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ARTICLE · 25 APRIL 2023

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Legal Bulletin On The German Supply Chain Due Diligence Act

Bener Law Office
Bener Law Office
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Bener Law Office

Bener Law Office

Bener Law Office was founded by Erim Bener in 2001 and has grown to its current size through...

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The Act on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains (in German: Lieferkettensorgfaltsgesetz) ("Act")...

GermanyEnvironment
Bahar Ülgen Hasşerbetçi
Bahar Ülgen Hasşerbetçi
Oya Türeoğlu
Oya Türeoğlu

The Act on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains (in German: Lieferkettensorgfaltsgesetz) ("Act"), which is aiming to promote social and environmental sustainability with primary focus on preventing human rights and environmental law violations in global supply chains came into force as of 1 January 2023.

The Act applies to enterprises having their central administration, principle place of business, administrative headquarters, branch offices or their statutory seats in Germany and having at least 3,000 employees in Germany (employees posted abroad are included); regardless of their legal form or whether they were incorporated under German laws. As of 1 January 2024, the threshold regarding the number of employee will be reduced and the Act will also apply to the enterprises having at least 1,000 employees (further details regarding the calculation method of the number of the employees are stipulated

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