Foreword

The 2024 report reaffirms that modern slavery is increasing, with 50 million people affected globally. Legislative developments, such as the EU Corporate Sustainability Due Diligence Directive and Forced Labour ban, signal a shift towards mandatory frameworks. CCLA highlights progress through its Modern Slavery UK Benchmark and anticipates improved corporate responses due to increased regulatory pressure.

Reflections on developing a benchmark

CCLA’s 2023 benchmark assessed the 100 largest UK-listed firms for their modern slavery disclosures. The assessment was tiered and focused on compliance, alignment with UK Home Office guidance, and efforts to find, fix, and prevent slavery. While all firms had policies, few demonstrated effective remedies. However, the initiative prompted positive engagement, with some companies indicating improved practices in response.

Introduction

Modern slavery, encompassing forced labour, human trafficking, and debt bondage, affects 50 million people. Of these, 28 million are in forced labour, often in private sector supply chains. In 2019, CCLA launched Find It, Fix It, Prevent It to leverage investor influence. With £15 trillion in assets under management, the initiative operates across corporate engagement, public policy, and data development.

Corporate engagement

The construction sector, selected for its high-risk profile, remained the primary engagement focus. Risk factors include low-wage migrant labour, subcontracting, and sourcing of materials from high-risk countries. Engagement results were mixed; most firms disclosed policies but lacked due diligence and remedy practices.

In April 2024, CCLA held a roundtable with 60 industry leaders. Analysis of 31 firms showed poor performance in ‘fix it’ measures, followed by ‘find it’ and ‘prevent it’. Most companies were ranked in Tier 3 or 4, with only two in Tier 2. A modern slavery intelligence network was proposed, with several firms showing support.

Seasonal agriculture also remained a concern. Despite UK government commitments, workers continue to face debt bondage due to recruitment costs. A May 2024 field trip revealed first-hand accounts of exploitation. Investors supported a pilot modelling the Employer Pays Principle to reduce worker-borne costs.

Public policy

Policy advocacy focused on strengthening UK legislation, including supply chain transparency and mandatory reporting. Although the UK government accepted the need for stricter measures, progress was delayed. CCLA provided evidence to the Home Affairs Committee and House of Lords, advocating for financial institutions to report on modern slavery risks in lending and investment portfolios.

Following poor financial services sector performance in the benchmark, CCLA met with the Investment Association to encourage improvements. Internationally, the EU adopted mandatory due diligence laws, which CCLA supports as a model for UK reform.

Developing better modern slavery data

Lack of accurate data hinders investor action. CCLA launched the Modern Slavery Benchmark to address this, covering legal compliance and disclosures on finding, fixing, and preventing slavery. Public acknowledgment from major firms such as National Grid and Tesco highlights its impact. The next benchmark iteration is in development.

Opinion forming and thought leadership

Find It, Fix It, Prevent It collaborated with Investors Against Slavery and Trafficking Asia Pacific and FAST. Joint knowledge-sharing events enhanced members’ capacity to assess risks and identify ethical practices. A May 2023 roundtable led to a brief on AI’s role in supply chain transparency, with an emphasis on legal and ethical safeguards.

Care sector

Due to increased use of migrant workers, the care sector faces growing modern slavery risks. Unseen reported a 606% rise in related cases between 2021 and 2022. A February 2024 webinar revealed sector-specific challenges, including fragmented ownership. Friends Provident Foundation has funded further research to map these issues.

What being a member means

Membership of the initiative involves engagement within legal and regulatory frameworks. Members operate independently, must avoid anti-competitive behaviour, and retain full discretion over investment decisions.