Investors press companies on human rights in Xinjiang

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A group of religious and socially conscious investors and other funds are ramping up pressure on Western companies over alleged human rights abuses in China's Xinjiang region, highlighting the challenges for brands trying to maintain their business ties amid rising tensions.

The group of more than 50 investors, backed by the Interfaith Center on Corporate Responsibility, said it is in the process of contacting more than 40 companies, including H&M , VF Corp, Hugo Boss and Zara-owner Inditex, requesting more information about their supply chains and urging them to quit situations that could lead to human rights abuses.

The wave of boycotts coincided with sanctions imposed by Britain, Canada, the European Union and the United States over what they say are human rights abuses taking place in Xinjiang.The investor alliance alleged that companies removing or moving statements in relation to Xinjiang were doing so in fear of commercial retaliation from the Chinese government.

VF Corp's original statement on Xinjiang was no longer available, with a new statement published on a different section of the site. A VF spokeswoman said on Tuesday the company had "not changed our position, our policies or our practices" but did not address the new location of its statement. Assets in sustainable funds hit a record $1.7 trillion in 2020, based on data from fund management industry tracker Morningstar.

The investor alliance does not include top U.S. fund groups BlackRock Inc and Vanguard Group Inc. With $16 trillion in assets between them both companies are large shareholders in many of the companies under pressure in China, based on Refinitiv data.

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