Canada’s modern slavery legislation risk assessment

Fighting Against Forced Labour and Child Labour in Supply Chains Act (Bill S-211) is a new law that requires companies to disclose if they are mitigating risks related to forced labour and human trafficking in their global supply chains. The act applies to any entity—including corporations, trusts, partnerships or other unincorporated organizations—listed on a Canadian stock exchange that has a place of business, does business or has assets in Canada. Affected companies must also meet at least two of the following conditions for at least one of their two most recent financial years:

• Have at least $20 million in assets
• Generated at least $40 million in revenue
• Employed an average of at least 250 employees

Although the act imposes a new administrative burden on companies, it is an opportunity for them to showcase efforts taken. This is a public document; if they do nothing it poses a reputational risk. The flip side is the opportunity to showcase excellence in this area and it’s going to drive companies to do better for that reason. By complying with the act, companies gain greater transparency into their supply chains, which can simultaneously facilitate addressing similar legislation globally, assist in addressing supply chain sustainability issues, mitigate reputational risks and enhance organizational resilience. 

Our risk assessment empowers buyers by providing a deeper understanding of their supply chain. We strive to streamline compliance with the act with a risk assessment while uncovering strategic and operational enhancements for the organization.

The risk assessment offers the following:

• Greater insight into your supply chain
• Analysis of your supply chain risk in the context of the act
• Identification of mitigation strategies that align with best practices and standards
• Development of a pathway to compliance
• Identification of opportunities that may enhance your company’s environmental, social and governance (ESG) position    

RSM brings its knowledge of supply chain, risk and compliance, technology and ESG to create a comprehensive solution. In addition, our strategic partnerships with technology providers enable us to navigate the complexities of supply chains, delivering the transparency that is being encouraged by the legislation.

RSM’s risk assessment offers insights into your company’s broader sustainability issues, such as your carbon footprint, climate-related risks and opportunities, waste management policies and more. ESG issues are increasingly important for customers, investors and employees, who demand higher business performance standards. Our risk assessment offers your company an opportunity to transcend mere compliance and enhance your organization’s ESG performance.

In this way, the risk assessment not only steers your company toward compliance but taps into your organization’s potential for transformative growth.

RSM’s goal is to provide your company with a comprehensive understanding of your supply chain operations. Contact us today to discuss how you can turn compliance into an opportunity for more efficient and productive operations.