Forced Labor Risk by Industry

Compliance officers search by their industry, not just by regulation — and for good reason. Forced labor risk isn't distributed evenly across supply chains. The tier it enters, the geography it originates from, and the enforcement pressure it attracts all vary dramatically depending on what your company makes or moves. This guide covers 8 high-risk sectors: what makes each dangerous, where enforcement has landed, and what compliance priorities look like in practice.

📅 Updated May 3, 2026
⏱ 12-minute read
✓ Self-assessment checklist included
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Apparel & Textiles
Critical
💻
Electronics
Critical
🌾
Agriculture & Food
Critical
⛏️
Mining & Minerals
Critical
🏗️
Construction
High
🚗
Automotive
High
☀️
Solar / Renewables
Critical
🐟
Seafood & Fishing
Critical
Why Risk Varies

Why Forced Labor Risk Differs by Industry

Three factors drive industry-specific risk

Supply chain depth and opacity. Industries with long, multi-tier supply chains have more surface area for forced labor to enter invisibly. A garment retailer may work with 10 direct suppliers — but each of those suppliers has 20+ tier-2 fabric and yarn vendors, and each of those has raw material sourcing in regions with documented forced labor programs. The further upstream the risk sits, the harder it is to detect and the less leverage a buyer has to fix it.

Labor intensity and geographic concentration. Industries that rely on large numbers of low-wage workers concentrated in specific high-risk geographies face structural forced labor risk that can't be audited away by checking a compliance box. When an entire production region uses the same government-directed labor transfer programs (as in Xinjiang), supplier-by-supplier auditing doesn't catch it — because it's not a rogue supplier. It's a systemic regional practice.

Commodity composition. Some products are made almost entirely from materials that disproportionately come from forced labor regions. Apparel involves cotton — and XUAR grows 85% of China's cotton and 20% of the world's supply. Solar panels require polysilicon — and XUAR produced 35%+ of global polysilicon before UFLPA enforcement. These concentration risks mean that even responsible sourcing decisions get contaminated by upstream geography.

Industry Deep-Dives

8 High-Risk Industries: Detailed Breakdowns

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Apparel & Textiles

The world's highest-enforcement forced labor sector

Critical Risk

Key Risk Areas

  • Xinjiang cotton: XUAR produced ~85% of China's cotton and ~20% of global supply before UFLPA enforcement; government-directed labor transfers documented at scale
  • Yarn and fabric manufacturing in China, Bangladesh, Vietnam, India — all use Xinjiang-origin fiber
  • Garment assembly in low-wage countries using migrant workers from high-risk regions under debt bondage recruitment schemes
  • Unauthorized subcontracting: approved factories outsource to unapproved workshops without buyer knowledge
  • Home-based outwork in Bangladesh, India, and Pakistan with no labor oversight

Supply Chain Tiers Affected

  • Tier 1 (direct supplier): Final garment assembly
  • Tier 2: Fabric and trim manufacturing
  • Tier 3: Yarn spinning and dyeing
  • Tier 4: Raw fiber — cotton ginning and harvesting; this is where XUAR forced labor predominantly enters
  • Most brands have zero visibility beyond Tier 2
Recent enforcement: CBP has issued more than 1,000 UFLPA detentions in apparel — the single largest sector by detention volume. Major retailers including H&M, Zara, PVH, and others have had shipments held. The CSDDD specifically names garments as a high-impact sector warranting priority scrutiny. US apparel imports from China have fallen 30%+ since 2021 enforcement began, but rerouting through Vietnam, Bangladesh, and Cambodia has increased.
Compliance Priorities
Cotton origin tracing Tier 3–4 supplier mapping Xinjiang exclusion policy Subcontracting controls Fiber certifications (GOTS, Oeko-Tex) UFLPA XUAR entity list screening
💻

Electronics & Semiconductors

Polysilicon, rare earths, and cobalt — the minerals powering forced labor risk

Critical Risk

Key Risk Areas

  • Polysilicon: XUAR produces 35–45% of global polysilicon, used in semiconductors, photovoltaics, and electronics components
  • Cobalt: 70%+ of global cobalt mined in DRC with documented artisanal and small-scale mining using child labor
  • Rare earth elements for motors, sensors, and batteries: primarily sourced from China with opaque extraction practices
  • PCB manufacturing and assembly in facilities using government-placed XUAR workers
  • Final device assembly (Foxconn model): large contract manufacturers in China use labor dispatch and transfer programs

Supply Chain Tiers Affected

  • Tier 1: OEM device assembly
  • Tier 2: Component manufacturing (PCBs, batteries, displays)
  • Tier 3: Materials processing — polysilicon purification, rare earth refining, cobalt smelting
  • Tier 4: Raw mineral extraction — this is where DRC child labor and XUAR forced labor enters
Recent enforcement: CBP has detained electronics shipments from multiple Chinese manufacturers under UFLPA polysilicon provisions. Apple, Samsung, and major semiconductor companies have been flagged in NGO supply chain audits. The EU's Forced Labor Regulation (effective December 2027) will ban electronics products traced to forced labor from EU market access — creating a second enforcement vector beyond UFLPA.
Compliance Priorities
Polysilicon provenance tracing Cobalt chain-of-custody Responsible Minerals Initiative (RMI) XUAR labor transfer screening Conflict minerals reporting Supplier diversity at Tier 2+
🌾

Agriculture & Food

Migrant labor, seasonal workers, and XUAR tomato products

Critical Risk

Key Risk Areas

  • Tomato processing: XUAR is the world's top tomato paste exporter; CBP's XUAR tomato product restriction is the third-largest UFLPA enforcement category
  • Seasonal agricultural labor using migrant workers under debt-financed recruitment — prevalent in Gulf states, Southeast Asia, and Latin America
  • Forced labor in cocoa farming (West Africa: Côte d'Ivoire, Ghana) — documented extensively but still endemic
  • Shrimp and fish processing in Southeast Asia — particularly Thailand and Vietnam using migrant labor with passport confiscation
  • Sugar cane harvesting in Brazil and India with bonded debt labor

Supply Chain Tiers Affected

  • Tier 1: Processor or direct producer
  • Tier 2: Grower/farm cooperatives — this is where most labor abuse occurs in agriculture
  • Tier 3: Input suppliers (seeds, fertilizers) — less direct risk but geographical co-location matters
  • Unlike manufacturing, agricultural supply chains concentrate risk at Tier 2, not Tier 4
Recent enforcement: CBP has issued withhold release orders on cocoa from specific West African cooperatives, palm oil from Malaysian plantations (since lifted), and XUAR tomato products. The US chocolate industry faces biennial reporting requirements on child labor under the Cocoa Protocol. The EU Deforestation Regulation (2025) intersects with agricultural forced labor risk — supply chain legality certification applies to soy, beef, cocoa, coffee, palm oil, wood, and rubber.
Compliance Priorities
XUAR tomato exclusion Migrant worker recruitment fee policies Farm-level labor audits (Rainforest Alliance, Fairtrade) Cocoa child labor programs Living wage tracking at Tier 2 EU Deforestation Regulation readiness
⛏️

Mining & Minerals

Artisanal mining, rare earths, and upstream commodity risk

Critical Risk

Key Risk Areas

  • Artisanal and small-scale mining (ASM): cobalt in DRC, gold in West Africa, tantalum and tin in conflict zones — ASM employs 40+ million people with minimal oversight
  • Coal mining in Inner Mongolia and other Chinese regions using government-placed XUAR workers
  • Jade mining in Myanmar: controlled by military with documented forced labor of ethnic minorities
  • Lithium extraction in South America (Chile, Bolivia, Argentina) — indigenous land rights and water rights violations intersecting with forced labor risk
  • Gold supply chains through UAE and other trading hubs that launder origin

Supply Chain Tiers Affected

  • Primary extraction: This is tier 1 in mining — and where most forced labor occurs; it's the most direct risk in any extractive industry supply chain
  • Smelting and refining: Tier 2 in the minerals chain; origin laundering frequently occurs here when mixed-origin smelting obscures problematic upstream sourcing
  • Trading intermediaries: Multiple middlemen between mine and manufacturer reduce traceability to near zero
Recent enforcement: CBP has restrictions on minerals from Myanmar's military-controlled jade and rubies sectors. The US Dodd-Frank Section 1502 requires public company disclosure of conflict minerals (tantalum, tin, tungsten, gold). The EU Conflict Minerals Regulation (2021) applies mandatory due diligence for EU importers. CSDDD specifically identifies mining as a high-impact sector with lower thresholds for enforcement priority.
Compliance Priorities
OECD Due Diligence Guidance for minerals Smelter/refiner certification (RMAP) Conflict minerals disclosure Myanmar import restrictions ASM engagement programs Provenance tracking blockchain pilots
🏗️

Construction

Migrant worker kafala, labor recruitment, and Gulf mega-projects

High Risk

Key Risk Areas

  • Gulf Cooperation Council (GCC) countries: Qatar, UAE, Saudi Arabia use kafala (sponsorship) system that ties migrant workers to employers — effectively immobilizing workers who face abuse
  • Recruitment fee debt bondage: workers from South Asia (India, Nepal, Bangladesh, Pakistan) pay $2,000–$5,000 to labor brokers, then spend months repaying debt before earning net wages
  • Wage theft and delayed payment — endemic in subcontractor-heavy construction projects
  • Materials: steel and aluminum from XUAR-linked Chinese mills; timber from uncertified logging in Southeast Asia and Russia
  • Mega-events supply chains: FIFA World Cup Qatar 2022 documented 6,500+ migrant worker deaths during construction

Supply Chain Tiers Affected

  • Direct workforce: Main contractor labor — risk is moderate if contractor is reputable and audited
  • Subcontractors: Multiple layers of subcontracting obscure labor practices; most abuse occurs at Tier 2–3 subcontractor level
  • Materials supply: Steel, glass, aluminum, timber — commodity materials with high forced labor risk in extraction and processing
  • Labor brokers: Recruitment agencies operating in origin countries operate outside buyer visibility entirely
Recent enforcement: While CBP UFLPA enforcement has focused more on goods than construction services, CSDDD explicitly covers construction companies' value chains. The UK Modern Slavery Act requires supply chain statements from construction firms with £36M+ turnover. Several international infrastructure developers have faced investor pressure and divestment campaigns over Gulf construction labor practices. Building materials (steel, aluminum) face direct UFLPA exposure.
Compliance Priorities
Kafala reform engagement Recruitment fee prohibition Subcontractor labor audits XUAR steel/aluminum tracing Migrant worker grievance access Worker welfare standards (ILO C29)
🚗

Automotive

Battery minerals, XUAR components, and deep Tier 3+ exposure

High Risk

Key Risk Areas

  • EV battery supply chain: cobalt (DRC), lithium (South America, China), nickel (Indonesia, Philippines) — all with documented forced labor or environmental displacement risks
  • XUAR aluminum in body panels, wheels, and structural components — aluminum production is energy-intensive and concentrated in XUAR
  • Tier 2+ component suppliers in China using government-placed XUAR workers in automotive parts manufacturing
  • Semiconductor and electronics supply chains overlapping with electronics sector risks (polysilicon, rare earths)
  • Rubber for tires: natural rubber from Thailand, Malaysia, Indonesia with documented migrant labor abuses

Supply Chain Tiers Affected

  • Tier 1: Major system suppliers — typically managed with existing supplier codes
  • Tier 2: Component part manufacturers — less visibility; XUAR labor transfer risk sits here
  • Tier 3: Raw material processors — this is where battery mineral risk concentrates
  • Tier 4+: Mining and extraction — cobalt and lithium forced labor risk; near-zero brand visibility
Recent enforcement: Volkswagen faced an extended investigation into its Urumqi (Xinjiang) joint venture, ultimately selling its stake. Lynk & Co (Geely brand) vehicles faced US import scrutiny over XUAR-linked components. The EU Battery Regulation (2023) introduces mandatory battery passport requirements with supply chain due diligence on cobalt, lithium, and nickel — effectively creating automotive-specific CSDDD obligations for EV batteries by 2027.
Compliance Priorities
Battery mineral due diligence EU Battery Regulation readiness XUAR aluminum exclusion Tier 2–3 supplier mapping Cobalt RMI certification China JV labor practice review
☀️

Solar & Renewable Energy

The polysilicon concentration problem — the highest UFLPA seizure rate

Critical Risk

Key Risk Areas

  • Polysilicon: XUAR produced 35–45% of global polysilicon supply; CBP has issued withhold release orders against major XUAR polysilicon producers including Hoshine Silicon Industry, GCL-Poly, and others
  • Solar panel manufacturing in China: the integrated supply chain from polysilicon to wafer to cell to module means XUAR contamination flows through even non-XUAR manufacturers
  • Aluminum frames for solar panels: XUAR is a major aluminum producer; aluminum-intensive products face high UFLPA exposure
  • Wind turbine rare earth magnets: neodymium and dysprosium sourced from Inner Mongolia and XUAR
  • Battery storage (lithium, cobalt) — identical to automotive battery risk chain

Supply Chain Tiers Affected

  • Tier 1 (module manufacturer): Even reputable module manufacturers use polysilicon that may originate in XUAR; rebuttable presumption applies regardless of final manufacturer location
  • Tier 2 (cell and wafer): Polysilicon is cut into wafers — by this stage, XUAR origin is impossible to detect without upstream tracing
  • Tier 3 (polysilicon producer): This is where UFLPA enforcement targets; XUAR producers are on the UFLPA entity list
  • Tier 4 (silica rock): Raw material extracted in XUAR
Recent enforcement: Solar is the second-highest UFLPA detention sector by value — CBP has detained hundreds of millions of dollars of solar panels. The Solar Energy Industries Association (SEIA) established a Solar Supply Chain Traceability Protocol. Importers who cannot prove non-XUAR polysilicon provenance have panels seized at port, causing massive project delays. Several US utility-scale solar projects faced 12–18 month delays due to UFLPA-detained panels in 2023–2025.
Compliance Priorities
SEIA Traceability Protocol Polysilicon provenance documentation XUAR entity list screening Non-Chinese polysilicon sourcing Module manufacturer attestation Project delivery risk planning
🐟

Seafood & Fishing

Vessel-based labor abuses — the hardest-to-detect forced labor risk

Critical Risk

Key Risk Areas

  • Deep-sea fishing vessels operating outside any country's territorial waters with zero labor inspection capability
  • Debt bondage: workers recruited in Indonesia, Myanmar, Cambodia, and Vietnam pay broker fees of $1,000–$3,000 then work months before earning positive wages
  • Document confiscation: employers seize passports and IDs — a definitive indicator of forced labor under ILO standards
  • Fish meal and feed supply chains: farmed seafood (shrimp, salmon) uses fish meal from wild-catch operations with high labor abuse rates
  • Port transshipment laundering: fish caught with forced labor is transferred at sea to carrier vessels and relabeled before landing, obscuring origin

Supply Chain Tiers Affected

  • Fishing vessel: This is tier 1 and where virtually all labor abuse occurs — direct, not diluted through supply chain tiers
  • Processing facility (land-based): Tier 2 — migrant labor abuses documented in Thai, Vietnamese, and Indonesian processing plants
  • Carrier/transshipment: Acts as an origin-laundering point — a major compliance challenge with no equivalent in other sectors
  • Aquaculture: Distinct from wild-catch; risk is at feed ingredient level and at pond/farm level through migrant workers
Recent enforcement: CBP has issued withhold release orders on seafood from specific Thai and Vietnamese processing companies. The US Seafood Import Monitoring Program (SIMP) requires documentation of harvest event and chain of custody for 13 species. The EU IUU (illegal, unreported, unregulated) fishing regulation can ban seafood imports from non-compliant flag states. Multiple NGO investigations (Environmental Justice Foundation, Greenpeace) have documented fishing vessel slavery — leading to Walmart, Costco, and major retailers cutting specific supplier relationships.
Compliance Priorities
SIMP documentation compliance Vessel fishing license verification ILO Work in Fishing Convention (C188) At-sea observer programs Transshipment chain-of-custody MSC certification (wild-catch)
Self-Assessment

Is Your Industry High-Risk? A Checklist

8 indicators that signal elevated forced labor exposure

Check each statement that applies to your company. The more boxes checked, the more urgent your compliance posture review. This is a quick-scan tool — for a full assessment against UFLPA, CSDDD, and CA Transparency Act, use the free assessment below.

Your supply chain touches China, Southeast Asia, or Gulf states

These regions concentrate the majority of documented forced labor cases in global manufacturing. Presence here doesn't equal violation — but it activates UFLPA rebuttable presumption for XUAR-origin goods and heightens CSDDD scrutiny.

You have limited or no visibility beyond your direct (Tier 1) suppliers

The most common compliance gap. Most forced labor doesn't happen at Tier 1. It enters at Tier 2–4 through raw materials, subcontractors, or labor recruiters that your direct supplier uses outside your knowledge.

Your products contain cotton, polysilicon, cobalt, or tomato paste

These four commodity inputs have the highest documented XUAR and forced labor contamination rates globally, and have been the subject of CBP withhold release orders, UFLPA entity listings, and congressional investigations.

You have not audited any supplier beyond Tier 1 in the past 24 months

CBP and CSDDD regulators expect risk-based, periodic auditing. A compliance program that never reaches Tier 2+ is a legal liability — particularly in high-risk sectors where the evidence standard requires proactive documentation.

Your supplier contracts lack forced labor clauses or audit rights

Contractual protections are the minimum baseline under CSDDD and a practical defense under UFLPA. Without them, you have no leverage when a supplier refuses to cooperate with investigations and no legal recourse when their non-compliance becomes your liability.

Your business relies heavily on low-cost labor in price-competitive categories

Extreme price pressure on suppliers creates structural incentives for labor exploitation. If your category competes primarily on cost and your suppliers' margins don't allow for compliant labor practices, the economics of your supply chain are producing forced labor risk regardless of your policies.

You use migrant workers, temporary labor, or labor brokers in your direct operations

Migrant workers and broker-placed temporary labor are the highest-risk labor categories globally. Debt bondage, document confiscation, and wage theft are concentrated in these work arrangements — and are directly detectable through basic worker interviews and HR record review.

You have never conducted a forced labor-specific risk assessment for your industry sector

General ESG audits don't catch forced labor. Sector-specific risk assessment identifies the specific chokepoints, geographies, and supply chain tiers where forced labor enters your industry. Without it, you're auditing the wrong things in the wrong places.

Get Your Personalized Compliance Assessment in 5 Minutes

Industry risk is the starting point. Your specific supply chain determines your actual exposure. Take the free RightsForge assessment to score your compliance posture across UFLPA, CSDDD, and CA Transparency Act — with industry-tailored recommendations.

Start Free Assessment →

Frequently Asked Questions

Which industries have the highest forced labor risk?
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Apparel and textiles, electronics and semiconductors, agriculture and food, mining and minerals, and seafood and fishing consistently rank as the highest-risk sectors under global forced labor frameworks. These industries share three characteristics: labor-intensive production in high-risk geographies, multi-tier supply chains with limited visibility, and documented histories of CBP enforcement actions and NGO investigations. Solar and renewable energy is a rising critical-risk sector due to polysilicon concentration in Xinjiang.

What is a UFLPA high-risk industry?
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UFLPA high-risk industries are sectors where goods commonly originate from or incorporate materials from the Xinjiang Uyghur Autonomous Region (XUAR). CBP has specifically identified apparel and textiles (cotton), electronics (polysilicon, rare earths), and tomato products as priority enforcement areas. However, any industry with XUAR-origin inputs faces the rebuttable presumption of forced labor under UFLPA — the importer must prove goods are XUAR-free or face import detention and penalties.

How does forced labor risk differ between industries?
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Risk varies by supply chain structure, geography, and labor intensity. In apparel, forced labor enters primarily at Tier 3–4 (raw fiber). In electronics, it enters through mineral extraction at Tier 4 and through government-directed labor at Tier 2 assembly. In agriculture, risk concentrates at Tier 2 (farm level) rather than further upstream. In seafood, the risk is at Tier 1 — on the fishing vessel itself — making it the most proximate and hardest to detect. Understanding where forced labor enters your specific supply chain is the first step to building effective controls.

Does my small business need to worry about industry-specific forced labor risk?
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Yes. UFLPA applies to any US importer regardless of size — CBP does not have a small business exemption. If you import apparel, electronics, food products, or other high-risk goods from China or other high-risk regions, you face the same rebuttable presumption as Fortune 500 companies. The risk isn't proportional to your size; it's proportional to your supply chain exposure. CBP has detained shipments from small importers, and the burden of proof — clear and convincing evidence of XUAR-free supply chains — is identical regardless of company size.

Which industries face both UFLPA and CSDDD forced labor risk?
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All eight sectors in this guide face dual UFLPA and CSDDD exposure for companies meeting the relevant thresholds. The highest dual-risk sectors are apparel, electronics, and mining — sectors with documented Xinjiang exposure (UFLPA) that also appear prominently in CSDDD's high-impact sector guidance. Companies selling into both US and EU markets need a unified compliance strategy that satisfies both UFLPA's import documentation requirements and CSDDD's ongoing due diligence and reporting obligations. See our UFLPA guide and CSDDD guide for framework-specific requirements.

What are the forced labor compliance priorities for the automotive industry?
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Automotive forced labor compliance focuses on: (1) mineral sourcing — cobalt, lithium, and rare earths used in batteries and electronics, with the EU Battery Regulation requiring chain-of-custody documentation by 2027; (2) Tier 2+ supplier visibility beyond direct component vendors, where XUAR-placed labor is most prevalent; (3) XUAR aluminum in body and structural components; and (4) China joint venture labor practices — Volkswagen's Xinjiang facility is the most prominent example of the risks that arise from in-country manufacturing partnerships.

Why is seafood considered the hardest forced labor risk to detect?
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Three factors make seafood uniquely difficult: (1) Fishing vessels operate in international waters with no labor inspection authority — the "workplace" is physically inaccessible to auditors; (2) At-sea transshipment allows fish to change vessels and have its origin relabeled before reaching port — destroying the chain of custody; (3) Workers are isolated from any support network for months at a time with no ability to report or escape. The International Labour Organization's Work in Fishing Convention (C188) sets the international standard, but ratification and enforcement remain minimal for the fleets that pose the highest risk.

How can I assess my specific industry's forced labor risk?
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Start with the self-assessment checklist on this page to identify your primary risk indicators. Then take RightsForge's free 15-minute assessment at assess.html — it covers your specific supply chain profile against UFLPA, CSDDD, and CA Transparency Act requirements with industry-tailored scoring and prioritized recommendations. For deep-dive industry-specific guidance, your sector's industry association (SEIA for solar, RILA for retail, EICC for electronics) maintains compliance toolkits aligned to sector-specific risk patterns.

Related Compliance Guides

Take the Free Assessment

Score your compliance posture against UFLPA, CSDDD, and CA Transparency Act in 5 minutes. Get an industry-tailored risk report with prioritized recommendations.

UFLPA Compliance Guide

Which industries face the highest UFLPA scrutiny? The US Uyghur Forced Labor Prevention Act's rebuttable presumption applies across every high-risk sector in this guide. See requirements and the 5-step checklist.

EU CSDDD Compliance Guide

Industry-specific due diligence requirements under the EU Corporate Sustainability Due Diligence Directive. Each sector faces distinct CSDDD obligations based on impact severity and value chain depth.

UK Modern Slavery Act Guide

The UK Modern Slavery Act (Section 54) applies to businesses with £36M+ UK turnover. Hospitality, construction, and agriculture — three of the highest-risk sectors in this guide — face the most UK MSA scrutiny.

EU Forced Labor Regulation (EU 2024/3015)

The EU product ban on forced-labour goods takes effect December 2027 and covers all sectors in this guide. Apparel, electronics, solar, agriculture, seafood, and mining face priority enforcement. Understand your EU obligations.

Automotive Supply Chain Forced Labor Guide

CBP is actively targeting automotive under UFLPA — $3.7B+ in seized goods. OEM compliance, Tier 1-3 supplier mapping, raw material traceability for EV batteries, and EU 2024/3015 obligations for the automotive sector.