LBP AM participates in a FIR initiative to support the fight against forced and child labour
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La Banque Postale Asset Management (LBP AM) is a member of a coalition launched by the Forum pour l’investissement Responsable (FIR) [Forum for Responsible Investment], which brings together some ten of its investor members with more than €3,100 billion in assets under management, to support the fight against forced labour and child labour worldwide.
FIR Press Release :
FIR press release: For investors, the problem of forced labour and child labour is a material social issue that entails reputational and/or operational risks for companies, one that can affect their economic performance in the medium term. It is above all a concern for the populations exposed to these risks in the value chains: the coalition is consequently mobilizing to ensure that the exercise of the due duty of care contributes effectively to reducing the risks for people.
In that respect, the FIR has since the end of 2021 overseen a first phase of methodological co-construction led by the NGO Ressources Humaines Sans Frontières (RHSF) [Human Resources Without Borders] with some of its investor members in order to devise a methodology for assessing companies adapted to investors in terms of the prevention of forced and child labour.
Relying on a risk-based approach for people, the objective would be to gain vigilance over the entire value chain of products or services up to the countries of origin. The complexity of the subject nonetheless requires mapping and identifying the risks in the various activities in order to assess and deal with the segments most at risk. The level of maturity of companies is analysed in terms of their knowledge of the subject, their commitment, the targeting of their approach and the risk management measures deployed.
A phase of dialogue and commitment with companies has now been launched using the assessment methodology developed. Ten French companies from what are considered to be high-stake sectors* in this area have been selected by the investors to engage in a constructive dialogue. This dialogue will aim to gain a better understanding of the risks of forced and child labour in the value chain of these companies and to support them in preventing such risks. A first assessment of the discussions will be conducted at the end of the year.
*Food, Automotive, Consumer Discretionary, Construction, Hotels, Industries and Utilities