As the automotive industry continues to contend with the complexities of global supply chains, the need for standardized approaches to manage compliance and uphold human rights has never been more critical. In response, the Automotive Industry Action Group (AIAG) is proud to announce the launch of our new Forced Labor Due Diligence Program, developed in collaboration with leading OEMs, including Ford, GM, Honda, Nissan, Stellantis, and Toyota.
The program is designed to enable tier suppliers to be proactive in their supply chain due diligence. It simplifies and standardizes due diligence for tier suppliers by offering access to trusted technology providers for data and supply chain analysis, as well as the only industry-aligned common supply chain reporting template. These resources are flexible and available with affordable pricing for companies of all sizes, providing a cost-effective solution for suppliers to meet the growing demands of forced labor due diligence.
Matt Stich, Vice President, Purchasing Supplier Development at Toyota Motor North America, explained, “A collaborative approach like the one suggested by AIAG will help us all to have a more consistent and thorough way to reduce risk and standardize the data and way we report as we collectively promote the respect of all workers through the industry’s entire supply base.”
A Unified and Proactive Industry Response to a Global Challenge
With one of the world’s largest and most interconnected supply chains, the automotive industry is fully committed to protecting human rights. As regulations increase pressure on downstream companies to conduct deeper due diligence, AIAG’s new program represents a vital step forward in ensuring that suppliers can align with global standards while reducing complexity through an industry-wide approach.
A New Level of Resources and Support for Suppliers
The AIAG Forced Labor Due Diligence Program offers access to cutting-edge technology and supplier screening solutions provided by trusted technology partners like Kharon, Altana, SUPPLIERASSURANCE, and Resilinc through AIAG’s online marketplace. Providers utilize Kharon’s risk analytics to help identify hidden risks in supply chains, offering batch supplier screening and automated compliance reporting for OEM customers. This unified approach mirrors the earlier collaborative efforts of the industry on conflict minerals compliance, reinforcing the importance of working together to ensure the highest standards of human rights are upheld across the supply chain.
AIAG’s online marketplace will provide information about each technology partner and can support suppliers of all sizes with a range of discounted price points and capabilities, ensuring accessibility for companies at every stage of their compliance journey. Whether new to these processes or already utilizing tools for due diligence, suppliers can benefit from added functionalities and seamless reporting to OEMs.
Suppliers can start by reading the supplier bulletin and investigating resources currently available on AIAG’s Forced Labor and Human Rights page, including Introduction to Detained Shipments, Guiding Principles microlearning, Supply Chain Transparency Reporting Comes to Canada webinar, and more.
A Collaborative Effort to Protect Human Rights
Matt Pohlman, CEO of AIAG, reinforced the importance of collaboration, stating, “Efforts to eradicate forced labor worldwide introduce significant complexities for both OEMs and suppliers. AIAG’s new program ensures that suppliers across the automotive supply chain can participate in a proactive, manageable, and cost-effective way, helping to build more resilient and sustainable supply chains.”
For more information, visit us at AIAG’s Forced Labor Due Diligence Program or email us at Stopforcedlabor@aiag.org.
