It’s a done deal. On January 1, 2023, the new Supply Chain Due Diligence Act (LkSG) came into force. The law requires German companies to implement far-reaching measures to protect human rights and environmental standards along global value and supply chains. However, it is unclear how exactly companies should go about this. Supply chains are widely ramified, and until now only a few companies have precise information on where their direct suppliers are purchasing. But in the long term, companies should also look to influence downstream suppliers.<\/span><\/strong><\/p>\nHowever, companies based in Germany are not alone in facing this challenge. Other countries – such as France, the Netherlands and the United Kingdom – are also aiming for climate neutrality and no longer want to achieve Western prosperity at the expense of the people in the supply chain. The EU is also planning a law that, according to the current draft, will be stricter than the German regulations.<\/p><\/div>\n
Some are concerned that the LkSG could lead to them being lost in the German bureaucratic jungle, having to pay high penalties or even having clear competitive disadvantages compared with competitors from abroad. Others see the law as an opportunity to gain a competitive edge, as customers and employees attach importance to criteria such as sustainability and human rights.<\/p>\n
For procurement, the law means that in In addition to ensuring resilience and optimizing value creation, corporate and social responsibility must also come to the fore. Our White Paper gives you an overview of the Supply Chain Act and shows you how and where you can best use the provisions of the Act to your advantage.<\/p><\/div><\/div><\/div>\n