Prepare audit-ready evidence for German buyers in days, not weeks

German LkSG Compliance for Suppliers

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What is LkSG?

The German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz - LkSG) requires large companies in Germany to ensure that human rights and environmental standards are respected throughout their entire supply chain. As a manufacturer in Thailand supplying to German companies, you are increasingly required to provide extensive evidence of your own compliance to help your buyers meet their legal obligations.

1

Scope and applicability

Originally applied to companies with ≥3,000 employees; expanded to ≥1,000 employees on 1 Jan 2024. Duties are graduated: full due diligence for own operations, heightened scrutiny for direct suppliers, and action on indirect suppliers upon substantiated knowledge

2

Key requirements

Risk assessment, grievance mechanisms, corrective action plans, documentation, and annual compliance reporting

3

The supplier burden

Exporters must provide evidence of policies, grievance mechanisms, and corrective actions to satisfy buyer due diligence obligations

Key LkSG Dates

Jan 1, 2023

Entry into Force

Law applies to companies with ≥3,000 employees; suppliers must start providing due diligence evidence.

Source: gesetze-im-internet.de
Jan 1, 2024

Scope Expansion

Threshold lowered to ≥1,000 employees; more German companies now subject to due diligence requirements.

Source: gesetze-im-internet.de

How Anakot Helps

Policy & Documentation Management

Centralize and manage your human rights and environmental policies to match German buyer expectations.

Supplier Risk Assessment

Map and assess your own upstream suppliers to identify potential risks before they become buyer issues.

Grievance Mechanism Setup

Implement and document the required reporting channels for human rights or environmental concerns.

Why Choose Anakot?

Buyer-Ready Evidence

Generate structured report packs that directly answer common German buyer questionnaires and audit requests.

Reduce Audit Stress

Stay organized and prepared for customer audits with all your LkSG-related evidence in one place.

LkSG Frequently Asked Questions

While the law applies directly to large German companies, they must ensure compliance across their entire global supply chain. If you supply to a covered German company, you must provide due diligence evidence to stay in their network.

Buyers typically require your human rights and environmental policies, evidence of risk assessments in your own supply chain, and proof of a functioning grievance mechanism.

It is a formal channel for workers or stakeholders to report human rights or environmental concerns. LkSG requires manufacturers to have this in place to ensure any issues are identified and addressed early.

German buyers are legally obligated to work with you to mitigate risks. However, persistent refusal to cooperate or failure to address serious violations can lead to suspension or termination of your business relationship.

Anakot centralizes your policies, automates supplier risk mapping, and sets up compliant grievance channels. We turn scattered data into structured report packs that satisfy strict German buyer audits in days.

Prefer a live walkthrough?

Book a 15-minute demo and we will tailor the compliance checklist to your buyers.

Book a Demo