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
SC
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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Key context: LkSG was a pioneer in EU supply chain legislation, but will be superseded by the broader EU-wide CSDDD once transposed.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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