Concerns raised over labor rights and transparency in Brazil's $3bn leather sector

From Yahoo Finance: 2025-05-19 06:21:00

A six-month study in 2024 analyzed over 100 sources to investigate human rights and working conditions in Brazil’s $3bn leather sector, a global third-largest. Tanneries employ 30,000 workers and annually process 40m hides for 80 markets, with the EU receiving 25%. Projections suggest a 35% growth in the Brazilian beef industry.

Challenges in the leather supply chain include supply chain opacity, labor and human rights concerns. Worker mistreatment, chemical exposure, and modern slavery risks are prevalent. Existing certifications inadequately address labor conditions. Collaboration deficits exist between sectors in enforcing human rights due diligence throughout the value chain.

The report suggests four approaches for companies to enhance traceability and integrate social and environmental considerations into the supply chain. These include developing proprietary traceability systems, collaborating with third-party entities, forming industry coalitions, and withdrawing from high-risk countries. A public webinar on the report will be held on 28 May.

Read more: Labour rights, transparency concerns in Brazil’s leather supply chain