The Supply Chain Due Diligence Act (LkSG), in force from 2023, obliges companies to fulfil due diligence obligations regarding compliance with human rights and environmental obligations. The introduction of the law takes place in stages, so that initially companies with more than 3,000 employees are affected from 1 January 2023. From 1 January 2024, the obligations additionally extend to companies with more than 1,000 employees. It is certain that smaller companies will in future also be called upon as suppliers by affected companies to implement the due diligence obligations. In addition, the draft of the EU Supply Chain Directive provides that in future the obligations are to apply at employee numbers of 500 and a net annual turnover of over EUR 150 million, or just 250 and over EUR 40 million.
These new requirements increase the demands on compliance and risk management.