ESG and Sustainability

2023 Report: Forced Labour in Canadian Supply Chains

RWC Systems Inc. is a speciality walls and ceilings company that was founded in August, 1978
and fully operated in British Columbia. The company is in the business of installing walls and
specialty ceilings for commercial spaces.

The company has only recently been made aware of the new Bill S-211 regarding child and
forced labour and the reporting requirements that was made effective January 1, 2024. They
also meet all the requirements to report on their business regarding the new bill as they
employ roughly 110 employees, has revenues surpassing $40 Million and assets greater than
$20 Million. The company has not taken any measures to ensure that forced labour does not
exist in the year 2023 and prior to as the company was unaware of such requirements.

With most of the company’s suppliers existing in Canada, such as drywall suppliers like Kenroc,
there’s a low likelihood that child or forced labour exists. Most of the company’s suppliers
obtain supplies and produce the products in Canada, such as drywall material. As Canada
maintains very stringent employment rules, there is low risk for any child or forced labour.
There are very few suppliers from the US that are used on a frequent basis. If the company
purchases from the US, it’s for one off specialty items.

RWC Systems Inc. follows a rigorous hiring process where the HR department screens each
applicant for fit and experience. Once hired, all required documents including a SIN are
required before employment begins. The company’s Director of HR, Rup Dadwan, is a
Chartered Professional in Human Resources (CPHR) ensuring all Code of Ethics and rules of
professional conduct are being met.

Going forward, the company has taken the initiative to contact all of it’s major suppliers with a
questionnaire asking the following questions:

  1. What are the steps the entity has taken to prevent and reduce the risk that forced
    labour or child labour is used at any step of the production of goods in Canada or
    elsewhere by the entity or of goods imported into Canada by the entity?
  2. Explain your current structure, activities and supply chains.
  3. What are your corporate policies and due diligence processes in relation to forced
    labour and child labour?
  4. What are the parts of its business and supply chains that carry a risk of forced labour or
    child labour being used and the steps it has taken to assess and manage that risk?
  5. Were any measures taken to remediate any forced labour or child labour?
  6. Were any measures taken to remediate the loss of income to the most vulnerable
    families that results from any measure taken to eliminate the use of forced labour or
    child labour in its activities and supply chains?
  7. Was training provided to employees on forced and child labour?
  8. How did the entity assess its effectiveness in ensuring that forced labour and child
    labour are not being used in its business and supply chains?

As this is a new process, the company will constantly be updating it’s knowledge on how best to
mitigate and report any such forced labour violations. This includes training staff about the
matter and ensure that all new suppliers are provided with the questionnaire. In conclusion,
the company is low risk for any child or forced labour.

Best Regards,
Larry Robertson, CEO