ESG Viewpoint: What makes supply chain due diligence effective?
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ESG Viewpoint: What makes supply chain due diligence effective?

Working conditions in supply chains remains a challenging issue that spans virtually all sectors and geographies. Some recent cases include:

  • Operators of the UK government’s Seasonal Worker Scheme were found to be lacking in effective due diligence. Workers arriving at UK farms, having spent thousands of pounds in illicit recruitment fees.
  • In October 2022, the US government announced that it considers lithium-ion batteries – critical for products from smartphones to electric vehicles – as likely to be tainted by forced labour due to conditions in cobalt and copper mining.
  • Research by the Business and Human Rights Resource Centre shows a rapid deterioration of working conditions in the apparel industry in Myanmar.

As investors, we need to understand how investee companies are deploying effective due diligence to manage risk appropriately. Lack of clear disclosure can make this challenging, but with the right questions we can gain important insights into strategy and effectiveness through engagement dialogue.

Interested in learning more?

Regulatory requirements are increasingly stringent, and companies need to adopt a robust approach to risk assessment and monitoring.  We outline our take on best practices and our engagement activities. Download the full ESG Viewpoint to discover more.

7 June 2023
Marcus Wilert
Marcus Wilert
Vice President, Analyst Responsible Investment
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ESG Viewpoint: What makes supply chain due diligence effective?

Risk Disclaimer

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

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Risk Disclaimer

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

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