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This Modern Slavery Report (the “Report”) addresses the period from January 1, 2025 to December 31, 2025 and has been prepared in compliance with the Fighting Against Forced Labour and Child Labour in Supply Chains Act (Canada)(the “Act”). This Report is made on behalf of Future Electronics and its subsidiaries.
1. Introduction
Forced labour and child labour, each as defined in the Act, are crimes and serious violations of human rights. As a leader in the electronics distributions business, Future Electronics recognizes the important role that we have in ensuring that our operations and products, and the supply chains that support these, adhere to the highest ethical standards, including the prevention and identification of forced labour and child labour in our supply chain. This Report sets out the steps we have taken during the fiscal year 2025 to prevent and reduce the risk that forced labour or child labour is used at any step in the production of goods that are distributed by Future Electronics or of goods imported into Canada by Future Electronics.
Since our founding in 1968, Future Electronics has emerged as a global leader by providing unparalleled service and expertise, steadfastly adhering to our core values, fostering strong relationships, and setting an exemplary standard in the industry. We are deeply invested in our commitment to being an excellent global corporate citizen. This includes a responsibility to respect and protect the human rights of our employees as well as those of the people in our extensive supply chain. Our commitment also extends to mitigating forced labour and child labour, and promoting ethical, safe, and fair working conditions with our supply chain partners. The goal is to continue to improve and step by step, make our world a better place.
2. Our Business
Future Electronics is an electronics distribution company of semiconductors as well as passive and other electronics components headquartered in Kirkland, Quebec, Canada. Future Electronics is part of the WT Microelectronics organization, a global electronics distribution group. We are a global organization with distribution centers, regional offices, and sales offices in countries across the world. The supply chain of Future Electronics includes businesses that supply goods and services to our organization, including products and transportation of these products to our distribution centers and to our customers. In total, we procure goods and services from over 400 suppliers.
3. Our Policies and Statements
Through our organizational and governance policies we communicate our values and expectations, setting a high bar for ourselves, our suppliers, and our selling partners, and make it clear that we do not tolerate any forms of forced labour or child labour. We are committed to consistently evolving and improving our approach. We monitor our suppliers to prevent our activities having a negative impact on human rights. Our relevant policies are discussed in further detail below:
Future Electronics Code of Conduct and Ethics Policy
The Future Electronics Code of Conduct and Ethics Policy states that: Honesty, integrity and trust are the foundation of Future Electronics’ success. We conduct our business with highest levels of ethics and integrity. Future Electronics is committed to operate in the best interest of our Customers, our Suppliers, our Employees, our communities and in the long-term interests of our company. To this end, Future Electronics has voluntarily adopted many of the guidelines in the Responsible Business Alliance (RBA) Code of Conduct.
The Future Electronics Code of Conduct related policies and procedures address:
Future Electronics Policy on Forced Labour and Human Trafficking:
We confirm that Future Electronics does not engage in forced labor or human trafficking of any kind - and to our knowledge, as a distributor, no forced labor or human trafficking was used or exploited in the direct supply chain for products sold by Future Electronics.Honesty, integrity, and trust are the foundation of Future Electronics' success. We conduct our business with the highest ethical levels. To this end, Future Electronics has voluntarily adopted many of the guidelines in the Responsible Business Alliance (RBA) Code of Conduct and has implemented labor standards upholding the human rights of workers and the treatment of workers with dignity and respect.
Future Electronics Human Rights Statement:
“All human beings are born free and equal in dignity and rights”. The Universal Declaration of Human Rights confirms to all the inalienable entitlement to economic, social, political, cultural and civil rights that underpin a life free from want and fear.
At Future Electronics we understand that while we maximize our business opportunities, we have to ensure that we positively impact quality of life, prosperity and prospects for all. Our longstanding commitment to operating with integrity is underscored by our recognition of the Responsible Business Alliance Code of Conduct (https://www.responsiblebusiness.org/code-of-conduct/ ) which mirrors and upholds our collective Human Rights.
At the core of our operations is a mindset that fully accepts that in the pursuit of our business objectives, harm can be done and therefore we have an obligation to mindfully and continuously test and correct behaviours for negative impacts.
Future Electronics is a place of continuous learning and improvement and remains committed to educating our workforce and directing behaviours through our policies.
Child Labour Statement
Future Electronics does not use any child labour. The term “child” refers to any person under the age of 15, or under the age for completing compulsory education, or under the minimum age for employment in the country, state or province, whichever is greatest. Future Electronics respects and abides by all applicable laws in regard to employing workers who are minors. To ensure our employees are of legal working age, Future Electronics employs careful qualification of candidates during the recruiting & interview process, including checking documentation, references, and background checks.
The use of legitimate workplace learning programs complies with all applicable laws and regulations. Employees under the age of 18 do not perform work that is likely to jeopardize their health or safety, including night shifts and overtime.
Supplier Code of Conduct Statement
The Future Electronics Supplier Code of Conduct and Global Supplier Quality Manual detail the requirements and expectations we have of our suppliers, their supply chains, and those with whom we engage. These expectations include compliance with applicable laws, respect for human rights, prohibition of forced labour and child labour, ethical business practices, and adherence to responsible sourcing standards. Suppliers may be required to acknowledge these standards as part of Future Electronics’ supplier engagement process, and we encourage our suppliers to comply with the Responsible Business Alliance (RBA) Code of Conduct and all applicable legal requirements in the jurisdictions in which they operate.
Third-Party Due Diligence Statement
Our business partners are essential to the success of our Company. We screen suppliers and other relevant business partners to identify potential forced labour, child labour, human rights, sanctions, export control and other supply chain compliance concerns. Future Electronics uses third-party trade compliance and supply chain intelligence tools, including Altana AI, to monitor suppliers and identify elevated risks. Suppliers identified as presenting heightened risk may be subject to enhanced due diligence, requests for additional information, corrective action, or other appropriate remediation steps.
4. Assessing Modern Slavery Risk in our Supply Chain
Future Electronics’ reputation for integrity and transparency in its practices and business dealings is critical to earning and maintaining a relationship of confidence and trust with its stakeholders, including employees, customers, suppliers, and shareholders. Future Electronics expects its suppliers to embrace these values and to provide an undertaking consistent with the principles set out in our Future Electronics Code of Conduct and Ethics Policy which outlines Future Electronics’ ethical business practice requirements, including that suppliers comply with all laws related to modern slavery.
Future Electronics maintains procedures designed to identify suppliers that may present heightened forced labour risks, including risks associated with the Uyghur Forced Labor Prevention Act (UFLPA) and similar legislation. These procedures include screening against UFLPA Entity List additions and other government restricted-party lists, supplier outreach, questionnaires and certifications, review of publicly available information, and enhanced due diligence where concerns are identified.
During the reporting period and continuing thereafter, Future Electronics monitored developments involving allegations of forced labour risks affecting certain electronics industry participants. Where new information became available through governmental announcements, industry sources, compliance screening tools or supply chain intelligence platforms, Future Electronics undertook risk assessments and supplier engagement activities as appropriate.
Risk Assessment & Management
In the event that Future Electronics becomes aware of any actions or conditions within its supply chain that are not in compliance with our standards, Future Electronics expects the supplier to implement corrective measures. Where appropriate, Future Electronics may conduct supply chain tracing, request additional documentation, require supplier questionnaires or certifications, escalate the matter for internal review, restrict purchases, or require a remedial action plan. A supplier's continued noncompliance may lead to additional remediation actions, up to and including termination of the business relationship.
Assessment of Effectiveness
Future Electronics assesses the effectiveness of its modern slavery risk management activities by reviewing the operation of its governance framework, supplier screening activities, supplier questionnaires and certifications, enhanced due diligence reviews, escalation of higher-risk suppliers, and remediation actions taken where concerns are identified. These activities provide a practical basis for assessing whether our controls are operating as intended and identifying areas for continued improvement.
5. Our Commitments
Monitoring & Continuous Improvement
We conduct due diligence measures as appropriate to assist us in detecting any form of modern slavery in our operations and supply chain. These measures include supplier screening, use of third-party trade compliance and supply chain intelligence tools, review of government and public enforcement information, supplier outreach and questionnaires, and escalation of higher-risk matters to appropriate internal stakeholders.
We are committed to reinforcing the expectations set out in this Report, both internally and externally, and to continuing to enhance our efforts, including through our own policies, role-based training and briefing materials, additional compliance monitoring of suppliers, and continued use of risk-based due diligence processes. Employees in relevant functions, including Legal, Trade Compliance, Supplier Management and Quality, may receive training or briefing materials relating to forced labour risks, UFLPA developments, supplier diligence and escalation procedures.
Future Electronics engages in various activities to identify, assess, and manage supplier risk. In assessing the risk of forced labour and child labour in our business and supply chains, we engage with internal stakeholders, review supplier information, monitor relevant legal and regulatory developments, and map supply chains where appropriate to identify areas of potentially greater exposure to risk.
The highest area of risk for child labor and forced labor is through our supply chain partners (of which we have hundreds), some of which have manufacturing facilities across the globe, including in developing countries. However, per our ESG Policy: Future Electronics collaborates with local partners, distributors, manufacturers, and supply chains across the world. We expect the same commitment to ethical business practices as Future Electronics upholds and that effective control processes, procedures, and services are implemented and adhered, to ensure that appropriate steps are taken to eradicate any form of modern slavery or human trafficking. The workplace practices that we expect from our suppliers include:
Our exposure to the risk of forced labor and/or child labor increases when we engage with third parties, particularly in categories such as transportation, warehousing, and manufacturing.
6. Approval & Signature
This report is for the entity Future Electronics and its subsidiaries subject to the Act as set out in section 1.1 (Reporting Entities) and has been approved by the undersigned pursuant to subparagraph 11(4)(b)(ii) of the Act.
In accordance with the requirements of the Act, and in particular section 11 thereof, I attest that I have reviewed the information contained in the report for the entity or entities listed above.
Based on my knowledge, and having exercised reasonable diligence, I attest that the information in the report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year listed above.
I make the above attestation in my capacity as Chief Financial Officer & Executive Vice-President of Future Electronics Inc. as of the publication date of this Report.
Name: Luc DufourTitle: Chief Financial Officer & Executive Vice-PresidentDate: September 16, 2026I have the authority to bind Future Electronics Inc.
