Global supply chain human rights and sustainability

Regulatory and legal frameworks are increasingly targeting corporate accountability for human rights and environmental risks within global supply chains. In the United States, legal focus has transitioned toward the Trafficking Victims Protection Reauthorization Act (TVPRA), which allows for liability against entities that benefit from forced labor if they “knew or should have known” of the violations.

Regulatory pressure is intensifying through mechanisms such as the Uyghur Forced Labor Prevention Act (UFLPA), with the Department of Homeland Security adding 43 entities to its list, and the implementation of Section 301 tariff measures by the U.S. Trade Representative.

Beyond forced labor, companies are facing growing pressure to manage broader sustainability risks, including CO2 emissions and biodiversity. In Japan, mandatory Scope 3 emissions disclosure requirements are impacting small and medium-sized enterprises, prompting local initiatives to develop survival strategies for managing carbon footprints.

Global supply chain management is now shifting from voluntary transparency toward mandatory accountability. The European Union is preparing to implement the Corporate Sustainability Due Diligence Directive (CSDDD) and the Forced Labor Regulation by 2027. In the U.S., continued enforcement of the UFLPA poses significant financial and legal risks through U.S. Customs and Border Protection. Consequently, modern risk management requires deeper visibility into complex ownership structures, including parent companies, subsidiaries, and joint ventures, to uncover hidden affiliations and mitigate geopolitical or reputational damage.