{"id":10614,"date":"2026-05-07T12:49:36","date_gmt":"2026-05-07T10:49:36","guid":{"rendered":"https:\/\/www.simmeth.net\/?p=10614"},"modified":"2026-05-20T08:04:53","modified_gmt":"2026-05-20T06:04:53","slug":"supplier-lifecycle-management-solutions-basics","status":"publish","type":"post","link":"https:\/\/www.simmeth.net\/en\/blog\/supplier-lifecycle-management-solutions-basics","title":{"rendered":"Supply Chain Due Diligence Act (LkSG): Obligations & regulations"},"content":{"rendered":"\n
\n

The global economy is closely networked, but this networking not only brings economic benefits, but also immense responsibility. With the entry into force of the Supply Chain Duty of Care Act (LkSG), the German legislator has created a clear framework to protect human rights and environmental standards along global supply chains<\/a>. For companies, this means a paradigm shift: from voluntary corporate social responsibility (CSR) to binding, legally enforceable due diligence obligations. <\/p>\n\n\n\n

In this comprehensive guide, we shed light on all aspects of the LkSG – from the definition and the legal text to specific obligations such as risk analysis and practical implementation with modern software such as SC-Manager<\/a>.<\/p>\n\n\n\n

\"Supply
Supply Chain Due Diligence Act LkSG Dashboard<\/figcaption><\/figure>\n\n\n\n

Figure 1: The six phases of supplier lifecycle management – from onboarding to development<\/p>\n\n\n\n

What is the Supply Chain Due Diligence Act?<\/h2>\n\n\n\n

The Supply Chain Due Diligence Act marks a historic milestone in German business legislation. It obliges companies above a certain size to take responsibility for compliance with human rights and environmental standards in their global supply chains. <\/p>\n\n\n\n

Definition of the Supply Chain Due Diligence Act<\/h3>\n\n\n\n

The Supply Chain Due Diligence Act (officially: Act on Corporate Due Diligence in Supply Chains) is a German federal law that obliges companies to identify and assess human rights and environmental risks in their supply chains and to minimize or eliminate them through appropriate preventive and remedial measures. It aims to prevent exploitation, child labor, forced labor and serious environmental degradation in global procurement markets. <\/p>\n\n\n\n

Difference between LkSG and Supply Chain Act<\/h3>\n\n\n\n

In public debate and in the media, the terms “LkSG” and “Lieferkettengesetz” are often used interchangeably. From a technical point of view, “Lieferkettensorgfaltspflichtengesetz” (LkSG) is the correct, official legal term in Germany. The term “Lieferkettengesetz” is the colloquial shortened form. <\/p>\n\n\n\n

In addition, the German LkSG must be distinguished from the European Supply Chain Directive (CSDDD – Corporate Sustainability Due Diligence Directive)<\/a>, which is often referred to as the “EU Supply Chain Act” and must be transposed into national law in the coming years.<\/p>\n\n\n\n

Background and objectives of the LkSG Act<\/h3>\n\n\n\n

The background to the law lies in the realization that voluntary commitments by companies were not sufficient to effectively prevent human rights violations in global supply chains. Tragedies such as the collapse of the Rana Plaza textile factory in Bangladesh have increased the political pressure. The German government’s National Action Plan for Business and Human Rights (NAP)<\/a>, which is based on the UN Guiding Principles on Business and Human Rights<\/a>, also showed that voluntary measures were not enough – which ultimately led to the LkSG. <\/p>\n\n\n\n

The main objective of the LkSG is to protect basic human rights and selected environmental goods. It is intended to ensure that companies that generate profits in Germany do not profit from human rights violations abroad. At the same time, the law creates legal certainty and a level playing field for all affected companies in Germany. <\/p>\n\n\n\n

Supply Chain Act Germany<\/h3>\n\n\n\n

In an international context, the law is often referred to as the “Supply Chain Act Germany” or the “German Supply Chain Due Diligence Act” (GSCA). This term is crucial for internationally operating companies and foreign suppliers, as the German law also has a massive impact on suppliers outside Germany that are part of the supply chain of a company based in Germany. <\/p>\n\n\n\n

LkSG legal text and official documents<\/h2>\n\n\n\n

Precise knowledge of the legal basis is essential for legally compliant implementation. The law is clearly structured and precisely defines the obligations of companies. <\/p>\n\n\n\n

LkSG legal text and paragraphs<\/h3>\n\n\n\n

The legal text of the LkSG is divided into several sections. The most important paragraphs include: <\/p>\n\n\n\n