Praxis joins action to combat forced labor in sugar industry

Praxis has joined other socially concerned investors to engage Coca-Cola, Mondelez, Nestlé, and Unilever concerning the rights and well-being of sugarcane workers in India. Reports from news sources and non-profits reveal that workers in India’s sugar supply chain—particularly women and children—are subject to severe human rights violations.

Sugar mill owners use contractors to recruit and hire workers from distant villages through informal and unwritten contracts that trap them in cycles of debt, struggling to get ahead, and forced to endure grueling conditions. Hundreds of thousands of children below the age of 14 are involved in sugarcane harvesting, missing out on education and risking their health and safety.

Food and beverage companies have the power—and the responsibility—to uphold ethical labor standards and ensure that workers are treated with dignity and respect. Praxis and its investor partners are calling for meaningful action in key areas:

• Corporate accountability: Transparent responses to the reported labor violations, including steps taken to investigate and address these issues.
• Supply chain oversight: A comprehensive, third-party audit of supply chains to assess risks and identify problem areas.
• Ethical recruitment practices: Measures to prevent exploitative hiring and ensure fair treatment of workers.
• Stakeholder engagement: Ongoing dialogue with workers, local communities, and advocacy groups to understand and resolve systemic human rights abuses.
• Support for affected workers: Concrete initiatives to assist sugarcane workers, particularly women and children, who have suffered under these exploitative conditions.

Following an initial round of letters outlining these points of action, we are beginning to engage in direct dialogue with the companies to push for tangible change.

Coca-Cola and Mondelez are held in the Praxis Value Index Fund, while Nestlé and Unilever are included in the Praxis International Index Fund. By leveraging our investments, we aim to drive corporate accountability and advocate for the fundamental rights of sugarcane workers.