Germany: BAFA sets out instructions for supply chain due diligence law

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While a complaint was filed at the end of February by a group of Thai workers against Otto, the German retail giant, the Federal Office of Economic Affairs and Export Control (BAFA) has just specified the framework and method of application of the German Supply Chain Due Diligence Act (LkSG). This should enable the implementation of a method to avoid excessive bureaucracy, based on a risk analysis.
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At a time when cutting red tape is on the political agenda in Germany as well as in Europe, the law on due diligence has been the focus of attacks in recent months. In a recent FAQ, the authority in charge of its implementation, the Federal Office of Economic Affairs and Export Control (BAFA), explains how a risk-based approach should lighten the burden on companies and suppliers. The LkSG came into force on 1 January 2023 and now affects all companies with 1,000 employees (including subsidiari

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