The German Act on Corporate Due Diligence in Supply Chains — also known as The German Supply Chain Act, Supply Chain Due Diligence Act (SCDDA) or Lieferkettensorgfaltspflichtengesetz (LkSG) — is new legislation passed in June 2021 which will take effect on January 1, 2023.
The law imposes due diligence obligations on companies with a principal place of business, administrative headquarters, statutory seat, or branch office in Germany to comply with human rights and environmental standards. It also exposes them to severe liabilities upon violations. It will then be further expanded on January 1, 2024.
This new legislation is intended to hold companies responsible to human rights and environmental standards regarding their global supply chains in Germany.