Not long ago, companies approached supply chain ethics mostly as a compliance exercise—something to be documented and filed away to satisfy regulators. That’s no longer enough. Regulations are getting tougher—and more dynamic—with new rules around synthetic chemicals, forced labour and materials compliance being introduced in Canada, the U.S. and the EU. Meanwhile, customers, investors and employees are increasingly expecting companies to take real responsibility for how their products are made.

“This isn’t just about checking boxes anymore,” says Catherine Cormier, chief product officer at Assent, an Ottawa-based tech company that helps manufacturers identify and manage risk in their supply chains. “It’s about protecting human rights, safeguarding the environment, and making sure there’s transparency at every tier of the supply chain.”

Assent works with more than 850 clients to help them comply with evolving global regulations and expectations from governments and increasingly conscious consumers. That means tackling issues like forced labour, conflict minerals and PFAS—per- and polyfluoroalkyl substances, so-called “forever chemicals”—that have come under regulatory scrutiny in Canada and around the world.

For business owners starting their ventures, Cormier offers five practical steps to build a more ethical, transparent supply chain—without needing to overhaul their entire operation on day one.

Start with a spreadsheet

The first step is visibility. Companies should document which suppliers they work with, what components or materials they’re sourcing, and which regulations apply based on their target markets. These may seem like simple questions, but many businesses don’t have clear answers until they begin documenting them. Companies can begin with a spreadsheet, focusing on a single product line or supplier group, then expand over time.

But spreadsheets can only go so far. Once a company begins seriously tracking its supplier network, the work tends to balloon. “We’ve seen companies assign two full-time employees just to keep the data updated,” Cormier says. “Especially if they’re dealing with regulated substances like PFAS, where there can be thousands of individual materials to track.”

Companies often realize they need support—whether by dedicating internal staff or engaging external experts—to handle the volume and complexity of the data.

Know the regulations

Few manufacturers are unaffected by PFAS and forced labour legislation. PFAS are used across such a wide range of industrial processes and product types that restrictions touch nearly every sector. Canada’s PFAS reporting requirements took effect in 2025, and the U.S. and EU have their own region-specific frameworks. That said, industries making goods that come into contact with skin or food—like apparel, cosmetics, rugs, or dental products—are particularly exposed, as are products marketed to children.

Forced labour legislation is also expanding, including Canada’s new Supply Chains Act and the U.S. Uyghur Forced Labour Prevention Act. Even companies not directly subject to these laws may need to comply indirectly, as large manufacturers pass requirements down their supply chains.

And PFAS and forced labour are just the beginning. A wave of new rules is turning environmental and social impact into a measurable cost of doing business. The EU and UK’s Carbon Border Adjustment Mechanisms, for example—which impose fees on imported products based on how much carbon was emitted during their production—are making emissions a direct financial liability. 

“Companies that build systems and supplier relationships now will be in a stronger position—not just to stay compliant, but to stay competitive,” says Cormier.

Engage suppliers with clarity—and empathy

Once a company has a clearer view of its supply chain, the next move is to reach out to suppliers and gather more detailed sourcing information—but tone and approach matter.

The key is to treat suppliers as partners, not problems. In one recent case, a company in the HVAC industry using Assent’s platform discovered that one of its aluminum suppliers was linked to sourcing in China’s Xinjiang region—a red flag under U.S. forced labour legislation. Rather than cut ties immediately, the company engaged the supplier in a conversation about diversifying sourcing and ultimately shifted to more ethical options without disrupting business.

“Start by explaining why the information is needed and giving suppliers a heads-up,” says Cormier. “Set clear expectations, acknowledge the complexity, and frame it as a shared goal.” Carefully tailoring the message—through translation, timezone awareness, and digital accessibility—also helps reduce friction. And a staggered rollout with manageable early requests can build momentum over time. 

Assent supports suppliers with a range of resources like multilingual help centres, webinars, and industry-specific guidance. Its system also allows suppliers to respond to multiple client requests through a single platform, which streamlines the process and reduces duplication.

But even without specialized tools, businesses can begin by having open conversations. “Just being clear about what you’re working toward and why it matters to your business can really help foster trust,” Cormier says.

Be prepared to pivot

Sometimes, despite best efforts, suppliers just won’t cooperate. “Lack of information is a finding in and of itself,” says Cormier. “If a supplier refuses to share what’s in their materials or where they’re sourcing from, you have to decide whether they align with your values and your risk tolerance.”

Assent encourages clients to conduct due diligence on high-risk suppliers before taking action. Often, further investigation reveals the supplier is operating ethically, but documentation is missing or outdated.

For example, when companies use Assent to screen for conflict minerals—such as tin, tungsten, tantalum, and gold—they typically find their parts pass through more than 300 smelters or refiners. Roughly 10 per cent of those are flagged for further review, due to red flags or incomplete data. But that doesn’t always mean cutting ties: many cases are resolved through follow-up, clearer documentation, or collaboration on improvements.

Remember that transparency isn’t just a risk response—it’s a competitive advantage

Working on ethical sourcing often begins as a way to avoid fines or reputational harm—but companies that stick with the process often discover unexpected benefits.

“It deepens trust with suppliers,” says Cormier. “It opens access to new markets, especially places like the EU where sustainability expectations are high. And it positions a brand as a credible partner in responsible manufacturing.”

Assent has seen clients win contracts, improve customer retention, and even attract talent thanks to a stronger ethical footprint. And there’s something less tangible but just as important: a company’s ability to stand behind what it makes. Ultimately, building an ethical supply chain is not a one-time project—it’s an ongoing practice. “Even the most proactive companies get surprised,” says Cormier. “The regulatory landscape is shifting constantly. What’s compliant today might be a liability tomorrow.”

Technology will play an increasingly central role. Assent hopes one day to use AI to evaluate supplier policies and documentation in order to validate and verify they are complying. 

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The takeaway? Start now, and start small.

“Start with the product that matters most,” says Cormier. “Map your suppliers. Ask for information. Collect what you can. That process alone will tell you what kind of support or systems you might need next.”

Because when it comes to ethical sourcing, delay carries its own risks. Eventually, someone is going to look at your supply chain—whether it’s a regulator, a journalist or a customer. Better that you get there first.