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 subsidiaries of foreign groups), of which there are around 5,700.
The document explains that companies do not have to consider all risks or all suppliers.
As a Berlin correspondent for the French and Swiss press since the late 1990s, I cover a wide range of economic, political and social issues, with a particular focus on the German business and labour market. My areas of interest include co-determination, digitalisation, demographics and ESG/DEI policies.