Following the recent and ongoing tragedies in Bangladesh’s apparel manufacturing sector, a group of institutional investors with US$1.35 trillion in assets and assets under management want the retail companies they invest in to know their suppliers and fully disclose their supply chains.
In a statement, they say: “we specifically must rely on the companies in which we invest to monitor and mitigate the risks in their supply chains.”
Read: N.Y. pension fund sells firearms stocks
The group is urging retailers with significant purchasing power in Bangladesh, naming both Walmart and Gap, to act swiftly and effectively.
“We expect companies in our portfolios to ensure the integrity of their supply chains,” the statement adds. “We are dismayed by public statements of any company that states it is unaware that a factory produces its products.”
The group also recommends that companies actively ensure compliance and not place the onus on their suppliers.
Read: CalSTRS divests from firearms
“Lastly, we urge companies to disclose their supply chains,” the statement concludes. “Transparency strengthens accountability. As investors, it is not in our interests for there to be any more tragedies.”
The group of investors is made up of Amalgamated Bank LongView Funds, American Federation of Labor-Congress of Industrial Organizations, CalSTRS, Connecticut Retirement Plans and Trust Funds, F&C Asset Management, Hermes Equity Ownership Services, Illinois State Board of Investment, Local Authority Pension Fund Forum, MN Services, The Nathan Cummings Foundation, New York City Pension Funds, New York State Common Retirement Fund, PGGM Investments, International Brotherhood of Teamsters – Teamsters Affiliates Pension Plan, and UAW Retiree Medical Benefits Trust.
Read more: