The German Supply Chain Act – Implications for your business and learnings for an EU regulation
The German Supply Chain Due Diligence Act (LkSG) comes into effect on 1 January 2023 and requires the companies concerned to take reasonable measures to ensure that there are no violations of human rights in their own business operations and in the supply chain.
The law applies to companies with at least 3,000 employees (1,000 employees from 1 January 2024) that have their head office, administrative seat or statutory seat in Germany. Foreign companies that have a branch in Germany and usually employ at least 3,000 employees (1,000 employees from 1 January 2024) in this branch are also affected. Companies with fewer employees may be indirectly affected by the Supply Chain Act through the measures taken by the companies concerned, e.g. codes of conduct, reporting obligations etc.
- The basics: Who is affected and what are the requirements?
- Practice: How can the requirements be successfully implemented into your business?
- Learning from Germany: An outlook on the (planned) EU regulation