Mandatory Due Diligence in German Supply Chains
Germany has recently passed legislation that requires large businesses to conduct due diligence on their supply chains. Germany’s new supply chain due diligence law – ‘Lieferkettengesetz’ – follows similar laws from UK and France. Increasingly, European countries are looking to implement similar laws.
The new due diligence law requires companies to monitor and address challenges in their supply chains, including workers’ rights and environmental standards. Companies will have to ensure that they are addressing these challenges for their direct and indirect suppliers, as well as their own operations.
The law will come into effect for large companies (with more than 3,000 employees) from 2023. In 2024, the law will be expanded to cover medium sized companies (with more than 1,000 employees). Companies found to be in breach of these laws could face fines, controls, and sanctions.
Companies working in the textile, clothing and footwear sectors have been identified specifically as having supply chains with high risks of workers’ rights and environmental standards breaches.
The Eurofins | BLC Supply Chain Mapping Service allows companies to conduct due diligence on their supply chains and can support you in adhering to the new German supply chain due diligence law.
Our team can help you to:
- collect data from your supply chain,
- identify suppliers and understand their commercial relationships,
- monitor the actors in your supply chain,
- ensure compliance with social, labour and environmental standards,
- validate supplier claims and certifications,
- make informed decisions for sourcing materials,
- receive recommendations on effectively managing high risk suppliers.
For more information about the Eurofins | BLC Supply Chain Mapping Service, simply email [email protected] and one of our consultants will contact you.
26 March 2021