All Stewardship articles – Page 19
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Engagement guideFrom poor working conditions to forced labour - what's hidden in your portfolio?
Recent legislation such as the UK Modern Slavery Act, along with prominent examples of labour breaches in agricultural supply chains - which include child labour in the cocoa industry or forced labour in the seafood industry – are exposing food and beverage companies to heightened operational, regulatory and reputational risks.
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Engagement guide
Why engage on agricultural supply chain labour practices?
Improving supply chain labour standards can help mitigate operational, legal/regulatory and reputational risks, as well as present opportunities to benefit from innovative suppliers, access to more markets and contracts, loyal customers, productive/committed employees and secure supplier relationships.
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Engagement guide
How to engage with agricultural supply chain companies
The following engagement recommendations are based on findings from the engagement, as well as findings from other stakeholders and sources.
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Engagement guide
Expectation 7 for food and beverage companies: target setting and disclosure
In each of the above areas, companies should report regularly and publicly on policies and processes as well as on performance against measureable and time-bound targets. We encourage a combination of quantitative reporting, such as the G4 Sustainability Reporting Guidelines, and qualitative reporting, such as the UN Guiding Principles Reporting ...
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Engagement guideExpectation 6 for food and beverage companies: monitoring and corrective action
Companies should regularly assess the labour performance of at least new and existing direct suppliers, and ensure that their direct suppliers assess and monitor their sub-suppliers. Companies should report on the results of these assessments. They should request corrective action plans from non-conforming direct suppliers and sub-suppliers, and, as a ...
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Engagement guide
Expectation 5 for food and beverage companies: collaboration on systemic issues
To address systemic issues, companies should collaborate with external stakeholders such as trade unions, civil society organisations, human rights experts, governments, and sector peers.
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Engagement guide
Expectation 4 for food and beverage companies: sourcing and supplier relationships
Companies should evaluate suppliers for labour performance, including on minimum labour compliance criteria and on suppliers’ capacity to manage compliance of their own suppliers.
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Engagement guide
Expectation 3 for food and beverage companies: traceability and risk assessment
Companies should map their supply chains, by geography and by product, and assess labourrelated risks in the supply chain, by geography and by product.
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Engagement guide
Expectation 2 for food and beverage companies: governance
Companies should ensure oversight at board level, and that board members are regularly trained. They should establish processes that enable them to identify and respond appropriately to legislation and ensure relevant departments (e.g. human resource and labour/ environmental compliance, senior management, procurement or sourcing, communications and/ or marketing, production) are ...
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Engagement guide
Expectation 1 for food and beverage companies: supplier code of conduct
Companies should have a publicly available supplier code of conduct that reflects international standards such as the ILO core labour standards (covering child labour, forced labour, trade union rights and equal opportunities), covers health and safety and working conditions, and contains at least a longer term target for a living ...
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Engagement guideHow to integrate ESG issues into executive pay: a review of utilities and extractives
Research and insights on the extent to which ESG factors are incorporated into pay design in the utilities and extractives sectors
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Engagement guideIntegrating ESG issues into executive pay
A series of recommendations for engagement between investors and companies on ESG-linked pay, based on discussions facilitated by the PRI and Global Compact LEAD
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Engagement guideData from extractives and utilities sector research
The research analysis below summarises the practices of 84 extractive and utility companies included in major stock indices in North America, Europe, and Australia.
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Engagement guide
ESG issues and executive pay: insights from company dialogue
The investor-company dialogue and research uncovered key additional insights to the recommendations of the 2012 guidance:
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Engagement guide
ESG issues and executive pay: 2012 investor recommendations
The following tips come from the 2012 project:
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Engagement guide
How to engage companies on tax-related topics: questions for management and the board
The list of questions proposed in this section can be used to research the company’s tax profile based on current financial or sustainability reporting.
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Engagement guideHow to engage companies on tax-related topics: identifying red flags in your portfolio
Step one: engagement candidates: identifying red flags in portfolio companies Large tax gap A good indicator of potential earnings risk is the difference between the effective tax rate on a company’s income statement and the weighted average of statutory rates based on the firm’s geographic sales mix8. Although the mismatch ...
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Engagement guide
Aggressive tax planning: noticing the signs
Before engaging with companies on their tax practices, investors need to develop a good understanding of the main strategies that can be used by companies to reduce tax payments.
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Engagement guideWhy and how to engage on corporate tax responsibility
The business case for responsible investors to explore the long-term implications of tax-related risks is multifaceted.
