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Shift Happens

Lessons Learned from the First Year of Reporting on Canada’s Modern Slavery Act

Executive Summary

On May 31, 2024, Canada reached a significant milestone with the first reporting deadline under the Fighting Against Forced Labour and Child Labour in Supply Chains Act; this commonly referred to as Canada’s Modern Slavery Act (the Act).

This landmark piece of environmental, social, and governance (ESG) legislation requires organizations to assess and disclose the risks of forced labour and child labour within their supply chains, as well as report any instances that may have occurred. In its inaugural year, this new legislation prompted the publication of 6,167 reports from entities covered by the Act.

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With this legislation Canada joins a growing list of countries – including Australia, the UK, France, and Germany – that enforce corporate transparency in supply chains. The Act aligns with global trends toward greater corporate accountability and ethical business practices. For Canadian companies operating internationally, complying with Canada’s requirements may also help meet reporting obligations in other jurisdictions.

Since 2023, Shift Critical International Ltd. (Shift Critical) has supported clients in navigating and complying with the Act’s requirements, including assisting in drafting the mandated formal report to the Government of Canada.

Our services encompass policy and governance development, conducting supply chain risk assessments, and generating internal risk reports. This report draws on insights from our extensive network, publicly available data, and responses to a targeted survey conducted among our clients. It offers key lessons learned from the first year of implementation.