In Germany, about 80% of organizations with more than 500 employees do not sufficiently comply with their due diligence obligations along the supply chain, according to “Monitoring the National Action Plan for Business and Human Rights (NAP)” presented by the German government. On this basis, the German government has decided to introduce the German Supply Chain Due Diligence Act (Supply Chain Act), which will be enforced beginning on January 1, 2023.
This law requires companies to ensure that basic human rights standards are observed in their supply chains. The act requires diligence around the company’s own processes as well as those of its entire supply chain and the direct and indirect suppliers with whom companies must fulfill due diligence obligations. Now, participation is no longer voluntary or optional — it is a legal requirement. Learn about the core elements of ESG compliance and how to enact them to meet deadlines.