The German Supply Chain Act, Lieferkettensorgfaltspflichtengesetz (LkSG), effective January 1, 2023, mandates comprehensive due diligence for companies operating in Germany. This legislation targets companies with a significant operational presence in Germany and takes a phased compliance approach based on employee count. The Act enforces adherence to internationally recognized human rights conventions and environmental standards, addressing environmental risks under treaties like the Basel and Stockholm Conventions. This legislation has global implications, urging adherence to stringent due diligence standards worldwide.
Originally published by Crowe LLP, 15 April 2024
