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Supply Chain Due Diligence Act.

Country/Territory
Germany
Document type
Legislation
Date
2021
Source
FAO, FAOLEX
Long title
Law on corporate due diligence to avoid human rights violations in supply chains.
Subject
Agricultural & rural development, Fisheries, Forestry, Mineral resources, Waste & hazardous substances, General
Keyword
Enforcement/compliance Offences/penalties Business/industry/corporations Liability/compensation Gender Human rights Protection of environment Hazardous substances Hazardous waste International trade Transboundary movement of waste Waste management
Geographical area
Alps, Europe, Europe and Central Asia, European Union Countries, North Sea, North-East Atlantic, Western Europe
Entry into force notes
The law is applicable from January 1, 2023 for companies based or with a branch in Germany with at least 3,000 employees in Germany in accordance with Section 13 d of the German Commercial Code (HGB). From January 1, 2024, the law becomes applicable to companies with at least 1,000 employees in Germany.
Abstract

The Act obliges enterprises with their head office, principal place of business, administrative headquarters, registered office or branches in Germany with at least 3,000 employees within Germany (decreasing to 1,000 employees as of January 1st 2024) to respect human rights by implementing certain due diligence obligations relating to their whole supply chain, including contractual partners and other (indirect) suppliers. Enterprises need to introduce and effectively implement an appropriate risk management system in the whole supply chain and across all key internal business processes. In particular, they must carry out a risk analysis and take preventive and remedial action. In addition, enterprises must set up a complaints procedure that allows those who are directly affected, as well as those who are aware of possible violations, to report human rights risks and violations. Enterprises must submit an annual report to the competent public authority on how they are meeting their due diligence obligations.

Full text
German
Website
www.bgbl.de