Construction sector roundtable on modern slavery highlights urgent need for action

• Summary report published today following event held by Cabinet Office, CCLA, LGT Wealth Management and the Supply Chain Sustainability School
• 18% of forced labour victims globally¹ work in construction sector and calls to Unseen’s modern slavery helpline by potential victims on construction sites rose by 269% from 2022 to 2023²
• Investors and construction sector keen for progress on anti-slavery practices

21 August 2024 – Today marks the release of the summary report following a construction sector roundtable earlier this year on the risks of modern slavery held by the Cabinet Office, CCLA Investment Management, LGT Wealth Management and the Supply Chain Sustainability School.

Delegates in attendance acknowledged that the risks of modern slavery in the construction sector are significant and increasing, and that there is a pressing need for the sector to take action. It was accepted that leadership and collaboration were necessary to address the issue and that sadly, preparation for finding instances of modern slavery is crucial because it is a matter of ‘when’ and not ‘if’ instances are found. A potential collaboration with civil society and the regulators was also discussed to provide a modern slavery intelligence network for the construction sector akin to that developed by the supermarkets for food and farming.

The event was attended by 17 major UK-listed and private construction companies, some of whom are strategic suppliers to government, along with a range of speakers working to tackle modern slavery. CCLA instigated the event to galvanise its engagement with the sector. The construction sector as a whole tended to be low scoring in CCLA’s 2023 Modern Slavery Benchmark and engagement had so far produced a mixed response with some firms lagging in their commitment to tackle the issue.

The construction industry has long been recognised as a high-risk sector with an estimated 18% of forced labour victims working in the sector globally³. In 2023, the number of potential victims calling in to Unseen’s modern slavery helpline in relation to construction sites increased by 269 percent, up from 32 in 2022 to 118 last year⁴. The Gangmasters and Labour Abuse Authority anticipates a spike in exploitative conditions in the sector due to the substantial increase in ‘shortage occupation visas’ being granted and notes that there was more than a six-fold increase in visas granted from Q2 to Q4 2023⁵ alone.

“There are three main reasons that the construction industry is particularly high risk when compared to other sectors,” said Dr Martin Buttle, Better Work Lead at CCLA. “There are a high number of relatively low-skilled and low-wage roles and a high number of migrant workers fulfilling such roles, some with a limited right to work. There is also widespread sub-contracting with many different workers moving on- and off-site during the project lifecycle which can add complexity to monitoring efforts.”

While the event was moderated by Dame Sara Thornton, the former Independent Anti-Slavery Commissioner and Consultant, Modern Slavery at CCLA, delegates at the roundtable also heard from:

• LGT Wealth Management who see supply chain risk as a financial risk and use CCLA’s Find it, Fix it, Prevent it framework⁶ when considering investments
• The CEO of Grace Farms Foundation, who talked about ‘Design for Freedom, a global initiative bringing together experts and leaders to eliminate modern slavery from the materials used in the built environment
• The Gangmasters and Labour Abuse Authority who gave an overview of the types of exploitation in construction that they had encountered and provided a case study of a Polish man who had been ‘sold’ to work in the UK construction industry
• A survivor of modern slavery who was supported by Bright Future Co-operative which works with businesses to offer a supported route to safe and stable employment for survivors of modern slavery
• A consultant gave a case study of a large (construction) development where addressing modern slavery had been a key client requirement
• The CEO of the charity Unseen, who provided information on the cases which have been reported to their Modern Slavery Helpline

Dame Sara Thornton, Consultant Modern Slavery at CCLA, said:

There is enormous value in bringing together industry leaders, government, regulators, civil society investors to tackle modern slavery.  In particular, construction industry leaders heard a strong and consistent message from investors, government and regulators about the risks and the need to take action now.  I was encouraged by the spirit of collaboration in the room and the determination to make concrete progress.  We have since been working closely with key partners and will benchmark the construction sector again to assess performance.  

Siobhan Archer, Global Stewardship Lead at LGT Wealth Management, said:

Despite progress within the industry, construction remains a high-risk sector for forced exploitation and modern slavery. Recent policy announcements, such as those highlighted in the King's Speech, underscore the critical importance of this sector. As responsible investors, we have a duty to collaborate with the built environment to deliver essential infrastructure and housing while ensuring the dignity and safety of its workers.

In 2023, CCLA launched its Modern Slavery Benchmark which ranks the UK’s largest listed companies according to who is contributing most to ending modern slavery in their operations and supply chains and disclosing it publicly. Created by CCLA for investors to use to support their engagement with companies, last year, the benchmark showed that 26% of companies had found modern slavery in their supply chain. Finding modern slavery is the first step to addressing the issue followed by providing remedy to the victim and preventing future occurrences.

CCLA launched its Find it, Fix it, Prevent it initiative in 2019 to tackle modern slavery in companies’ supply chains through corporate engagement, public policy engagement and developing better modern slavery data for investors. Starting with investor engagement in the hospitality sector, investors have now expanded engagement efforts to 13 of the largest UK-listed firms in the construction sector. Find it, Fix it, Prevent it is today backed by 65 investors with collective assets under management / advisory of £15 trillion.