Canada Investigating Ralph Lauren for Potential Use of Uyghur Forced Labor
The Canadian Ombudsperson for Responsible Enterprise (CORE) will begin an investigation in response to a complaint accusing Ralph Lauren Canada LP of "using or benefiting" from Uyghur forced labor, CORE announced in a press release Aug. 15. This follows the publication of an Initial Assessment report for Ralph Lauren Canada detailing allegations that it has supply relationships with Chinese companies that use Uyghur forced labor.
The report and investigation are in response to a complaint that was initially filed by 28 Canadian organizations in June of 2022. The complaint alleges that Ralph Lauren is supplied by companies that "use or benefit" from Uyghur forced labor, the report said. The complaint also specifically identifies Ralph Lauren Canada as being the "consignee of shipments" from Chinese Company Esquel Textile Co. Ltd. (Esquel), which was identified in an Australian Strategic Policy Institute (ASPI) report as "using or benefiting" from Uyghur forced labor.
The complaint also alleges that, in addition to Esquel, factories Youngor Textile Holdings Co. Ltd. (Younger) and Jiangsu Guotai Guosheng (Jiangsu) also were part of Ralph Lauren's supply chain and also were identified by ASPI as using or benefiting from Uyghur forced labor. However, the complaint did not specify in certain parts whether it was implicating the U.S. parent company of Ralph Lauren Corporation (Ralph Lauren) or Ralph Lauren Canada, Canada said, adding that it was unclear whether it was referring to the U.S. parent company or Ralph Lauren as an "international brand or retailer."
The investigation will focus on whether or not Ralph Lauren or Ralph Lauren Canada LP had business relationships with Younger or Jiangsu on or after May 2019 and, if so, how the company dealt with the situation. The investigation also will focus on parent company Ralph Lauren's "Statement on Xinjiang," in which it denied sourcing yarns or products made with forced labor in Xinjiang.
Ralph Lauren "declined to attend an initial assessment meeting" with the Canadian agency but wrote that Ralph Lauren Canada became inactive in 2022 for "administrative reasons," and that Ralph Lauren Canada Corporation (RLCC) now oversees Ralph Lauren's Canada operations. Since RLCC is not responsible for "decision-making or oversight of operations abroad," CORE doesn't have jurisdiction over the matter, the company said.
Ralph Lauren also detailed its process for avoiding the use of forced labor, including third-party audits and requiring suppliers to "sign detailed certifications" to make sure it's in compliance with "U.S. government sanctions." The company also affirmed its commitment to cooperating with CORE for this investigation.
Canada also said it received a forced labor complaint against Canadian mining company GobiMin, but an investigation will not proceed because the company sold its former subsidiary in Xinjiang in 2022. CORE will recommend that GobiMin "develop and implement a responsible exit policy," the Canada said. "The CORE will follow up and report on the implementation of this recommendation in attempts to ensure that GobiMin strengthens its responsible business conduct in the future."
Ralph Lauren and GobiMin did not respond to our requests for comment.