Safeguarding human rights and environmental protection through
the German Supply Chain Due Diligence Act (LkSG)

The introduction of the Supply Chain Due Diligence Act (LKSG) in Germany was prompted by the need to combat human rights abuses and environmental destruction along global supply chains. In many industries, companies rely on complex and often internationally distributed supply chains in which working conditions, human rights and environmental impacts are often neglected.

The law is intended to require companies to assess their entire supply chain for potential risks of human rights violations and environmental damage and to take appropriate measures to minimize these risks.

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Our LkSG-tool for the effective risk assessment of your suppliers

With our intuitive IT-based LkSG-tool, you can carry out a detailed risk assessment of your suppliers and obtain comprehensive information on working conditions, environmental impact and compliance with social standards in your supply chains.

Take advantage of our SRM tool for supplier evaluation:

Cost savings

With the SGS tool, we offer companies an extremely cost-effective way of carrying out risk assessments of their suppliers. Thanks to our IT-based solution, you can significantly reduce the time spent on such assessments, saving valuable internal resources.

Future-oriented

Our tool not only helps your company to meet the requirements of the German LKSG, but also to fulfill the extended requirements of the European Corporate Sustainability Due Diligence Directive (CSDDD) as soon as it is implemented in the EU.

Support with onboarding your suppliers

We know that the supplier onboarding process can be very tedious and time-consuming. We are happy to take on this task for you on request. This will ensure that your suppliers receive all the relevant information for registering and carrying out the self-assessment.

Worldwide network

If some of your suppliers have an increased risk, you can access the worldwide SGS network of qualified auditors. An on-site audit can provide important insights to better assess and manage risks.

Additional services

In addition to conducting audits, we offer additional services on request, such as in-depth analyses of identified risks, training, workshops, certifications and individual consulting.

Individually customizable dashboards

Our tool allows you to categorize risks according to individual suppliers as well as specific criteria such as countries, industries and products, and present them clearly in customizable dashboards.

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Attention Suppliers: The LkSG-tool provides the following benefits to you as a supplier

The SGS tool not only provides support for companies in the risk assessment of their suppliers, it can also be used proactively by suppliers themselves.
Using the tool independently enables suppliers to identify potential risks at an early stage and take preventative action to mitigate risks before serious problems arise.
This is particularly beneficial for companies that supply a large number of other companies. By making the results of their risk assessment available to their customers, they can avoid redundant risk assessments for each individual customer.
This proactive approach not only saves time and resources, but also increases their customers' confidence in their commitment to LkSG compliance.

Get to know the advantages of the LkSG-tool from SGS.

To which companies does the LkSG apply?

The LkSG applies to companies that have their headquarters or a branch in Germany and employ more than 3,000 people from 2023. In 2024, the law was also extended to companies with more than 1000 employees.

Companies of this size are obliged to comply with due diligence obligations along their supply chains, particularly with regard to human rights, environmental protection and social standards.

The establishment of a risk management system is mandatory

The LkSG obliges companies to establish a suitable risk management system.

This system should be able to identify potential risks such as human rights violations or environmental damage along the entire supply chain.

In addition, the LkSG requires companies to develop and implement appropriate measures to minimize these risks. An effective risk management system is therefore not only a means of complying with the law, but also helps to improve human rights standards and promote more sustainable supply chains.