See also the broader UNEP FI Environmental and Social Risk Briefing as well as these resources.
This is a very wide ranging sector, which manufactures products from raw materials into finished goods. It includes intermediate manufacturing processes. For further information on raw materials and their initial processing, see the separate briefings on : Metals and Mining, Oil and Gas, Agriculture and Fisheries and Forestry and Logging. The construction of manufacturing facilities may also have a significant impact: see the briefing on Infrastructure.
Major manufacturing sub-sectors include:
- Automobile
- Aviation
- Breweries and distilleries
- Electrical and optical equipment
- Electroplating and metal finishing
- Food, beverages and tobacco
- Leather
- Metal products
- Mineral products
- Pulp and paper
- Rubber, plastics and derived products
- Textiles
- Wood products
Key human rights related risks include:
- Child labour, in final manufacturing and in the supply chain
- Workforce conditions, including low pay, long hours and poor health and safety standards, in final manufacturing and in the supply chain
- Product stewardship - consumer health and safety, product safety and labelling, and responsible marketing
- Supply chain and ethical sourcing of materials
- The environmental impact of manufacturing processes on employees and local communities
Relevant voluntary and trade initiatives include:
- The Ethical Trading Initiative: an alliance of companies, trade unions and voluntary organisations, working to improve the lives of people across the globe who make or grow consumer goods.
- Fair Labor Association: brings stakeholders together to call for greater accountability and transparency from manufacturers, factories and others involved in global supply chains.
There are links to these initiatives in the resources section.
WORKPLACE CONDITIONS
What does this cover?
Workplace conditions include factors such as working hours, wages, health and safety and disciplinary practices.
What are the main issues for the general manufacturing sector?
Within the manufacturing sector, there are different issues, depending on the location and what processes, equipment and materials are used. A particular concern is that as businesses seek to minimise production costs, they may move production to locations where standards are generally lower and less effectively regulated, exposing workers to greater risks. These include:
- Health and safety: the use of hazardous chemicals, which may have both short and long-term risks to health; heavy machinery; ergonomic issues (eg lifting heavy loads); and insufficient information and training provision for workers on health and safety issues (or information not provided in languages appropriate to the workforce)
- Poor employment conditions, including low wages, long hours, and compulsory overtime
CHILD LABOUR
What does this cover?
Children are widely employed in the manufacturing sector – this has been identified as a particular issue in textiles, but also applies in other sub-sectors.
What are the main issues for the general manufacturing sector?
- Children working long hours are missing out on educational opportunities
- Children may be exposed to particular health and safety issues including the use of sharp tools, operating dangerous machinery and moving heavy loads
PRODUCT STEWARDSHIP
What does this cover?
This includes consumer health and safety, product safety and labelling, and responsible marketing. Issues of concern will depend on the particular sub-sector.
What are the main issues for the general manufacturing sector?
| SUB-SECTOR | POSSIBLE ISSUES OF CONCERN |
Breweries and distilleries
Food, beverages and tobacco |
- Consumer health issues
- Responsible marketing, particularly to children and young people, and vulnerable groups |
| Electrical and optical equipment |
Product safety, including ensuring that instructions are in appropriate languages |
Rubber, plastics and derived products
Wood products |
Product safety, particularly in relationship to toys and products intended for children |
CONTROLS AND MITIGANTS
- Health and safety plan communicated to all workers in their own language and supported by robust governance procedures
- Written policies and procedures around employment and protection of young workers and prevention and mitigation measures in relation to child labour
- Provision of detailed information about correct product use (including any risks involved) and documented assurance that reasonable steps are taken to ensure that products are not made available to those likely to misuse them
- Responsible marketing policy and procedures
- Written emergency response plan in the event of product recall on health and safety grounds
SUPPLY CHAIN ISSUES
What does this cover?
Companies managing their own activities to reduce risk of human rights violations will also be aware of the potential human rights violations which may be committed by business partners in their supply chain. Each of the human rights issues considered by a potential client can be relevant to their suppliers.
What are the main issues for the general manufacturing sector?
Further information on supply chain issues for manufacturing is covered in other sector briefings, including:
Issues to be aware of include:
- Workplace conditions, including health and safety issues
- Child labour
- Sourcing raw materials, particularly in areas of conflict and where this may impact on the lifestyles of indigenous peoples
- The safe transport and storage of materials at all stages in the production process
CONTROLS AND MITIGANTS
- Written ethical and environmental supplier screening policy covering labour relations issues and sustainable/ethical sourcing of materials. Suppliers should be aware of potential hazards and have systems in place to protect workers and communities
- Written supplier screening policy which covers child labour and includes programmes to enable children who are working to attend and remain in quality education
- Transport and storage risk management plans for handling hazardous materials, eg driver training and awareness of risks; local community awareness and education
What does this cover?
People living in communities close to project or factory sites can be affected by the operations of the business. This may include how they access essential resources and use security staff to protect premises and site activities, and the displacement of populations for industrial development purposes.
What are the main issues for the general manufacturing sector?
Health and safety
- Storage and transport of hazardous materials may pose risks for local communities if inadequate standards are applied eg damage to health or local environment may occur through releases of hazardous materials
- There may be a risk of contamination of natural resources from waste disposal and pollution, and subsequent damage to health of local people eg contamination of the food chain or of water supplies
- Air pollution, dust and noise impacts
Exploitation of resources
- Access to and use of water and energy for product manufacture may impact adversely on the community
Major accident/incident management
- Failure to respond adequately to an emergency situation eg major explosion, leakage or other release of dangerous substances into the air, water or ground
CONTROLS AND MITIGANTS
- Community awareness and education plan as part of health and safety measures
- Written emergency response plan to protect affected communities in the event of major accident/release of hazardous materials eg provision of emergency water supply to local community if usual sources are contaminated
- Written social assessment to evaluate the positive and adverse effects of a project on indigenous peoples and examine alternatives where adverse impacts may be significant
- Written policies and procedures to ensure the free, prior and informed consultation of local and indigenous communities; ensuring that vulnerable groups are part of the consultation process. There should be a complaints mechanism available to local communities
- Policies and procedures around conservation and sustainable use of water and energy which take account of local community need for these resources now and in the future
STANDARDS OF OPERATION IN DIFFERENT JURISDICTIONS
What does this cover?
National and local standards may fall short of international good practice, in terms of the testing and misuse of products.
What are the main issues for the general manufacturing sector?
- Failure to apply acceptable management and policy standards where these are not required by law
- Potential for products to be used by illegal organisations, including counterfeiting and smuggling of branded goods
CONTROLS AND MITIGANTS
- Compliance with local/national law is a minimum benchmark
- Application of consistent and effective management practices (eg around workforce or community health and safety; supplier screening), even where local law is not applied or standards are appreciably lower than internationally accepted good practice
- Development of systems to ensure traceability of products and awareness of customers and their product needs
