Metro Inc. | Human Rights Impact Assessment at Metro Inc.

Status
28.62% votes in favour
AGM date
Previous AGM date
Proposal number
2
Resolution details
Resolution ask
Conduct due diligence, audit or risk/impact assessment
ESG theme
  • Social
ESG sub-theme
  • Human rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
Canada
Resolved clause
Resolved, Shareholders request the Board of Directors of Metro Inc. (“Metro” or the “Company”) to publish a report, at reasonable cost and omitting proprietary information, with the results of an independent Human Rights Impact Assessment (“Assessment”) identifying and assessing the actual and potential human rights impacts on migrant workers from the Company’s business activities in its domestic operations and supply chain in Canada.
Supporting statement
Migrant workers are the backbone of the Canadian food system. In 2021, more than 61,000 migrant workers made up the agricultural and agri-food sectors. In 2017, one in five workers employed in crop production was a migrant worker. In Ontario, that same year, 41.6% of the agricultural workers were migrant workers. Despite Canada’s dependence on migrant workers in the agricultural sector, migrant workers continue to face increasingly hazardous and precarious working conditions. The COVID-19 pandemic has only worsened such conditions. For example, research has found that “migrant workers employed in high-income countries during the pandemic were often deemed ‘essential workers,’ yet they generally endured high-risk work environments without the health, safety, and economic measures that would protect them should they be exposed to COVID-19.” Stakeholders, including workers, have documented abuse in the Canadian supply chain including: wage theft, racial profiling, inadequate housing, exploitation and discrimination. During the pandemic, workers have also seen a dramatic and dangerous intensification in work. According to the Migrant Workers Alliance for Change, migrant workers in Canada reported “working for weeks without a day off, being forced to work long hours, and suffering increased strains, injuries and sickness due to increased pace of work.” Despite the severity of the human rights abuses alleged in the Canadian agricultural sector, Metro’s current policies and commitments are insufficient in mitigating salient risks to migrant workers. For example, while Metro has a Suppliers Code of Conduct for Responsible Procurement ("CoC"), it does not disclose how its CoC is enforced and how effective its monitoring systems are. This lack of disclosure prevents investors from assessing the effectiveness of its CoC to address risks to migrant worker rights. Purchasers that do not have adequate strategies in place to mitigate impacts to migrant workers operating in their supply chain may face significant material, reputational, sourcing, legal, and regulatory risks. Shareholders expect Metro to demonstrate a higher level of commitment and due diligence regarding migrant workers’ rights in its supply chain in order for shareholders to performance [sic.] their due diligence in accordance with their fiduciary duty. An independent Assessment would help Metro identify any adverse impacts of its domestic activities to 1) ensure the fundamental rights of migrant workers in its supply chain are respected and protected; 2) ensure alignment of its existing policies and practices with the UN Guiding Principles on Business and Human Rights.

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