The Canadian organization Shareholder Association for Research & Education (SHARE) just released a report on how supply chain management can help promote and enforce human rights. Some countries legally require companies to report the status of human rights and any liabilities that may stem from neglect or worse. Canada, however, does not. SHARE has looked at other parts of the world to inform how the Canadian government and companies can better the world while reducing risk for investors.
The report, “The Rise of Supply Chain Transparency Legislation” (PDF link), reviews a range of supply chain transparency legislation from the U.S. and across Europe, including the California Transparency in Supply Chains Act 2010 and the UK Modern Slavery Act, to understand its form and impact and to learn from best practices already adopted in other jurisdictions.
SHARE’s report examines best practices in supply chain reporting from other jurisdictions and makes recommendations for Canada, including that a reporting regime should be consistent, but flexible; that it should be publicly accessible; updated annually and certified by top management; and that there should be mechanisms to ensure compliance.
“A regulatory framework for supply chain transparency reporting ensures consistency and comparability between the information provided by each company in a sector,” says Delaney Greig, an analyst with SHARE and co-author of the report, in a statement. “Reporting requirements should help companies to approach supply chain due diligence in a way that ensures efforts are effective and transparent while allowing companies flexibility to do what is best for their situation.”