German Supply Chain Due Diligence Act (LkSG)
The Lieferkettensorgfaltspflichtengesetz (LkSG, German Supply Chain Due Diligence Act) was enacted 22 July 2021 + entered into force 1 January 2023 for companies with MORE THAN 3,000 EMPLOYEES + 1 January 2024 for companies with MORE THAN 1,000 EMPLOYEES (including German branches of foreign entities). The Act establishes statutory HUMAN RIGHTS + ENVIRONMENTAL DUE DILIGENCE OBLIGATIONS in supply chains. SCOPE: covers (a) the company's OWN OPERATIONS; (b) DIRECT SUPPLIERS - full due diligence required; (c) INDIRECT SUPPLIERS - risk-based + SUBSTANTIATED KNOWLEDGE-triggered due diligence (not full due diligence at outset). KEY STATUTORY DUTIES (sections 4-10 of LkSG): (1) RISK MANAGEMENT SYSTEM with appropriate + effective procedures; (2) IN-HOUSE RESPONSIBILITY - designated human rights officer or equivalent with direct reporting to senior management; (3) RISK ANALYSIS - annual + ad-hoc + covering own business + direct suppliers + (if substantiated knowledge) indirect suppliers; (4) POLICY STATEMENT - human rights strategy + senior management commitment; (5) PREVENTIVE MEASURES - integrating human rights into business processes + training + supplier commitments + contractual obligations + audit rights; (6) REMEDIAL ACTION - for actual + imminent violations in own operations + direct suppliers; (7) COMPLAINTS PROCEDURE - accessible + confidential + bias-free + with rules of procedure; (8) DOCUMENTATION OF DUE DILIGENCE; (9) ANNUAL REPORT to BAFA + on the company's website. PROTECTED LEGAL POSITIONS: human rights covered include forced labour + child labour + slavery + discrimination + freedom of association + collective bargaining + occupational health and safety + minimum wage + exclusive land rights + security forces conduct + others. ENVIRONMENTAL OBLIGATIONS: covers specifically Minamata Convention on Mercury + Stockholm Convention on POPs + Basel Convention on Hazardous Waste; broader environmental impacts to the extent they lead to human rights violations. ENFORCEMENT: BAFA (Bundesamt fur Wirtschaft und Ausfuhrkontrolle) - inspection + complaints handling + monitoring + administrative fines + public-procurement exclusion. SANCTIONS: administrative fines up to EUR 8 MILLION + UP TO 2% OF GLOBAL ANNUAL TURNOVER FOR COMPANIES WITH MORE THAN EUR 400 MILLION TURNOVER + PUBLIC PROCUREMENT EXCLUSION UP TO 3 YEARS for significant violations. EU CSDDD COORDINATION: the EU Corporate Sustainability Due Diligence Directive (CSDDD - Directive (EU) 2024/1760) entered into force July 2024 + phased transposition deadlines 2027/2028/2029; EU CSDDD will substantially supersede LkSG + expand to value-chain due diligence + civil liability + alignment expected during 2025-2029 transposition; Germany was central in CSDDD negotiation; some LkSG provisions may be tightened or aligned during transposition.
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Framework Domains (7)
LkSG: BAFA Enforcement, EUR 8M + 2% Sanctions, Public Procurement Exclusion
| Code | Title |
|---|---|
| LkSG-BAFA-Enforcement-Sanctions | BAFA Enforcement, EUR 8M + 2% Sanctions and Public Procurement Exclusion |
LkSG: Protected Human Rights + Environmental Risks + EU CSDDD Coordination and 2024-2025 Status
| Code | Title |
|---|---|
| LkSG-Coord-Hinweisgeberschutz-Sectoral | Coordination with German Whistleblower Protection (HinSchG), Sectoral Frameworks and ESG |
| LkSG-Crosswalk-CSDDD-UNGPs-OECD | Crosswalk to EU CSDDD, UN Guiding Principles, OECD MNE Guidelines and German NAP |
| LkSG-EU-CSDDD-Coordination-Status | EU Corporate Sustainability Due Diligence Directive (CSDDD) Coordination + LkSG 2024-2025 Status |
| LkSG-HumanRights-Environmental-Risks | Protected Human Rights + Environmental Risks (Sections 2(2)-(3)) |
| LkSG-Implementation-Roadmap-Org | LkSG Compliance Program Implementation - Organizational Roles, Tooling and Metrics |
LkSG: Scope, Applicability Thresholds, Phased Effective Dates and Group Cascade
| Code | Title |
|---|---|
| LkSG-Scope-Threshold-GroupCascade | Scope, Applicability Thresholds (>3,000 then >1,000 employees) and Group Cascade |
LkSG: Section 4 Risk Management System + Section 5 Annual Risk Analysis
| Code | Title |
|---|---|
| LkSG-Sec4-RiskMgmt-Sec5-RiskAnalysis | Section 4 Risk Management System + Section 5 Annual Risk Analysis |
LkSG: Section 6 Policy Statement + Preventive Measures (Own + Direct Suppliers)
| Code | Title |
|---|---|
| LkSG-Sec6-Policy-Preventive | Section 6 Policy Statement and Preventive Measures (Own + Direct Suppliers) |
LkSG: Section 7 Indirect Supplier DD + Substantiated Knowledge Trigger + Section 8 Remedial Action
| Code | Title |
|---|---|
| LkSG-Sec7-IndirectSupplier-Sec8-Remedial | Section 7 Indirect Supplier DD + Substantiated Knowledge Trigger + Section 8 Remedial Action |
LkSG: Section 9 Complaints Procedure + Whistleblower Protection + Section 10 Documentation + Annual Report
| Code | Title |
|---|---|
| LkSG-Sec9-Complaints-Sec10-Doc-Report | Section 9 Complaints Procedure + Section 10 Documentation + Annual Reporting |
Your Compliance Coverage
If you comply with German Supply Chain Due Diligence Act (LkSG), you already cover:
Voluntary Principles on Security and Human Rights (VPs)
36%
4 controls mapped
Compare →ILO Declaration on Fundamental Principles and Rights at Work (Core Conventions)
36%
4 controls mapped
Compare →IEEE 1686
36%
4 controls mapped
Compare →+ 137 more: ISO 26000:2010 (36%), ISO 20400:2017 - Sustainable Procurement (36%)
See all 140 mapped frameworks ↓Maps to 140 other frameworks
Frequently Asked Questions
What is German Supply Chain Due Diligence Act (LkSG)?
German Supply Chain Due Diligence Act (LkSG) is a compliance framework from Germany with 7 domains and 11 controls. The Lieferkettensorgfaltspflichtengesetz (LkSG, German Supply Chain Due Diligence Act) was enacted 22 July 2021 + entered into force 1 January 2023 for companies with MORE THAN 3,000 EMPLOYEES + 1 January 2024 for companies with MORE THAN 1,000 EMPLOYEES (including German branches of foreign entities). The Act establishes statutory HUMAN RIGHTS + ENVIRONMENTAL DUE DILIGENCE OBLIGATIONS in supply chains. SCOPE: covers (a) the company's OWN OPERATIONS; (b) DIRECT SUPPLIERS - full due diligence required; (c) INDIRECT SUPPLIERS - risk-based + SUBSTANTIATED KNOWLEDGE-triggered due diligence (not full due diligence at outset). KEY STATUTORY DUTIES (sections 4-10 of LkSG): (1) RISK MANAGEMENT SYSTEM with appropriate + effective procedures; (2) IN-HOUSE RESPONSIBILITY - designated human rights officer or equivalent with direct reporting to senior management; (3) RISK ANALYSIS - annual + ad-hoc + covering own business + direct suppliers + (if substantiated knowledge) indirect suppliers; (4) POLICY STATEMENT - human rights strategy + senior management commitment; (5) PREVENTIVE MEASURES - integrating human rights into business processes + training + supplier commitments + contractual obligations + audit rights; (6) REMEDIAL ACTION - for actual + imminent violations in own operations + direct suppliers; (7) COMPLAINTS PROCEDURE - accessible + confidential + bias-free + with rules of procedure; (8) DOCUMENTATION OF DUE DILIGENCE; (9) ANNUAL REPORT to BAFA + on the company's website. PROTECTED LEGAL POSITIONS: human rights covered include forced labour + child labour + slavery + discrimination + freedom of association + collective bargaining + occupational health and safety + minimum wage + exclusive land rights + security forces conduct + others. ENVIRONMENTAL OBLIGATIONS: covers specifically Minamata Convention on Mercury + Stockholm Convention on POPs + Basel Convention on Hazardous Waste; broader environmental impacts to the extent they lead to human rights violations. ENFORCEMENT: BAFA (Bundesamt fur Wirtschaft und Ausfuhrkontrolle) - inspection + complaints handling + monitoring + administrative fines + public-procurement exclusion. SANCTIONS: administrative fines up to EUR 8 MILLION + UP TO 2% OF GLOBAL ANNUAL TURNOVER FOR COMPANIES WITH MORE THAN EUR 400 MILLION TURNOVER + PUBLIC PROCUREMENT EXCLUSION UP TO 3 YEARS for significant violations. EU CSDDD COORDINATION: the EU Corporate Sustainability Due Diligence Directive (CSDDD - Directive (EU) 2024/1760) entered into force July 2024 + phased transposition deadlines 2027/2028/2029; EU CSDDD will substantially supersede LkSG + expand to value-chain due diligence + civil liability + alignment expected during 2025-2029 transposition; Germany was central in CSDDD negotiation; some LkSG provisions may be tightened or aligned during transposition. It is used by organisations to establish and maintain compliance with industry standards and regulatory requirements.
How many controls does German Supply Chain Due Diligence Act (LkSG) have?
German Supply Chain Due Diligence Act (LkSG) has 11 controls organised across 7 domains. The largest domains are LkSG: Protected Human Rights + Environmental Risks + EU CSDDD Coordination and 2024-2025 Status (5 controls), LkSG: BAFA Enforcement, EUR 8M + 2% Sanctions, Public Procurement Exclusion (1 controls), LkSG: Scope, Applicability Thresholds, Phased Effective Dates and Group Cascade (1 controls). Each control defines specific requirements that organisations must implement to achieve compliance.
What frameworks does German Supply Chain Due Diligence Act (LkSG) map to?
German Supply Chain Due Diligence Act (LkSG) maps to 140 other compliance frameworks. The top mapping partners are Voluntary Principles on Security and Human Rights (VPs) (36% coverage), ILO Declaration on Fundamental Principles and Rights at Work (Core Conventions) (36% coverage), IEEE 1686 (36% coverage). Use our comparison tool to explore control-level mappings between frameworks.
How do I get started with German Supply Chain Due Diligence Act (LkSG) compliance?
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