Calvert Investments Targets 26 Companies for Increased Supplier Disclosure
In the wake of the Rana Plaza tragedy, Calvert presses companies for more transparency
This month Calvert has written to the CEOs of 26 companies, calling upon them to increase disclosure regarding their supply chains. These companies include American Eagle Outfitters, Limited Brands, Nordstrom, Target Corporation and The Walt Disney Company.
The recent tragedies in Bangladesh with over 1,100 deaths highlight the urgent need for greater supply chain transparency and accountability. Despite progress over the past decade, grave concerns and critical issues remain unaddressed in Bangladesh and several other countries that are critical suppliers to the apparel industry. Calvert believes that companies in the retail industry should disclose what countries they source from in order to demonstrate their responsibility for decent workplace practices for the benefit of their workers, investors and customers.
Calvert’s letter asks for companies to publicly disclose the list of countries where they source at least 5% of the company’s global order volume. Companies that disclose country-level supply chain data can give investors in particular greater confidence in their ability to manage operational and reputational risk—and in turn raise their intrinsic valuations and differentiate themselves from peers.
Calvert looks forward to engaging companies through direct and multi-stakeholder initiatives regarding ways to best to address supply chain responsibility and transparency. In particular, Calvert will also continue its work with the Interfaith Center for Corporate Responsibility (ICCR) to assess additional ways of safeguarding workers in the supply chain.
Calvert Investment Management, Inc., 4550 Montgomery Avenue, Bethesda, MD 20814.