The Role of Investors in addressing forced labor in the green transition

Partner Session – 2024 OECD Forum on Responsible Mineral Supply Chains.

As underpinned in the Paris Agreement, it is critical for the transition to a green, low-carbon economy to be both fast and fair. As investors address climate change challenges in their strategies, it is imperative that they also incorporate the social dimension and impacts on people.

As influential capital allocators and actors, Investors should play a crucial role in tackling the impact on people, namely forced labor, as it is identified as a salient risk in the green transition value chains, which is at the heart of responsible investment. Under the OECD Guidelines for Multinational Enterprises, institutional investors are expected to act responsibly and determine their exposure to human rights risks in their portfolios, and conduct due diligence to prevent or address adverse impacts.

Forced labor and other human rights violations in the green transition value chains could expose investors to material reputational, operational, and regulatory risks.

The session will zoom on the expectations and role investors should play in identifying, addressing and mitigating forced labor in the green transition.