FAQ
1. What is the Supply Chain Due Diligence Act?
The Supply Chain Due Diligence Act requires companies to comply with due diligence obligations in their global supply chains in order to prevent human rights violations and environmental damage.
2. Which companies are affected by this law?
The law affects companies based in Germany that employ more than 1,000 people.
3. What are the main requirements of this law for companies?
Companies must identify risks in their supply chains, take preventive measures, prepare due diligence reports and establish a complaints procedure.
4. What sanctions do companies face if they do not comply with the law?
Failure to comply can result in fines and, in serious cases, exclusion from public contracts.
5. Does this law only apply to domestic companies or also to foreign companies operating in Germany?
The law applies to companies based in Germany and can also apply to foreign companies active in Germany.
6. How can companies ensure compliance with due diligence requirements in their supply chains?
By implementing risk analysis, training, audits, collaboration with suppliers and commitment to sustainable practices.
7. What types of risks do companies need to identify and address in their supply chains?
Risks such as child labor, forced labor, environmental pollution, violation of labor rights and violation of human rights.
8. What measures must companies take to prevent human rights violations or environmental damage in their supply chains?
You must establish clear policies, vet suppliers, conduct training, and act proactively to mitigate risks.
9. Are there any specific reporting requirements for companies in connection with this law?
Yes, companies must publish regular reports on their due diligence obligations.
10. What role does collaboration with suppliers and other partners play in meeting the requirements of the law?
Collaboration is crucial to share information, conduct training and develop common due diligence strategies.