The supply chain due diligence act
The Act applies to companies with their head office, principal place of business, administrative headquarters or registered office in Germany and which, as a rule, employ at least 3,000 employees in Germany, including employees posted abroad. It also extends to companies with a branch office pursuant to Section 13d of the German Commercial Code in Germany and a regular workforce of at least 3,000 employees in Germany. From January 1, 2024, the thresholds will each be deemed to be 1,000 employees. Temporary workers with a deployment period of more than six months are included in the calculation of the number of employees of the user company. Within affiliated companies, all employees of the group companies employed in Germany are included in the calculation of the number of employees of the parent company, including employees posted abroad.
In the following section, we would like to inform you about the details of this law and then show you how we can support you in complying with and implementing the legal requirements. Our solutions are designed to help you comply with the legal requirements related to this law and ensure legally compliant operations. Through our specialized tools and services, we provide you with the ability to implement effective monitoring, assessment, and reporting mechanisms to ensure that your business practices comply with the law. We also help you implement best practices and processes to make your supply chains sustainable and minimize potential risks associated with the law. Our experts are available to help you align your business processes with the legal requirements and ensure that you comply with all relevant aspects of this law.
What due diligence is required?
Human Right
Prohibition from
- Child labor, forced labor & slavery
- Unequal treatment
- Living space restrictions
Compliance / obtainment of
- Obligations of labor protection
- Freedom of association
- Adequate wages
- Health (food, drink, sanitation, etc.)
- Security personnel
Environment
Prohibition from
- Prohibition of the production of mercury-added products and the prohibition of their use and treatment.
- Prohibition of production and use of chemicals of the Stockholm Convention
- Prohibition of non-environmentally sound handling, collection, storage and disposal of wastes or export as well as import
Which suppliers are affected?
Suppliers of production or service in own business area
The direct supplier
A party to a contract for the supply of goods or the provision of services whose supplies are necessary for the manufacture of the company's product or for the provision and use of the service in question.
The indirect supplier
Any company that is not a direct supplier and whose subcontracted supplies are necessary for the manufacture of the company's product or for the provision of the service in question.
Where does your duty of care lie?
- Establishment of a risk management system
- Definition of an internal responsibility
- Carrying out regular risk analyses
- Remedial actions and complaint procedures
- Issuance of a policy statement
- Duty of care with regard to risks
- Anchoring of preventive measures
- Documentation and publication of the last 7 years
Our Service Offering
The Supply Chain Act is a law that must be considered carefully, as violations of the regulations can negatively impact your public reputation. Under the regulations, you must publicly disclose violations by your suppliers and your own actions on your website for seven years. With us, you will find the right approach to prevent breaches and protect your reputation, as misconduct can cause significant damage to your business.
Not only do we offer customized solutions, but we can also integrate seamlessly with other systems. Our flexible solutions adapt to your unique needs and allow you to effectively leverage different technologies and approaches.
Contact us now to learn how we can help you implement preventive risk management. Together, we'll find the right solution to minimize the impact of the Supply Chain Act and strengthen your business.
Portfolio
- Strategy and roadmap design
- Application and process consulting
- Requirements management
- Project management
- Integration and Developments for gaps or white spots
- Trainings
- sustinery - Our solution for preventive supplier risk management