Blog
Supply Chain Act for SMEs: Implementation of the minimum requirements (2/2)
The Supply Chain Due Diligence Act (LkSG) passed by the German Bundestag has been in force since 2023 and entails severe penalties in the event of violations.
SMEs are also affected by the indirect reporting obligation and an even more far-reaching EU directive for all companies along the supply chain.
Not only is the name of the LkSG complex, but the exact content of the law and its implementation are also difficult to interpret for many affected mid-sized companies .
Find out now in this blog post how you can implement the minimum requirements of the LkSG quickly and easily in your company. You can also read our white paper to find out what obligations the LkSG entails, whether you are affected and how you can use Tacto to easily and intuitively monitor the LkSG within your supply chain and comply with the minimum requirements.
Implementation of the LkSG
The LkSG requirements can be divided into internal and external requirements. On the one hand, information must be requested externally from the supplier in order to check that they are acting carefully. On the other hand, you as an organization must ensure certain internal structures for successful compliance with the guideline.
Meet external requirements through supplier self-disclosure
As a first step, relevant information regarding environmental protection and occupational health and safety should be requested from the supplier. This information forms the basis for the successful establishment of risk management and the implementation of risk analyses. Adapted to the risk fields of the LkSG, questions can be asked on the following topics:
Environmental protection
- Production, use and release of mercury
- Protection against harmful chemicals, organic pollutants and waste
Human rights
- Child labor/employment age
- Slavery, forced labor and discrimination
Occupational health and safety
- Compliance with occupational health and safety laws
- Protective clothing
- First aid
- Safety standards and protective measures
Labor rights
- Remuneration and minimum wage
- Freedom of association
Furthermore, the following certificates can be requested in order to guarantee that the supplier complies with the due diligence obligations:
- SMETA / Sedex for social responsibility and ethical behavior
- SA 8000 for social responsibility (international)
- ISO 14001 for environmental management systems
- ISO 9001 for quality management systems'
- ISO 50001, 50003 for energy management systems'
- Blue Angel for handling raw materials'
- Verification of the CO2 footprint in accordance with DIN EN ISO 14064-3
This important information forms the basis for the fulfillment of the following statutory duties of care:
- Documentation and reporting
- Establishment of risk management
- Carrying out risk analyses
- Establishment of measures vis-à-vis direct suppliers
- Implementation of due diligence obligations for indirect suppliers
Meet internal requirements by setting up organizational due diligence structures
Some of the due diligence obligations also relate to organizational structures and processes that must be put in place.
This includes:
- Appointment of a person or department responsible for implementing the LkSG
- Anchoring preventive measures in the company and the associated rapid implementation of corrective measures
- The submission of a declaration of principles that describes the measures for operational compliance with the due diligence obligations and the monitoring of the guideline at the supplier. The company's own measures for occupational health and safety and environmental protection should also be recorded here
- The establishment of a complaints procedure for the rapid internal and external submission of complaints and their further processing. For example, a form on the website or a dedicated e-mail address can be considered for this purpose
We are happy to support you in implementing the LkSG requirements!
Implementation of the law: The LkSG requirements can be divided into internal and external requirements. On the one hand, information must be requested externally from the supplier in order to check that they are acting carefully. On the other hand, you as an organization must ensure certain internal structures for successful compliance with the law.
