Corporate Due Diligence in Supply Chains Act
Find out what the Act means for your business and how SUPPLIERASSURANCE can help you comply
The Corporate Due Diligence in Supply Chains Act comes into effect from January 2023, for businesses with more than 3000 employees. It requires in scope companies to identify and manage risks related to human rights and the environment within their supply chains, aiming to bring about positive change and accountability. This follows similar laws that have been implemented as focus on fair supply chains increases. Find out more about what the Act covers and what you need to do to comply.
Overview of the Act
- Companies have a responsibility to ensure compliance with key environmental, social and governance (ESG) standards within their supply chain. This includes topics like fair labor, working conditions, and sustainability.
- Companies must implement a due diligence framework and submit their report to the German Federal Office for Economic Affairs and Export Control on an annual basis or more frequently, if necessary.
- The report must show current human rights and environmental capabilities, identify risks and demonstrate any improvements that have been made.
- The Act covers the actions of a company and its direct suppliers, but it also requires knowledge of risk around indirect suppliers. If a risk or breach for any supplier is reported, a company has a responsibility to carry out a risk assessment and implement remedial actions.
Who is included?
- From 2023 German based companies or companies with a branch in Germany with more than 3000 employees.
- From 2024 German based companies or companies with a branch in Germany with more than 1000 employees.
How we can help
NQC’s SUPPLIERASSURANCE technology provides an easy and cost-effective way to manage your supply chain risk. Simply invite your suppliers to complete our intelligent online questionnaire and you’ll have all the data you need to manage risk and comply with the Act.
Questionnaire response
Suppliers complete our intelligent online questionnaire to provide a comprehensive overview of their capabilities.
Performance assessment
Get a complete picture of supplier performance and risk throughout your supply chain on an individual or group basis.
Improvement recommendations
Individual recommendations for improvement are provided based on responses. Set timescales for corrective actions at scale.
Enhance responses
Suppliers can resubmit responses at any time to demonstrate continuous improvement.
Assess and monitor supplier risk
Monitor and manage risk in your supply chain with SUPPLIERASSURANCE’s range of tools and features. You can also download the data to include in annual reports.
Find out more about becoming a SUPPLIERASSURANCE Customer
To find out how SUPPLIERASSURANCE can support your business in complying with the German Supply Chain Act, get in touch with us today. We will send you a video explaining our approach and provide you with an opportunity to see a demonstration of the platform.