{"id":20859,"date":"2023-10-23T16:41:38","date_gmt":"2023-10-23T15:41:38","guid":{"rendered":"https:\/\/sustainabilityservices.eurofins.com\/sin-categorizar\/the-german-supply-chain-due-diligence-act-lksg\/"},"modified":"2023-10-23T16:41:38","modified_gmt":"2023-10-23T15:41:38","slug":"the-german-supply-chain-due-diligence-act-lksg","status":"publish","type":"post","link":"https:\/\/sustainabilityservices.eurofins.com\/es\/news\/the-german-supply-chain-due-diligence-act-lksg\/","title":{"rendered":"The German supply chain due diligence Act LkSG"},"content":{"rendered":"

The German Supply Chain Due Diligence Act,<\/span><\/span> G<\/span><\/span><\/span>esetz<\/span>\u00a0uber die\u00a0<\/span>unternehmerischen<\/span>\u00a0Sorgfaltspflichten<\/span>\u00a0in\u00a0<\/span>Lieferketten<\/span> (<\/span>LkSG),<\/span>\u00a0translates to <\/span>The Act on Corporate Due Diligence Obligations in Supply Chains.<\/span><\/p>\n

Introduction to the German Supply Chain Due Diligence Act (LkSG)<\/h2>\n

The Act on Corporate Due Diligence Obligations in Supply Chains (LkSG), also known as the German Supply Chain Due Diligence Act, came into force in January 2023, affecting firms in Germany employing more than 3,000 people.<\/p>\n

By January 2024, it will extend to companies with over 1,000 employees. Companies caught in the scope will have their main headquarters or administrative base in Germany or operate a branch in Germany employing at least 1000 workers. Although the jurisdiction only applies to Germany, investigations may be opened overseas if supply chain breaches of a German company are discovered by German authorities.<\/p>\n

Objective and focus of the Germany Act on Corporate Due Diligence Obligations in Supply Chains.<\/span><\/h2>\n

The Act\u2019s core objective is to avoid violations of human rights and environmental protection laws in supply chains. This legislation directly pins the accountability on German companies. They can no longer overlook the risk of violations within their supply chains as this legislation impacts everyone in the chain, extending beyond the employees of the directly obligated firm or its supplier. Notably, this legislation requires that companies take only a duty of effort, not a duty to succeed. Nevertheless, firms must demonstrate that they have done everything in their power to curb the risk of violations occurring. The LkSG mandates the establishment of a risk management system to identify, prevent or minimize the risks to reduce the likelihood of infringements.<\/p>\n

Inclusion of environmental protection<\/h3>\n

While the Act mentions environmental laws, its primary emphasis appears to be on the protection of human rights. Environmental violations are covered only when they indirectly impact human rights, such as human health. The inclusion of environmental laws was controversial during the legislative drafting process. Given the introduction of the European Union\u2019s Supply Chain Directive and its detailed directory of environment-related violations, the LkSG may need to be adapted into alignment with the EU legislation over the coming years.<\/p>\n

LkSG steps to compliance<\/h2>\n

The LkSG takes a risk-based approach and necessitates<\/p>\n