Canadian Modern Slavery Act risk assessment

Turning compliance into opportunity

The Canadian Modern Slavery Act (CMSA) is new legislation that requires companies to mitigate the risks of forced labor and human trafficking in their global supply chains.

The CMSA applies to any entity—including corporations, trusts, partnerships or other unincorporated organizations—listed on a Canadian stock exchange, have a place of business, do business or have 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 CMSA imposes a new administrative burden on companies, it also allows them to assess their supply chain risk from a broader perspective. By complying with the CMSA, 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.

How RSM can help

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

The CMSA risk assessment offers the following:

  • Greater insight into your supply chain
  • Analysis of your supply chain risk in the context of the CMSA
  • 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  
Canadian Modern Slavery Act risk assessment
Canadian Modern Slavery Act risk assessment

Beyond compliance

RSM brings its knowledge of supply chain, technology, ESG, and risk and compliance 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 needed for compliance.

RSM’s CMSA 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 CMSA risk assessment offers your company an opportunity to transcend mere compliance and enhance your organization’s ESG performance.

Furthermore, the assessment can guide your company toward alternative pathways for secondary or tertiary sourcing and mitigate against single-source supply chain disruption, whether geopolitical, climate-related or financial-related.

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

Starting your journey

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 CMSA compliance into an opportunity for more efficient and productive operations.

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