The U.S. Senate Committee on Finance has requested information from automotive seating supplier Lear Corp. as part of an ongoing investigation into forced labor and environmental abuses in Brazilian supply chains of products sold in the U.S.
The committee has been investigating the relationship between cattle ranching and deforestation of the Brazilian Amazon for the past two years, focused largely on Brazilian meat production company JBS.
Lear sources 70 percent of the leather for its popular car seats from Brazil, predominantly working with JBS and two other companies, all three of which are “hide producers known to source cattle from areas of the Amazon that have been illegally used for cattle production and which receive weak oversight from the Brazilian government,” according to a July 24 letter from the committee to Lear CEO Ray Scott.
Lear’s potential link to forced labor is murkier. Cattle is one of the products the U.S. Department of Labor’s Bureau of International Labor Affairs has said may be produced by forced labor or child labor in Brazil, and illegal deforestation and human rights abuses often go hand in hand, according to the letter.
“In addition to encouraging deforestation, illegal ranching in the Amazon drives violent land-grabs and human rights abuses, subject to weak oversight by Brazilian law enforcement, which often fails to enforce environmental and human rights laws,” Finance Committee Chairman Ron Wyden wrote in the letter.
The committee asked Lear to provide details of its leather supply chain management practices by Aug. 7, 2023.
“We are reviewing Sen. Wyden’s letter and will respond accordingly. Lear takes these matters seriously and remains committed to protecting human rights and the environment in our operations and supply chain,” a Lear spokesperson said.
“Through our comprehensive supply chain management system, we work with suppliers that meet our contractual requirements, including compliance with our supplier sustainability, human rights and no deforestation policies. If a supplier violates our policies or requirements, we investigate and respond accordingly, up to and including termination of contract.”
Lear, of Southfield, Mich., ranks No. 10 on Automotive News‘ list of the top 100 global parts suppliers, with estimated worldwide sales to automakers of $20.8 billion in its 2022 fiscal year.