ESG Spotlight

Unlocking Human Rights in Corporate Supply Chains

Investors have become acutely concerned about human rights violations linked to corporate operations and supply chains. Human rights breaches can result in companies experiencing losses due to production and supply disruptions, legal penalties and reputational damage. The complex nature of global supply chains can make it difficult to assess potential human rights risks and effectively identify and address violations.

Featuring analysis of data from our ESG Risk Ratings, Controversies Research and Country Risk Ratings, this report outlines best practices in mitigating human rights related risks in supply chains. It also develops a framework that investors can use to assess relevant factors, including company controversy records, management systems and institutional capital risks associated with the countries in which suppliers operate.

Download this report to learn more about:

  • Management indicators and Material ESG Issues that can help investors assess a firm’s supply chain human rights risks, and compare their exposure and management approaches
  • Human rights incidents that can present material risks to companies and their investors
  • Morningstar Sustainalytics’ framework for surveying company risks related to human rights and assessing portfolio exposure to this issue
  • A case study highlighting the impact that supplier locations can have on overall exposure to human rights issues