Authorization to issue ordinances.

(1) The company must set up the complaints procedure pursuant to Section 8 in such a way that it also enables persons to point out human rights or environmental risks as well as violations of human rights-related or environmental obligations that have arisen as a result of the economic actions of an indirect supplier.

(2) The enterprise must adapt its existing risk management system within the meaning of Section 4 in accordance with Paragraph 3.

(3) If an enterprise has factual indications that a violation of a human rights-related or an environmental obligation

at indirect suppliers (substantiated knowledge), it shall, without undue delay and as appropriate

1. carry out a risk analysis in accordance with Section 5 (1) to (3),

2. establish appropriate preventive measures vis-à-vis the polluter, such as the implementation of control measures, support in the prevention and avoidance of a risk or the implementation of industry-specific or cross-industry initiatives to which the company is a party

3. establish and implement a policy on prevention, cessation or minimization; and

4. if necessary, update its policy statement in accordance with Section 6 (2) accordingly.

(4) The Federal Ministry of Labor and Social Affairs shall be authorized to specify the details of the obligations set out in subsection 3 by ordinance in agreement with

the Federal Ministry for Economic Affairs and Energy, without the consent of the Bundesrat.