AIAG’s 2025 Forced Labor Due Diligence Standard: A Turning Point for Global Supply Chain Compliance

The Automotive Industry Action Group (AIAG) is a nonprofit organization to improves supply chain visibility, efficiency, and sustainability across the global automotive industry. It has over 4,000 member companies, including OEMs, Tier 1 suppliers, and service providers. AIAG develops industry standards, training programs, and best practices in areas such as quality, logistics, and responsible sourcing. Its initiatives increasingly shape compliance expectations not just for automakers, but for all industries with complex, global supply chains.

In July 2023, the Automotive Industry Action Group (AIAG) launched one of the most transformative initiatives in the fight against forced labor: a standardized due diligence framework for global supply chains. While designed by and for the automotive sector, its impact is rippling across industries as businesses everywhere grapple with rising regulatory, reputational, and operational risks tied to unethical sourcing practices.

Forced Labor in 2025: A Global Wake-Up Call

According to the International Labour Organization (ILO), as of 2025, 27.6 million people are in forced labor worldwide. The practice generates an estimated US $236 billion annually in illegal profits—up 37% from previous estimates.

Forced labor isn’t just a moral issue—it’s a material risk for global businesses. Brands across electronics, fashion, automotive, and industrial manufacturing now face increasing obligations to show not just policy commitments, but verifiable due diligence.

In 2023, Shein, a fast-fashion giant, faced an investigation into its alleged use of cotton sourced from Xinjiang. Though the company claimed supply chain visibility and transparency, the controversy triggered massive consumer backlash and calls for regulatory scrutiny.

UFLPA in 2025: The Cost of Inaction

The Uyghur Forced Labor Prevention Act (UFLPA), has become the most aggressively enforced forced labor regulation in the world. As of 2025:

• Over 12,500 shipments have been detained under UFLPA, with a total value of more than $3.68 billion.
• There was a 1,600% increase in detentions from 2023 to 2024 across key sectors like automotive and aerospace.

In 2024, an American aerospace supplier had $2 million worth of components held at port after U.S. customs found Tier 3 sourcing links to a graphite supplier listed on the UFLPA Entity List. The shipment delay forced a renegotiation of contracts and triggered a broader audit of their supply chain mapping systems.

Why Multi-Tier Visibility Is Non-Negotiable

A European supply chain study found:

• 8.5% of forced labor risk exists at Tier 1
• 82.4% at Tier 2
• Over 99.1% at Tier 3

The automotive industry has not been spared either—Volkswagen, BMW, and Mercedes-Benz have all come under fire for potential ties to suppliers in Xinjiang. Volkswagen even maintained a joint venture plant in the region until recently, drawing criticism from global human rights groups.

Operationalizing AIAG Compliance with Trademo Map

Trademo Map helps companies to:

• Map a multi-tier supply chain, globally
• Detect indirect exposure to flagged regions/entities
• Track shipment flows for regulatory risk

Final Thought: From Burden to Advantage

Forced labor enforcement isn’t slowing down. But with AIAG’s framework and Trademo Map supply chain intelligence, companies can move from reactive compliance to proactive leadership.

In 2025, the leaders won’t just be the fastest. They and their supply chain would be most transparent.

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