Germany: uncertainty over future of supply chain due diligence act

Under fire from critics for several months, the German supply chain due diligence act (LkSG), passed in 2021, is in the crosshairs of political parties amid the election campaign. Employer federations are advocating its abolition to offer companies a "breather" before the transposition of its European "big sister", which is also set to be simplified.

By Thomas Schnee. Published on 13 February 2025 à 16h06 - Update on 13 February 2025 à 16h06

The ‘de-bureaucratisation’ of the economy is one of the major objectives currently being touted by almost all German political parties, presented as a recipe for reviving flagging economic growth. In this context, the German supply chain due diligence act (LkSG), passed on 11 June 2021 by a conservative and social-democratic majority, is a prime target. It has applied since 1 January 2023 to companies with more than 3,000 employees and since 1 January 2024 to companies with more than 1,000 employees.…

Thomas Schnee

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