With the German Supply Chain Due Diligence Act and the EU Corporate Sustainability Due Diligence Directive companies shall be obliged to better meet their global responsibility for respecting human rights and complying with environmental standards in their supply chains. Below, Compliance Requirements and Solution Approaches are described against the background of the German Supply Chain Due Diligence Act and the EU Corporate Sustainability Due Diligence Directive.
According to the German government , the EU Parliament and the EU Commission as well as human rights organisations, fundamental human rights can be violated and the environment damaged in connection with trade and production. With the German "Gesetzesentwurf über die unternehmerischen Sorgfaltspflichten in Lieferketten (LkSG)" (draft law on corporate due diligence in supply chains), the German government, and with the EU Corporate Sustainability Due Diligence Directive (CSDD) , the European legislator wants to oblige companies to better meet their global responsibility for respecting human rights and complying with (mainly European) environmental standards in their supply chains. The obligations are to be implemented by the companies in their own business areas as well as vis-à-vis their suppliers.
The following are named as mandatory due diligence obligations: Violations of human rights, child labour, forced labour, slavery, servitude, exploitation, discrimination, unequal treatment, debt bondage, adequate remuneration, freedom of association, occupational health and safety, safety standards, building code or fire safety regulations, unlawful eviction, environmental protection requirements, harmful soil change, water pollution, air pollution, anti-corruption and anti-bribery laws.
In order to fulfil and demonstrate compliance with due diligence requirements in supply chains with an in-house solution, the company must set up, among other things:
Thus, only two approaches result from the above consideration:
1. An in-house solution at a very high level for handling the due diligence requirements of the LkSG
The in-house solution is described in detail above with its requirements, advantages and disadvantages.
2. Contracting out this task to an external service provider.
n order to support the SMEs of the electro and digital industry, an external solution was established with regard to the requirements of the sector, but also for other manufacturing or trading companies and industries .
This evaluated full-service solution maps the requirements of the LkSG and the expected tightening by the CSDDD and assumes all necessary due diligence obligations/tasks for the suppliers connected to the LkSG solution:
The customers of the suppliers connected to the LkSG solution, i.e., the companies directly subject to the LkSG, also benefit from this expert solution, as