Study Guide

Green Customs increasingly overlaps with human-rights enforcement, especially forced labor in supply chains. The shift to renewable energy relies on critical minerals such as cobalt, lithium, nickel, and rare earths, and mining and processing in some regions have been linked to forced and child labor. Green sectors such as agriculture, forestry, recycling, and construction also carry high labor-exploitation risk, so sustainability goals can create forced-labor exposure if supply chains are not monitored.

Businesses with international supply chains are expected to conduct due diligence in line with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, including:

•          Assessing forced labor and exploitation risks
•          Preventing or mitigating negative impacts
•          Monitoring suppliers and subcontractors
•          Providing remedy when abuse occurs

Many countries now have legislation requiring mandatory human rights and environmental due diligence (mHREDD), often linked to import prohibitions on goods produced with forced labor. Examples include:

Jurisdiction	Measure	What it does
EU	Corporate Sustainability Due Diligence Directive (CSDDD)	Adopted 2024; phasing in mandatory due diligence for large companies in the EU.
US	Uyghur Forced Labor Prevention Act (UFLPA)	Targets goods linked to forced labor in Xinjiang; CBP uses data analytics to flag shipments.
Canada	Fighting Against Forced Labour and Child Labour in Supply Chains Act	Requires reporting on forced-labor risks, with customs enforcement.
Australia	Modern Slavery Act review (2024–2025)	Strengthens reporting and adds penalties; focus on renewable-energy chains.
New Zealand	Modern Slavery & Worker Exploitation legislation (in progress)	Expected to introduce due-diligence obligations aligned with global standards.