Webinar recording: Supply Chain Act implemented pragmatically and with legal certainty: Practical insights with Taylor Wessing

The LKSG aims to protect human rights and environmental obligations in the global supply chain. It is aimed at companies in Germany with more than 1,000 employees and requires that these companies implement suitable measures to monitor and comply with human rights and environmental standards along their supply chain.

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There are two groups of companies affected by the LKSG:

1. Directly affected: Companies with more than 1,000 employees that are obliged to fully implement the LKSG from 2024.
2. Indirectly affected parties: Companies that are required to comply with the LKSG due to their cooperation with larger customers, but are not directly affected by the law.

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The role of the Human Rights Officer (Mens)

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A central point of the webinar was the role of the human rights officer, who monitors the implementation of the LKSG within the company. According to the law, the appointment of a human rights officer is not mandatory, but a clear responsibility for compliance with due diligence obligations must be designated. The challenge is to provide suitable resources and skills within the company to carry out this role effectively.

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Core tasks of the Mens:

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• Monitoring risk management and measures for compliance with the LKSG.
• Regular reporting to the management.
• Ensuring documentation and monitoring the implementation of measures.

It was also discussed that, as an alternative, a committee of responsible persons could be appointed to take over the tasks of the Mens, especially if no person with the necessary skills is available. It is important that the chosen solution can be validly argued should the BAFA (Federal Office of Economics and Export Control) carry out an inspection.

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Support from Tacto

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Tacto offers a digital solution that has been specially developed for medium-sized companies and covers the requirements of the LKSG simply and effectively. The software supports the entire process - from risk analysis to reporting.

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Key features of the Tacto solution:

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1. Risk Management:
   • Carrying out an abstract and concrete risk analysis along the entire supply chain.
   • Identification and management of supplier risks and risk mitigation measures.
2. Action management:
   • Management of risk mitigation action plans and monitoring of progress.
   • Documentation and tracking of the implementation of measures by clearly designated persons responsible.
3. Documentation and reporting:
   • The software enables the automatic generation of a report that is tailored to the requirements of BAFA. This report contains all relevant data and documentation required for compliance with the LKSG.
4. Increased efficiency:
   • By using Tacto, manual processes such as the administration of questionnaires or the creation of reports are automated, which saves a considerable amount of time and increases accuracy.

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Conclusion

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The LKSG presents companies with new challenges, particularly with regard to the monitoring and documentation of risks in their supply chain. The appointment of a human rights officer to take on these tasks or the introduction of a committee to monitor these obligations is crucial for compliance with the legal requirements.

The Tacto software offers a practical and comprehensive solution to support companies in fulfilling these obligations. With its integrated functions for risk management, action tracking and reporting, it not only facilitates compliance with the LKSG, but also enables companies to make their supply chain more sustainable and efficient.

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