Modular & tailored roadmap
Corporate responsibility does not end at the company’s own factory gates. With the Supply Chain Due Diligence Act (Lieferkettensorgfaltsplfichtengesetz – LkSG), the German government has created an instrument to constantly monitor social, environmental and legal standards in its own global supply chain as well and to initiate measures if necessary. In addition, the EU is also planning its own standard (Directive on corporate sustainability due diligence – CSDD) which will cover even more far-reaching responsibilities and issues. DFGE helps with a modular and pragmatic approach to both enter the topic and improve existing systems.
Strengthening human rights along the value chain
- Applies from 2023 for companies with more than 3000 employees, from 2024 for companies with more than 1000 employees
- Due diligence obligations of companies will be extended to their entire supply chain
- Companies must take action if there are clear indications of human rights violations
Implementation in the own business unit and at the direct supplier:
- Adopt policy statement on respect for human rights.
- Risk analysis: Perform procedures to identify adverse impacts on human rights.
- Risk management (including prevention and mitigation measures) to avert potential adverse impacts on human rights.
- Establish grievance mechanism.
- Transparent public reporting
Implementation at the indirect supplier:
- Only occasion-related due diligence obligations and only if the company becomes aware of a possible violation. Then the company must:
- Conduct a risk analysis
- Implement a concept for minimization and prevention
- Implement preventive measures
- As an official GRI partner, we help you to understand the innovations of the LkSG and to decide which reporting standard is best suited for your company