Germany · act

Supply Chain Due Diligence Act (LkSG)

Lieferkettensorgfaltspflichtengesetz (in force 1 Jan 2023)

In forceApplies 2023-01-01

Scope

Companies with ≥1,000 employees in Germany (reform proposals would raise the bar; act stalled)

Penalties

BAFA fines up to €8m or 2% of global turnover (≥€400m revenue companies); exclusion from public procurement

Last verified

2026-08-22

In plain language

What this law does

Human-rights and environmental due-diligence duties across the supply chain: risk analysis, preventive and remedial measures, complaints procedure, documentation and annual reporting to BAFA. Enforcement de-escalated in 2025-26 ahead of CSDDD transposition.

Core obligations

§5 policy statement; §6 risk analysis; §7 remedial measures; §8 preventive measures; §9 complaints procedure; §10 documentation/reporting; indirect-supplier duties on substantiated knowledge

Dictionary

Terms defined in this law

Sorgfaltspflichten* (§3)LkSG
Lieferkette* (§2(5))LkSG
Eigener Geschäftsbereich* (§2(6))LkSG
Unmittelbarer Zulieferer* (§2(7))LkSG
Mittelbarer Zulieferer* (§2(8))LkSG
Geschützte Rechtsgüter* (§2(2))LkSG
≥1,000 employees in Germany (from 2024; 3,000 in 2023)LkSG
§4 policy statement (*Grundsatzerklärung*)LkSG
§5 risk analysis (*Risikoanalyse*)LkSG
§6 preventive measures (*Präventionsmaßnahmen*)LkSG
§7 remedial measures (*Abhilfemaßnahmen*)LkSG
§8 complaints procedure (*Beschwerdeverfahren*)LkSG
§9 indirect suppliersLkSG
§10 documentation (*Dokumentationspflicht*)LkSG
§11 report (*Berichtspflicht*)LkSG
§24 finesLkSG — §22

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