Supply Chain Due Diligence Act – fulfilling the corporate responsibility

Complying with the German Supply Chain Due Diligence Act (“Lieferkettensorgfaltspflichtengesetz”), in addition to the even stricter EU supply chain law that is being developed right now, is an unavoidable obligation for many companies of a certain size and number of employees. To fulfil future legal obligations as well as social expectations regarding due diligence throughout the entire supply chain – from the procurement of the raw materials to the final product to distribution – many companies are now being required to deal with the provisions of these laws. This includes risk analysis and preventive measures for one’s own business sector and, in regard to direct suppliers, appropriate risk management, and transparent reporting. This is the only way to achieve long-term competitiveness, not least in the eyes of investors, stakeholders, employees, and customers.

Here you will find an overview of all relevant basic information about the Supply Chain Due Diligence Act.

Our approach

To fulfil the far-reaching organisational, audit, duty, documentation, and reporting obligations, we provide your company with the comprehensive support necessary: from consulting on fundamental questions to the targeted analysis up to the implementation and control of the concrete actions. We support your company all along the way, from the analysis to execution of the measures necessary to adequately limit your exposure to the associated potential hazards. It is also a matter of identifying and implementing specific recommendations for action that will provide business advantages.

Our solutions

Our services for making the necessary adjustments to your supply chain:

   

 

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We work with you to determine your risk status and support you all the way from risk analysis to contract optimisation. Among other things, we help you by:

  • Assessing the maturity and verifying the adequacy of the risk management system
  • Identifying, evaluating, and managing the relevant risks in your supply chain
  • Analysing the processes and data for automated, data-driven decision-making
  • Performing a gap analysis to review and, if necessary, modify your existing contracts

   

  

 

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We ensure the further development of an integrated risk management system to avoid human rights vulnerabilities and environmental risks as well as legal violations along your supply chain by:

  • Integrating your risk management system from a governance and compliance perspective into a coordinated system that ensures your protection
  • Defining and establishing the preventive and remedial measures
  • Defining new processes for sustainability risk assessments for your suppliers and control systems, and providing support with related communication issues and corresponding agreements
  • Establishing a mechanism for handling internal complaints

 

 

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We ensure that all implemented measures and due diligence obligations are suitably integrated into your annual reporting and other communication channels to achieve your objectives:

  • Preparing a declaration of principle on respect for human rights
  • Providing documentation templates for ongoing compliance with due diligence obligations
  • Developing communication guidelines and recommendations for your marketing staff or other stakeholders

  

 

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We conduct audits of your supply chain with a focus on social responsibility, human rights, the environment, anti-bribery, and other issues by:

  • Analysing all the risks in your own area of business as well as those of your suppliers
  • Verifying the implementation of the Declaration of Human Rights
  • Identifying areas of non-compliance in accordance with the Supply Chain Due Diligence Act

Your benefits

Our experts will be happy to assist you with the cross-functional expertise needed to meet all the supply chain law’s requirements and ensure that you profit from the opportunities it offers. Our experts work in flexible, interdisciplinary teams tailored to your needs.

Your business benefits from the following advantages:

  • Having legal certainty lets you avoid penalties, special investigations by the authorities, unforeseeable actions to comply with official orders, exclusion from public contracts, and expensive penalties and fines.
  • Investors, suppliers, and customers are more likely to choose companies with proven sustainability in their supply chain.
  • Your company's reputation can be enhanced.
  • Depending on the services chosen, a sustainable/long-term implementation in the company is possible.
  • To ensure resilience, the supply chain is optimised and readied for the future (e.g., in the form of a digital supply chain).

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