence complementary to the EU Corporate Sustainability Due Diligence Directive.
Another proposal would require complete value chain tracing and required public disclosure for companies.
The statement was directed to members of the European Parliament and members of the European Commission to be considered as part of ongoing discussions on the regulation.
“This is an essential first step towards building a smart mix of tools to help eliminate forced labor across the world. However, investors urge that the proposed regulation must also ensure a positive impact on workers throughout the value chain,” the letter reads.