On 1 January 2023, the Act on Corporate Obligations in Supply Chains (Supply Chain Act, LkSG) was enacted in Germany. This Act establishes requirements for responsible management of supply chains requiring specified businesses to implement a risk management system capable of preventing and mitigating human rights and environmental risks in their supply chains.
The number of organizations and companies required to comply with the provisions of the Supply Chain Act is significant and will increase significantly from 2024 onwards, as the scope of the Act will be substantially expanded.
The applicability test below will help you determine whether your organization is currently affected by the Supply Chain Act’s mandates or will be from 1 January 2024.