In July 2022, the President of the Federal Office of Economics and Export Control (BAFA) sent out a first official reminder on the implementation of the Supply Chain Sourcing Obligations Act (LkSG).
The letter went to all companies based in Germany that generally employ at least 3,000 workers.
Companies of this size will fall under the LkSG from 1 January 2023 and will be obliged to comply with human rights and environmental due diligence obligations. These due diligence obligations include:
- Establishing a risk management system and conducting a risk analysis.
- Adoption of a policy statement of the corporate human rights strategy
- Anchoring preventive measures
- Immediately taking corrective action in the event of identified violations of the law
- Establishment of a complaints procedure
- Documentation and reporting obligations for the fulfilment of due diligence obligations.
Furthermore, an internal responsibility (so-called “human rights officer”) must be created.
BAFA offers extensive information
BAFA is responsible for the official control and enforcement of the LkSG and also sees itself as a service provider for the companies concerned: BAFA’s website already offers a wide range of information on the implementation of the LkSG, which is continuously being expanded:
kln.secure supports the implementation
If required, we can support you in the implementation of the LkSG. We specialise in ESG and supply chain management and can already draw on a wealth of experience in implementing the LkSG.
In addition, we can also take on the role of “external human rights officer” on request, thus ensuring that you comply with all legal requirements in a sustainable manner.