What is the Supply Chain Act?

(Passed June 2021 - In force 2023/2024)

Germany’s Act on Corporate Due Diligence in Supply Chains:

  • Requires German companies to protect human rights throughout their supply chains (including suppliers outside of Germany)
  • Includes annual reporting obligations
  • Requires companies to take systematic action with violating suppliers
  • Monitors compliance, investigates grievances, imposes fines through the Federal Office for Economic Affairs and Export Control (BAFA)
  • Strengthens workers' rights, including mechanism for complaints

The Act applies to German headquartered companies:

  • Starting 2023: with >3,000 employees
  • Starting 2024: with >1,000 employees

Video: What is the Supply Chain Act?
©Federal Ministry for Economic Cooperation and Development (BMZ)

Prepare for Germany's Supply Chain Act.

For decades, Hohenstein has audited and evaluated production companies along the supply chain for fair working conditions and environmentally friendly processes.

Contact
Ben Mead
Managing Director
Hohenstein Institute America