Engagement themes 2021-2023

Resilient supply chains

Over the years, respect for labour rights in company supply chains has been a vital engagement theme for Storebrand. Building on this work will make it our primary focus theme for engagement within social issues in 2021-2023.

Multi-stakeholder approach

After watching the devastating effects the Covid-19 pandemic has had on millions of supply chain workers' health and their precarious working conditions, it is more important than ever to build more resilient supply chains. The pandemic has made all vulnerabilities in supply chains even more visible and gives us a better opportunity to discuss and address them with companies across different sectors.

We understand that many of the challenges in supply chains cannot be solved just by companies or investors alone; thus, a multi-stakeholder approach is essential to make progress. For this reason, Storebrand is participating in different engagement initiatives that also adopt such an approach, cover various issues pertaining to supply chains, and involve different stakeholders, not just the companies.

For example, we are signatories and participate in engagements on forced labour based on Know-the-Chain data in collaboration with the Investor Alliance for Human Rights. More specifically, within this issue, we are also involved in engagements discussing the situation of Uighurs in the Xinxiang region in China.

Within the Investor Alliance, Storebrand has been engaging with companies on Covid-19 measures in the supply chain for more than a year. In 2021, Storebrand joined the Platform for Living Wages Financials too to have more leverage on this issue by joining other investors and a more structured approach through research, methodology, and dialogue with other stakeholders. Last, disclosure on these issues is also crucial for investors; therefore, we support the Corporate Human Rights Benchmark initiative.

Engaging with companies in the garment, ICT, food, and renewable sectors

We ask companies to carry out human rights due diligence in their supply chains and thus encourage them to:

  • Identify, assess, avoid and mitigate human rights risks by implementing policies and practices covering areas such as Commitment and governance; traceability and risk assessment; purchasing practices; recruitment, and worker engagement.
  • Remediate for the negative impact caused by the implementation of remediation programs as an answer to their grievance mechanisms
  • Adopt a meaningful engagement with suppliers and other important stakeholders. For companies that share the same suppliers, collective dialogue can increase leverage with suppliers and governments. Collaboration in multi-stakeholder initiatives with labour unions, governments, and industry associations can be crucial to solving systemic risks and identifying sector-wide solutions.
  • Disclose and report on efforts to address human rights risk across supply chains using the UN Guiding Principles Reporting Framework or initiatives based on them as guidance.

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