{"id":4455,"date":"2022-06-23T08:16:03","date_gmt":"2022-06-23T08:16:03","guid":{"rendered":"https:\/\/api-hk.com\/quality-assurance-for-household-goods-blog-germanys-new-supply-chain-due-diligence-act-what-you-need-to-know\/"},"modified":"2023-10-16T15:35:17","modified_gmt":"2023-10-16T15:35:17","slug":"germanys-new-supply-chain-due-diligence-act","status":"publish","type":"post","link":"https:\/\/www.api-hk.com\/de\/germanys-new-supply-chain-due-diligence-act\/","title":{"rendered":"Germany\u2019s new Supply Chain Due Diligence Act"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"4455\" class=\"elementor elementor-4455\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1ec1dc6c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1ec1dc6c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-747c84c0\" data-id=\"747c84c0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3df813ba service-para-1 elementor-widget elementor-widget-text-editor\" data-id=\"3df813ba\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 18-04-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Many governments around the world are using legislation to drive responsible business practices and positive impacts on people\u2019s working conditions. These laws require companies to manage their operational impacts on people and the environment and report on their efforts. It\u2019s important to know which of these laws apply to your business and how to comply.<\/p><p>One of the most recent changes in this area is the new <strong>Human Rights Due Diligence Law<\/strong><strong> adopted by the German parliament on June 11, 2021<\/strong>.<\/p><p>From 2023, this law will require large companies to conduct supply chain due diligence activities. Companies will need to identify, prevent, and address human rights and environmental abuses within their own and their direct suppliers\u2019 operations, and take actions if they find violations.<\/p><p>The law aims to ensure that social and environmental standards are maintained in large companies\u2019 operations and supply chains to address the following risks:<\/p><ul><li>Zwangsarbeit<\/li><li>Child labor<\/li><li>Diskriminierung<\/li><li>Violations to freedom of association<\/li><li>Unethical employment<\/li><li>Unsafe working conditions<\/li><li>Environmental degradation.<\/li><\/ul><p><strong>Who does this new law affect? <\/strong><\/p><ul><li>From 2023: Companies based in Germany with more than 3,000 employees, or German-registered branches of foreign companies with more than 3,000 employees.<\/li><li>From 2024: Companies based in Germany with more than 1,000 employees, or German-registered branches of foreign companies with more than 1,000 employees.<\/li><\/ul><p><strong>What do the affected companies need to do? <\/strong><\/p><ul><li>Set up a process to identify, assess, prevent, and remedy human rights and environmental risks and impacts in:<\/li><\/ul><p>\u00a0 \u00a0 1.\u00a0 Your supply chain\u00a0 \u00a0\u00a0<br \/>\u00a0 \u00a0 2.\u00a0 Your own operation.<\/p><ul><li>Ensure you provide ways for employees of indirect suppliers to file a complaint alerting the company to any human rights or environmental violations.<\/li><li>Publish an annual report outlining the steps you have taken to identify and address these risks.<\/li><\/ul><p><strong>How can affected companies prepare for this change?<\/strong><\/p><p>If this \u2013 or any similar law \u2013 applies to your business, it\u2019s most important to have a clear internal process to understand and assess your supply chain:<\/p><p style=\"padding-left: 36pt;\"><strong>Step 1: Define your scope <\/strong><\/p><p style=\"padding-left: 36pt;\">Map your suppliers and put in place a preliminary risk analysis to better understand your supply chain and current CSR capabilities.<\/p><p style=\"padding-left: 36pt;\"><strong>Step 2: Pre-assess your suppliers\u2019 CSR conditions <\/strong><\/p><p style=\"padding-left: 36pt;\">Conduct a deeper evaluation to identify your most reliable suppliers, the ones requiring action, and those with zero tolerance issues. You can then prioritize your program and create an action plan.<\/p><p style=\"padding-left: 36pt;\"><strong>Step 3: Apply relevant actions based on identified risks and priorities <\/strong><\/p><p style=\"padding-left: 36pt;\">Deploy an adequate action plan based on the identified issues and their risk levels and implement remediation programs to improve the suppliers\u2019 performance.<\/p><p>Many other countries have enhanced their regulations on human rights, such as:<\/p><ul><li>Australia: Modern Slavery Act 2018<\/li><li>France: Corporate Duty of Vigilance Law<\/li><li>Germany: CSR Directive Implementation Act<\/li><li>India: Business Responsibility and Sustainability Reporting<\/li><li>Italy: Legislative Decree no. 254<\/li><li>United Kingdom: Modern Slavery Act 2015<\/li><li>United States: Transparency in Supply Chains Act 2012 (State of California).<\/li><\/ul><p><strong>How API can help you prepare for these legislative requirements:<\/strong><\/p><ul><li>Documentary review<\/li><li>Preliminary risk assessment to help you prioritize issues<\/li><li>Factory audit<\/li><li>Ausbildung<\/li><li>COC\/manual\/audit guidelines creation and review<\/li><li>Program benchmarking services for strategic suppliers.<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2ad9bbf elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2ad9bbf\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1599653\" data-id=\"1599653\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0f10766 elementor-widget elementor-widget-shortcode\" data-id=\"0f10766\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-shortcode\"><a href='mailto:info@api-hk.com' class='blog_contact'>Jetzt Experten-Beratung anfordern!<\/a><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Many governments around the world are using legislation to drive responsible business practices and positive impacts on people\u2019s working conditions. These laws require companies to manage their operational impacts on people and the environment and report on their efforts. It\u2019s important to know which of these laws apply to your business and how to comply. [&hellip;]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4455","post","type-post","status-publish","format-standard","hentry","category-blogs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v22.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Germany\u2019s new Supply Chain Due Diligence Act<\/title>\n<meta name=\"description\" content=\"The Germany&#039;s new Human Rights Due Diligence Law will require large companies to conduct supply chain due diligence activities from 2023.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.api-hk.com\/de\/germanys-new-supply-chain-due-diligence-act\/\" \/>\n<meta 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