ECHO Power Equipment (Canada) Report on Forced Labour in Canadian Supply Chains
May 31, 2024
ECHO Inc. is committed to preventing and reducing the risk that forced labour or child labour is used at any step in the production of goods in Canada or elsewhere, including goods that ECHO Inc. imports into Canada.
ECHO Inc. recognizes its social responsibility as part of the global community in all regions in which it operates. ECHO Inc. respects the cultural, social, political, and legal diversity of societies and nations. Within the framework of the laws and regulations of individual countries and its scope of influence, we as a company strive to coordinate commercial goals with the social and environmental requirements in our business world, human rights, and the environment. These principles are an integral part of our corporate culture and apply throughout our company. All our employees are asked to ensure they are observed, and we expect our business partners to adhere to similar principles. This statement of the Principles of Social Responsibility of ECHO Inc. specifically mandates compliance with internationally proclaimed human rights and rejects any and all forms of forced labor and child labour.
VIEW COMPLETE SIGNED ANNUAL REPORT
ANNUAL REPORT
PURPOSE
This annual report for the 2023 financial reporting year has been created by Echo Incorporated (“ECHO Inc.”) for the sole purpose of meeting its obligations and reporting requirements for entities pursuant to the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the “Act”).
CATEGORIZATION, SECTOR, AND INDUSTRY
ECHO Inc. is an entity under the Act
In terms of the Act’s threshold requirement’s, ECHO Inc. has a place of business in Canada, does business in Canada, and meets at least two of the conditions for reporting in at least one of its two most recent financial years.
Our Operations
For over five decades, ECHO Inc. has been a worldwide leader in the development and manufacturing of professional-grade, hand-held outdoor power equipment for both the commercial and homeowner markets. ECHO Inc. manufactures, distributes, and sells outdoor power equipment outside of Canada, as well as distributes, and sells outdoor power equipment within Canada.
STRUCTURE, ACTIVITIES, AND SUPPLY CHAINS
ECHO Inc. is a subsidiary of Yamabiko Corporation. ECHO Inc. is incorporated in the state of Illinois. In 1984 a Canadian branch was established and continues to do business as ECHO Power Equipment (Canada). ECHO Inc’s. products are marketed and sold under the primary trademarks of ECHO, ECHO Robotics, ECHO Bear Cat, and Shindaiwa. In Canada, ECHO Inc. is also the distributor for the trademarks BCS, and Exmark. The primary countries of origin within the supply chain include United States of America, Japan, China, Italy, and Mexico.
Steps Taken by ECHO Inc. 2023
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, or of goods imported into Canada, ECHO Inc. relied on its polices and protocols which include reviewing supply chains and conducting supplier audits on a regular basis. Additionally, ECHO Inc. is informed by its practices, policies, and procedures with respect to compliance with various other modern slavery legislation, described below, that also help reduce the risk of child and forced labour in its overall supply chain.
POLICIES AND DUE DILIGENCE PROCESSES
In 2023, ECHO Inc. maintained several policies and processes which affirm its commitment to abiding by applicable forced labour and child labour laws, including:
- ECHO Incorporated’s Compliance Committee and Ethics/Compliance hotline provides avenues for employees to raise concerns, and reassurance that they will be protected from reprisals or victimization for reporting a concern or using the hotline in good faith.
- ECHO Inc. reviews its product supply chain on a regular basis to evaluate human trafficking and slavery risks. At present this is done internally.
- ECHO Inc. conducts regular supplier audits to evaluate manufacturing opportunities and to ascertain whether suppliers comply with applicable corporate standards and principles, including but not limited to those related to human trafficking and slavery. These audits are scheduled and review all aspects of the supply chain including environment, safety, human trafficking, child labor, and other legal requirements.
- ECHO Inc’s. purchasing policies require that our direct suppliers certify that materials incorporated into products comply with the laws of the country or countries where such suppliers do business. New supplier packets incorporate questions specifically addressing human trafficking with appropriate required certifications.
- ECHO Inc. acts in accordance with the North Korea Sanctions Act of 2016 (Federal law of the United States), as amended by the Countering America’s Adversaries Through Sanctions Act and ensures that no North Korean labour is used within the supply chain, as there is the presumption that North Korean labour is forced labour.
- ECHO Inc. acts in accordance with the Uyghur Forced Labor Prevention Act (“UFLPA”) (Federal law of the United States). The UFLPA came into law in the United States on June 21, 2022, and mandates that goods mined, produced, or manufactured wholly or in part in Xinjiang or by an entity on the UFLPA Entity List are prohibited from being imported into the United States.
- ECHO Inc. acts in accordance with the California Transparency in Supply Chain Act, 2010.
FORCED LABOUR AND CHILD LABOUR RISKS
ECHO Inc. is processing, analysing, and identifying risks of forced labour and child labour by and through its commitments to comply with other applicable modern slavery legislation, including the North Korea Sanctions Act of 2016, Uyghur Forced Labour Prevention Act, and California Transparency in Supply Chains Act, 2010. ECHO Inc. will continue to process, analyse, and identify risks for which the Act is aimed at protecting against.
REMEDIATION MEASURES
ECHO Inc. has not identified any forced labour or child labour in its activities or supply chains. As such, it has not untaken any remediation measures.
REMEDIATION OF LOSS OF INCOME
ECHO Inc. has not identified any loss of income to vulnerable families resulting from measures taken to eliminate the use of forced labour or child labour in its activities and supply chains.
TRAINING PROVIDED TO EMPLOYEES
The Act officially became law on January 1, 2024. As such, ECHO Inc. did not provide training to its employees on forced labour or child labour in 2023. However, ECHO Inc. is in the process of incorporating and implementing modules aimed at mitigating the risks of forced labour and child labour in the supply chain relating to slavery and human trafficking. ECHO Inc. will incorporate and implement this in its regular training curriculum for all employees and management alike.
ASSESSING EFFECTIVENESS
ECHO Inc. does not currently have specific policies and procedures in place to assess its effectiveness in reducing and/or eliminating the risk of child labour and/or forced labour in its supply chain. However, as outlined above, reviewing product supply chains and auditing suppliers on a regular basis, complying with other pieces of modern slavery legislation, and implementing purchasing policies do reduce the risk that child labour and/or forced labour is present in ECHO Inc’s. activities and supply chain.
APPROVAL AND ATTESTATION
In accordance with the approval and attestation requirements of the Act, in particular section 11(4)(a) thereof, I attest that this annual report has been approved by ECHO Inc.’s Board of Directors, which is its governing body. I attest that the information contained in the report for ECHO Inc., based on my knowledge, having exercised reasonable diligence, is true, accurate, and complete in all material respects for the purposes of the Act and the report year of 2023.