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Complying with the German Supply Chain Due Diligence Act

Prevent and end environmental and human rights violations by complying with the latest supply chain due diligence regulations.

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What is the German Supply Chain Due Diligence Act?

Effective January 2023, the Supply Chain Act in Germany requires companies to fulfill due diligence obligations to prevent human rights and environmental violations. It currently applies to firms with 1,000 or more employees based in Germany or branches operating in the country.

The consequences of non-compliance are real – and costly 

While the German Supply Chain Due Diligence Act (LkSG) is only recently in force, thousands of companies must now align to these requirements – and the consequences of non-compliance are costly.

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So, what’s in it for your organization?

Ensuring your company’s supply chains and environmental footprint are compliant greatly benefits your organization. How?  

  • Legal compliance: Adhering to the Act is crucial for companies to avoid legal repercussions, penalties and fines. 
  • Ethical responsibility: Complying with the Act reflects a commitment to ethical business practices and gains employee trust. 
  • Reputation management: Conforming to the Act protects your company’s reputation. Stakeholders, including customers, investors and partners, increasingly value businesses that demonstrate a commitment to sustainability and ethical supply chain practices. 
  • Market access and partnerships: Open doors to international trade and collaborations by aligning with the expectations of countries and organizations promoting responsible supply chain management. 
  • Risk mitigation: Help mitigate risks associated with supply chain disruptions, legal issues and reputational damage.

Find out how NAVEX One can help you to comply with the German Supply Chain Due Diligence Act.