This metric is intended to capture if the organization's operations or its suppliers' operations were at significant risk of incidents of forced or compulsory labor during the reporting period.
Forced labor is all work or service which is exacted from any person under the threat of penalty and for which the person has not offered himself or herself voluntarily. The term encompasses all situations in which persons are coerced by any means to perform work and includes both traditional “slavelike” practices and contemporary forms of coercion where labor exploitation is involved, which may include human trafficking and modern slavery. (Source: https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FMeeting%20Documents%2F2211141505388508%2FDRAFT%20ESRS%20S1_Own%20workforce_15%20November%202022.pdf)
Forced and compulsory labor affects all world regions, countries, and economic sectors, and includes workers in both formal and informal employment.
Some of the most common forms of forced labor include forced labor in prisons (except for prisoners that have been convicted in a court of law, and whose labor is under the supervision and control of a public authority), human trafficking for the purpose of forced labor, coercion in employment, forced labor linked to exploitative labor contract systems, and debt-induced forced labor, also known as ‘debt-bondage’ or ‘bonded labor’. The victims are most likely from groups subject to discrimination or performing work on an informal or precarious basis. This can include women and girls forced into prostitution, migrants trapped in debt bondage, and sweatshop or farm workers, among other groups.
(Source: https://www.globalreporting.org/standards/media/1024/gri-409-forced-or-compulsory-labor-2016.pdf)
Forced labor is a prevalent practice around the world. The organization may be at significant risk of forced labor if it is lacking robust due diligence procedures, and further has operations in any of the sectors listed below where forced labor is known to be prevalent. This list is not exhaustive, and effort to understand risks linked to incidents of forced labour should be undertaken:
Agriculture, particularly in the production of crops such as cotton, coffee, cocoa, and sugar.
Construction, where workers may be forced to work in dangerous conditions and handle heavy machinery.
Manufacturing, particularly in the production of goods such as electronics, toys, and footwear.
Domestic work, where individuals may be forced to work as nannies, housekeepers, and cooks in private households.
The informal sector, such as street vending, shoe shining, and collecting scrap materials.
Services such as restaurants, hotels, and tourism.
Fishing and seafood processing, as well as those that rely on temporary or seasonal labor, such as carnivals and traveling sales crews.
Textiles, mining, and extractive industries
Health care, elder care, and childcare.
Please refer to the annex of this ILO-produced document for guidelines on implementing a robust due diligence program aimed at preventing incidents of forced labor: https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_101171.pdf