{"id":341406,"date":"2022-05-12T14:56:25","date_gmt":"2022-05-12T12:56:25","guid":{"rendered":"https:\/\/www.optimal-systems.de\/?p=341406"},"modified":"2026-07-03T11:59:47","modified_gmt":"2026-07-03T09:59:47","slug":"supply-chain-due-diligence-law-who-is-affected-and-how-does-its-implementation-work","status":"publish","type":"post","link":"https:\/\/www.optimal-systems.de\/en\/digitalization\/blog\/supply-chain-due-diligence-law-who-is-affected-and-how-does-its-implementation-work","title":{"rendered":"Supply Chain Due Diligence Law \u2013 who is affected and how does its implementation work?"},"content":{"rendered":"\n
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Supply Chain Due Diligence Law \u2013 who is affected and how does its implementation work?<\/h1>\n\n\n\n

By Philippe Zimmermann<\/p>\n<\/div>\n<\/div>\n<\/div><\/div><\/div>\n\n\n

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What is the new supply chain law?<\/h2>\n\n\n\n

The Supply Chain Due Diligence Act, also known as \u201cLieferkettensorgfaltspflichtengesetz\u201d, \u201cLkSG\u201d or \u201cAct on Corporate Due Diligence to Prevent Human Rights Violations in Supply Chains\u201d, was passed by the Grand Coalition at the end of June 2021<\/a>. As part of their corporate compliance, companies operating in Germany are thereby obliged to take measures against human rights violations and environmental damage in their supply chains.<\/p>\n\n\n\n

Originally, the German government had hoped for a voluntary approach: If a majority of German companies were to comply with the measures of the so-called \u201cNational Action Plan for Business and Human Rights of 2016 in the Federal Republic of Germany\u201d, there would be no legal obligation. But surveys in 2020 showed that 83% to 87% of the companies polled had simply not followed this action plan \u2013 and had hoped for the volunteer efforts of other companies. There is a certain sad irony in the fact that business owners must be forced to take action against forced labor (and worse).<\/p>\n\n\n\n

What are companies obligated to do now?<\/h2>\n\n\n\n

The Supply Chain Act requires companies to take basic precautionary and documentation measures. Specifically, this means:<\/p>\n\n\n\n