Summary

The German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz or LkSG) came into force in Germany in 2023. It obliges larger companies based in Germany to implement due diligence obligations to protect human rights and environmental standards in their global supply chains. The aim is to identify, prevent and minimize risks of human rights violations and environmental damage. Overall, the CSR Act creates a legal basis for the human rights and environmental due diligence of German companies along their global supply chains for the first time. It also impacts foreign companies working with German firms.

In the July 2024-67 News issue, our TSG lawyers Ljubica Tomić and Tanja Glišić explain in detail the provisions of the Supply Chain Due Diligence Act (LKSG) and its effects thereof on Serbian entities.

The TSG Team (Ljubica Tomic and Ivana Radovic) has published the first translation of the German Supply Chain Due Diligence Act into Serbian.

Translation of the German Supply Chain Due Diligence Act

KEYWORDS: Business partnership, Complaints procedure, Compliance, Corporate social responsibility, Corrective measures, Distributors, Due diligence obligations, Environmental rights, German companies, German Supply Chain Due Diligence Act, Human rights, International trade, Labour rights, Lieferkettensorgfaltspflichtengesetz (LkSG), Minamata Convention, Monetary fines, OECD Guidelines, Preventive measures, Public procurement, Reporting, Risk analysis, Risk management system, Sanctions, Serbian companies, Socially responsible business, Subsidiaries, Suppliers, Supply Chain Due Diligence Act, Supply chains, UN Guiding Principles.