International trade and business operations by German and European companies represent an opportunity to create jobs and generate prosperity along global supply chains. On the downside, these activities can also have substantial negative effects on the people and the environment along those same supply chains. In addition to the duty of the state to respect, protect and fulfil human rights, companies are also responsible for respecting human rights. To ensure the practical implementation of this responsibility as well as to create clear rules and the same conditions for all companies in Germany, the German Government has adopted the Supply Chain Due Diligence Act (the “Lieferkettengesetz”, and in short the “LkSG”).
In this updated briefing paper, we are answering the most pressing questions companies have regarding the implementation of the Lieferkettengesetz:
What is the German Supply Chain Due Diligence Act (Lieferkettengesetz)?
What does supply chain due diligence mean?
Who does the Act apply to?
What does the Act require of companies?
How does a company implement the Act?
This October 2022 edition features the latest regulatory guidance and corporate practice.
Year: October 2021
Author: Alice Homuth
Keywords: Lieferkettengesetz, German Supply Chain Due Diligence Act, supply chain, human rights due diligence, HRDD, HREDD, sustainability, LkSG, supply chain due diligence, responsible sourcing, human rights