1.4 billion people worldwide work under inhumane conditions and, depending on the sector, up to 90 percent of greenhouse gases and air pollution are produced in the supply chains themselves. Dramatic numbers like these, published by the German Federal Ministry for the Environment and Nature Conservation, are part of the reason why the German Act on Due Diligence in Supply Chains (LkSG) came into force at the beginning of 2023. For the first time, corporate duties to respect human rights and protect environmental concerns are comprehensively regulated by law.
As affiliates of the RETHMANN Group based in Germany, all SARIA activities (worldwide) fall within the scope of this law.
Companies are now required to install appropriate risk analysis and risk management tools in their supply chains, covering their own activities and entities as well as actions of all immediate and indirect suppliers.
In parallel, the European legal initiative for a Corporate Sustainability Due Diligence Directive (CSDDD) on due diligence in supply chains is now more concrete. Companies across Europe will watch to what extent the experiences with the LkSG in Germany will influence the negotiations at EU level. If the CSDDD comes into force as proposed by the Council, amendments of the LkSG will become necessary in order to adapt the German legislative framework to the new European regulation on supply chain due diligence.
For the SARIA Group, the LkSG in Germany and the CSDDD in the EU are important movements to expand the legal framework for responsible business in a forward-looking way.
Click on the respective document to learn more about the SARIA Group’s activities in Supply Chain Due Diligence Law: