Environmental, Social, Governance: ESG
German Supply Chain Act: Improving international human rights through responsible supply chain management (infographic)
The German Supply Chain Act imposes a range of “due diligence obligations” aimed at reducing the human rights risks posed by global supply chains. The Act provides examples of such risks, including, but not limited to, child and forced labour, slavery, disregard of labor protection obligations, inequality and withholding of an adequate wage.
Under the Act, firms are required to:
- Establish an internal risk management system
- Define an in-house representative for human rights
- Publish human rights policies
- Establish preventative and remedial measures across the in-scope business and its direct suppliers
- Establish and publish in writing a complaints mechanism through which affected persons, or those with knowledge of possible violations, can notify stakeholders
- Report on the fulfilment of their due diligence obligations annually
To understand the key takeaways and how your organization can best prepare, read our infographic below: