S.211 Compliance

Davis Auto Group Ltd. & its Subsidiaries

Ensuring Franchise Compliance with Canadian Bill S.211: Upholding Ethical Sourcing Standards

In the realm of franchise operations, maintaining regulatory compliance is pivotal to upholding ethical standards and ensuring legal conformity. Central to this endeavor is adherence to legislative mandates such as Canadian Bill S.211, which mandates transparent sourcing practices within the retail sector. As a franchise dependent on our franchisor for product procurement, our commitment to compliance with Bill S.211 is integral to our operational ethos.

Given our status as a franchise, our compliance with Canadian Bill S.211 is contingent upon the practices of our franchisor, from whom we procure our retail products. Recognizing this interdependence, we have undertaken diligent efforts to ensure that our franchisor aligns with the provisions outlined in Bill S.211. Through formal inquiries and due diligence processes, we have obtained assurances from our franchisors regarding their adherence to the legislative requirements.

The supply chains of automotive and heavy equipment franchisors are large, complex and multi-staged. As a retailer, we are at the end of the chain and entirely dependent on those franchisors to ensure compliance with Bill S.211. Further our franchise agreements are very limited in how and when we obtain information on those supply chains. Examples of these limitations include being required to receive products from the manufacturers, and our inability to audit or obtain specific documentation from them. While we are limited in our ability to audit these supply chains, our suppliers all have robust and comprehensive Environmental and Social Governance programs which fully cover the scope of Bill S.211. Each of our primary suppliers have also confirmed awareness of the new legislation, which is specific to Canada.

We recognize the significance of sourcing products from suppliers who uphold ethical standards, treat their workers fairly, and prioritize environmental sustainability. We also have the utmost confidence in our suppliers of their Environmental & Social Governance programmes, to which compliance with this bill would form a significant part. 

Moreover, our compliance efforts extend beyond mere regulatory conformity to encompass a proactive stance towards ongoing regulatory developments and industry best practices. Through continuous monitoring and engagement with relevant stakeholders, we remain vigilant to emerging trends and evolving standards in ethical sourcing, ensuring that our operations remain aligned with the evolving regulatory landscape.

In conclusion, our franchise’s adherence to Canadian Bill S.211 underscores our commitment to ethical sourcing practices, regulatory compliance, and corporate integrity. By verifying our franchisor’s compliance status and integrating ethical sourcing principles into our operational framework, we not only meet the requirements of Bill S.211 but also foster trust and confidence among our stakeholders. As we continue to navigate the complexities of the franchise landscape, our pledge to uphold the provisions of Bill S.211 remains steadfast, reflecting our enduring commitment to ethical business conduct and consumer protection.

Below you will find web links to our primary suppliers’ investor relations or ESG reports, as these form a foundation on which our own compliance is based. These suppliers make up 89% of our total supply chain of hard goods.

General Motors

Subaru 

Ford 

Stellantis

Nissan

Hyundai Construction Equipment America

Bobcat

Schedule A – legal entities