Business and Human Rights 2025

CANADA Trends and Developments Contributed by: Claudia Feldkamp and Chris Pigott, Fasken

Canada was considered an early mover in cor - porate social responsibility (CSR), proceeding first with “soft law” initiatives – largely focused on Canada’s extractive sector – that required Canadian companies to respect human rights abroad. The government’s first CSR strategy was launched in 2009 and replaced in 2014 with an “enhanced” CSR strategy, entitled “Doing Busi- ness the Canadian Way: A Strategy to Advance Corporate Social Responsibility in Canada’s Min- ing Sector Abroad” . Between these iterations of government strategy, the United Nations (UN) Human Rights Council unanimously endorsed the UN Guiding Principles on Business and Human Rights (the “UNGPS” ) as a foundational transformation in the expectations on interna - tional business. After this early “soft law” pro - gress, Canada was seen as lagging behind other jurisdictions (including the EU) in pursuing “hard law” legislative initiatives, particularly those related to addressing forced labour in global supply chains. And now, most recently, the Canadian gov - ernment has passed its first legislation in this area, with the coming into force of the Fight - ing Against Forced Labour and Child Labour in Supply Chains Act. The Canadian government has also committed to introducing mandatory human rights due diligence legislation mod - elled on similar legislation in other jurisdictions, including the EU. Canada’s approach to business and human rights moving forward The coming into force of Canada’s supply chain transparency legislation, as well as the promise of still more legislation targeting supply chains, appear to mark a shift towards the implementa - tion of domestic legislation to support Canada meeting its obligations under the UNGPs, in line with global developments. This move was

foreshadowed by the current, overarching fed - eral government strategy for responsible busi - ness conduct, entitled “Responsible Business Conduct Abroad: Canada’s strategy for the Future” , which centres due diligence in Canada’s approach to responsible business enterprise and commits the government to enacting legislation to “…eradicate forced labour from Canadian supply chains and ensure that Canadian busi- nesses operating abroad do not contribute to human rights abuses” . With a newly elected minority Liberal govern - ment, the progress of certain business and human rights initiatives (including legislative initiatives) is again uncertain and now against a backdrop of shifting political and geopolitical winds and increased emphasis on enhancing Canadian economic competitiveness, national security, and sovereignty. Canada will continue to be strongly influenced by its strategic partners, including the EU. International trading dynamics will influence developments in the enforcement of Canada’s import ban on goods manufactured in whole or part using forced labour, consistent with its obligations under the Canada-United States-Mexico Agreement (CUSMA). Specific areas of government focus in the ongoing evolution of business and human rights in Canada Mandatory human rights due diligence The newly elected federal government will con - tinue to consider the implementation of man - datory human rights due diligence legislation, strongly influenced by the EU and particularly the EU Corporate Sustainability Due Diligence Directive (CSDDD). With the EU possibly pulling back on its expectations on businesses under the CSDDD through the EC’s Omnibus Simpli - fication Package, Canada’s progress may slow as it also considers the final EU approach taken.

CHAMBERS.COM