As the supply chain rose in prominence around the world, so too did the scrutiny it now faces. Because of that, it should not come as a surprise that global ESG (environmental, social, governance) legislation is driving up labor violations.
In fact, laws such as the German Supply Chain Due Diligence Act, Canada’s Modern Slavery Act, the EU’s Corporate Sustainability Reporting Directive and Deforestation Regulation, and the new PFAS regulations contributed to a 144% increase in labor violations in the first half of 2024.
That insight is part of the findings from Resilinc, a provider of supply chain resiliency solutions, in analysis from data in its EventWatchAI platform.
Overall, disruptions in the first half of 2024 increased 30% over the first half of 2023, the firm said.