The International Labour Organization (ILO) estimates that there were 160 million children in child labour 2020, representing nearly 10 percent of all children in the world. Child labour had increased for the first time in 20 years – an increase of 8.4 million since 2016 – and the risks of child labour are deemed to have worsened due to the Covid-19 pandemic. The number of people in forced labour has also increased according to the ILO, from 24.9 million in 2016 to 27.6 million in 2021. Around two thirds of all forced labour occurs in the private sector, and the financial gains from forced labour have been estimated at USD 236 billion per year.
Priorities for the Council on Ethics
Child labour and forced labour occur around the world, but are especially prevalent in certain industries and regions. Companies may be exposed in their own operations, of through their supply chains. Within this focus area, the Council on Ethics targets industries where the risk for child and forced labour are particularly high, especially in the supply chain. An important perspective that permeates the work is to promote measures that address the root causes of child labour and forced labour. Poverty is one such root cause, and the dialogues therefore focus to a large extent on how companies can work with responsible recruitment and offer decent working conditions. Responsible purchasing processes is another important element. The Council on Ethics also expects companies to actively implement the UN Guiding Principles for Business and Human Rights (UNGPs). This means that companies should integrate the respect for human rights in their operations as well as in their policies, strategy and risk management, and also report about their work.
During 2024, a project focused on the textile and construction industries was concluded. Conclusions from the project will help inform the Council on Ethics in determining the future direction of the focus area.
Read more about the project and progress in the focus area in the Council on Ethics’ annual reports.