One year of the German Supply Chain Act LkSG

One year ago, on January 1st 2023 the German Supply Chain Act stepped into force, with critics complaining on the administrative workload and the risk that the German economy will have an unfair position compared to other economies in Europa and on a worldwide scale. Other stakeholders hoped that the Act would change the approach towards the supply chains in a drastic way and solve the issues we have been dealing for many years.

As always the truth and outcome lies somewhere between the two extremes. Actual situation has shown, that companies who have been handling their supply chains in a responsible way had an “easy” start, companies who at least started to take a responsible approach also managed. 

Some companies unfortunately haven´t yet realized that they are responsible for what is happening in their supply chain and believe they can continue as they have been doing for many years. 

The BAFA should follow up with all legal means to enforce the Act, especially as the CSDDD (corporate sustainability due diligence directive), the EU law, has been provisionally agreed between the The Council and the European Parliament mid of December 2023. It now has to be endorsed and formally adopted.  The CSDDD is far more stringent then the Germany Supply Chain Act.