The Act on Corporate Due Diligence to Prevent Human Rights
Violations in Supply Chains (the Supply Chain Act), imposing new
obligations in terms of respecting human rights to certain German
companies and their suppliers, entered into force on 1 January
2023.
Who will be Affected?
The Supply Chain Act will initially apply to companies having
their headquarters, central administration, administrative
headquarters, branches or statutory seats in Germany and having
more than 3,000 employees. As of 2024, companies having more than
1,000 employees on average per fiscal year will also be subject to
the Supply Chain Act.
What is its Impact on Turkish Companies?
As the Supply Chain Act imposes liabilities on German companies
and the players in their supply chain, it is expected to have a
material effect on an international level. Therefore, Turkish
suppliers within a supply chain of a German company may need to
adapt their compliance systems to meet with the
