Germany approved a draft amendment to the Supply Chain Due Diligence Act LkSG to simplify compliance and align with the EU Corporate Sustainability Due Diligence Directive CSDDD
Key Highlights of the Amendment
i. The amendment introduces clearer and more flexible rules reducing administrative overhead especially for SMEs
ii. It ensures Germanys law aligns with the EUs CSDDD which businesses will need to comply with by 2027
iii. It proposes better cooperation between authorities for smoother enforcement and oversight
Implications for Companies
i. Due diligence obligations remain but the amendment reduces complexity particularly around documentation and procedural aspects
ii. The changes prepare businesses for broader EU wide compliance with the CSDDD
iii. Companies should review their compliance and risk management systems to ensure future alignment
Next Steps
a. The draft is under public consultation before submission to Bundestag and Bundesrat for approval
b. Companies should stay informed and prepare for full implementation of the CSDDD by 2027
Reference: German Federal Ministry of Labour and Social Affairs
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