Implementation Guide to the German Supply Chain Act
Challenges for companies
Companies will face high hurdles as a result of the new law. As it currently stands, it will only apply to large companies with more than 3,000 employees as of Jan. 1, 2023 - a year later, the limit has dropped to 1,000.
And if the EU has its way, the draft also provides for small and medium-sized enterprises - which is already certain to be how the draft is decided.
Supply chains are highly complex and can only be analyzed with a lot of effort. Then the real challenges begin:
- Different legal situation in the supplier countries,
- problems of verification (supplier audits),
- dependencies on indirect and direct suppliers,
- Large companies may be able to manage the complexity, smaller ones more difficult,
- Lack of risk management know-how,
- Global grievance and complaint mechanisms that the company should implement.
The Supply Chain Act provides for civil liability of companies for human rights protection. For this purpose, various due diligence obligations have been defined (e.g. prohibition of child labor, ensuring minimum environmental and social standards with regard to working conditions), compliance with which is to be ensured through the implementation of various measures (risk analysis, risk management).
Here we can support you. We have developed methods and process models that can help you build your due diligence solution with us. We rely here on ISO standards - a secure foundation. And we've worked ahead - you'll get there faster with our supply chain law solution. For this, we have also developed a project plan for implementation, which we bring to our joint project.
Contact us - we will help you.
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