On 11 June 2021 the Supply Chain Due Diligence Act (the “Act”) passed the German Federal Parliament, on 25 June 2021 it passed the German Federal Council. It will come into force on 1 January 2023 (applicable to German companies of at least 3,000 employees; as of 1 January 2024 of at least 1,000 employees). In legal terms, the Act primarily means that companies will need to adapt and update their compliance and sustainable contract drafting, particularly when it comes to purchasing.

This guide makes recommendations in line with the legal duty of care catalogue (= risk management, risk analysis, policy statement, preventive measures, remedial measures, complaints procedure and documentation and reporting obligations), so that companies can comply with the legal requirements.

Click here for an overview of the German Supply Chain Due Diligence Act on which companies are affected by the law, what the law requires and what sanctions may be imposed for violations.

Guide to the German Supply Chain Due Diligence Act (pdf download)