Regulation Guide · Germany

LkSG: Supply chain due diligence under German law

The German Supply Chain Due Diligence Act (LkSG) requires companies to identify, prevent and mitigate human rights and environmental risks in their supply chains. This guide explains the key requirements for procurement and operations teams.

Updated Mar 2026

· Guide

In force since

Jan 2024

Companies with 1,000+ employees

Risk analysis (annual + ad hoc)
Preventive measures required
Remedial action on violations
Complaints procedure mandatory
Annual reporting to BAFA

In force: LkSG applies to all companies with 1,000+ employees since January 2024

Note: CSDDD will supersede LkSG once transposed into German law

Updated: BAFA enforcement guidance updated for 2026 reporting cycle

Reminder: Annual report due to BAFA — covers previous financial year

In force: LkSG applies to all companies with 1,000+ employees since January 2024

Note: CSDDD will supersede LkSG once transposed into German law

Updated: BAFA enforcement guidance updated for 2026 reporting cycle

Reminder: Annual report due to BAFA — covers previous financial year

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Supply chain compliance specialists · Answers reviewed by regulatory experts

✓ Verified answers

Background

What is the LkSG — and what does it require?

The German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG) requires companies to establish a systematic process for identifying and addressing human rights and environmental risks in their supply chains.

The law focuses primarily on direct suppliers (Tier 1), with an obligation to investigate deeper tiers when there is substantiated knowledge of potential violations. BAFA (Federal Office for Economic Affairs and Export Control) is the responsible enforcement authority.

Key context: LkSG was a pioneer in EU supply chain legislation, but will be superseded by the broader EU-wide CSDDD once transposed. Companies already compliant with LkSG have a strong foundation — but should prepare for CSDDD's wider scope, civil liability provisions, and climate transition requirements.

Key dates

LKSG implementation timeline

Jan 2023

LkSG entered into force

Initially applied to companies with 3,000+ employees in Germany.

In force

Jan 2024

Extended to 1,000+ employees

Scope widened to all companies with 1,000 or more employees operating in Germany.

In force

Now

Ongoing compliance & reporting

Companies must conduct annual risk analyses, implement preventive measures, and report to BAFA.

In force

Jul 2026

CSDDD national transposition deadline

EU member states must transpose CSDDD into national law. Germany expected to adapt LkSG accordingly.

Action required

Jul 2027

CSDDD supersedes LkSG (largest companies)

Companies with 5,000+ employees and €1.5bn+ turnover fall under CSDDD. LkSG requirements expected to be absorbed.

Future

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