German Act on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains
(Supply Chain Due Diligence Act - LkSG | Lieferkettensorgfaltspflichtengesetz – LkSG)
of July 16, 2021 | also referred to as the Supply Chain Act or Due Diligence Act.
Published in the Federal Law Gazette Federal Law Gazette Year 2021 Part I No. 46, issued at Bonn on July 22, 2021.
German Supply Chain Act - LkSG - §3 Due diligence obligations
(1) Businesses are required to exercise due diligence in their supply chains in accordance with the human rights and environmental due diligence requirements set out in this section with the aim of preventing or minimizing human rights or environmental risks or ending the violation of human rights or environmental obligations. Due diligence obligations include:
1. the establishment of a risk management system (Section 4 (1)),
2. the definition of an in-house responsibility (Section 4 Paragraph 3),
3. the performance of regular risk analyses (§ 5),
4. the issuing of a policy statement (§ 6 Paragraph 2),
5. the establishment of preventive measures within the company's own business unit (§ 6 Paragraphs 1 and 3) and vis-à-vis direct suppliers (§ 6 Paragraph 4),
6. the taking of corrective action (§ 7 Paragraphs 1to 3),
7. the establishment of a complaints procedure (§ 8),
8. the implementation of due diligence with regard to risks at indirect suppliers (§ 9), and
9. documentation (Section 10(1)) and reporting (Section 10(2)).
(2) The appropriate manner of acting in compliance with due diligence requirements shall be determined by
1. the nature and scope of the company's business activities
2. the company's ability to influence the direct perpetrator of a human rights or environmental risk or the violation of a human rights or environmental risk.
violation of a human rights-related or environmental obligation,
3. the typically expected severity of the violation, the reversibility of the violation and the likelihood of a violation of a human rights-related or an
human rights-related or environmental obligation, and
4. the nature of the company's contribution to the human rights or environmental risk or to the violation of a human rights or environmental obligation.
human rights-related or environmental obligation.
(3) A breach of the obligations under this Act shall not give rise to civil liability. Any civil liability established independ
LkSG