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Eticor Lieferkettengesetz

The german supply chain due dilligence act

The Supply Chain Due Diligence Act requires companies to ensure compliance with human rights and environmental standards. German companies must now fulfill new due diligence obligations with regard to their own business operations and their direct suppliers.

Everything from a single source

The Supply Chain Due Diligence Act brings with it numerous challenges and opportunities and aims to create more transparency and more responsible action along the supply chain. We offer you a comprehensive solution for the legally compliant implementation of the requirements of the Supply Chain Due Diligence Act:

Basis
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1. Build the base
1.Build the base
Organize your company in a legally compliant manner across all locations and create a stable basis for implementing the requirements of the supply chain due dilligence act in a compliant manner.
 
Nachweis
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2. Provide evidence
2. Provide evidenceProve to your customers quickly and easily at any time that you are a sustainable supplier as defined by the Supply Chain Act - with our "Certified Sustainable Supplier" certificate.
Lieferketten rechtssicher managen
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3. Managing supply chains with legal certainty
3. Managing supply chains with legal certainty Check your suppliers for compliance with human rights and environmental standards, optimize the sustainability of your supply chains and meet the requirements of the supply chain due dilligence act efficiently and with legal certainty.

Is my company affected by the supply chain due dilligence act?

Regardless of the sector, the following applies: Internationally active companies with headquarters or branches in Germany that employ more than 3,000 or 1,000 employees are affected:

  • since January 2023 for companies with more than 3,000 employees and
  • since January 2024 for companies with more than 1,000 employees

Watch out for the snowball effect:
Companies with fewer than 1,000 employees are also responsible for complying with human and environmental rights if they are part of the supply chain of directly affected companies. In this case, suppliers must prove to their major customers on request that they are acting sustainably and in compliance with the supply chain due dilligence act. 

Due diligence obligations under the Supply Chain Act

Establishing a risk management process Companies are obliged to set up a risk management system to identify, avoid or at least minimize risks and violations of human and environmental rights along their supply chain.
Regular risk analyses Risk analyses must be carried out at least once a year for the company's own business area and for direct suppliers. Indirect suppliers only need to be reviewed as soon as there is substantiated knowledge of a breach of duty. The purpose of the analysis is to identify which business areas and suppliers pose a potential risk to compliance with human and environmental rights.
Anchoring preventive measures Based on the risk analysis, companies determine suitable measures to prevent, minimize or, at best, completely eliminate violations of human and environmental rights. The effectiveness of these measures must subsequently be reviewed.
Issuing a policy statement The declaration of principles must be submitted by the company management and should describe the strategy with which the company contributes to respecting human rights in its own company and along the supply chain.
Defining responsibilities Companies must ensure that clear responsibilities are defined within the organization and that the effectiveness of the implemented risk management system is regularly monitored. For example, by appointing a human rights officer.
Taking remedial action If a breach of a duty of care is identified in the company's own business area or at a direct supplier, corrective measures must be initiated immediately.
Documentation and reporting The measures taken to protect human and environmental rights must be publicly reported once a year. The report must be published on the respective company website and must also be submitted to the Federal Office of Economics and Export Control (BAFA).
Setting up a complaints procedure The supply chain due dilligence act requires companies to set up a complaints procedure in order to gain immediate knowledge of possible human rights violations and environmental risks. This must be accessible to those affected or informed within the entire supply chain.
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Your contact

Do you have any questions about our supply chain management services or our sustainability certificates? We look forward to your message or call.

Eticor Yvonne Bahke
YVONNE BAHKE

Dipl. Jur. (Univ.)
Project Manager Sales
Referentin Lieferkettenrecht
y.bahke@eticor.com
+49 6022 2656 – 139

Eticor Thomas Teschner
THOMAS TESCHNER

Ass. jur.
Legal Compliance Expert
t.teschner@eticor.com
+49 6022 2656 – 120