LkSG - A conversation with t+m CSR Consulting

By
3 Minute Read

Claudia: Why did you start retraced and what are your main focuses?

Lukas: Philipp and I founded our own sustainable shoe brand in 2016. We quickly realized how difficult it can be to get a good overview of supply chains and to check production conditions. We wanted to work on this lack of transparency and came up with different transparency solutions. Originally, we designed these only for our CANO brand but then realized that we were not the only ones in the market who struggled with the lack of transparency. After this discovery, we were excited by the idea of bringing more transparency to the fashion world.

In our case, transparency means in the first step an efficient data collection from the supply chain, in the second step a good overview of the current state of sustainability conditions, and in the third step sharing these findings with the important stakeholders. For us, these are primarily consumers, business partners, and the government, which wants more and more information from the supply chains as a result of legislation.

Lukas: What do you do at t+m CSR Consulting?

Claudia: I am the managing director of t+m CSR Consulting GmbH, a consulting firm for the implementation of sustainability in companies. I accompany and support companies in implementing complex topics such as human rights, supply chain management, environment, circular economy, chemicals management as well as transparency and profitability. In doing so, I have a very clear focus on companies in the textile and fashion industry.

Corporate responsibility and respect for human rights have always been an issue for small and medium-sized enterprises in the textile and fashion industry. The globalization of the textile and fashion industry has created internationally branched supply chains - which is both an opportunity and a challenge for SMEs.

Lukas: What will companies have to face from 01.01.2023?

Claudia: From 01.01.2023, companies in Germany with a MA size of 3,000 or more will be obliged to comply with the requirements of the German Supply Chain Due Diligence Act. Among other things, companies must conduct a risk analysis of their supply chain of so-called direct suppliers and thus identify priority risks in the area of human rights and the environment. To this end, they must also have implemented preventive and remedial measures and established a complaints mechanism. In addition, checks on the effectiveness of the measures and training are required.

At the same time, companies are also to determine whether there are any violations of the law at their indirect suppliers. In this respect, although the law will only apply to large companies, for the time being, retailers will also have to ask questions of their suppliers and how they deal with the law.

Therefore, not only large companies should prepare for the law and not only on 01.01.2023, but already now.

Claudia: How can the retraced platform help companies with the LkSG (German Supply Chain Due Diligence Law)?

Lukas: The LkSG requires companies to fulfill their responsibilities towards their supply chains and report on their progress in social compliance. In order to successfully comply with the law accordingly, a close exchange with suppliers must be sought. On the one hand, to collect data from the supply chains to assess the current status and existing risks, and on the other hand, to jointly implement corrective and preventive actions based on the risks.

All communication with suppliers can be efficiently implemented through retraced. Furthermore, we offer all the necessary tools, such as risk analysis, to meet the requirements of the legislation.

Lukas: What do companies already inquire of you?

Claudia: The big topics that are being requested are supply chain management and the implementation of the supply chain due diligence law, sustainability reporting according to the future requirements of the new European reporting directive as well as climate neutrality, and circular economy.

Lukas: How did you hear about us?

Claudia: In our association, the Gesamtverband der deutschen Textil- und Modeindustrie e.V., there is a department that only deals with start-ups and innovations for the textile and fashion industry, and the head of this department became aware of retraced. In the course of a project I was able to take a look at retraced and was immediately impressed by the pragmatic, but very well thought-out and user-friendly software solution and the team. Ideas and challenges are thought of at an early stage and implemented quite quickly. This convinced me that retraced is the right partner for the digitalized application of the LksG and the right partner for t+m CSR Consulting.

Claudia: How do you go about your projects?

Lukas: A good and above all efficient sustainability management stands and falls with the relationship with the suppliers, because they have the data to get a good overview of the current sustainability status and are inevitable for the processing of corrective actions. Accordingly, we start all projects with supplier onboarding and training. In this step, the first data and documents are collected. Subsequently, the status quo of the sustainability status is evaluated and the largest work areas are identified and prioritized via our risk analysis. Subsequently, these work areas are then played back to the supply chain to work on them and thereby make the supply chains more sustainable piece-by-piece.




---

t+m CSR Consulting GmbH supports companies in anchoring their due diligence obligations in the supply chain and in establishing and expanding economically viable and sustainable structures along the value chain. t+m CSR Consulting GmbH is an official partner of retraced.

Lena Neumann

Author