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If there were a global emergency fund for garment workers who lose jobs due to climate disasters, who should pay into it and why?

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Priscilla

18/09/2025 12:10

Comment from FONDAZIONE FINANZA ETICA (member of Italian CCC):

There can be a more concrete role of finance, which has a decisive impact on determining the operating conditions of supply chains.
Insurers and investors are mentioned as entities that should cooperate, but in practice too often:
- they continue to finance companies with opaque supply chains and minimal standards of rights protection;
- they consider social risks to be a reputational issue, addressed with generic policies that do not provide for serious controls;
- they do not agree to make access to capital conditional on independent checks on actual working conditions and the use of environmental resources.

If cooperation between states, businesses and the financial system is to have a concrete impact, banks, funds and insurance companies must make binding operational commitments, such as:
- introduce clear contractual clauses linking funding to compliance with verifiable standards throughout the supply chain;
- publish transparent reports on how these criteria are applied;
- provide for the possibility of suspending or withdrawing financial support from companies that do not comply with the rules.
Without these tools, cooperation risks remaining a formal declaration with no operational consequences, while financial flows continue to fuel production models based on exploitation and rights violations.

Riferimento: CCC-DEBA-2025-05-77
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