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ARTICLE · 30 MARCH 2023

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The German Supply Chain Due Diligence Act And The Chemical Industry

Mayer Brown
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As of 1 January 2023, the German Supply Chain Due Diligence Act ( the "Act") has entered into force. As a result, approximately 700 companies with a presence and more than 3,000 employees...

GermanyEnvironment
Johannes Weichbrodt
Johannes Weichbrodt
Teresa Gerhold
Teresa Gerhold
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As of 1 January 2023, the German Supply Chain Due Diligence Act ( the "Act") has entered into force. As a result, approximately 700 companies with a presence and more than 3,000 employees in Germany are required to comply with several supply chain due diligence obligations set out in the Act. In 2024, the scope will be broadened and will cover approximately 2,900 companies with a presence and more than 1,000 employees in Germany. The Act foreshadows its equivalent at EU-level, the Corporate Sustainability Due Diligence Directive (the "Directive"), which provides for largely the same obligations but goes even further. It is currently only a draft but expected to become law in a couple of years' time (once entered into force and implemented by member states into national laws). Companies complying with the Act will in all likelihood be able to meet the requirements of the Directive when supply chain due diligence becomes mandatory across the entire European Union.

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