The Federal Council reports that the Federal Office of Economics and Export Control (Bafa) has received a total of 206 complaints since the Supply Chain Due Diligence Act (LkSG) came into force. This was announced by the Federal Government in its response (20/13245) to a minor question from the Die Linke group (20/12715), which had enquired about the number of complaints since the beginning of 2023. The complaints had resulted in 224 individual cases. However, a total of 183 cases had no connection to the Supply Chain Due Diligence Act (LkSG) or did not relate to companies subject to the LkSG. The Bafa currently has a total of 680 reports from companies in accordance with the Supply Chain Due Diligence Act. However, some of the reporting companies are not subject to the reporting obligation under the Act.
table.media also reports extensively on the Bafa's 2023 annual report. Here are the most important findings and figures:
- Bafa favours a preventative approach and takes an active role.
- 492 Supply Chain Act audits were carried out.
- 180 audits were completed.
- 30 complaints were received, involving 40 companies.
- 86 random checks were carried out.
- The focus was on sectors:
- "with particular relevance in the first stages of value creation (raw material extraction),
- a (direct) link between human rights risks and economic activities in the value chain,
- and a market power that (potentially) offers greater collective leverage to manage the risks."
- The Bafa also carried out checks as a result of media reporting.
In only a few cases did the Bafa check whether an administrative offence had been committed, for example due to breaches of due diligence obligations in risk management or complaints mechanisms, and limited itself to the preventative approach, "so that no fine proceedings had to be initiated in the reporting year." However, experts warn that the Bafa should not permanently refrain from sanctioning companies in the event of misconduct.
Is your company affected by LkSG and CSDDD? Take action now. Christopher Blauth and Jens Haasler will be happy to answer your questions.
Attention: As a take-e-way/trade-e-bility customer or VERE e.V. member, you can attend the 8th VERE panel event free of charge on 19 November 2024 at the East Hotel in Hamburg and discuss the topic "Safe, sustainable and recyclable into the future" with representatives from the Federal Ministry of Economics, EAR Foundation, Packaging Register, Consumer Protection Authority, Otto, Osapiens, Hagebau, Berlin Brands Group and many others and make valuable contacts for your business. All presentations will be simultaneously translated into English. The topics of LkSG and CSDDD will also be discussed in detail:
- CSDDD, EUDR, CBAM – Challenges in supplier and data management (Alberto Zamora Pueyo, Osapiens)
- LkSG, CSDDD, CSRD, EUDR, EU Batteries Regulation, CBAM, etc. – An overview of existing and upcoming sustainability and due diligence obligations – is the SME sector out? (Dipl.-Ing. Jens Haasler, M.Sc. Christopher Blauth, trade-e-bility)
