National Bank of Canada | Fighting against forced labour and child labour in loan portfolios at National Bank of Canada

Status
24.99% votes in favour
AGM date
Previous AGM date
Proposal number
3
Resolution details
Company ticker
NA:CN
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Modern slavery inc. forced labour
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
"It is proposed that, from 2026 onwards, the Bank report to its shareholders and interested
parties (stakeholders) on the measures taken during the previous financial year to
prevent and reduce the risk of loans being granted to companies using forced labour and
child labour in the production of goods produced, purchased or distributed by its
customers using the Bank’s financing for their activities."
Supporting statement
"The Fighting against Forced Labour and Child Labour in Supply Chains Act(1) came into force on
May 11, 2023. The Act requires certain companies to file reports on their efforts to fight 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 take a proactive stance on this issue by committing, as a good corporate
citizen, to prevent and reduce the risk that its loan portfolio includes any form of support for companies
that use forced labour or child labour in their business operations.
According to a report by the International Labour Organization (ILO) and Unicef, the UN agency on
child welfare(2), there were 160 million children forced to work in 2020, an increase of 8.4 million over
four years. Even more worrisome is the increase in the number of children aged 5 to 17 years who do
hazardous work, that is, work that can have a direct impact on their development, education or health.
The category includes hazardous sectors such as mining or fishing, or working more than 43 hours
a week, making it virtually impossible to get an education. Other sectors also deserve mention, such
as textiles and clothing, electronics, forestry, etc.
This report should provide all the information needed to reassure shareholders and stakeholders
about the Bank’s desire to reduce its financial support for businesses that force children to work.”"

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