Insights: Supply Chain Compliance


Making Sustainable Supply Chains Legally Compliant

The legislative trend towards binding human rights and environmental due diligence requirements in global supply chains continues. The French (LdV) and German Due Diligence Acts (LkSG) and the Norwegian Transparency Act are already being implemented. The EU draft directive on corporate due diligence on sustainability (CS3D) is expected to be adopted by the end of the year. The Dutch Responsible and Sustainable International Business Act (HREDD) and the UK campaign for a Business, Human Rights and Environment Act are also attracting attention. Other related regulations add to the ever-growing complexity of the compliance landscape, such as the recently enacted and not to be underestimated Deforestation-Free Supply Chains Regulation (EURD) and the EU's Corporate Sustainability Reporting Directive (CSRD), which will be phased in from 2024. In addition, international trade agreements are a trade policy instrument to ensure compliance with human rights and environmental concerns and, for example in the case of the USMCA, contribute to the elimination of forced or compulsory labour through new import bans. In view of these extensive compliance requirements, companies are well advised to ensure an efficient risk management system, to use synergies in the implementation of regulatory measures and to invest in helpful IT tools and data management systems. In doing so, industry- and law-specific implications must be considered. The following articles highlight the many facets of legally secure supply chain compliance.

 Managing supply chains in a legally compliant manner

Supply chain complianceChallenges in the International LkSG Implementation: Risk Analysis & Change of Perspective

The “Act on Corporate Due Diligence to Prevent Human Rights Violations in Supply Chains” (Supply Chain Due Diligence Act – German: Lieferkettensorgfaltspflichten­gesetz, short: “LkSG”) obliges companies to comply with human rights and environmental standards in their global supply chains. Read more »

Supply chain complianceInternationalSupply Chain Compliance: Increased Liability Risk for Decision Makers

As the legislative requirements for companies' due diligence along their supply chains grow, so do the demands on the respective decision-makers. In addition to the expec­ta­tion of profitable corporate management, there is also the requirement to protect the company and its shareholders from economic damage as a result of supply chain violations and the associated sanctions. Read more »

Supply chain compliance The German Supply Chain Act – A High Risk ofLiability

Compliance with the obligations of the German Supply Chain Act is important. Viola­tions of the act must be carefully prevented, because the power of third parties to conduct lawsuits raises many questions in legal practice. Read more »

 Using compliance synergies

Supply chain compliance EU-Wide Supply Chain Law in Sight

In Germany, binding corporate due diligence requirements for the protection of the environment and human rights in global supply chains have been in force since January 1, 2023. Other European countries have also introduced comparable statutory due diligence obligations or are planning to do so. Read more »

Supply chain complianceSynergies between Whistleblower Protection Act and Supply Chain Act

On 1 January 2023, the Supply Chain Act (hereinafter "LkSG") came into force. This requires the establishment of an internal reporting channel for compliance with environmental and human rights-related due diligence obligations. Read more »

Supply chain compliance EU Regulation on Deforestation-free Supply Chains: Challenges and Opportunities

Every year, agricultural land continues to expand through deforestation and forest degradation. These practices have serious impacts on climate, biodiversity and the rights of indigenous peoples. Read more »

Supply chain complianceDue Diligence Obligations in the Supply Chain based on Trade Agreements

In their compliance efforts, internationally operating companies should also consider trade agreements. First and foremost, trade agreements strive to remove trade barriers and create better trade opportunities. Read more »

 Considering industry and legal implications

Supply chain compliance Opportunities and risks in the Monitoring of Medical Product Supply Chains

Medical products are generally the result of complex international supply and goods chains before they are manufactured, distributed, purchased and used by German companies or other healthcare providers such as hospitals and care facilities. Read more »

Supply chain complianceThe Supply Chain Due Diligence Act in the Context of M&A Transactions and Structural Measures under Company Law

Since 1 January 2023, companies that have their head office, principal place of business, place of management or registered office in Germany and generally hire more than 3,000 employees in Germany have been obliged under the Supply Chain Due Diligence Act to conduct human rights and environmental due diligence in their supply chains. Read more »

Supply chain complianceThe Supply Chain Due Diligence Act: HR and labour law in focus

The Supply Chain Act (LkSG) affects companies that have to minimise human rights and environmental risks along their supply chains. It has various labour law implications and, in our opinion, not only requires the involvement of HR departments, but is also a great opportunity for them to position themselves within the company and use their existing expertise to the benefit of the company. Read more »


Supply Chain Compliance The Supply Chain Due Diligence Act at the International Level

In addition to Germany, numerous other countries within and outside the EU have already enacted comparable regulations on due diligence along supply chains. A comprehensive overview of the current status of supply chain legislation at the international level is provided by the countries themselves. Read more »

last updated on 25 October 2023
Deutschland Weltweit Search Menu