Brands Like Walmart, BASF Linked to Uyghur Region Minerals

A June 2025 report by the Global Rights Compliance Foundation (GRC) reveals that these companies appear in supplier declarations or customer listings of midstream manufacturers that source titanium and other minerals from Xinjiang, a region widely documented for the use of state-imposed forced labor targeting Uyghur and other ethnic minorities.

While these companies are not directly sourcing from the Uyghur Region, they are downstream users of materials that originate from mining and processing facilities in Xinjiang, raising red flags about traceability and due diligence.

“Traceability must go beyond finished goods. Without full transparency in sourcing, companies risk financing forced labor and environmental harm,” said Sarah Wood, Senior Counsel at Global Rights Compliance.

How the Links Are Established

The report details how raw minerals such as titanium, magnesium, beryllium, and lithium are extracted in Xinjiang and processed by companies like Xinjiang Xiangrun (XRUN) and CNNC Jinguan Titanium, both of which have been tied to state-imposed labor systems.

These materials are then sold to midstream companies such as:

• Wujo Group, a global manufacturer of insulated flasks and metal containers.
• CHTi (CNNC Hua Yuan Titanium Dioxide Co.), a leading supplier of titanium dioxide pigment.

These midstream manufacturers, in turn, list companies such as Walmart, Coca-Cola, Starbucks, Disney, and Carrefour as cooperative partners or customers—placing those brands at risk of indirect exposure to forced labor–tainted supply chains.

For example, CHTi sources 28% of its titanium feedstock from Xinjiang suppliers. Its products, including pigments used in coatings and packaging, are sold globally to companies such as Sherwin-Williams, AkzoNobel, and BASFGRC-critical-minerals.

Sectors and Material Use

These critical minerals are essential to multiple sectors:

• Titanium: Used in pigment for consumer packaging, aerospace, and medical devices.
• Magnesium: Found in vehicle parts, laptops, and structural alloys.
• Beryllium: Embedded in telecommunications and defense systems.
• Lithium: Core to electric vehicle batteries and grid-scale storage.

Legal and ESG Risk

Under the Uyghur Forced Labor Prevention Act (UFLPA) in the U.S., all products tied to Xinjiang are presumed to be made with forced labor. Importers must provide “clear and convincing evidence” that goods are not linked to state-imposed labor systems—something many companies have not yet demonstrated at the raw material level.

The complexity of these supply chains does not absolve companies from liability or ESG responsibility.  Boards must be proactive in tracing their suppliers to the point of extraction.

Regulators and investors alike are pushing for:

• Full raw material disclosure
• Exit strategies from high-risk regions
• Third-party supply chain audits

A Call for Greater Transparency

To reduce risk and comply with growing global expectations around ethical sourcing, major brands are turning to third-party verification tools that integrate both carbon and human rights data across their supply chains.

Downstream companies—especially those exposed to critical minerals like titanium, beryllium, and magnesium—can improve oversight by:

• Using platforms like EcoVadis, Sedex, or Sourcemap to assess suppliers’ environmental, labor, and traceability practices.
• Requiring third-party audits that confirm both GHG Scope 3 emissions and the absence of forced labor exposure, particularly from regions flagged by the UFLPA.
• Leveraging blockchain or GPS-based tools to verify raw material origin—critical for minerals sourced through opaque intermediaries.
• Including human rights and emissions verification in public reports, such as those aligned with the TCFD, CSRD, or ISSB frameworks.

Sarah Wood, emphasized in the June 2025 report that traceability and disengagement are essential steps for companies seeking to comply with ethical sourcing laws and reduce forced labor exposure.

Companies are also encouraged to disengage from suppliers that cannot prove clean sourcing, and to disclose corrective actions when exposure to high-risk regions is confirmed. By aligning emissions tracking with human rights due diligence, companies not only reduce legal exposure but also build long-term resilience into their procurement systems.