From The Independent · · 2m
Supply chain abuses cost UK £4.4bn yearly
A Fabian Society report finds environmental and human rights violations in UK supply chains cost billions annually, but legislation to fix it would cost far less.
In brief
A Fabian Society report finds environmental and human rights violations in UK supply chains cost billions annually, but legislation to fix it would cost far less. Environmental and human rights abuses in UK supply chains cost £4.4bn per year, but a proposed law would cost only £0.4bn to address, according to new…
Abuses cost UK billions yearly
The Fabian Society found that labour exploitation and environmental damage in UK supply chains costs four point four billion pounds per year, including forced labour and poisoned rivers.
Fixing it costs far less
A human rights, environment and due diligence law would cost around zero point four billion pounds, comprising compliance costs for businesses and funding for an independent regulator.
The figure is likely understated
The four point four billion pound estimate only considers supply chain harm in the UK alone. Around one trillion pounds of goods and services, including forty two percent of UK food, is imported yearly.
Farmers need better protection
Advocacy groups call on government to ensure suppliers, millions of whom are farmers on extremely low wages in developing countries, earn a fair deal and are not undercut by unethical competitors.
“British Businesses that treat their workers and the environment well must not be undercut by imports or businesses that do not.”
Government review delayed
The Labour government launched a review into responsible business conduct policy as part of its Trade Strategy. The outcome was expected at the end of March but has not yet been made public.
Law would strengthen supply chains
A mandatory human rights, environment and due diligence law would compel companies to measure and address supply chain problems. It would also prepare companies for shocks and reduce risks of inflated prices or empty shelves.
Climate shocks already hitting
After the two thousand twenty three to twenty four El Niño, coffee producers in Honduras reported a twenty two percent drop in productivity, while tea producers in Kenya saw productivity fall by fourteen percent.
Government commits to action
A UK government spokesperson said it is committed to rooting out forced labour and human rights abuses, and is considering findings from its review of responsible business conduct policy.
“We are committed to rooting out forced labour, human rights abuses, exploitative environmental practices, bribery and corruption.”
The essence
Environmental and human rights abuses in UK supply chains cost £4.4bn per year, but a proposed law would cost only £0.4bn to address, according to new research.
