Local Government Super signs Investor Statement on Bangladesh

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First Australian super fund to join call to improve international garment industry standards

LGS to support the ‘Investor Statement on Bangladesh’

Local Government Super (LGS) has become the first Australian super fund to support the ‘Investor Statement on Bangladesh’.

Local Government Super joins over 190 global shareholders and investors, representing more than $US1.5 trillion, in calling on brands and retailers to implement the internationally recognised core labour standard of the International Labor Organization (ILO).

The Statement is a response to a series of deadly accidents in Bangladesh garment factories over the past six months which have collectively resulted in the deaths of over 1,500 Bangladeshi garment workers. These incidents include the November 2012 fire in a Tazreen garment factory, the collapse of Rana Plaza in April and a second fire in Dhaka in May.

Peter Lambert, CEO of Local Government Super, said: “We support the action being taken by brands and retailers to help improve worker safety and welfare. In signing the Investor Statement on Bangladesh, Local Government Super is taking a first – but important – step to support change for the better from an investment perspective.

“The Statement includes a pledge to engage with relevant companies to highlight the investment risks associated with perpetuating the unsafe working standards that are all too prevalent in emerging markets. We are also committed to asking for meaningful action to improve the industry.”

Local Government Super and its fellow signatories on the Statement, ask companies to:

  • Join the multi-stakeholder “Accord on Fire and Building Safety”
  • Commit to strengthening local trade unions and ensuring a fair wage of all workers
  • Publicly disclose all suppliers and the programs in place to ensure worker health and safety
  • Ensure appropriate governance mechanisms, remedies and compensation are in place for affected workers and their families.

“Our support of this Statement reflects our long-standing commitment to responsible investment which we believe is the best way to earn long-term sustainable returns for our members.” Mr Lambert continued.

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