Act on Corporate Due Diligence Obligations in Supply Chains
The Act on Corporate Due Diligence Obligations in Supply Chains (Lieferkettensorgfaltspflichtengesetz, LkSG) requires companies to conduct appropriate human rights and certain environmental due diligence in their supply chains.
The Act applies from January 1, 2023 for companies in Germany with at least 3,000 employees.
From January 1, 2024, companies in Germany with at least 1,000 employees will be affected. The due diligence obligations for companies include:
- Establishing a risk management system
- Designating a responsible person or persons within the company
- Conducting regular risk analyses and issuing a policy statement
- Laying down preventive measures
- Taking remedial action and establishing a complaints procedure
- Documenting and reporting
The Federal Office for Economic Affairs and Export Control (BAFA) implements the Supply Chain Act and monitors whether the companies concerned are adequately fulfilling their due diligence obligations. In order to support companies in implementing their due diligence obligations, BAFA develops and publishes Guidance on a regular basis.
Within our business framework, supply chain due diligence plays a pivotal role in ensuring ethical sourcing and accountability. At Coperama, we adhere to stringent due diligence obligations throughout our supply chain. This commitment involves robust procedures to assess and address potential risks, ensuring compliance with legal requirements and ethical standards. By prioritizing responsible sourcing practices and transparency, we uphold a commitment to ethical business conduct, minimizing adverse impacts and fostering a responsible global supply chain.
The source: https://www.bafa.de/DE/Lieferketten/Multilinguales_Angebot/multilinguales_angebot_node.html