Many companies are ill-prepared

Dusseldorf On January 1st, things will get serious for hundreds of German companies: after a long announcement, the Supply Chain Due Diligence Act (LkSG) will start. Companies whose suppliers violate human rights face high fines in the millions in the future. Nevertheless, a large proportion of those affected are not prepared for the implementation of the law.

“Most companies still have some catching up to do when preparing for the effects of the supply chain law,” confirms Verena Deller, supply chain expert at purchasing consultancy Inverto. “We see a great deal of uncertainty among those affected,” she observes. Many would not know how far and how profoundly they have to implement the requirements.

This is also shown by a survey of its corporate customers that Inverto conducted in December for a risk prevention study. Only a third of them feel well or very well prepared. And most of them have only implemented some of the necessary measures so far.