Government regulations — including the Uyghur Forced Labor Prevention Act (UFLPA) — enforcement actions, headlines, and industry best practices have all drawn attention to concerns surrounding forced labor and human rights in global supply chains.
The UFLPA significantly expands compliance requirements for industry to ensure that goods made with forced labor in the Xinjiang Uyghur Autonomous Region of the People's Republic of China do not enter the United States. Furthermore, the U.S. government presumes that all items made in Xinjiang were produced using forced labor, with the burden of proof resting on importers to demonstrate that materials, parts, and goods "originating in China were not mined, produced, or manufactured wholly or in part" in Xinjiang.
Proactively surfacing forced labor and human rights risk within your supply chains is therefore essential to maintaining a strong enterprise risk management program. Kharon's Forced Labor data makes navigating this complicated landscape less challenging by helping you screen for forced labor indicators and typologies as outlined in government regulations and guidance. With comprehensive coverage of thousands of individuals, companies, and state-owned or affiliated enterprises presenting forced labor and human rights risk, Kharon's Forced Labor data enables you to quickly detect and mitigate material exposure that can otherwise remain hidden — allowing your enterprise to avoid regulatory, enforcement, and reputational risks.
Kharon’s Forced Labor data includes:
- Companies and supply chains targeted by Withhold Release Orders (WROs)
- Apparel and textile manufacturers and facilitators connected to Xinjiang
- Polysilicon and solar companies connected to Xinjiang
- Companies that incorporate forced labor and surveillance tools
- Companies co-located with entities flagged as high risk for forced labor
- Xinjiang Production and Construction Corps (XPCC) affiliates
Case study: Forced labor in supply chains
Government enforcement actions are increasingly targeting companies that incorporate forced labor into their supply chains. Identifying forced labor indicators requires an understanding of complex ownership structures, upstream supply chains, and associated relationships with high-risk government entities.
This case study highlights a WRO issued by the U.S. government against a large multinational fashion retailer. Supply chain analysis by Kharon identified that the multinational received cotton shipments from a Chinese corporate network that partnered with a Xinjiang vocational training center and received government subsidies to build factories — both of which represent forced labor indicators per the U.S. government’s Xinjiang Business Advisory.