Supply Chain Management

Sustainable supply chains

Assessing risks and opportunities along your own value chain as well as the sustainability services already provided by suppliers requires a strategic approach.

The topic is particularly relevant for companies that are affected by the Supply Chain Due Diligence Act (LkSG), which came into effect on January 01, 2023. The law currently applies to companies with at least 3,000 employees and their suppliers. From January 01, 2024, companies with at least 1,000 employees and their suppliers will also be subject to the legal requirements. In addition to the number of employees in the company, the place of business is also decisive. The LkSG refers to companies whose head office, main branch, administrative headquarters or their registered office is in Germany as well as to foreign companies with a branch office in Germany. If the branch employs more than 3,000 employees in Germany in 2023 or more than 1,000 employees (in Germany) in 2024, it will be subject to reporting requirements. In the case of groups, the subsidiaries are also taken into account. It also indirectly affects all of the companies’ suppliers.

Das hier sind Kunden die uns bereits vertrauen:

Bild von Weltkarte, Kork auf rotem Hintergrund zur Visualisierung von Lieferketten
Source: unsplash

Important to note: The legislation on the LkSG is flexible. An evaluation by June 30, 2024 will examine whether the threshold should be lowered further. This means: In the future, companies with fewer than 1,000 employees and their delivery companies could also be affected by the law.

8 Schritte zur Supply Chain Due Dilligence: 1. Risikomanagement aufsetzen 2. Interne Zuständigkeiten definieren 3. Risikoanalyse durchführen 4. Grundsatzerklärung 5. Präventivmaßnahmen verankern 6. Abhilfemaßnahmen vornehmen 7. Beschwerdeverfahren einrichten 8. Implementierung der Due Dilligence bei indirekten Lieferanten
Source: 7stepssolution

Early preparation required

It is advisable to prepare early for the requirements of the LkSG. Companies are required to exercise the following due diligence:

We are at your disposal for the fulfillment and implementation of the legally required measures of the LkSG. In addition, we offer you support with the risk assessment of countries, sectors and individual product groups and are happy to advise you on suitable management approaches.

Contact us

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