Brief Introduction
The Act on Corporate Due Diligence Obligations in Supply Chains obliges enterprises of a certain size (since 2023 with at least 3,000 employees in Germany, from 2024 with at least 1,000 employees in Germany) to respect certain human rights and environmental due diligence obligations (= obliged enterprises). Furthermore, the Act has effects on enterprises outside the scope which are in direct or indirect supplier relationship because the Supply Chain Due Diligence Act requires obliged enterprises to collaborate with their suppliers in order to fulfil their due diligence obligations even if these suppliers do not have their own obligation according to the Supply Chain Due Diligence Act. In this context, obliged enterprises sometimes make (too) far-reaching demands towards their suppliers.
This paper shows possibilities and boundaries the Act sets to such demands. Moreover, it contains recommendations for constructive collaboration.
You can download the document here: BAFA Guidance on collaboration in the supply chain
Please note that this document constitutes a preliminary translation version that is not yet approved by the Federal Office for Economic Affairs and Export Control (BAFA) and the Agency for Business & Economic Development. Once formally approved, the official version will be uploaded.