A coalition of investors, led by New York City’s comptroller, is pressuring major corporations to confront severe labor abuses in India's sugar fields, highlighting work conditions including child labor and forced procedures.
Wall Street's Call for Reform in India's Troubling Sugar Industry
Wall Street's Call for Reform in India's Troubling Sugar Industry
Investors challenge major sugar buyers to address labor exploitation in India's cane fields as calls for justice grow louder.
The New York City comptroller, overseeing substantial pension investments, is exerting pressure on global sugar buyers to take action against the rampant exploitation of laborers in the sugar cane fields of Maharashtra, India. This move comes as a reaction to investigations revealing harrowing labor conditions, including child labor, debt bondage, and coerced surgeries.
Brad Lander, the city’s comptroller, highlighted that the pension funds managed by his office include nearly $1 billion in shares of companies such as Coca-Cola, PepsiCo, and Mondelez, all linked to the sugar trade in Maharashtra. He stated, “We will bring pressure to bear on the companies we invest in who participate in that system.”
To bolster his efforts, Lander has formed alliances with Indian labor leaders, investor coalitions, and unions, urging these major corporations to collaborate with labor groups to enhance supply chain practices. He has successfully rallied other institutional investors, including BNP Paribas Asset Management and Sands Capital, to join this cause.
Additionally, the Biden administration is applying its influence, with the State Department encouraging U.S. companies to leverage their purchasing power to instigate reforms within sugar mills, while advocating for partnerships with labor unions to protect workers' rights.
This dual push from government and investors signifies a growing recognition of labor exploitation within global supply chains and underscores the necessity for ethical sourcing practices in industry.
