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The Supply-Chain Knock-on Effects of the German Supply Chain Act

News
06.03.2023

The Supply-Chain Knock-on Effects of the German Supply Chain Act

Webinar, 30 March 2023, 10 am CET, online, in English

On January 1, 2023, the German Due Diligence in Supply Chains Act (LkSG), came into force, requiring companies in Germany to carry out human rights and environmental due diligence. As part of the law, companies must establish effective risk management to identify, prevent or minimize risks of human rights violations and damage to the environment. The law sets out what preventive and remedial measures are necessary in their own business and along their supply chains, and obliges them to have complaints procedures in place and regular reporting. It initially applies to companies in Germany with at least 3,000 employees, with the employee threshold dropping to 1,000 in 2024. The law also applies to German subsidiaries of foreign companies if the subsidiary exceeds the above thresholds and has its registered office in Germany.

Businesses supplying to companies that fall under the law, are likely to receive more requests for information from their German customers. Against this background, it is important for companies to prepare for requests from large customers in Germany and to learn about the information they will ask for in order to demonstrate compliance with the German Supply Chain Act. In short, ensuring due diligence and documenting adherence to labour, health and safety and environmental legislation will become increasingly important to do business with companies in Germany. Being prepared, therefore, makes business sense.

Supported by the German Governments’ Helpdesk on Business and Human Rights, this webinar will discuss possible effects of the German Due Diligence in Supply Chains Act on companies that the law does not directly apply to. amfori and the German Partnership for Sustainable Textiles (PST) will further highlight how their tools can help businesses supplying to German companies in meeting and demonstrating adherence to international labour and environmental standards.

Co-hosted by amfori and the PST, this webinar is the second of a series of webinars on the obligations under of the German Supply Chain Act and practical tools that can help companies in meeting their due diligence obligations.

Registration

Webinar Series on the German Supply Chain Act: Requirements and Tools for Companies

Co-hosted by amfori and the German Partnership for Sustainable Textiles (PST), this webinar series focuses on the obligations under the German Supply Chain Act and practical tools that can support companies – both directly or indirectly affected by the legislation – to meet their due diligence obligations. 

Each webinar will address a specific due diligence step or criteria, and highlight corresponding resources and tools for businesses. It also aims to serve as a platform for dialogue between companies and stakeholders surrounding the implementation of human rights and environmental due diligence.

For more information, please contact Franzis Wimmer, amfori Stakeholder Engagement Advisor at Franzis.wimmer@amfori.org.