Insights: International Supply Chains


Due Diligence in global Supply Chains

With the enactment of the Supply Chain Due Diligence Act (LkSG) in 2021, Germany entered new legal territory. The due diligence requirements of the law are fundamentally known and internationally compatible, as they are based on the internationally recognised voluntary due diligence standard of the UN Guiding Principles on Human Rights, as is the German National Action Plan for Business and Human Rights of 2016. Nevertheless, for the first time, the law sets out a new catalogue of binding obligations of due diligence, the subject matter of which lies outside the companies' own area of business and thus also outside the primary sphere of influence of the obligated companies. Consequently, the Supply Chain Act poses very special challenges for the highly globalised German economy, which is networked with the whole world through complex supply chains.
In parallel to the German Supply Chain Act, numerous other countries within and outside the EU have already enacted comparable regulations. The EU legislator is also about to adopt European framework legislation to regulate global supply chains.
Although the final phase of the political negotiations on the EU Directive is predictably proving to be intense, it can still be assumed that the German legal framework will be tightened in the future. This Topic Special provides a comprehensive overview of the current status of supply chain legislation at the international level.

 Supply Chain Law around the world

​Binding supply chain regulation is already in place in the following countries: Australia, France, Germany, Netherlands, Norway, Switzerland, UK, USA.


International supply chains 

The new Supply Chain Act - German economy in practice

Since 2021, also Germany has its own supply chain law, following the international trend toward greater transparency and responsibility in its international supply chains. However, the requirements of the new law will present German industry with quite significant challenges in the coming years. Read more »

International supply chains Due Diligence in Supply Chains – a look at the Czech Republic

In summer 2021, the Federal Republic of Germany passed a law on corporate due diligence in supply chains (the Supply Chain Act), joining other European and non-European countries (e.g. the Netherlands, the UK and the USA) that have already enacted legislation addressing this area. Read more »

International supply chainsSupply Chain Compliance and Due Diligence in Estonia

Supplying and distributing a specific product or service from the beginning to end is what is known as the supply chain process (involving sourcing of materials, R&D, manufacture, finance, customer service, distribution & marketing). Read more »

International supply chainsThe French law on Duty of Care (“Devoir de vigilance”) dated 27. March 2017 – lessons learned and recommendations

The scope of the French law on Duty of Care (“Devoir de vigilance”) is deliberately broad to allow for several types of situations. It establishes the need for a vigilance plan in five parts to be implemented within companies meeting certain thresholds. Read more »

Lessons learned from the 28 February Paris Court ruling in the "TotalEnergies" case

The court's ruling in the "TotalEnergies Uganda" case was eagerly awaited by companies subject to the obligation to implement and publish a due diligence plan pursuant to the "Duty of Care" law of 28 March 2017. Read more »

International supply chains Supply Chain Risk Management for German Companies in Greece

As a German company, you are required by the German Supply Chain Act to carry out due diligence on contracted businesses throughout your supply chain, identify risks to human rights and take measures to mitigate such risks. Read more »

International supply chains

Supply Chain Due Diligence in Italy: Legislation under Construction

Italy, unlike other European countries, has not yet passed a specific law imposing a general legal obligation on companies to conduct human rights and environmental due diligence in the supply chain. Nevertheless, companies operating in Italy must keep in mind some specific European-derived obligations. Read more »


Due Diligence in Supply Chains: The Italian perspective

In the last few years, civil society has widely demon­strated and argued that as long as human rights due diligence is left to the discretion of companies, its benefit on human rights protection are restricted while serious questions of coherence in business practices arise. Read more »

International supply chainsCorporate Governance: Supply Chain Sustainability Risk Analysis in Latvia

Latvia has adopted no country specific rules regarding the sustainability impact analysis and related reporting requirements. However, despite this voluntary principle, the intangible qualities of a business partner, such as reputation, are of increasing importance. Read more »

International supply chains Sustainability in the Netherlands: What you need to know

With the announcement of the CSRD obligation for large companies, the list of European applicable laws and regulations is further extended. Also in the Netherlands, there are various directives and laws that contribute to achieving the climate objectives of 2030 and 2050. Read more »

International supply chainsTransparency Act in Norway: Requirements for transparency on enterprises' business contacts and suppliers

In Norway on 1 July 2022, the “Act relating to enterprises’ transparency and work on fundamental human rights and decent working conditions” – the Transparency Act – entered into force. As a consequence, more than 9,000 Norwegian enterprises are required to carry out a due diligence. Read more »

International supply chains The legal status of Due Diligence Regulations in Supply Chains in Poland

As opposed to Germany, Poland has not taken any measures aimed at introducing an obligation for enterprises to exercise due diligence into the system to safeguard human rights and environmental standards in supply chains. Read more »

International supply chains Prohibition of discrimination in Slovakia

The Labour Code as well as the special Act on Equal Treatment in Certain Fields and on Protection against Discrimination and on Amendments to Certain Acts (the Anti-Discrimination Act) introduce the principle of equal treatment provided for in the field of employment relations. Read more »

International supply chains Spanish companies within the Supply Chain of German manufacturers – Focus on automotive suppliers and agricultural producers

The entry into force on 1 January 2023 of the German Supply Chain Act (LkSG) is expected to coincide in the other EU countries – and therefore also in Spain – with the revival of the public debate on the European Commission's proposal for a directive “on corporate due diligence with regard to sustainability”, which was published on 23 February 2022. Read more »

International supply chains Human Rights Issues to take i̇nto Consideration while doing Business in Turkey

Export of mechanical products is one of the largest industries in Turkey. 60 percent of the products is exported to EU countries including Germany, England, France, Italy, and the USA. Particularly, the machinery sector adds value to Turkey's economy by encoring the use of high technology, creating a large scale of subindustry and supply chains. Read more »

International supply chains UK Supply Chain Guidance

Organisations across all sectors are becoming subject to more compliance requirements. These can arise from specific legislative requirements or the increasing drive for businesses to operate ethically and with regard for their impact on the environment and wider society. Read more »


International supply chains Modern Slavery Act and human rights in Supply Chains: What businesses in Australia need to know

The website of the Australian Department of Home Affairs contains the following statement “There is no place for modern slavery in the Australian community or in the global supply chains of Australian goods and services.” Read more »

International supply chainsThe Supply Chain Act and its implications in Brazil

Despite not having specific legislation regarding the Supply Chain, Brazil has, in its several legislations, legal provisions for the protection of human, environmental, and children's rights, among others. Read more »

International supply chainsThe German Supply Chain Due Diligence Act and Costa Rica – a risk analysis

For companies in Costa Rica, the introduction of the German Supply Chain Due Diligence Act (LkSG) in January 2023 poses some potential risks. This is especially true with regard to the role of national economic activities within the production chains of companies based in Germany. Read more »

International supply chainsImportant Aspects of Ecuadorian Regulations in the Supply Chain

The German Supply Chain Due Diligence Act establishes an obligation of care for companies located in Germany that meet the conditions to be subject to control by the competent authority in this country. Read more »

International supply chainsThe German Supply Chain Law: Control of labour standards and environmental protection in Egypt

The human rights standards and the companies’ obligations in a developing country like Egypt can certainly not be compared with those applicable in Germany or other European countries. The practical application of the German supply chain law may therefore require a higher level of risk analysis and risk management. Read more »

International supply chains Legal Support in Supply Chains, the Kenyan Experience

The legal office in Kenya prides itself with lawyers in its team who specialise in corporate and commercial law with a focus on good corporate governance through effective compliance management strategies. Read more »

International supply chainsEnvironmental, Social and Governance (“ESG”) Risks and Standards and Supply Chain Due Diligence Laws in Mexico

In the year 2023, Mexico continues to grapple with significant challenges related to the rule of law, labour rights, environmental protection and corruption. Despite these ongoing concerns, Mexico is progressively emerging as a pivotal destination for foreign trade and investments. Read more »

International supply chainsThe German Supply Chain Act (LkSG): Monitoring labour standards and environmental protection in Morocco

Over the past decade, Morocco has developed into an important industrial centre for investors from all over the world. In close proximity to Europe, the country is also an interesting logistics location. Read more »

International supply chainsImpact of the German Supply Chain Act on South African Business

South Africa is an important supplier of German companies, especially for the automotive and raw materials sectors. Thus, it is important for German companies to address the due diligence requirements of the Supply Chain Act in relation to the country-specific risks of South Africa. Read more »

International supply chainsGerman Supply Chain Law in Asia-Pacific

The German Supply Chain Law („Gesetz über die unternehmerischen Sorgfaltspflichten in Lieferketten”; short: Lieferkettengesetz) has been passed by parliament on 11 June 2021. Read more »


German Supply Chain Law Panel discussion: German Supply Chain Act and its impact in Asia

​Watch our experts discussing the German Supply Chain Act and its impact and implementation in Asia, providing hands-on advice on what you should particularly focus on in the future, as well as the measures you can take to ensure compliance with the Law, avoid penalties and minimize risks. More »

last updated on 8 May 2023
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