Jurisdiction
For products sold in Germany
Law Summary
This German law requires large companies operating in Germany to implement due diligence processes for human rights and environmental risks within their own operations and supply chains. Companies must identify risks, take preventive/remedial actions, establish grievance mechanisms, and report annually on their efforts to ensure compliance.
Law Obligation
- Establish a risk management system to identify and mitigate potential human rights and environmental risks
- Designate individuals within the enterprise who are responsible for monitoring and overseeing the risk management process • Conduct risk analysis to identify and prioritise human rights and environmental risks in the enterprise’s own operations and those of its direct suppliers
- Issue a policy statement outlining human rights strategy, including a description of the procedures for fulfilling obligations and prioritising identified human rights and environmental risks based on the risk analysis
- Implement preventive measures in operations and with direct suppliers, regularly reviewing and updating them annually or as needed in response to significant changes
- Take remedial action upon discovering/ anticipating violations of human rights or environmental obligations within the enterprise’s operations or with direct suppliers
- Establish an internal complaints procedure for reporting human rights and environmental risks or violations stemming from the enterprise’s economic activities/ its direct suppliers
- Annually publish a report outlining the enterprise’s compliance with due diligence obligations in the preceding financial year. Ensure the report is easily accessible to the public on the enterprise’s website and submitted electronically to the German Federal Office for Economic Affairs and Export Control
