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The German Supply Chain Due Diligence law (Lieferkettengesetz) will come into force in 2023. It will regulate the liability of companies based in Germany for human rights violations in their supply chain.The currently voluntary recommended practices are then transferred into a legal framework.
On the 11th of June the German Bundestag has officially passed the Lieferkettengesetz, holding companies responsible for human rights violations not only in their own companies but also in the further supply chain.
The law is an important step in the implementation of the decision of the “UN Guiding Principles on Business and Human Rights” of the UN from 2011, which serves the purpose of combating child labour, exploitation and slavery and to anchor more responsibility for the observance of human rights at companies for the following issues:
Bodily integrity and health
Environmentally related obligations to protect human health
Freedom from torture, slavery and forced labour
Collective bargaining rights, fair working conditions (safety at work, breaks)
In essence a functioning risk management system in the supply chain is needed to comply with the corporate due diligence law. Bad business practices along the supply chain have to be prevented. These included but are not limited to environmental damages, exploitations and unfair business practices. Special care needs to be taken with raw materials, determining their sustainability and making sure there are no conflict minerals involved in the supply chain. Last but not least all service providers and logistics partners in the supply chain also need to be monitored and evaluated to prevent sustainability risks from these external factors.
Tool-support and Automation necessary
Tool-support andAutomation necessary
Yes I have to act now. The law will take effect for me in 2023.
Yes I have to act now. The law will take effect for me in 2024.
The law doesn’t affect me directly, but it can still be a great time to rethink supply chain sustainability.
Find out everything you need to know in our Supply Chain Act Whitepaper and Checklist
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