Reporting deadline for Canada's Modern Slavery Act has now passed. We know what you are thinking. What am I supposed to do for next years report? No worries, we’ve got you covered.
The law requires entities to submit annual reports on steps taken to prevent forced labor and child labor in supply chains. The first reporting deadline was May 31, 2024. Most companies likely reported on their policies and procedures, so businesses should now focus on how they are mitigating supply chain risks.
Reporting requirements
Canada's Modern Slavery Act mandates certain businesses to report their efforts to prevent forced and child labor in their operations and supply chains. Reports must include information on the entity's structure, policies, and due diligence processes. Businesses should consider steps to remediate and enhance compliance processes to ensure compliance with various legal frameworks throughout their supply chains. Combatting the risk of forced labor or child labor should be the top priority, but compliance measures should also focus on other forms of economic crime.
Risk mitigation strategies
When it comes to compliance, there's no one-size-fits-all approach. The specific measures you need to take will depend on the risks your business faces and the resources you have available. But here are a few things you can do to help ensure compliance throughout your supply chains:
1. Enhanced Transparency:
Provide greater detailed information on the geographic locations of suppliers and the specific measures taken to assess and address risks of forced labour and child labour.
2. Implementation of Due Diligence:
Detail the actions taken this year in response to identified risks or incidents, including corrective measures and support provided to affected workers.
3. Increase Supplier Engagement and Training:
Highlight collaborative efforts with suppliers to improve labour standards and implement sustainable practices throughout the supply chain.
4. Integration of Third-Party Analysis:
Utilize third-party analysis to ensure the credibility and reliability of the information reported, and to provide an independent assessment of the company’s efforts to combat forced and child labour.
5. Continuous Improvement and Long-Term Strategies:
Provide updates on progress and improvements made over the reporting period, and outline plans for future actions to enhance compliance and uphold labour standards.
What's Next?
The Canadian government aims to enact legislation in 2024 to eradicate forced labor from Canadian supply chains and strengthen the existing import ban. While specific details are yet to be disclosed, other jurisdictions have adopted measures like mandatory human rights due diligence. Regardless of future legal requirements, businesses should proactively implement effective compliance measures to prevent forced labor risks in their supply chains. Following relevant laws and industry best practices is crucial to avoid substantial penalties including fines, criminal liability, border seizures, and reputational damage. Implementing effective compliance measures not only enhances transparency but also safeguards businesses from adverse impacts.
Reach out here to speak to one of our experts about getting ahead of next year’s report.
