According to the guidelines of the Federal Office of Economics and Export Control (German BAFA) on cooperation in the supply chain between obligated companies and their suppliers, the following – Blanket obligation of suppliers (not directly affected by the LkSG “Lieferkettensorgfaltspflichtengesetz”) to comply with the obligations of the LkSG

– Blanket obligation of suppliers (not directly affected by the LkSG) to comply with the obligations of the LkSG

– Blanket information requests from suppliers

– Indiscriminate implementation of preventive measures

– Written assurances from the supplier that all relevant human rights and environmental provisions and measures in the supply chain will be complied with.

– Blanket investigative measures without differentiation according to how risky the respective supplier is

– Measures taken by an obligated company that are manifestly excessive for a supplier to implement in view of its resources, size, sector and position in the supply and value chain

What companies outside the scope of the LkSG do NOT have to do:

The companies obliged by the law area and with regard to direct and indirect suppliers are responsible for fulfilling the due diligence obligations in their own business. The obligations arising from the LkSG cannot be passed on to suppliers. Companies that do not fall within the direct scope of application of the LkSG are therefore not obliged to introduce the prescribed processes for the fulfilment of due diligence obligations (e.g. establishment of a risk management system, a complaints procedure, establishment of a human rights officer, etc.). Accordingly, they do not have to expect coercive measures or fines from the BAFA if they fail to fulfil the due diligence obligations of the LkSG. (BAFA handout on cooperation in the supply chain) GERMAN language

Source: IHK Swabia Newsletter from 22/08/2024 German language

BAFA handout (German language)