Assessment of human rights lobbying in the pipeline to help investors target problem companies

New ‘social lobby map’ due this month as shareholders reflect on companies’ progress on human rights and modern slavery. 

Investors have commissioned research into how firms’ are advocating on policies around human rights.  

A shareholder initiative convened by the UN-backed Principles for Responsible Investment (PRI) revealed it is awaiting the first instalment of a ‘social lobby map’, to help it engage with large portfolio companies on the topic. 

Developed by the Eiris Foundation, the map will be launched on June 24th, and will focus on how firms and their business associations have lobbied around the EU’s Corporate Sustainability Due Diligence Directive (CS3D). 

They will be assessed on nine indicators aligned with international frameworks such as the UN Guiding Principles on Business and Human Rights, and standards from the International Labour Organisation.  

The PRI published an update last week on the progress its signatories have made with companies since launching its human rights initiative, Advance, in 2022.  

In the report, South Korean steel giant Posco revealed it had established a dedicated human rights taskforce and guidelines on due diligence in response to pressure from the initiative.  

“One of the most meaningful developments within Posco Group through our engagement with PRI Advance has been the clear shift in how our board of directors and senior leadership recognise and commit to human rights,” it wrote.   

Earlier this month, British investment house CCLA published an assessment of the modern slavery performance of 100 global firms with significant activities in the UK. 

It named Cisco Systems, Costco Wholesale and Nestlé as the leaders, while around a third didn’t meet even the most basic expectations on modern slavery. 

Consumer staples and materials were the best performing sectors in the analysis, and finance and energy were the worst. 

Only 23 companies disclosed finding a case of modern slavery in their supply chain, which CCLA said “raises questions on the effectiveness of due diligence processes.” 

Close to half had a policy on responsible procurement practices, but only nine disclosed how these worked in practice.