Rathbones has launched its sixth Votes Against Slavery campaign (VAS), securing support from a record 168 institutional investors with funds under management totalling almost £3trn.
In the 10th year since the introduction of the Modern Slavery Act 2015, the 2025 engagement brings together asset managers and asset owners to target both AIM and FTSE 350 companies suspected of failing to comply with Section 54 disclosure requirements of the Act. This requires companies to publish an annual statement on their efforts to prevent modern slavery from happening in their operations and supply chains.
Some 61 AIM companies and 25 FTSE 350 companies have been engaged as part of the sixth VAS campaign so far.
To address non-compliance with the Act, the Rathbones stewardship team began challenging companies suspected of not meeting the reporting requirements in 2020, forming the VAS campaign.
Also read: Modern slavery is an economic, not just a moral issue – it cannot be overlooked
“In the absence of regulatory enforcement, investors have a vital role to play in respecting fundamental human rights,” said Matt Crossman, stewardship director at Rathbones.
“On average, it takes around seven interventions before someone being exploited is identified and rescued. So, this is about encouraging companies to identify any suspicious behaviours on which they can then act.”
A 2024 report from the International Labour Organisation (ILO) found that forced labour in the private economy generates $236bn in illegal profits per year. While the UK’s response has improved due to the introduction of the Act, there are currently no effective sanctions being used for those companies that fail to comply, according to Rathbones.
“Investors hold considerable influence, particularly through voting on standard AGM resolutions. This is about urging investors to exercise their strongest form of censure, and voting against the annual report and accounts of companies that fail to comply with the Act. We also call on the government to commit to making changes to the current Act, to make it stronger, clearer, and more effective,” Crossman added.
In 2024, Rathbones and asset manager CCLA jointly submitted to the House of Lords consultation on the impact of the Modern Slavery Act. Alongside CCLA and Walk Free, the international human rights group, Rathbones also contributed to the joint committee on human rights call for evidence into forced labour in UK supply chains, which referenced VAS and CCLA’s ‘Find it, Fix it, Prevent it’ initiative, a collaborative investor engagement programme to help companies find, fix and prevent modern slavery in their supply chains.
Archie Pearson, ESG and stewardship analyst and voting lead at Rathbones, commented: “This is a poignant anniversary. Despite the Modern Slavery Act, Walk Free estimates that there are still nearly 50 million people trapped globally in modern slavery. Although there has been some progress, there’s a frustrating lack of headway. We believe the government, which is responsible for protecting against modern slavery in the UK, should be prepared to use the sanctions available within the Act against those companies which fail to produce adequate modern slavery statements.”
