The Lieferkettensorgfaltspflichtengesetz (LkSG)—or German Supply Chain Due Diligence Act (SCDDA)—is now in effect, requiring companies with offices in Germany to conduct strict due diligence on their supply chains to protect human rights and the environment.
If your business is a supplier to German companies, you may already be receiving compliance requests. Understanding what’s required and how to respond effectively is key to maintaining partnerships and positioning your business as a trusted, responsible supplier.
How Does LkSG Impact Suppliers?
Under the law, German companies must ensure that their entire supply chain—including direct and indirect suppliers—meets due diligence standards. Suppliers may be asked to:
✅ Provide compliance documentation on human rights and environmental protection
✅ Demonstrate risk management processes to address potential violations
✅ Undergo audits or assessments as part of ongoing due diligence
✅ Implement corrective actions if risks are identified
How Suppliers Can Prepare
- Assess Your Current Practices – Review your policies on labor rights, environmental impact, and supplier management.
- Ensure Transparency – Keep compliance records up to date and ready to share with German buyers.
- Leverage Digital Compliance Tools – Platforms like Trust Your Supplier (TYS) help suppliers centralize documentation and respond efficiently to due diligence requests.
Need help navigating LkSG compliance? Download our supplier guide for actionable insights on meeting buyer expectations and strengthening your compliance strategy.