Identification of Forced labor and child labor risks
The Act requires entities to identify parts of their operations and supply chains that could involve forced labor or child labor, either in the entity's own activities or those of its controlled entities and direct or indirect suppliers. This identification does not require proving that forced labor or child labor has actually occurred. Rather, entities should demonstrate consideration of how their activities and supply chains may potentially cause, contribute to, or be linked to forced labor or child labor risks.
No industries or supply chains are assumed to be risk-free regarding forced labor and child labor. The purpose is not to certify an entity as "risk-free," but to show steps taken to identify and address risks. This transparency aims to encourage progress, not penalize entities that find risks.
Entities should avoid disclosing commercially sensitive details or specific cases that raise legal or privacy issues. The questionnaire allows entities to identify general risk areas related to sectors, industries, countries, or regions. Additional details are encouraged, such as risks tied to certain products or supply chain steps. Entities may volunteer anonymized case studies, but individual privacy should be protected.
The questionnaire also allows entities to describe their risk assessment and management processes, either for each risk or in general terms. Controlled entities should also be addressed. Explanations could cover supply chain mapping, formal risk assessments, and mitigation strategies. The goal is transparency into systematic efforts to identify, assess, and manage forced labor and child labor risks.