The tracker · Germany

German Supply Chain Due Diligence Act

Reform proposed Germany Entry updated May 2026

The German due diligence law that shaped supplier questionnaires worldwide, now being folded into CSDDD transposition.

StatusReform proposed
EnactedJanuary 2023
First compliance deadlineJanuary 2023 (3,000+ employees); January 2024 (1,000+)
Companies in scopeCompanies with 1,000 or more employees in Germany
Maximum penaltyUp to 2 percent of average annual turnover for the largest companies
Civil liabilityNo new civil cause of action; special litigation standing for trade unions and NGOs
Enforcement bodyFederal Office for Economic Affairs and Export Control (BAFA)

Latest movement

Reporting duty removed in 2025; repeal-and-replace bill folding LkSG into CSDDD transposition advancing.

In plain language

What this law does

The LkSG obliges companies with at least 1,000 employees in Germany to conduct risk analyses, adopt preventive and remedial measures, operate complaints procedures and document their due diligence across own operations and direct suppliers, extending to indirect suppliers on substantiated knowledge of risk.

The 2025 coalition agreement committed to replacing the LkSG with a lean CSDDD-implementing law. The reporting obligation was removed in 2025 and enforcement narrowed to serious violations while the replacement bill moves through the Bundestag. For suppliers, BAFA-driven questionnaires have already slowed, but German buyers continue to run LkSG-shaped systems as the baseline for CSDDD readiness.

Obligations

What it asks of companies

  1. Annual and ad hoc risk analysis

    Companies must analyse human rights and environmental risks annually and when the risk situation changes materially.

  2. Preventive and remedial measures

    Identified risks require documented preventive measures with suppliers and remedial action where violations occur.

  3. Complaints procedure

    An accessible grievance channel must be available to workers and affected parties throughout the supply chain.

Timeline

How it got here

January 2023

Act applied to companies with 3,000 or more employees.

January 2024

Threshold lowered to 1,000 employees.

2025

Coalition agreement announced repeal and replacement; reporting duty removed.

2026

CSDDD transposition bill in parliamentary process.

Changelog

Entry history

May 2026

Entry updated to track the repeal-and-replace bill and narrowed BAFA enforcement.

Sources

Primary documents