LkSG
Supply Chain Due Diligence Act
German Federal Law
The Supply Chain Due Diligence Act requires companies with 1,000+ employees to identify and minimize human rights and environmental risks throughout their supply chain.
Since January 2024, LkSG applies to all companies with at least 1,000 employees. Fines up to 2% of annual turnover possible.
Law
Supply Chain Due Diligence Act
Jan. 2024
Valid since
2% turnover
Max. fine
1,000
Employee threshold
BAFA
Authority
Protected interests under LkSG
LkSG protects fundamental human rights and environmental standards – within the organization and along the entire supply chain.
Child labor
Prohibition of child labor per ILO core labor standards.
Forced labor & slavery
Prohibition of forced labor and human trafficking.
Anti-discrimination
Protection against discrimination.
Fair wages
Ensuring fair, living wages.
Environmental protection
Protection against environmental pollution.
Workplace safety
Compliance with basic occupational safety standards.
The six core obligations of LkSG
The law defines a clear catalog of due diligence obligations.
Risk analysis
Annual analysis of human rights and environmental risks.
Policy statement
Publication of a policy statement on corporate policy.
Preventive measures
Implementation of appropriate risk prevention measures.
Remedial measures
Immediate remediation when violations are found.
Complaints procedure
Establishment of an accessible complaints procedure.
Annual BAFA report
Annual report on due diligence to BAFA.
Deadlines & Timeline
LkSG applies from 3,000 employees
For companies with 3,000+ employees.
LkSG applies from 1,000 employees
All companies with 1,000+ employees affected.
Currently valid – compliance requiredEU CSDDD extends obligations
EU-wide uniform standards coming.
How we help with LkSG implementation
From supplier mapping to BAFA report.
Risk Analysis & Assessment
Structured risk analysis of your supply chain.
- Map supplier directory
- Assess country and sector risks
- Identify risk areas
- Prioritize by severity
Processes & Documentation
Implement all LkSG elements.
- Formulate policy statement
- Introduce preventive measures
- Set up complaints procedure
- Organize supplier surveys
- Build BAFA report structure
Ongoing Monitoring
Annual process with support.
- Annual risk analysis
- Create BAFA annual report
- Support supplier audits
- CSDDD preparation
Frequently Asked Questions about LkSG
Implement LkSG compliance efficiently
We support you from risk analysis to BAFA report.
Schedule free initial consultationWe will get back to you within 24 hours.