Royal Bank of Canada | Fighting against forced labour and child labour in loan portfolios at Royal Bank of Canada

Status
AGM passed
AGM date
Previous AGM date
Proposal number
2
Resolution details
Company ticker
RY:CN
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
It is proposed that, starting in 2026, the Bank report to its shareholders and stakeholders on the measures taken during the previous
year to prevent and reduce the risk of loans being granted to companies using forced labour and child labour in the production of goods
produced, purchased or distributed by its customer base using the Bank’s financing for their operations.
Supporting statement
On May 11, 2023, the Fighting Against Forced Labour and Child Labour in Supply Chains Act1
came into force. This Act requires certain
companies to file reports on their efforts to fight forced labour and child labour, the first of which must be filed by May 31, 2024.
While this Act aims to protect children from exploitation and human rights abuses in supply chains, we propose that the Bank take a
proactive stance on this issue by committing, as a good corporate citizen, to prevent and reduce the risk that its loan portfolio includes
any form of support for companies that use forced labour or child labour in their business operations.
According to a report by the International Labour Organization (ILO) and UNICEF, the UN agency responsible for children’s welfare,2 the
number of children forced to work in 2020 stood at 160 million, an increase of 8.4 million in four years. Even more concerning is the rise in
the number of children aged between 5 and 17 doing hazardous work, i.e. work that can have a direct effect on their development,
education or health. This category includes dangerous sectors such as mining or fishing, or working more than 43 hours a week, which
makes schooling virtually impossible. Other sectors worth mentioning include textiles and clothing, electronics, forestry, etc.
This report should provide all the necessary information to reassure shareholders and stakeholders of the Bank’s willingness to reduce
its financial support to companies that force children to work.

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
VidaCaixaFor

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