The German Supply Chain Due Diligence Act came into force on 1 January 2023 and obliges all companies with more than 3,000 employees to comply with the requirements of the Act. From 01 January 2024, it also obliges all companies with more than 1,000 employees.

The law requires companies to assess, monitor and improve the sustainability of their supply chains by developing policies and procedures to identify, mitigate, prevent and address human rights violations and environmental issues. Companies must also develop and implement policies to ensure that their suppliers comply with the law, establish complaint procedures for employees, engage in collective bargaining and report annually on the sustainability of their supply chains.

Direct suppliers of companies subject to the Supply Chain Act can also be affected by the law.  Therefore, the law is also relevant for many small and medium-sized enterprises (SMEs). High sanctions must be expected in case of violations.

The Supply Chain Act aims to make standards in human rights and environmental protection more tangible, leading to a fair and sustainable global economy. It also aims to promote responsible corporate governance.

To be best prepared for the implementation of the Supply Chain Act in your company, simply fill out the form and get direct access to our Supply Chain Act checklist!