For most Americans the grocery store is a staple - whether it’s a quick snack run, scrambling for Grandmom’s world-famous apple pie ingredients, or just refilling the pantry. While shoppers may choose based on price or nutritional value, another consideration is the labor conditions involved in producing that food.
The US Department of Homeland Security defines forced labor as when individuals are compelled against their will to provide work or service by force, fraud, or coercion. Forced labor is a pervasive and exploitative practice occurring in restaurants, construction, domestic work, and the goods in grocery stores. According to the International Labor Organization (ILO), more than 50 million people were living in modern slavery globally in 2021. Of these 50 million, almost 28 million were in forced labor. Of the approximately 28 million, more than 3 million were estimated to be children.
The US Bureau of International Labor Affairs maintains a list of goods that it believes are produced with child or forced labor. Rice from African countries like Mali and Kenya; coffee from the Dominican Republic and El Salvador; and fish from Cambodia and Thailand, all of which can be found in most US grocery stores and may have been sourced, packaged, or processed using forced or child labor.
In November 2023, a major candy production company was accused of sourcing their cocoa using child labor in West Africa. According to a CBS News report, field supervisors often distorted reports, falsifying that the children were in school when they were still working in the fields. Although this is only one example, forced labor can happen at any point in the supply chain.
However, forced labor in the food and agricultural industry does not exist only outside of the US. In a study published July 2023 in Nature, researchers at the University of Nottingham Rights Lab and the Friedman School of Nutrition Science and Policy at Tufts University calculated the risk of forced labor across all aspects of the U.S. food supply, excluding seafood. They found that most forced labor risks came from animal-based proteins, processed fruits and vegetables, and discretionary foods – products such as sweeteners, coffee, wine, and beer. They also found that 62 percent of forced labor risk came from production or processing that occurs on US soil. The study notes that characteristics such as poverty, language barriers, and uncertain immigration status could render individuals at higher risk for forced labor in the US.
A Grid keyword search focused on forced and child labor within organizations globally from 2013-2023 reveals an ongoing increase in Grid’s human trafficking risk code.
Supply chains are under more scrutiny due to anti-slavery legislation such as the United Kingdom’s Modern Slavery Act and Mexico’s Forced Labor Regulation. This will only increase as other governments and international organizations discuss laws, such as the European Union’s proposal to ban products made with forced labor from the EU market.
As the world becomes more concerned with how their products are processed, companies must monitor their supply chains to limit involvement in human trafficking and forced labor which could result in reputational damage and financial penalties.
We provide a modern slavery risk assessment module and detailed ownership and adverse media data for companies to proactively identify, assess, and mitigate the risk of modern slavery and forced labor in their supply chains.
The modern slavery risk assessment module is designed to evaluate the risk of modern slavery and forced labor in a company's supply chain. It’s a tailored configuration of 8 risk codes that cover the most risk-relevant modern slavery typologies.
The ownership and screening data provide additional layers of scrutiny. The ownership data and company modern slavery statements can provide insights into the relationships between different entities in a supply chain, which can be crucial for identifying potential risks.
The use of these solutions is not a one-time event. Initial screening is performed at the time of onboarding, but ongoing monitoring is equally important. This monitoring generates alerts on any relevant material changes to suppliers in the portfolio, allowing companies to react quickly to any potential issues and take appropriate action to mitigate risk.
Such proactive measures empower our customers to preemptively identify and address potential issues. The ownership data reveals relationships between different entities in a supply chain, a crucial aspect for identifying risks effectively. By leveraging these insights, companies can make informed decisions and implement preventive measures, thereby safeguarding their reputation and complying with all applicable regulations.
To learn more about how we can help you uncover these risks in your supply chain, contact us.