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US-based social investors Domini have persuaded a steel company to combat slavery in Brazil’s pig iron industry.
Nucor, the largest US steel producer, agreed to a three-year plan after exposés on camps that impose inhumane working conditions and conduct illegal deforestation associated with pig iron manufacture.
Nucor, the largest buyer of Brazilian pig iron, says problem suppliers, mainly charcoal producers, are generally unknown to it and are sometimes far down the supply chain.
It has now pledged, however, to monitor its sourcing more closely and to require its top-tier Brazilian suppliers to join the Citizens Charcoal Institute, an association of Brazilian companies formed to eradicate slavery in their supply chains, or to sign and observe the National Pact for the Eradication of Slave Labor. The company has also agreed to support the Institute financially.
The decision follows a shareholder resolution from Domini this year on strengthening the company response to labour violations, which it withdrew in return for written commitments by Nucor. The company will report on progress annually.
Nucor, the largest US steel producer, agreed to a three-year plan after exposés on camps that impose inhumane working conditions and conduct illegal deforestation associated with pig iron manufacture.
Nucor, the largest buyer of Brazilian pig iron, says problem suppliers, mainly charcoal producers, are generally unknown to it and are sometimes far down the supply chain.
It has now pledged, however, to monitor its sourcing more closely and to require its top-tier Brazilian suppliers to join the Citizens Charcoal Institute, an association of Brazilian companies formed to eradicate slavery in their supply chains, or to sign and observe the National Pact for the Eradication of Slave Labor. The company has also agreed to support the Institute financially.
The decision follows a shareholder resolution from Domini this year on strengthening the company response to labour violations, which it withdrew in return for written commitments by Nucor. The company will report on progress annually.
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