Governance & Policy
German Supply Chain Due Diligence Act (LkSG)
Definition
The Lieferkettensorgfaltspflichtengesetz, in force since 2023, obliges companies above employee thresholds in Germany to establish risk management for human rights and environmental due diligence, conduct regular risk analyses, take preventive and remedial measures, operate a complaints procedure and report annually. It covers own operations, direct suppliers and, where substantiated, indirect suppliers.
References
Legal text and due diligence obligations
Official English overview and scope
Overview
What it means
Germany operationalised the UN Guiding Principles as binding law, with fines and exclusion from public procurement for breaches.
How it is used
Companies run BAFA-format risk analyses and reports; procurement teams embed contractual assurances; NGOs file substantiated-knowledge complaints.
Why it matters
It is the most detailed national due diligence law in Europe and the practical forerunner many companies used to prepare for the CSDDD.