The Federal Office of Economics and Export Control (BAFA) has published a fact paper providing information on the "Impact on companies in partner countries and government support offers" under the Supply Chain Due Diligence Act (LkSG). The background is that although suppliers from abroad are not directly covered by the German LkSG, they must be prepared for companies affected by the law to demand information from suppliers on compliance with human rights and environmental standards in the supply chain, among other things. For suppliers, this can involve considerable effort: risks in their own supply chain must be identified and new contractual clauses must be legally reviewed if necessary.
Among other things, the fact paper provides an overview of the most important regulations of the LkSG (risk management, risk analysis, reporting, etc.) and gives practical advice for suppliers.
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The German Supply Chain Sourcing Obligations Act
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