Germany’s parliament has passed a new corporate due diligence act. The “Act on Corporate Due Diligence in Supply Chains” will take effect in 2023 for companies with 3,000 or more employees and 2024 for companies with 1,000 or more employees.

Watch the webinar: ESG EU Privacy Landscape and German Due Diligence​

The German Corporate Due Diligence Act requires due diligence in combating human rights violations throughout business’ supply chains and introduces a shift to mandatory compliance with international norms on labor exploitation.

What are the operational requirements of the Germany Corporate Due Diligence Act?

This new law requires companies to identify risks of human rights violations and environmental destruction at direct suppliers and, if necessary, also at indirect suppliers. ​Key obligations include:

Companies must take countermeasures and document to the Federal Office for Economic Affairs and Export Control (BAFA) that they have upheld these key obligations. If these are not upheld, companies may face termination by their customers if they cannot implement the appropriate remediation measures.

How is the German Corporate Due Diligence Act enforced?

If companies fail to implement operational requirements or act on violations under the German Corporate Due Diligence Act, BAFA can issue fines up to two percent of the company’s yearly global revenue. Additionally, any company found to be in violation of the act may be excluded from public procurement for up to three years.

Watch the webinar: ESG EU Privacy Landscape and German Due Diligence​

How can OneTrust support compliance with the German Corporate Due Diligence Act?

OneTrust’s solutions can help you comply with Germany’s new Corporate Due Diligence Act, including:

The German Corporate Due Diligence Act will become law in 2023 for companies with 3,000 or more employees and 2024 for companies with 1,000 or more employees. For the latest insight, be sure to register for the webinar on date, or to find out more about how OneTrust can support your organization’s compliance needs request a demo today.

 

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