Should Asset Managers Be Concerned About Ethical Supply Chains?

Ethical supply chains have been an issue for asset managers for many years. There have long been concerns, for example, about China, where a large proportion of the silicon needed for solar panels is produced and millions of Uyghur and ethnic Kazakh women have reportedly been subjected to forced labour and coercion.

But, for many in the industry, while there is an appetite for a more ethical supply chain, often money talks – and securing a supply chain with a certifiable ethical supply chain is not possible.

ESG reporting

Environmental, social and governance (ESG) requirements have become part of the "business as usual" reporting cycle and something that investors often insist upon. For many, ESG will be a core foundation of their business. Some of this has been driven by specific legislation. For instance, many English companies have been under an obligation in recent years to analyse and report on their supply chains in accordance with the Modern Slavery Act.