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The German Act on Corporate Due Diligence Obligations in Suppy Chains

The German Act on Corporate Due Diligence Obligations in Supply Chains (Supply Chain Due Dili gence Act, hereinafter referred to as the "Supply Chain Act" or the "Act") came into force on 1 January 2023. It aims at obliging large companies to better fulfil their responsibility in the supply chain regarding the respect of internationally recognised human rights. To this end, the Supply Chain Act establishes binding human rights and environmental due diligence obligations. The legislator has been guided by the due diligence standard of the UN Guiding Principles on Business and Human Rights. According to the explanatory memorandum, the Supply Chain Act is basically intended to establish an obligation to make efforts or a procedural obligation, but not an obligation to succeed or even a warranty liability.

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