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.