The German Supply Chain Due Diligence Act (LkSG) requires large companies to identify, prevent, and mitigate human rights and environmental risks in their supply chains. This regulation aims to improve corporate responsibility and transparency. For procurement and supply chain professionals, understanding the LkSG is crucial to ensuring compliance, managing reputational risks, and promoting ethical sourcing practices. Compliance supports corporate social responsibility and enhances the company’s reputation.

For more detailed information, visit the German Federal Ministry of Labour and Social Affairs.