The German Supply Chain Due Diligence Act - LkSG

Successful Compliance and CSR management starts with actionable transparency of your textile supply chains.

What is the LkSG?  đź“°

Due diligence in the supply chain. An introduction.  

 

 

When?

  • The LkSG will come into force from 01.01.2023 for companies with more than 3,000 employees.
  • From 01.01.2024 also for companies with more than 1,000 employees.

 

Why? 

The Law wants to promote the protection of human rights and environment-related risks

  • Key focus is on the 1. identification, 2, improvement, and 3. prevention of the occurrence of human rights abuses and environmental risks in the supply chain through the introduction of mandatory due diligence requirements

 

What? 

Companies must take specific measures in order to meet the obligations of the LkSG. It is an ongoing process with different important steps. The primary focus is on:

  • establishing an effective internal risk management protocol, and 
  • identifying existing and potential risks with the aim of ending or minimizing/mitigating them.

 

How?  

Pursuing a risk-based approach.

Mandatory:

  • Define & implement a policy statement and human rights strategy
  • Establishment of a risk management system
  • Internal and external reporting
  • Establishment of a complaints procedure

Dependent on risk occurrence:

  • Certificate control and request
  • Auditing
  • Training of risk suppliers
  • Supply chain exploration - transparency in the supply chain

 

 

đź“‹The retraced 5 Key Steps for Risk Management  
1. Identify → 2. Assess → 3. Set priorities → 4. Take action → 5. Report

 

Learn more about the law and how retraced can help in the comprehensive guidebook below

 

LkSG - The Guidebook

Are you prepared? Get a comprehensive overview of all the important facts and considerations for Germany's due diligence regulation for fashion and textile.

âś” Overview of LkSG
âś” Recommended Roadmap
âś” Next Steps
“Sustainability and the claim to act responsibly are deeply anchored in our brand DNA. With the help of retraced, our goal is to enable comprehensive transparency in and about the supply chain in the medium term and to set new standards in the industry.”​
Lissa Erlenkötter-1
Lissa Erlenkötter
Division Head Sustainable Sourcing, Buying & Production Knits at Marc O'Polo
"We see Retraced as an important partner on our journey to Re:generation. Retraced helps us bring transparency to our supply chain and its complexity, as well as capture, manage and make sense of all the important sustainability data and developments."​
Anna-Maria-Wildling
Anna-Maria Wolter
Sustainability Supply Chain ​Specialist at Wildling​
Working with retraced helps our team to strengthen and streamline our sustainability management processes so that we can be more effective with our efforts in supporting responsible and transparent value chains within our network. The opportunity to collaborate with competitors to act as one brings great beauty to our valuable partners by voiding another audit fatigue.
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Christiane HĂĽgelmann
Head of Sustainability, Compliance & Quality at Strellson AG, HOLY FASHION GROUP
"With retraced, we have a knowledgeable partner on our side that enables us to ideally complement our existing activities in sustainability management, to further strengthen our supplier network, to make our supply chains even more efficient and optimize them continuously."
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Martin Löring
Division Manager Quality Assurance & Vendor Compliance, Galeria
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