LieferkettenGarantien

LieferkettenGarantien are a relatively new concept in German law, introduced by the Lieferkettensorgfaltspflichtengesetz (LkSG), or Supply Chain Due Diligence Act. This law, effective from January 1, 2023, imposes significant obligations on large companies regarding human rights and environmental standards within their supply chains. The core idea behind LieferkettenGarantien is to ensure that companies actively identify, prevent, and mitigate risks associated with human rights abuses and environmental degradation in their direct and indirect supply chains.

Companies subject to the LkSG must establish a risk management system to monitor their supply chains for potential violations. This includes conducting regular risk analyses, implementing preventive measures, and establishing a complaints procedure for affected individuals. If a violation is identified, companies are required to take appropriate remedial actions. The law emphasizes a proactive approach, meaning companies are expected to anticipate and address potential issues before they escalate.

The scope of the LkSG extends to direct suppliers and, indirectly, to lower-tier suppliers for certain fundamental human rights risks. Failure to comply with the act can result in substantial fines and exclusion from public procurement processes. LieferkettenGarantien thus represent a legal framework designed to promote corporate responsibility and sustainability throughout global value chains, moving beyond mere voluntary commitments to legally enforceable duties.