The German Supply Chain Due Diligence Act (Lieferkettensorgfaltsgesetz LkSG) is a new German law that requires German companies and foreign companies operating in Germany with more than 3,000 employees, to carry out analyses of their supply chain to identify risks to human rights and the environment and to take mitigating actions against these risks and publish the findings annually.
Companies must also establish a complaint procedure for workers to report potential risks.
To those companies to which it applies, failing to respect the terms of the law can result in fines of up to 2% of the company's annual revenues.
The law came into effect in 2023, applying to companies with over 3000 employees in its first year, however, in 2024, the provisions of the law will be extended to apply to all companies with over 1,000 employees.
Over the next few months, although not required to, Bertling Logistics has determined to comply with the LkSG, which is in line with our ESG policies and will help us actively support our larger clients.
To comply with the LkSG a company must make reasonable efforts to ensure that there are no violations of human rights and/ or legal environmental obligations in its business operations and in its supply chain. This covers any provision of services, regardless of whether it is carried out at a location in Germany or abroad. The supply chain includes the company's own offices and warehouses, and primarily its direct subcontractors. It must carry out a risk analysis of the supply chain and implement preventive and remedial measures.
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