German Supply Chain Act

Lieferkettensorgfaltspflichtengesetz (LkSG)

Ensuring human rights and environmental due diligence across our entire supply chain

✓ LkSG Compliant Supply Chain Management

What is the German Supply Chain Act?

The German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz - LkSG) requires companies to observe human rights and environmental due diligence obligations in their supply chains in an appropriate manner.

Companies must establish a risk management system, conduct regular risk assessments, implement preventive measures, and ensure transparency through their supply chains.

January 1, 2023

Initial Implementation

Act came into force for companies with 3,000+ employees in Germany

January 1, 2024

Expanded Scope

Extended to companies with 1,000+ employees in Germany

Ongoing

Continuous Compliance

Regular risk assessments, supplier monitoring, and reporting

Our Compliance Approach

Comprehensive due diligence processes across our supply chain

Risk Analysis

Regular assessment of human rights and environmental risks across our supply chain

Due Diligence

Comprehensive due diligence processes to identify and mitigate supply chain risks

Supplier Management

Systematic evaluation and monitoring of all business partners for compliance

Risk Reporting

Transparent reporting of identified risks and remediation measures

Key Obligations

The Supply Chain Act requires companies to implement comprehensive due diligence processes

Risk Management System

Establish and maintain an appropriate risk management framework for supply chain oversight

Risk Assessment

Conduct regular analyses to identify human rights and environmental risks in the supply chain

Preventive Measures

Implement preventive measures to avoid or minimize identified risks

Remediation Actions

Take corrective action when violations are identified and establish complaint mechanisms

Documentation & Reporting

Document due diligence processes and publish annual reports on compliance activities

Supply Chain Monitoring

Continuously monitor direct suppliers and evaluate indirect suppliers based on risk

Protected Rights

The Act protects fundamental human rights and environmental standards

Prohibition of child labor
Prohibition of forced labor
Occupational health and safety standards
Freedom of association and collective bargaining
Prohibition of discrimination
Fair remuneration
Environmental protection standards
Protection against land seizure and environmental damage

KREA's Commitment

We are committed to responsible supply chain management and upholding human rights and environmental standards throughout our business operations

Risk Management

We have established a comprehensive risk management system to identify, assess, and mitigate human rights and environmental risks in our supply chain. Our processes include regular supplier evaluations, on-site audits, and continuous monitoring.

Supplier Partnership

  • Transparent communication with all suppliers
  • Regular training and capacity building
  • Collaborative risk mitigation strategies
  • Support for continuous improvement
  • Clear expectations and compliance requirements

Reporting & Transparency

Annual Reporting

Publishing annual reports on our due diligence activities and compliance measures

Complaint Mechanism

Accessible channels for reporting human rights and environmental concerns

Continuous Improvement

Regular review and enhancement of our supply chain due diligence processes

Questions About Our Supply Chain Compliance?

Our team is ready to discuss our supply chain due diligence processes and compliance measures.

Contact Our Compliance Team