The Supply Chain Due Diligence Act, abbreviated as SCDDA, has been in effect in Germany since January 1, 2023. Since this date, companies are required to exercise due diligence regarding the observance of human rights within their supply chains. The requirements of the law are clearly outlined, providing legal certainty for both companies and affected parties.

Which companies are covered by the law?

• From 2023: Companies with more than 3,000 employees (900 companies).
• From 2024: Companies with more than 1,000 employees (4,800 companies).
• Afterward, the scope of application will be evaluated.

What are the key regulations?

Businesses bear the responsibility for their whole supply chain, however there are certain requirements that apply to them:

1. personal business area
2. direct suppliers
3. medium-range suppliers

and thereafter:

• The type and extent of the business activity; 
• The extent to which the business can influence the individual causing the harm;
• The typical degree of the harm;
• The nature of the company's liability.

The effective implementation of the laws is ensured by the Federal Office for Economic and Administrative Regulation. A straightforward reporting procedure will be developed, the foundation of which will ensure the security of the company's control.

The goal is still to have unified European regulation.

We are currently developing a certification mechanism to assist your company with this task and to openly disclose the extent to which your company adheres to the SCDDA. Anticipatively, the pilot phase will be completed by the end of 2023.

Please use our contact form if you have any questions or interest in being certified at this time.