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Ethical Sourcing Forum Supply Chain Assurance Intelligence September 2020

Assurance in Action: Episode 49 Now Available

In this episode of Assurance in Action’s Supply Chain Insights, Intertek supply chain experts Justin Bettey and Mary Osterman discuss changes in the cotton industry, increased traceability measures by large retailers and brands, and more. Listen to the podcast now.

Rescue of 35 child workers triggers probe in India’s garment factory hub

Efforts to tackle child labor in garment factories in southern India are being ramped up after the rescue of 35 children from a spinning mill, officials said on Thursday, amid concerns of an increase in trafficking as coronavirus restrictions are eased. In one of the first cases of child labor reported in India since the pandemic, 32 girls and three boys were rescued in Tiruppur in Tamil Nadu state last week following a tip-off to staff at Childline, a toll-free emergency helpline for children. Read more.

New employment law effectively ends Qatar’s exploitative kafala system

Workers in Qatar may now change jobs without needing to obtain their employers’ permission, ending one of the most criticized elements of the country’s labor system. The government has also announced an increase in the minimum wage, but rights groups have said the measure does not go far enough, leaving low wage workers earning as little as £1 an hour. Read more.

Uzbek cotton “an opportunity” for brands exiting Xinjiang

Uzbekistan’s cotton sector took a step closer to coming in from the economic cold this week as civil rights groups, the Uzbek Government, the IFC and other industry stakeholders reviewed a new Responsible Sourcing Agreement framework (RSA) which could potentially provide a vehicle for brands and retailers to resume sourcing cotton from Uzbekistan. Stakeholders at the meeting argued that Uzbekistan provides an opportunity for brands looking to shift sourcing from the troubled region of Xinjiang. Brands and retailers have boycotted Uzbek cotton for several years due to issues of forced labor in the annual cotton harvest. However, a process of reform led by the Uzbek cotton has led to a steep reduction in the use of forced labor. Read more.

Garment workers seen losing up to $5.8 billion in wages during coronavirus

Garment workers supplying global fashion brands have been underpaid or not paid at all during the coronavirus crisis, with lost wages potentially amounting to nearly $6 billion. With the pandemic leading to store closures and falling sales, many retailers cancelled orders or demanded discounts from suppliers, jeopardizing the livelihoods of tens of millions of workers in the sector. Read more.

Top Glove to refund RM50 mil in recruitment fees to its foreign workers

Top Glove Corp Bhd will refund up to RM50 million in backdated recruitment fees to its foreign workers in the hope the US will lift the ban on the import of its rubber gloves.Lim Wee Chai, its executive chairman, said they were currently communicating with US’ Customs and Border Protection (CBP) and that the matter would be resolved in a month. Lim said they had already set in place new policies following forced labour allegations, including the “zero recruitment fee” policy for new foreign workers. Read more.

Better Mining ASM monitoring program expanded

RCS Global Group and the Responsible Minerals Initiative (RMI) have announced the expansion of the Better Mining artisanal and small-scale mine (ASM) monitoring program to additional cobalt and copper mine sites in the Lualaba province in the Democratic Republic of Congo (DRC). The expansion will begin with the immediate addition of a mine site near Likasi followed by a fifth site currently under evaluation. Better Mining and the RMI aim to scale the program to 12 sites across the DRC by 2023. The agreement signals the next phase in the expansion of the Better Mining program, which is seen as a critical pillar in the formalisation of ASM mining and eventual acceptance of ASM material on global metals markets. Read more.

Officials in Rwanda to track responsibly sourced tech minerals

Intel's Responsible Minerals Program, as well as representatives of other tech firms, visited mineral-rich Rwanda in November 2019 as part of an industry effort to ensure a legal and ethical supply chain. Tin, tanatalum, tungsten and gold mined in the Central African country are key components of silicon chips that run today's smartphones, laptops, servers and other high-tech gear. Ensuring all minerals entering the supply chain can be traced to responsible sources is a major element of Intel’s responsible sourcing strategy — and is shared across the tech industry. Read more.

Wrangler to halve water usage by 2030

Wrangler has revealed plans to halve its water usage by 2030 as part of its sustainability efforts.The denim retailer said in April that it had saved over seven billion litres of water in the production of its denim products, which surpassed its 2020 goal by 1.5 billion litres.Wrangler’s new sustainability goals focus on fibre production, fabric construction, and product finishing phases of the denim supply chain. Read more.

Amazon to Build New 115MW Wind Farm in Ireland, as Company Aims for 100% Renewables by 2025

Amazon plans to build a 115 MW wind farm project in Ardderroo, Ireland, to help offset the energy consumption of its data centres in the country. The wind farm project joins two others in Esk, Cork, which will come online in September 2020, and Meenbog, Donegal, to follow in early 2022. The trio of wind farms will add 229 MW of renewable energy to the Irish grid each year. Read more.

Mercedes-Benz and CATL team up for leadership in future battery technology

Mercedes-Benz and Contemporary Amperex Technology Co., Limited (CATL) will create cutting-edge battery technology in support of the high-volume electrification of the Mercedes-Benz model portfolio. Mercedes-Benz is accelerating its “Electric First” strategy with advanced, CO2-neutrally produced battery cells, modules and systems supplied by CATL, a technology leader in lithium-ion batteries. Mercedes-Benz is pursuing the long-term vision of a climate-neutral new passenger car fleet and is actively driving the transformation to CO2-neutrality. To enable this, CATL will use electricity from renewable energy sources, such as wind, solar and hydropower for its production. Read more. 

Jupiter Group secures partnership with blockchain traceability provider DiMuto

Global fresh produce grower Jupiter Group have consolidated their plans to provide fully traceable fresh produce to consumers around the world, by signing an exclusive agreement with DiMuto, a trade technology solutions platform, to implement blockchain traceability for the group’s core range of fresh produce. Read more.

Greenpeace urges PH-based tuna businesses to improve system and practices

Greenpeace Southeast Asia is urging Philippine-based tuna canneries to improve their systems and business practices via a study titled “Sustainability and Justice in the High Seas” released Tuesday.The study showed only one out of six tuna canneries surveyed in the country scored a “good” performance in the aforementioned aspects. Read more.

Starbucks' Digital Traceability Tool Tracks Coffee Bean Origins

Starbucks has expanded its digital traceability tool tracking the origin of its coffee beans, advancing the company's sustainability ambitions. The company first piloted the technology in 2018 with farmers in Costa Rica, Colombia and Rwanda. Now the company offers consumers the ability to trace the origins of their coffee using their smartphones to learn more about its journey from farm to cup. Read more.

MSI Integrity releases new report titled Not Fit-For-Purpose

MSI Integrity's new report, Not Fit-For-Purpose, reflects on a decade of research and analysis into international standard-setting multi-stakeholder initiatives (MSIs). MSIs cover almost every major industry, from certifying food or consumer products as “sustainable,” “fair,” or “ethical,” to establishing good practices for internet companies in respect of privacy and freedom of expression online. Read the report

The Clean Clothes Campaign releases Un(der)paid in the pandemic report

The Clean Clothes Campaign recently released Un(der)paid in the pandemic, an estimate of what the garment industry owes its workers. Since the start of the Covid-19 pandemic, garment workers around the world have been left unpaid or underpaid, causing a wage gap between what they received and what they are owed. This report estimates for seven countries the wage losses that workers have suffered and urges brands, retailers and e-tailers to commit to a wage assurance to make sure workers are made whole. Read the report.

Exploring Intersections of Trafficking in Persons Vulnerability and Environmental Degradation in Forestry and Adjacent Sectors

Verité released a report titled Exploring Intersections of Trafficking in Persons Vulnerability and Environmental Degradation in Forestry and Adjacent Sectors. Verité provides the knowledge and tools to eliminate the most serious labor and human rights abuses in global supply chains. This report investigates labor exploitation, human trafficking, and child labor experienced by workers directly involved in forestry and/or adjacent sectors, as well as the means by which deforestation can create vulnerabilities to human trafficking.Read the Report.

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