Child Labour Risk: Company

This data set is the most comprehensive list and data on c. 34,000 publicly listed companies, covering both developed and emerging markets, and their associated four Company Risk Index scores to quantify their Child Labour Risk. All financial services and banks have been removed as Child Labour in global supply chains is not applicable in this context. 

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There are 3 scores per company out of 100 that are then equally aggregated into one overall score, where 0 is the lowest risk and 100 is the highest risk. All companies are scored according to the same methodology to create an objective assessment of Child Labour risk. The scores are as follows:

1. Supply Chain - How exposed is a company’s supply chain to Child Labour, based on its sub-industry and typically sourced Goods? (Goods include raw agricultural crops, raw extractives, livestock, processed materials, processed agricultural crops, processed extractives, trade products, consumer products and waste). 
2. Perception - How strongly does the consumer associate the company with Child Labour? Using news articles as a proxy for measuring the consumer’s perception of a company regarding Child Labour, taking into consideration the relevance, recency and reach of each news article. This score measures a reputational risk.
3. Governance - A higher risk score indicates that, based on their public disclosure, the company is less likely to be identifying, monitoring and mitigating the risk of Child Labour effectively, or at all. This score measures relevant and publicly disclosed Governance documents and webpages from company websites e.g. Sustainability Reports, Human Rights Statements, Annual Reports, Child Labour Policies and press releases.
4. Total score - a mean average of the above 3 scores, allowing easy comparison across portfolios and companies of interest.

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Ideal for investment professionals seeking to identify companies with the highest risk or exposure to Child Labour, as well as continuous monitoring of company performance to report to institutional investors, members or to comply with regulatory requirements e.g. the Dutch Child Labour Due Diligence Act.

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This data set is updated monthly as new data becomes available across all scores (for example, a news article or a new Governance document is published), providing a dynamic resource for monitoring company performance on this critical, and growing business, investment and supply chain risk. Data sources include publicly available documentation from companies, news data, company information data plus HACE’s proprietary data sources. Our methodology is based on international best practices such as the UN Guiding Principles on Business and Human Rights and the International Labour Organization.

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Methodology documentation will be provided.