The EU Supply Chain Act goes beyond the requirements of the SCDDA
With the adoption of the Supply Chain Due Diligence Act (SCDDA, German: LkSG) in March 2021, companies with 1,000 or more employees are now obliged to bring transparency to their supply chains. By implementing the SCDDA, companies ensure that their supply chains are free from human rights violations or environmental damage.
In April 2024, the European Parliament voted in favour of the EU Supply Chain Act. The Corporate Sustainability Due Diligence Directive (CSDDD) must initially be implemented from 2027 by companies with at least 5,000 employees or an annual turnover of 1,500 million euros. The obligation to implement it will then be gradually extended to smaller companies.
The CSDDD goes beyond supply chain security and focuses on social and environmental aspects along the entire value chain. Companies are required to carefully check their suppliers and partners and ensure that they meet the same high standards in terms of human rights, working conditions, environmental protection and ethical business conduct. The CSDDD therefore represents a tightening of the requirements for companies.
To help you understand what you need to consider with regard to both supply chain regulations, we provide you with a free PDF that directly compares the SCDDA and the CSDDD. You will receive an overview of the scope and possible sanctions as well as all information on the specific due diligence obligations, risk management requirements and reporting obligations.
