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The “Act on Corporate Due Diligence to Prevent Human Rights Violations in Supply Chains” (Supply Chain Due Diligence Act – German: Lieferkettensorgfaltspflichtengesetz, short: “LkSG”) obliges companies to comply with human rights and environmental standards in their global supply chains. Read more »
As the legislative requirements for companies' due diligence along their supply chains grow, so do the demands on the respective decision-makers. In addition to the expectation of profitable corporate management, there is also the requirement to protect the company and its shareholders from economic damage as a result of supply chain violations and the associated sanctions. Read more »
Compliance with the obligations of the German Supply Chain Act is important. Violations of the act must be carefully prevented, because the power of third parties to conduct lawsuits raises many questions in legal practice. Read more »
In Germany, binding corporate due diligence requirements for the protection of the environment and human rights in global supply chains have been in force since January 1, 2023. Other European countries have also introduced comparable statutory due diligence obligations or are planning to do so. Read more »
On 1 January 2023, the Supply Chain Act (hereinafter "LkSG") came into force. This requires the establishment of an internal reporting channel for compliance with environmental and human rights-related due diligence obligations. Read more »
Every year, agricultural land continues to expand through deforestation and forest degradation. These practices have serious impacts on climate, biodiversity and the rights of indigenous peoples. Read more »
In their compliance efforts, internationally operating companies should also consider trade agreements. First and foremost, trade agreements strive to remove trade barriers and create better trade opportunities. Read more »
Medical products are generally the result of complex international supply and goods chains before they are manufactured, distributed, purchased and used by German companies or other healthcare providers such as hospitals and care facilities. Read more »
Since 1 January 2023, companies that have their head office, principal place of business, place of management or registered office in Germany and generally hire more than 3,000 employees in Germany have been obliged under the Supply Chain Due Diligence Act to conduct human rights and environmental due diligence in their supply chains. Read more »
The Supply Chain Act (LkSG) affects companies that have to minimise human rights and environmental risks along their supply chains. It has various labour law implications and, in our opinion, not only requires the involvement of HR departments, but is also a great opportunity for them to position themselves within the company and use their existing expertise to the benefit of the company. Read more »
In addition to Germany, numerous other countries within and outside the EU have already enacted comparable regulations on due diligence along supply chains. A comprehensive overview of the current status of supply chain legislation at the international level is provided by the countries themselves. Read more »
Carla Everhardt
Associate Partner
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Anne Egensperger
Senior Associate
