The Supply Chain Law is here!
“A global economy and our prosperity cannot be founded upon the exploitation of people and nature, nor on child labour.” – Federal Development Minister Dr. Gerd Müller.
After a long struggle for a Due-Diligence law as a measure against human rights violations, exploitation and environmental annihilation, the Bundestag has now passed the law. It is to come into force from 2023 for companies with 3,000 or more employees, and from 2024 for those with 1,000 or more.
Therefore, the companies are required to check their suppliers in global production. They must carry out risk analyzes and set up complaint mechanisms. The Federal Office for Economic Affairs and Export Control is responsible for the compliance audit.
Violations are to be punished with fines and companies can be excluded from public tenders for up to three years – a civil liability rule has been canceled.
Are you aware whether your suppliers are violating human rights and damaging the environment?
SIGNUM Consulting can support companies with various services to meet their Due Diligence obligations, for example by checking business partners along the supply chain. We would be happy to advise you regarding this matter!