The Supply Chain Due Diligence Act: Protecting Human Rights and Ensuring a Sustainable Production

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The Supply Chain Due Diligence Act, coming into force on January 1, 2023, is intended to protect human rights and to ensure a sustainable production.Under the Supply Chain Due Diligence Act, companies are obliged to identify and assess human rights and environmental risks and to establish an adequate and effective risk management system.

Scope of Application:  The new law is applicable to companies having their head office, principal place of business, administrative headquarters or registered office in Germany and employing more than 3,000 employees. In addition, foreign companies with a branch office and a corresponding number of employees in Germany are also subject to the new law. From 2024 onwards, this threshold shall be reduced to 1,000 employees. 

Read on to learn more:  The New German Supply Chain Due Diligence Act (with a view across the border).