Do you have more than 3,000 employees and must comply with Supply Chain Act requirements since the beginning of 2023?
Do you have more than 1,000 employees and must comply with Supply Chain Act requirements from the beginning of 2024?
Are you a direct supplier and have to comply with the LkSG requirements since the beginning of 2023?
The Act on Corporate Due Diligence Obligations in Supply Chains (German: Lieferkettensorgfaltspflichtengesetz, LkSG) or short Supply Chain Act obliges companies to analyze the human rights and environmental due diligence obligations within their supply chain in an appropriate manner and to assess their risks. The scope of application of the Supply Chain Act generally includes companies that have their head office, principal place of business, administrative headquarters or statutory headquarters in Germany. Both privatesector companies and publicly owned companies are affected. The law requires regular proactive analyses and appropriate addressing of risks in the company's own business area and with direct suppliers (suppliers with whom a contractual relationship exists). The Supply Chain Act provides for severe fines and sanctions if the due diligence requirements set out in the law are not complied with.
The five core elements of the due diligence obligations
As defined in National Action Plan for Business and Human Rights (NAP) |
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Acknowledging |
Identifying |
Minimizing |
Informing |
Facilitating |
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Establishing a (reasonable) risk management system
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Issuing a policy statement
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Establishing a complaints procedure
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Designating a responsible person(s) within the enterprise
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Laying down preventive measures
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Implementing requirements with regard to risks at suppliers
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Performing structures and regular (reasonable) risk analyses
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Taking remedial action
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Audit-proof documenting and reporting
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Implement Supply Chain Act obligations with compliance software
It can be assumed that smaller and medium-sized companies in or outside Germany will also be affected by the German obligations. Institutions to which the Supply Chain Act applies will pass on the its requirements to their suppliers via contractual provisions. As one of the key preventive measures, the Supply Chain Act explicitly requires that direct suppliers comply with the company’s human rights and environmental expectations and, in turn, address them along their supply chain. In the event of substantial indications, the obligation also extends to indirect suppliers (so-called cause-related due diligence).
With the OMNITRACKER Governance, Risk and Compliance Center, you comply with your Supply Chain Act obligations easily and with little effort. The individual modules help you to implement the Supply Chain Act requirements in a structured way.
OMNITRACKER GRC Center as a software solution to comply with the Supply Chain Act
- Defining responsibilities
- Implementing a risk management functionality for structured risk analyses of suppliers
- Anonymous reporting channel for complaint procedures
- Documentation, contract and document management
- Definition of preventive measures and remedial actions
- Monitoring measures, social and environmental audits with automated reporting
You have to comply with the obligations of the Supply Chain Act within your enterprise processes?
Your benefits of our Supply Chain Act software
Our GRC solution helps you to comply with all Supply Chain Act requirements.
Assessment of suppliers
Identify, assess and control risks
Establish a secure reporting procedure
Implementing measures
Working with a GRC software | OMNITRACKER GRC Center
The Supply Chain Act makes it necessary for you to define responsibilities for the risk analyses of all business areas. Regular risk and effectiveness assessments must then take place for all suppliers in each business area. Measures are subsequently derived, if necessary, from the specific assessments and the associated controls.
GRC software provides hands-on support in complying with the Supply Chain Act by
- supplier assessments are carried out in the required level of detail,
- all efforts can be verified in an audit-proof manner and,
- in case of violations within your supply chain, measures are initiated quickly.
You can already implement these steps in the OMNITRACKER GRC Center and do not need another tool in your company. You save additional investment costs for new software and access a central database. In addition, set-up and training times are eliminated. Use one GRC solution for all your Supply Chain Act and oder compliuance business processes.
Get your fee demo version of our GRC software
Learn more about our industry-independent all-in-one software solution and test the OMNITRACKER Governance, Risk and Compliance Center online in our demo room.
We offer you the opportunity to get to know OMNITRACKER as well as corresponding applications and components. You can freely select the applications you want. With descriptive videos we show you the first steps. On request, we will also be happy to guide you personally through our GRC solution. All you need is access to the internet, a local installation is not necessary.
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A central multistandard solution for all norms, standards and requirements
With the OMNITRACKER Governance, Risk and Compliance Center, you successfully and profitably manage your organization (companies, public institutions, NGOs, etc.) while demonstrably complying with all necessary laws, standards and other compliance requirements. In doing so, you use a central multistandard solution to manage all your compliance, audit, control and risk management requirements. All information is available to you exactly when it is needed for decision-making. Even organization-specific or industry-specific regulations can be easily mapped and complied with. The objective of the GRC Center is the profitable, transparent and holistic management of your organization, based on integrated risk management and continuous improvement.
Numerous application options and relevant information of our GRC solution
Compliance software and ESG
Whether it’s EU taxonomy, Supply Chain Act, or simply the desire of consumers: Proving sustainability transparently is becoming increasingly important for thousands of companies across all industries. Compliance software helps to deal with ESG criteria in a structured way and to document results.
Numerous application options and relevant information about our GRC solution
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Protection for whistleblowers
As a result of the EU directive, these so-called “whistleblowers“ require special protection and should be encouraged to report such violations—without fear of direct or indirect reprisals. Against this background, the European Union issued the Whistleblower Protection Directive in 2019.