How will you plan
for global supply chain risk?
Until recently, “supply chain” was a phrase rarely used in everyday conversation.
Then the COVID-19 pandemic revealed security risks in the complex links connecting producers and their customers. This, coupled with other emerging risks — labour shortages, cybersecurity, political unrest, ethics and climate to name a few — have caused both business and governments to re-assess how to treat global supply chains in a rapidly changing world.
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In 2024, there are two supply chain-related regulatory trends we’re watching.
Become familiar with every link in your supply chain, including the supply chains of your suppliers. That way you can address reliance on authoritarian countries and large carbon emitters when it comes to critical inputs.
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Show us the money: Net zero financing for Canadian Businesses
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This pledge will have real impacts on business as usual at home. Legislative changes, stricter reporting, penalties and incentives — particularly tax credits — will affect every business, from big banks to the corner store.
As of Oct 2022, Canada has:
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This pledge will have real impacts on business as usual at home. Legislative changes, stricter reporting, penalties and incentives — particularly tax credits — will affect every business, from big banks to the corner store.
Suppliers that engage in forced and child labour and human trafficking expose businesses to reputational, financial, operational and — with Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act came into force on January 1, 2024 — regulatory risk. Organizations subject to the Act must report on measures taken to prevent and reduce the risk that forced or child labour is used, including in their supply chains. The Act includes an inspection regime and gives the Minister of Public Safety and Emergency Preparedness the power to require an entity to produce information.
1
%
Number of
respondents
still undecided
44
%
Have provided
off-cycle
increases
33
%
But the benefits of a pay increase go beyond simply retaining your top talent.
Projected
average pay
adjustment
Projected
average pay
adjustment
To manage supply chain uncertainty:
Carbon border adjustment taxes
In October 2023, the EU began implementation of its Carbon Border Adjustment Mechanism on certain carbon-intensive imports. The U.S. has its own proposed carbon levies, the
Clean Competition Act and the Foreign Pollution Fee Act. Carbon taxes will also make it more difficult to maintain supply chains in countries that are high carbon emitters.
The days of passive supply chain management are over for the foreseeable future. Instead, use global supply chain changes as a learning tool to transform your supply chain into a competitive differentiator.
2
Make supply chain decisions part of your strategic conversations. Ask questions about ethics, regulatory changes, compliance and in-country controls.
3
Invest in technology, including emerging AI tools, to improve visibility and enhance real-time collaboration with partners.
4
If you’re relying on external service providers, evaluate their capabilities and carefully consider taking at least some control in-house to maintain control and visibility in a rapidly changing regulatory environment.
Modern slavery legislation
Suppliers that engage in forced and child labour and human trafficking expose businesses to reputational, financial and operational risk. The EU and U.S. have led the way with versions of modern slavery legislation. Canada’s Bill S-211 could come into force this year. The requirements in S-211, if they become law, will call for substantive compliance resources for business.
4.2
Become familiar with every link in your supply chain, including the supply chains of your suppliers. That way you can address reliance on authoritarian countries and large carbon emitters when it comes to critical inputs.
1
Make supply chain decisions part of your strategic conversations. Ask questions about ethics, regulatory changes, compliance and in-country controls.
2
Invest in technology, including emerging
AI tools, to improve visibility and enhance real-time collaboration with partners.
3
2
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1
/ 5
In 2023, there are two supply chain-related regulatory trends we’re watching.
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