Sustainability Consulting

With the entry into force of the German Supply Chain Act (so-called LksG) on January 1^st. 2023, corporate responsibility for respecting human rights and protecting the environment in supply chains is regulated for the first time.

The LksG requires the concerned companies to observe human rights and environmental due diligence obligations in their supply chains in an appropriate manner.

The obligations are summarized as follows:

• Establishing a risk management system and conducting a risk analysis.
• Adoption of a so-called Code of Conduct on corporate human rights strategy
• Anchoring of preventive measures
• Immediately taking corrective action in case of identified violations of the law
• Establishment of a complaints procedure
• Documentation and reporting requirements for the fulfillment of due diligence obligations.

In case of violation of the LksG, the company might expect to pay a fine of up to 2% of the average annual turnover.

Vietnam is an increasingly important link in the supply chains in Asia, and more and more German companies are relocating their production to Vietnam. Accordingly, companies must also prepare in time and abundance for the entry into force of this law.

Time and again, the language or the cultural specificities of Vietnam are big hurdles for companies. At this point, we also offer pragmatic support for you on site. Please contact us for an individual offer.