Supply Chain Due Diligence Act

Scope

Companies with 1,000+ employees in Germany, or foreign companies with a German branch of equivalent size.

Key provisions

1. 01

   Annual risk analysis

   Comprehensive risk analysis of own operations, direct suppliers, and where there is substantiated knowledge of violations, indirect supply chains.

2. 02

   Preventive measures

   Implement preventive measures including supplier codes of conduct, training, and contractual audit rights.

3. 03

   Grievance mechanism

   Establish an accessible grievance mechanism for workers and third parties to report violations.

4. 04

   Remediation

   When violations are identified, develop and implement a remediation plan with a clear timeline and measurable outcomes.

5. 05

   Annual reporting

   Document due diligence efforts and publish an annual report on the BAFA platform.

Timeline