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Law on corporate due diligence in supply chains (Supply Chain Law/“Lieferkettensorgfaltspflichtengesetz”).

Germany Forthcoming 2021

A company’s due diligence obligations under the Supply Chain Law involve the analysis of human rights-related risks, the taking of measures to prevent and mitigate human rights violations and the establishment of complaint mechanisms. Furthermore, companies will have to report on their due diligence activities. The Supply Chain Law will come into force on 1 January 2023.

Organizations covered by the instrument

Large private and listed companies

Target organization notes

As a first step, the Law will apply to and establish due diligence obligations for companies with more than 3,000 employees, which includes employees posted abroad. The Law also applies to German subsidiaries of foreign companies. As of 1 January 2024, companies with employees with more than 1,000 will have to adhere to the new obligations.

Industry scope

All/none specified

Status

Forthcoming

Country

Germany

Region

Europe

Date of publication

2021

Issuer type

Governments (governmental department, agency)

Reporting requirements

Public law and regulation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

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