Salient human rights impacts, including forced labour, are driven by systemic political, social, and economic conditions, and no one company, organisation, or government can solve these problems on its own. Collaboration is key for success, which is why HRC members are working with their supply chain partners to address the salient risk of forced labour together. As HRC members implement robust due diligence practices in their own operations, they also seek to ensure their suppliers do the same to ensure the rights of Workers throughout the value chain are protected, respected, and remedied.
To initiate this work, the HRC has identified palm oil as a key commodity for supplier engagement. As the world’s most traded vegetable oil, palm oil is included in consumer goods products ranging from biscuits to shampoos to biofuel. Unfortunately, the production of palm oil has been rife with sustainability challenges. In 2018, the CGF and FLA issued a groundbreaking report on the state of human rights in the Malaysian and Indonesian palm oil industries, highlighting current challenges, root causes, and areas for action to address forced labour risks in the sector. The report revealed many indicators of forced labour associated with the sourcing of palm oil, including debt bondage, passport retention, recruitment fees, and restricted worker movement — abuses all addressed by the CGF’s Priority Industry Principles. The report was an important tool for raising awareness in the consumer goods industry about the high risk of forced labour in this commodity sector.
Building on the CGF’s previous work around human rights and palm oil, the HRC has chosen to start its upstream engagement on the topic of due diligence with the palm oil sector. After this pilot project, the Coalition plans to adapt and scale up learnings to other high-risk commodities. In increasing Worker wellbeing by preventing risks and remedying cases of forced labour, the HRC seeks to create more sustainable labour markets which can contribute to more resilient and successful business models.