• The UN sustainable development goals (SDGs) include eradicating poverty and ensuring decent work for all – essential foundations for building thriving societies and economies. Decent work is recognised in the Universal Declaration of Human Rights, while poverty erodes access to fundamental human rights.
• Many of the problems targeted by these two SDGs – zero poverty and decent work – are disproportionately found in supply chains due to their complex and sprawling nature, especially in emerging markets.
• However, strict new US and EU regulations, as well as greater scrutiny from stakeholders, is putting companies under pressure to re-examine their supply chains and address human rights abuses. 
• A number of holdings on the GEMs portfolio have made efforts to address some of these issues and Federated Hermes continue to engage with companies on the importance of respecting human rights. Engagement case studies include Delta Electronics and Alibaba.

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