Developed by the organisation Business & Human Rights Resource Centre, the KnowTheChain benchmark is a tool that evaluates how companies across various sectors address forced labour risks within their supply chains. It aims to promote transparency, improve labour standards, and encourage ethical business practices globally.

The tool is designed for investors, finance professionals, and companies seeking to understand and improve corporate labour practices. It helps investors identify forced labour risks in their portfolios and provides insights into how well companies are managing these risks.

How it works

KnowTheChain evaluates companies using a comprehensive set of indicators. These include transparency, worker rights, risk identification, purchasing practices, and grievance mechanisms. The benchmark methodology covers seven key sectors: information and communications technology (ICT), food and beverage, apparel and footwear, automotive, and others that have significant exposure to supply chain risks.

How it can help you

This tool is valuable for finance professionals as it highlights forced labour risks that may impact corporate performance and reputation. By identifying companies with poor labour practices, finance professionals can make more informed investment decisions, mitigating risks linked to unethical supply chains. Additionally, it encourages companies to improve their supply chain transparency, contributing to long-term sustainability and responsible investment strategies.

Conclusion

KnowTheChain’s benchmark tool is a key resource for finance professionals interested in integrating ESG factors, particularly human rights and labour standards, into their investment processes. The tool supports responsible investment decisions by providing a clear assessment of forced labour risks across different sectors, fostering improved corporate accountability.