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POLICY & REGULATIONS

F&B companies falling short on forced labour risk mitigation: Report
Friday, 27 February, 2026, 08 : 00 AM [IST]
Our Bureau, Mumbai
Major food and beverage companies are struggling to address forced labour risks in their global supply chains, according to a new benchmark report released earlier this month. Despite broad commitments to eradicating labour abuses, the industry’s overall performance remains alarmingly low, highlighting a significant gap between stated policies and real-world practices.

The assessment, backed by the international nonprofit Business and Human Rights Centre’s KnowTheChain initiative, evaluated 45 of the world’s largest food and beverage firms on their efforts to prevent and tackle forced labour — a problem worsened by climate change, economic instability and complex supply networks. Companies scored an average of just 15 out of 100, marking a decline from the previous benchmark conducted three years ago. Nearly half of the companies scored below 10, with only two Australian supermarket chains — Coles and Woolworths — surpassing the 50-point mark. 

Brands typically performed better on broad policy commitments than on substantive actions that protect workers. While most firms have supplier codes prohibiting forced labour, few have robust responsible purchasing practices, effective grievance mechanisms or meaningful worker engagement, with average scores in these categories near single digits. Only about 11% disclosed partial first-tier supplier lists, and 24% shared any information about high-risk sourcing beyond the first tier, underscoring poor transparency. 

Geographically, companies headquartered in regions with strict due-diligence requirements scored higher than those without such regulation, with Europe and Australia outperforming firms based in Asia, Latin America and the United States. 

Experts say that without tangible implementation — beyond paper pledges — the industry will be ill-prepared for emerging regulatory scrutiny and shareholder expectations. As forced labour risks intensify globally, stakeholders are calling for stronger corporate accountability and deeper supply chain transparency to protect the most vulnerable workers.
 
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