Supply chain mapping for modern slavery compliance
Uyghur Forced Labour Prevention Act
The UFLPA assumes that any items mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of China should be assumed to be the created by forced labor unless proven otherwise by “clear and convincing evidence.” It aims to prevent goods produced from forced labour from being imported into the US and hence requires companies to have fully mapped their supply chains.
German Supply Chain Due Diligence Act
Companies in Germany with more than 3000 employees in 2023 (or 1000 employees in 2024) must identify, assess, prevent and remedy any human rights and environmental risks in their supply chain, including their sub-tier suppliers - evidenced in an annual report.
Consequences of non-compliance are severe: fines up to €800k or 2% of annual turnover, as well as exclusion from new public contracts in Germany.
UK Modern Slavery Act
The UK Modern Slavery Act requires companies to publish an annual statement declaring that they do not use Modern Slavery in their supply chains if they have sales of more than £36 million and at least some of their business in the UK. This requirement therefore expands to large companies registered in other countries who generate revenue in the UK.
Australian Commonwealth Modern Slavery Act
This act requires all companies in Australia with a revenue of AU$100m to report their structure, operations and supply chains, including the risks of modern slavery practices within their supply chains. Supply chain visibility enables high risk suppliers to be pinpointed and audited.