Sustainability Language
Menu

Germany · act

Supply Chain Due Diligence Act (LkSG)

Lieferkettensorgfaltspflichtengesetz (in force 1 Jan 2023)

In forceApplies 2023-01-01Verified 2026-08-22

Scope

Companies with ≥1,000 employees in Germany (reform proposals would raise the bar; act stalled)

Penalties

BAFA fines up to €8m or 2% of global turnover (≥€400m revenue companies); exclusion from public procurement

Last verified

2026-08-22

In plain language

What this law does

Dictionary termHuman RightsThe universal and inherent rights and freedoms held by every person because they are human, without discrimination.Read the full definition and environmental Dictionary termDue DiligenceAn ongoing, risk-based process through which an organisation identifies, prevents, mitigates, tracks and communicates how it addresses adverse impacts, and supports remediation where appropriate.Read the full definition duties across the Dictionary termSupply chainupstream focus (services, transport/logistics excluded)Read the full definition : risk analysis, preventive and remedial measures, complaints procedure, documentation and annual reporting to BAFA. Enforcement de-escalated in 2025-26 ahead of CSDDD transposition.

Formal requirements

What the law requires

Reviewed provisions grouped by practical purpose. Use the official text for the full legal context.

Who and what it covers

  1. ≥1,000 employees in Germany from 2024.

    LkSG — Lieferkettensorgfaltspflichtengesetz (in force 1 Jan 2023) · instrument-level citation

  2. 3,000 employees in 2023.

    LkSG — Lieferkettensorgfaltspflichtengesetz (in force 1 Jan 2023) · instrument-level citation

Governance

  1. §4 policy statement (Grundsatzerklärung) — Dictionary termHuman RightsThe universal and inherent rights and freedoms held by every person because they are human, without discrimination.Read the full definition strategy, management-issued.

    LkSG · instrument-level citation

  2. §5 risk analysis (Risikoanalyse) — annual + ad hoc; own area + direct suppliers.

    LkSG · instrument-level citation

  3. §6 preventive measures (Präventionsmaßnahmen) — own area: policy, training, procurement strategy; suppliers: contractual assurances, training.

    LkSG · instrument-level citation

  4. §7 remedial measures (Abhilfemaßnahmen) — Konzept mit Zeitplan (concept with timetable); termination only if no milder means.

    LkSG · instrument-level citation

  5. §8 complaints procedure (Beschwerdeverfahren) — internal + Dictionary termSupply chainupstream focus (services, transport/logistics excluded)Read the full definition ; effectiveness criteria.

    LkSG · instrument-level citation

  6. §9 indirect suppliers — analysis/prevention/Dictionary termRemediationRemediation is the process of addressing, correcting or making good an adverse impact after it has occurred.Read the full definition on substantiated knowledge.

    LkSG · instrument-level citation

  7. §10 documentation (Dokumentationspflicht) — 7-year retention.

    LkSG · instrument-level citation

  8. §11 report (Berichtspflicht) — annual BAFA report; abolition retroactively proposed (3 Sep 2025 draft), bill stalled; BAFA audits suspended since autumn 2025.

    LkSG · instrument-level citation

Enforcement

  1. §24 fines — up to €8m; for companies >€400m turnover, up to 2% of worldwide turnover; exclusion from public procurement (§22).

    LkSG — §22