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| 1 minute read

The German Supply Chain Act or as we call it Lieferkettensorgfaltspflichtengesetz (LkSG)

 

Two years ago I wrote a short article reflecting on the first year of the German Supply Chain Act (LkSG) with a sense of cautious optimism. At the time, I believed the upcoming Corporate Sustainability Due Diligence Directive (CSDDD) would strengthen the momentum, deepen protections for human rights, and help address some of the remaining gaps.

You can read the article here:
https://assuranceinaction.intertek.com/post/102iw9e/one-year-of-the-german-supply-chain-act-lksg

Since then, the landscape has shifted. The Omnibus simplification package introduced in February 2025 has changed the trajectory significantly. Recent commentary suggests that the proposed amendments could increase risk across supply chains, with the greatest impact falling on the most vulnerable stakeholders.

That would be a missed opportunity. Evidence from the past few years shows that the German Supply Chain Act has already made a difference. Whether in the transport sector in Germany, protecting freedom of association in Turkey, or addressing challenges linked to raw material extraction in West Africa, the legislation has enabled people and organizations to take meaningful action against human rights violations.

The progress made so far demonstrates that responsible supply chain practices are not just theoretical policy discussions. They can create real change for workers and communities around the world. The challenge now is ensuring that momentum is not lost.

If your organization is navigating these evolving requirements and looking for ways to strengthen oversight, transparency, and responsibility within your supply chains, we would be glad to share ideas and support your journey.

With the LkSG amendment, the federal government intends to eliminate sanctions for cases where companies fail to analyse their human rights risks and the effectiveness of their countermeasures. The preventive effect of the law would be massively weakened – and human rights violations would become more likely,

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Tags

human rights, supply chain, esg, csr, responsibility, worker rights, english