The Fighting Against Forced Labour and Child Labour in Supply Chains Act1
came into force on
May 11, 2023. The Act creates reporting obligations for certain companies, who must declare information
on their efforts to fight against forced labour and child labour, with the first of these reports to be filed by
May 31, 2024.
While this Act aims to protect children from exploitation and human rights abuses in supply chains, we
propose that the Bank takes a proactive stance by committing, as a good corporate citizen, to the
prevention and the reduction of the risk that its loan and investment portfolios include any form of support
to companies that use forced labour or child labour in their business operations.
According to a report by the International Labour Organization (ITO) and UNICEF – the United Nations
organism responsible for children’s welfare2
– the number of children forced to work in 2020 was
160 million, an increase of 8.4 million in four years. Even more worrisome is the increase in the number of
children aged 5 to 17 engaged in hazardous work, which can directly impact their development, education,
or health. This category includes dangerous sectors such as mining or fishing, or working more than
43 hours per week, making schooling nearly impossible. Other sectors worth mentioning include textiles
and clothing, electronics, forestry, etc.
This report should provide all the information needed to reassure shareholders and stakeholders about the
Bank's commitment to reducing its financial support to companies that force children to work.