How we implement the LKSG
The German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG) requires companies to comply with environmental and human rights standards.
What is the German supply chain law about?
The German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG) requires companies to comply with environmental and human rights standards. This responsibility extends beyond a company's own business area and immediate suppliers. It also includes indirect suppliers if the company learns of any human rights violations.
From 1 January 2023, the LkSG applies to companies with a head office, administrative headquarters, registered office or branch office as well as a minimum of 3,000 employees in Germany, and from 2024 also to companies with 1,000 or more employees in Germany. Although it is a German law, it applies to all our businesses and subsidiaries worldwide.
Our due diligence approach
We have the following measures in place to meet our human rights and environmental due diligence obligations.
For more information see our Group Policy Statement.
Which aspects are covered by the act?
The LkSG specifies the international conventions for the protection of human rights and defines human rights risks. More specifically, it focuses on the following risks in particular:
The prohibition of child labour, protection against slavery and forced labour, freedom from discrimination, protection against unlawful taking of land, occupational health and safety, prohibition of withholding an adequate living wage, the right to form trade unions and workers’ representations, the prohibition of causing any harmful soil change or water pollution, and prohibition of hiring or using private/public security forces which can lead to a lack of instruction of control.
Environmental risks:
The improper emission of mercury (Minamata convention), persistent organic pollutants (Stockholm Convention) and import and export of hazardous waste (Basel Convention).