Modern slavery index reveals depth of supply chain risk

While developing nations dominate the top of the rankings, only four western economies are rated low risk with the EU as a whole deemed medium risk. For global companies with complicated supply chains the findings make for uncomfortable reading and highlight the importance of monitoring lower tier suppliers. Modern slavery constitutes a high or extreme risk in 115 countries mapped by Maplecroft. The research concludes that Asian and African commodity producers, along with manufacturing countries, pose the greatest challenge to companies navigating new legislation on supply chain disclosure, such as the UK Modern Slavery Act. The Asian heavyweight exporters of China and India feature in the extreme risk category, alongside important natural resource hubs, including DR Congo, Iran and Côte d'Ivoire. Only four major western economies - the UK, Germany, Denmark and Finland - are rated low risk. A number of European economies, such as Sweden, France and Ireland, are on the cusp of being low risk, said Maplecroft. hide Its Modern Slavery Index was developed over the course of the last 12 months using multiple data sources to benchmark risk on a global scale. Maplecroft's research is based on definitions of slavery laid out in the UK Modern Slavery Act. The rankings take into account the breadth of national legislation, the quality of law enforcement and reported evidence of trafficking, forced labour, servitude and slavery. Maplecroft believes the index will allow companies to perform a top-level risk assessment of their exposure to modern slavery that can be used in mandatory statements. The biggest challenge for companies is tracking slavery deep within their supply chains, it warned. "While most multinational companies have robust systems in place to ensure slavery does not occur among their tier one suppliers, key numbers emerging from the research expose the extent of the challenges facing them lower down the supply chain, at the commodity level and from subcontractors," said Maplecroft. The fact that India and China are rated extreme risk for slavery will come as a major concern to the many global companies that rely heavily on the two nations for goods and raw materials. "Sourcing from these countries can come with a substantial risk of association with forced labour," said Maplecroft. "The risk is endemic in India's agricultural sector and is prevalent in parts of its garment sector. The exploitation of children in the mining of minerals is also common. Forced labour, including the exploitation of young apprentices, occurs across multiple sectors in China, including electronics production, mining and agriculture. These risks are echoed across many Asian markets," it added. The research also shows that, with the exception of the US and EU, the world's top 12 garment exporters, including China (ranked 23rd highest risk), India (15th) and Pakistan (9th) are deemed high or extreme risk. Furthermore, over 80% of Sub Saharan African countries feature in the two highest risk categories, including two of the region's three largest economies, Kenya and Nigeria. The world's leading 28 cocoa bean producers are categorised high and extreme risk, as are the top nine producers of rice. Over two-thirds of the 26 biggest producers of tin, tantalum, tungsten and gold (3TG), essential to the manufacture of ICT and automotive parts, are among the 100 highest risk nations. The EU as a whole is rated medium risk. It does not perform better largely because of the refugee crisis and the exploitation of foreign migrants and refugees, said Maplecroft. "When countries with the most advanced legislation struggle to completely eradicate slavery, it reveals the challenges governments in less developed regions face," said Maplecroft's principal human rights analyst Alex Channer. "Many of the highest risk countries do have legal frameworks in place, but a lack of resources and widespread corruption means the enforcement of such laws can be haphazard."

Modern slavery index reveals depth of supply chain risk

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