Revolutionize your supply chain practices with Retraced
The German supply chain law came into force on January 1st, 2023 applying to companies with more than 3000 employees, and more than 1000 starting in 2024. The first report is due to be shared with the government on 01.06.2024.
The primary objective of this law is to ensure companies are being held accountable for their supply chain impact, with the aim of preventing and mitigating environmental as well as human rights violations. By imposing these requirements, the legislation seeks to promote responsible and ethical practices within global supply chains.
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This is how you can tackle the legislation requirements
| Requirements (of the LKSG) | Retraced coverage | Retraced features & functionalities |
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| Conduct frequent risk analysis (5) |
Retraced consultants can support sharing best practices and help in the implementation of a thorough risk management.
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Retraced consultants can support sharing best practices and help in the implementation of a thorough risk management.
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| Appointing internal responsibilities (§ 4.3) |
Due to the inherent nature of this law section, we are unable to offer this service on behalf of our clients, as it must be set by company internally. However, our team of experts can provide support and knowledge on how to establish this process internally.
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Due to the inherent nature of this law section, we are unable to offer this service on behalf of our clients, as it must be set by company internally. However, our team of experts can provide support and knowledge on how to establish this process internally.
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| Conduct regular and ad-hoc risk analysis (§ 5) |
Our automated Risk Analysis covers all requirements of the GSCDDA.
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Our automated Risk Analysis covers all requirements of the GSCDDA.
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| Code of Conduct and Policy Statement (§ 6.2) |
Our Supplier Questionnaire feature enables swift automation, empowering brands to efficiently generate and distribute their Code of Conduct and Policy statements to all suppliers, both direct and indirect, with just a few clicks.
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Our Supplier Questionnaire feature enables swift automation, empowering brands to efficiently generate and distribute their Code of Conduct and Policy statements to all suppliers, both direct and indirect, with just a few clicks.
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| Implement and collaborate on preventive actions at own company and with direct suppliers (§ 6.3-5) |
Potential risks can be mitigated by actively working on preventive actions in our CAPA module.
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Potential risks can be mitigated by actively working on preventive actions in our CAPA module.
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| Implement and collaborate on corrective actions at own company and with direct suppliers (§ 7) |
Potential risks can be mitigated by actively working on preventive actions in our CAPA module.
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Potential risks can be mitigated by actively working on preventive actions in our CAPA module.
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| Implementation of grievance mechanisms (§ 8) |
Grievances can be managed in our CAPA module, however an effective grievance mechanism requires collaboration with local organisations in production countries.
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Grievances can be managed in our CAPA module, however an effective grievance mechanism requires collaboration with local organisations in production countries.
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| Implementation of the requirements at indirect suppliers (§ 9) |
With the supply chain mapping & traceability modules, indirect suppliers can be identified and GSCDDA requirements can be implemented.
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With the supply chain mapping & traceability modules, indirect suppliers can be identified and GSCDDA requirements can be implemented.
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| Documentation and reporting (§ 10.1-2) |
GSCCDA related activities can be documented in the risk analysis and CAPA modules and reports can be exported.
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GSCCDA related activities can be documented in the risk analysis and CAPA modules and reports can be exported.
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Elevate your business’ due diligence with Retraced
In summary, companies need to establish risk management systems to identify and mitigate supply chain risks. They must appoint specific personnel responsible for compliance and regularly assess supply chain risks.
Companies are obliged to adopt ethical guidelines and a policy statement, and implement measures to prevent violations while collaborating with their suppliers. If issues arise, corrective actions should be taken in conjunction with direct suppliers. Moreover, grievance mechanisms must be in place for stakeholders to report concerns and due diligence responsibilities extend to the broader supplier network, encompassing indirect suppliers.
All these activities must be documented and reported for transparency and compliance.
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