This article looks at the Supply Chain Due Diligence Act (LkSG) that applies to companies operating or trading in Germany and will enter into force on 1 January 2023.<\/p>\n
The new German law, known as the Supply Chain Due Diligence Act (LkSG, short for Lieferkettensorgfaltspflichtengesetz in German) imposes due diligence obligations on environmental protection and on human rights, with all businesses having to introduce iterative and ongoing, or in certain circumstances ad hoc, due diligence processes specified by the Act.<\/p>\n
Identification and management of an organisation\u2019s supply chain and the risks that come with it require the implementation of due diligence processes.<\/p>\n
The term \u201csupply chain\u201d refers to all products\/services of a business, including all manufacturing and services, in Germany and\/or abroad, from the extraction of raw materials to their delivery to the end customer.<\/p>\n
Furthermore, due diligence processes should implement the following criteria:\u00a0<\/p>\n
More details can be had in our FREE Supply Chain Due Diligence Act (LkSG) eBook<\/a>.<\/p>\n From 2024, the law will apply to businesses with more than 1,000 employees.<\/p>\n Even if companies with fewer employees are not addressees of the Supply Chain Act, they may still be indirectly affected. This is because the companies directly affected would be obliged to enforce compliance to the best of their ability with human rights in their supply chain. The measures necessary for this can have a direct impact on their suppliers, for example, through the implementation of a code of conduct. In addition, the directly affected companies will often be dependent on the active support of their suppliers and thus have this support be contractually assured, e.g. in the form of reporting obligations as part of their risk analysis.<\/p>\n DOWNLOAD THE SUPPLY CHAIN DUE DILIGENCE ACT (LkSG) EBOOK<\/a>.<\/p>\n At CRI\u00ae, we provide corporate reporting and due diligence <\/span>services wherever you are. Use our DueDiligence360\u2122 reports to help you comply with anti-money laundering, anti-bribery, and anti-corruption regulations ahead of a merger, acquisition, or joint venture. You can also use them for third-party risk assessment<\/a>, onboarding decision-making, and identifying beneficial ownership structures.<\/p>\n Due Diligence helps you Identify key risk issues clearly and concisely using accurate information in a well-structured and transparent report format. Our comprehensive range of reports includes specialised reports that support specific compliance requirements. Protect your reputation and the risk of financial damage and regulator action using our detailed reports. They enhance your knowledge and understanding of the customer, supplier, and third-party risk, helping you avoid those involved with financial crime.<\/p>\n The CRI\u00ae Group invites you to\u00a0schedule a quick appointmen<\/a>t with them to discuss in more detail how conducting due diligence and compliance can help you and your organisation.<\/p>\n Based in London, CRI Group\u2122 works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management<\/a>,\u00a0Employee Background Screening<\/a>,\u00a0 We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group\u2122 also holds BS 102000:2013<\/strong>\u00a0and\u00a0BS 7858:2012 Certifications<\/strong>, is an HRO certified provider and partner with Oracle.Who is Affected by the Supply Chain Due Diligence Act?<\/h2>\n
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Due Diligence Investigations: Mitigate Critical Risks<\/h2>\n