UKFT Briefing Note on the German Supply Chain Due Diligence Act (SCDDA)
UKFT has produced a Briefing Note on the German Supply Chain Due Diligence Act (SCDDA), which is available to UKFT members. To access your copy email email@example.com. The act is also known as Lieferkettensorgfaltspflichtengesetz (LkSG) in German.
In June 2021, the German parliament passed a new law that requires large companies, based in Germany, to conduct supply chain due diligence activities and to document and report their findings annually. The law requires these companies to identify, prevent and address human rights and environmental abuses within their own and their direct suppliers’ operations. The supply chain within the meaning of the Act refers to all the steps involved to produce the product or service, from the extraction of the raw materials to the delivery of the end-product. Companies must monitor their own operations and their direct suppliers worldwide, and take action if they find violations.
The law is scheduled to come into force on 01 January 2023 and will initially apply to companies with headquarters in Germany, employing more than 3,000 employees. From 2024 it will be extended to companies with more than 1,000 employees.
The document covers:
- What this means to UK businesses
- Practical steps to take
- Where to go for further information
- Long term implications for the EU