On 1 January 2023, the German Supply Chain Due Diligence Act (in short: "Supply Chain Act") came into force. The new law obliges companies (with head office, main branch, administrative headquarters, statutory seat or branch) in Germany to respect human rights and certain environmental requirements by implementing defined due diligence obligations.
At present, companies with more than 3,000 employees are affected; from 2024, the scope of application will be extended to companies with more than 1,000 employees. Your responsibility as a company extends to your own business area and direct contractual partners, but also to the actions of other (indirect) suppliers.
What does the Supply Chain Act require of you as a company?
Determining internal responsibilities
Establish a risk management system
Conduct regular risk analyses
Issuing and publishing a policy statement
Establish preventive measures
Establish and implement corrective measures in the event of violations
Establish a complaints procedure
Documentation and annual reporting on supply chain management
Compliance with the Supply Chain Act is monitored by the German Federal Office of Economics and Export Control (BAFA) . To this end, the authority is equipped with effective enforcement instruments and control powers. Its tasks include, for example, checking whether companies comply with their reporting obligations, carrying out inspections, detecting, eliminating and preventing violations, and even imposing coercive sanctions and fines.
You have not yet taken any action for the Supply Chain Act? You feel overwhelmed in this regard?
In this case we offer you:
Tailor-made solutions:
Together with you, we develop practical and realistic measures as well as a strategy tailored to your company, with which you can successfully fulfil the required due diligence obligations in your supply chains.
Project support:
We support you with our know-how in creating the necessary conditions and establishing them in your supply chains so that you comply with the requirements of the Supply Chain Act. Through our global network of locations, we are able to provide you with competent support wherever you are.
You are already sure about your strategy. But you are still missing individual building blocks to fulfil the Supply Chain Act?
In this case we offer you:
Anamnesis:
In a joint workshop, we shed light on your business activities to obtain a current status quo with regard to your supply chains.
Gap analysis:
Together with you, we identify possible gaps in your sustainability concept and define a roadmap as well as roles and responsibilities for the targeted implementation of appropriate measures to comply with the Supply Chain Act.
You are already extensively prepared for the Supply Chain Act? You have defined your strategy and responsibilities?
In this case, the following certifications offer you an optimal starting point for the practical implementation of your due diligence obligations:
OEKO-TEX® RESPONSIBLE BUSINESS：
a management tool for implementing corporate due diligence along your supply chains
Green Button：
the German government seal for sustainable textiles, which requires compliance with corporate due diligence as one of the two pillars for awarding the label
Hohenstein is an OEKO-TEX® founding member and a certification body approved by the German Federal Ministry for Economic Cooperation and Development (BMZ) to award the Green Button textile label.
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