We support investors and businesses to mitigate Child Labour risk in their portfolios and supply chains.
Why is Child Labour a business and investment risk?
Reputation and Market Perception: Companies linked to Child Labour can suffer significant reputational damage, leading to declining stock prices, loss of investor confidence, and reduced market valuation.
Interconnected ESG Risks: Human rights abuses, including Child Labour, are often linked to broader environmental and governance risks. Poor labour conditions can signal weak corporate governance, increasing the likelihood of financial instability and regulatory scrutiny.
Regulatory Compliance & Legal Exposure: Global regulators are increasing due diligence requirements, and failure to comply can result in financial penalties, trade restrictions, and potential litigation, all of which pose direct risks to investment portfolios.
Operational and Investment Stability: Supply chain disruptions caused by regulatory actions, sanctions, reputational crises, or legal proceedings can lead to financial losses and operational uncertainty, affecting corporate profitability and investor returns.
Long-Term Portfolio Resilience: Investment strategies that fail to account for Child Labour risks may expose portfolios to hidden liabilities, increasing volatility and weakening long-term financial resilience.
What is Child Labour?
While often grouped under Modern Slavery, Child Labour is a distinct and widespread risk in global supply chains.
Child Labour defines work that is physically, mentally or socially harmful to children and interferes with their education. It is present in most global supply chains.
Child Labour is a significant and material reputational, legal and financial risk for both investors and companies.
