EOS’s engagement with Compass Group Plc, a leading UK-based provider of outsourced food and support services globally, began in October 2020, focusing on the issue of modern slavery within its operations and supply chain. Despite acknowledging Compass’s establishment of a human rights policy and its dedication to eradicating modern slavery, EOS questioned the efficacy of its measures to detect instances of modern slavery throughout its network. This scrutiny extended to the company’s recruitment practices, particularly concerning migrant workers employed through its joint venture with Abu Dhabi National Hotels (ADNH), a topic which was pursued as part of the 2020 ‘Find It, Fix It, Prevent It’ initiative aimed at combating modern slavery, (this initiative was recently updated and can be found here).
EOS’s continued dialogue culminated in productive discussions with Compass’s executive team in late 2021, leading to the procurement of a third-party evaluator to scrutinise the recruitment and treatment of workers from seven source countries, alongside a bolstering of the company’s human resources expertise. The subsequent independent review in 2022 revealed compliance with International Labour Organisation forced labour indicators, identifying no major violations but highlighting minor areas for improvement, such as the need for language-appropriate documentation for workers.
The company’s responsive measures, including the establishment of monitoring procedures for the identified areas of improvement and a commitment to ongoing progress, are a positive outcome from EOS’s engagement objective with this company. Furthermore, Compass’s pledge to introduce a Group-wide Third-Party Integrity Due Diligence Policy and establish a Migrant Labour Working Group in 2023 marks significant steps forward. These initiatives reflect a deepening commitment to addressing the complexities of modern slavery within its business model and supply chain, setting a precedent for continuous enhancement of its human capital management practices. EOS’s engagement will nonetheless persist, focusing on the effectiveness and implementation of these new policies and groups, ensuring Compass Group’s enduring dedication to ethical and responsible business conduct.
At the time of publication (May 2024) Compass Group PLC were held in our High Alpha Global Equity, Passive Developed Equities Carbon Transition Benchmark (CTB) Passive Global Equities, Paris Aligned Benchmark (PAB) Passive Global Equities and Passive UK Equities portfolios.