The German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG), adopted in 2021 and in force since 2023, obliges large companies based in Germany or with a German branch to implement human rights and environmental due diligence processes within their own operations and those of their direct (first tier) suppliers. Obligations include risk management, risk analysis, preventive and remedial measures, and the establishment of a grievance mechanism as well as reporting requirements. In the event of non-compliance, public sanctions can be invoked. The law does not provide for civil liability.
