Around 168 million people worldwide leave their homeland to work in another country. They are the silent architects of our prosperity. But all too often they pay a high price for this – with forced and child labor.

Globalization with a dark side

The dream of a better life leads millions of people across borders year after year. “Push factors” such as poverty, unemployment or political uncertainty drive them away. “Pull factors” such as higher wages or better living conditions attract them.

However, the reality at their destination is often different: long working hours, lack of social security, low wages. In addition, many migrant workers have to go into debt to pay for recruitment and travel costs. As a result, many end up in a system that leaves them in debt, dependent and defenceless – a cycle of exploitation.

A significant proportion of migrant workers are employed in the agricultural, healthcare and construction sectors. However, the majority – 68% – work in the service sector, where the proportion of women is above average. This distribution is largely due to the high demand for care and domestic work as well as demographic ageing in many destination countries. In comparison, migrant workers are underrepresented in agriculture and industry.

None of this is a distant problem. Whether in the European service sector, on American farms or on Arab construction sites – the exploitation of migrant workers is a global phenomenon.

The 2034 World Cup as a burning glass

Ever since the 2022 FIFA World Cup in Qatar, the world has known that behind the glamor of major sporting events often lies a grim everyday life for the workers who make them possible. With the awarding of the 2034 FIFA World Cup to Saudi Arabia, this issue is once again coming to the fore.

Eleven new stadiums, 185,000 hotel rooms, new airports and roads – all of this is being built by people who in many cases work under conditions that are tantamount to modern slavery. The kafala system in particular entails hardships. These include: Passport withdrawal, non-payment or late payment of wages, lack of job security. This leads to a high level of dependency, as employees have little chance of asserting their rights.

Why investors need to act

Investors have a great responsibility in the fight against these abuses. Anyone who invests in a globalized world shares responsibility for the conditions under which value is created.

The asset manager of Evangelische Bank, EB – Sustainable Investment Management GmbH, stands for investments for a better world. Through active dialog with companies, they address sustainability risks and opportunities and thus support companies in their sustainability transformation.

As a sustainable investor, EB-SIM requires companies to, among other things:

• Zero tolerance for forced and child labor

• Transparency in the supply chains too

• Anchoring of international standards such as the ILO core labor standards and the UN Guiding Principles on Business and Human Rights

If companies seriously disregard these requirements, EB-SIM draws clear consequences, including exclusion and disinvestment . In these cases, renewed investments are only possible if companies can credibly demonstrate that they have clarified, rectified and made amends for existing violations. They must also demonstrate that they have taken effective measures to prevent a recurrence.

Commitment instead of looking away

Change comes about through dialog. This is why EB-SIM actively seeks to engage with companies – even in sensitive sectors. Engagements are intended to motivate companies to actively combat the exploitation of migrant workers and to fully respect human and employee rights in all areas of business and the supply chain.

As a member of the Arbeitskreis Kirchlicher Investoren (AKI), we have also actively participated in numerous corporate dialogues on human rights risks in the supply chain in the past. Together with other investors, EB-SIM has joined forces with networks such as Shareholders for Change (SfC) in order to gain more influence. The aim is to encourage companies to identify risks, introduce protection mechanisms and implement them consistently.

A win for everyone

The protection of migrant workers is not a niche issue. Rather, it contributes to more sustainable and therefore more successful economic activity:

• Socially, because human rights are universal.

• Economically, because fair working conditions create stability.

• Ecological, because sustainable action is never possible without social responsibility.

Investors can play a key role in this. By using the power of money, they send out a signal: human rights are not negotiable.

Conclusion: time for responsibility

Migrant workers are not a marginal figure in the global economy. In many places, they are its backbone. They deserve respect, fair conditions and protection.

The coming years – with major events such as the 2034 FIFA World Cup – will show whether companies and investors are prepared to take responsibility. EB-SIM has made its decision: it is taking action. For people, for sustainable markets, for a fair future.