SB 657

 

California Transparency in Supply Chains Act (SB 657)

The California Transparency in Supply Chains Act went into effect on January 1st, 2012. It requires companies doing business in California and doing more than $100 million in business annually to disclose information on their websites about efforts companies are taking to prevent forced labor in their supply chains.

Companies will have to report if they are doing the following:

  • Engage in verification of product supply chains to evaluate and address any risks of trafficking and slavery;
  • Conduct audits of suppliers for compliance with company standards regarding trafficking and slavery;
  • Require Direct Suppliers to certify that material incorporated into the product complies with laws regarding slavery and human trafficking where supplier does business;
  • Maintain internal accountability standards and procedures for those failing to meet the company’s standards;
  • Provide training on human trafficking and slavery, particularly with respect to mitigating risk within the supply chain of products.
 

Know The Chain

To have a clear understanding of how companies are meeting their SB 657 requirements, over a dozen organizations launched the KnowTheChain.org website. KnowTheChain is a resource to promote greater transparency and dialogue around issues of slavery in supply chains. It was created to educate companies, investors, policymakers, and consumers about the existence of slavery in supply chains.

In addition to stating what 500 companies are doing to abide by the SB 657 legislation, the site has an abundance of resources for companies to use to meet their disclosure requirements and be leaders in their industries to combat modern day slavery in their supply chains.

 

Effective Supply Chain Accountability: Investor Guidance on Implementation of the California Transparency in Supply Chains Act and Beyond

Investors issued a guidance document, which includes best practices, for abiding by the Transparency in Supply Chains Act and going beyond the disclosure requirements to embrace an entire human rights framework.