Wall Street Takes a Stand Against Labor Abuse in India’s Sugar Industry

A group of pension funds and institutional investors are applying pressure on companies like Coca-Cola and Pepsico to address severe labor abuses in India's sugar industry, where child labor and forced medical procedures have been reported.

In a significant move aimed at addressing the harsh labor conditions in India's sugarcane fields, influential investors are applying pressure on major corporations to take responsibility. The New York City comptroller, overseeing a massive pension portfolio worth nearly $1 billion that includes shares in companies like Coca-Cola and Pepsico, has been actively engaging with these sugar buyers. Recent investigations have highlighted the acute suffering of workers in Maharashtra, with reports of child labor, debt bondage, and coercive practices including forced hysterectomies.

Comptroller Brad Lander stated, "We will bring pressure to bear on the companies we invest in who participate in that system by sourcing their supply from it and funding it." He is collaborating with labor leaders and a coalition of investors to urge these companies to demand better conditions from their sugar suppliers. Notable partners in this initiative include international firms such as BNP Paribas Asset Management and Schroders, which also hold substantial investments in the sugar sector.

Moreover, the Biden administration is backing these efforts. The State Department has been in discussions with U.S. companies, advocating for the use of their purchasing power to influence sugar mills towards ethical practices. By encouraging corporate collaboration with labor unions, there is hope that real change can emerge, improving the dire circumstances faced by sugarcane workers in India.