It’s an inconvenient truth that human trafficking and forced labor are more prevalent in global supply chains than we’d like to admit. In this episode of Hidden Traffic Podcast, host Gwen Hassan talks to Jackson Wood, an expert in global trade intelligence at Descartes, about building transparent and trust-based supply chains. With a background in law and experience in global trade compliance and risk management, Jackson shares valuable insights into the intricacies of global trade, the role of technology, and the importance of compliance and risk management in tackling these complex issues.
Descartes recently published a white paper on human trafficking and forced labor in the global supply chain. Previously, Jackson says, due diligence was a matter of simply screening your third parties against a list of sanctioned entities. “The due diligence burden now falls on you as a compliance professional and by extension, your organization, to do everything you can to determine whether forced labor is involved in the production of these particular products,” Jackson states. Companies must rely on their own ingenuity and skills, as well as partnerships with specialized organizations like Descartes, to address these risks.
There is great potential for technology to enable companies to efficiently assess and mitigate forced labor risks in their supply chains.
Jackson and Gwen discuss the increasing importance of trade compliance in addressing forced labor and human rights issues within global supply chains. With the introduction of the German Supply Chain Act and the proposed European Corporate Sustainability Reporting Directive, companies are required to conduct broad human rights due diligence throughout their supply chains. Trade compliance offers a natural starting point for companies to address these issues, as it provides a framework for understanding and implementing the necessary measures. Compliance teams possess strong research and analytic skills, as well as experience in managing stakeholders and navigating government regulations, making them well-suited for tackling human rights issues.
There has also been a growing focus on ESG and corporate social responsibility. In recent years, trade compliance teams have gained more attention from executive leadership, particularly during the Russia-Ukraine conflict when these teams were instrumental in protecting organizations from risk exposure. As such, trade compliance professionals are increasingly being tasked with forced labor due diligence and broader supply chain mapping projects. As companies look to build more sustainable and transparent supply chains, the role of trade compliance will continue to expand.
It’s important to create trust-based supply chains that prioritize not only cost and speed but also social and environmental impact. Jackson and Gwen encourage companies to start asking questions and having conversations with their partners about human trafficking and forced labor. By fostering greater transparency and collaboration within supply chains, companies can work towards creating a more sustainable future and addressing pressing global challenges such as forced labor and human rights abuses.
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