Supply chain ESG9 min read

Bill S-211: the 31 May report and who it quietly catches

Of everything in the Canadian and American disclosure landscape, the Fighting Against Forced Labour and Child Labour in Supply Chains Act is the instrument most likely to apply to a company that has never thought about it. It came into effect while the attention was on climate rules. It survived the period in which most of those climate rules were paused, stayed or enjoined, because it was never part of that program. And it runs on a fixed annual calendar that does not move.

Reports are due on or before 31 May each year, covering the previous financial year. The first reports were due 31 May 2024, so several cycles have already been through the system while some in-scope organizations were still deciding whether it applied to them.

The entity test, and the two traps in it

Section 2 defines an "entity" as a corporation, trust, partnership or other unincorporated organization that either: