Implement supply chain due diligence systematically

All requirements of the German Supply Chain Due Diligence Act in one integrated platform - from risk analysis to annual reporting.

Official name: German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz)

The Challenge

The LkSG requires companies to identify, assess and address human rights and environmental risks in their supply chains. Monitoring suppliers, establishing a complaint mechanism and annual reporting to BAFA demand systematic processes across departmental boundaries.

Our Solution

Aldric maps the entire LkSG process: from risk analysis through supplier assessment to documentation of preventive and remedial measures. Incident management and reporting functions support ongoing compliance.

Key Regulations

§ 5 - Risk Analysis

Obligation to conduct annual and event-driven analysis of human rights and environmental risks.

§ 6 - Risk Management

Establishment of appropriate risk management to fulfill due diligence obligations.

§ 7 - Preventive Measures

Obligation to implement appropriate preventive measures in own business area and towards suppliers.

§ 8 - Complaint Mechanism

Establishment of an accessible complaint procedure for affected persons.

Supported Modules

🔗

Supplier Risk Analysis

Systematically capture and assess risks for direct and indirect suppliers based on country, sector and commodity risks.

📢

Complaint Mechanism

Set up an accessible complaint procedure for affected persons and track submissions through to resolution.

📝

Policy Statement & Guidelines

Create and manage your policy statement on human rights and environmental protection in the supply chain.

🚨

Incident & Remediation Management

Document identified violations and track preventive and remedial measures transparently.

📊

BAFA Reporting

Prepare the annual report to the Federal Office for Economic Affairs and Export Control in a structured and timely manner.

Your Path to Compliance

  1. 1

    Conduct risk analysis

    Analyze human rights and environmental risks in your own business area and across your supplier base.

  2. 2

    Adopt policy statement

    Adopt a policy statement and embed due diligence obligations in your processes.

  3. 3

    Implement preventive measures

    Implement risk mitigation measures and train relevant employees.

  4. 4

    Set up complaint mechanism

    Provide a complaint procedure that is accessible to affected persons.

  5. 5

    Report & document

    Prepare the annual report and document all measures in an audit-proof manner.

Frequently Asked Questions

Which companies are subject to the LkSG?

Since 2024, the LkSG applies to companies with at least 1,000 employees in Germany. Previously the threshold was 3,000 employees. Smaller companies may also be indirectly affected as suppliers to larger companies.

What are the core obligations under the LkSG?

The five core obligations include: risk analysis, policy statement, preventive measures, remedial measures for violations and a complaint mechanism. Additionally, there is an annual reporting obligation to BAFA.

How does the LkSG differ from the EU CSDDD?

The LkSG is the German law, while the EU CSDDD (Corporate Sustainability Due Diligence Directive) is an EU-wide directive. The CSDDD goes beyond the LkSG in some aspects, such as civil liability and the inclusion of downstream value chains.

What penalties apply for LkSG violations?

Violations can result in fines of up to 8 million euros or up to 2% of global annual turnover. Additionally, exclusion from public procurement may apply.

Do I need to monitor indirect suppliers?

For indirect suppliers, a trigger-based due diligence obligation applies. You must take action when you gain substantiated knowledge of potential violations. Aldric supports documentation for indirect supply chains as well.

Related Modules

Supply Chain Risk & Due Diligence

Fulfill your due diligence obligations along the supply chain.

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Incident & Breach Management

Detect, report and document data breaches within the 72-hour deadline.

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Policies & Training

Create, distribute and track compliance policies and employee training.

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Related Use Cases

Executive Management
Compliance Manager

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