Supply Chain Due Diligence Act

What is happening? This month the German Supply Chain Due Diligence Act became effective. Ja, the  Lieferkettensorgfalts­pflichtengesetz, is now in full effect. (not a typo, this is the German name for this Act) To start,  the Act applies to companies of at least  least 3,000 employees. Small and medium-sized companies won’t escape the Act, but will meet different supply chain standards that also address sustainability. What does sustainability have to do with supply chain? When a product travels great distances to reach Germany there is a carbon footprint. The Act also covers supply chain workforce safety and labor protections, and places a due diligence duty on companies that operate in Germany to align their supply chain accordingly.

Why is this important? Countries and states are focusing on how to bring the supply chain back to their lands. Closer goods, fewer supply chain interruptions.

Roedl | The new German Supply Chain Due Diligence Act (LkSG) – what needs to be done