Supply Chain Due Diligence Act
The Supply Chain Due Diligence Act (LkSG) has been in effect since January 1, 2023, requiring companies in Germany to fulfill human rights and environmental due diligence obligations across their global supply chains. The law aims to prevent human rights violations such as child labor, forced labor, and environmental degradation while promoting corporate responsibility and transparency.
Who Must Comply with the LkSG?
The LkSG applies to:
- Companies headquartered in Germany with over 1,000 employees.
- Foreign companies with branches in Germany that meet the same threshold.
Key Compliance Requirements:
- Risk Management: Implementing systems to identify, assess, and mitigate human rights and environmental risks.
- Grievance Procedures: Establishing mechanisms for reporting violations.
- Regular Reporting: Ensuring compliance through mandatory reports and audits.
Enhancing Supply Chain Transparency
Companies are required to proactively address risks such as:
- Child labor and forced labor.
- Environmental pollution and resource exploitation.
- Human rights violations across global supply chains.
Non-compliance can lead to significant penalties, including fines and exclusion from public contracts, making it essential for businesses to integrate due diligence practices into their operations.
Preparing for Stricter EU Regulations
An upcoming EU Supply Chain Directive will impose even stricter requirements, extending obligations to a broader range of businesses. Companies must act now to align their supply chain policies with evolving regulations.
How We Support Your Business
We offer end-to-end solutions to help your company achieve full compliance with the LkSG:
Sustainability and Compliance Management
- Acting as your Human Rights or Sustainability Officer.
- Assisting in sustainability reporting and Corporate Social Responsibility (CSR) initiatives.
Risk Management and Analysis
- Conducting risk assessments to identify human rights and environmental risks.
- Developing risk maps to visualize vulnerabilities across the supply chain.
- Performing targeted industry and country analyses for high-risk areas.
Auditing and Monitoring
- Conducting on-site supplier audits to verify compliance.
- Implementing continuous monitoring systems for due diligence requirements.
- Supporting certification efforts (e.g., FairTrade, ISO standards).
Expert Consulting and Training
- Advising on all LkSG-related compliance matters.
- Developing and implementing due diligence strategies.
- Training employees and suppliers on human rights and environmental standards.
- Hosting workshops on topics such as grievance management and risk prevention.
Compliance and Reporting
- Implementing a proven compliance management system to assess and enhance current processes.
- Assisting with mandatory reporting obligations.
Documentation and Reporting
We assist you in preparing the mandatory reports required to meet reporting obligations.
Stakeholder Management
- Building and maintaining relationships with NGOs, trade unions, and local communities.
- Establishing grievance mechanisms for affected parties.
Development and Implementation of Policies
Developing corporate policies to ensure alignment with LkSG requirements.
Crisis Management and Risk Mitigation
- Providing support in addressing human rights violations or environmental crises.
- Developing corrective and preventive measures to mitigate risks.
Ensure Compliance with the LkSG – Contact Us!
We offer customized solutions to help your business meet the LkSG requirements and prepare for future regulatory changes. Get in touch with our experts today for tailored guidance on supply chain due diligence compliance.
Wiebke Kummer, Jurist
ppa | Head of Compliance international
Email: wkummer@re-move-this.first-privacy.com
Phone: +49 421 69 66 32-884
FIRST PRIVACY GmbH, Bremen
Cihan Parlar, LL.M. (Tilburg), Lawyer
Managing Director
Email: cparlar@re-move-this.first-privacy.com
Phone: +31 20 211 7116
FIRST PRIVACY B.V., Amsterdam
If your inquiry concerns an organization based in Germany, these contacts will help you
Dominik Bleckmann, Lawyer
ppa | Head of Compliance
Email: dbleckmann@re-move-this.datenschutz-nord.de
Phone: +49 421 69 66 32-349
datenschutz nord GmbH, Bremen
Markus Schönmann, Lawyer
Head of Compliance | Senior Privacy Counsel
Email: mschoenmann@re-move-this.datenschutz-sued.de
Phone: +49 931 30 49 76-24
datenschutz süd GmbH, Würzburg
