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On 1 January 2023, the German Supply Chain Due Diligence Act (in short: "Supply Chain Act") came into force.

The new law obliges companies (with head office, main branch, administrative headquarters, statutory seat or branch) in Germany to respect human rights and certain environmental requirements by implementing defined due diligence obligations. At present, companies with more than 3,000 employees are affected; from 2024, the scope of application will be extended to companies with more than 1,000 employees.

Your responsibility as a company extends to your own business area and direct contractual partners, but also to the actions of other (indirect) suppliers.

What does the Supply Chain Act require of you as a company?

  • Determining internal responsibilities
  • Establish a risk management system
  • Conduct regular risk analyses
  • Issuing and publishing a policy statement
  • Establish preventive measures
  • Establish and implement corrective measures in the event of violations
  • Establish a complaints procedure
  • Documentation and annual reporting on supply chain management

Compliance with the Supply Chain Act is monitored by the German Federal Office of Economics and Export Control (BAFA). To this end, the authority is equipped with effective enforcement instruments and control powers. Its tasks include, for example, checking whether companies comply with their reporting obligations, carrying out inspections, detecting, eliminating and preventing violations, and even imposing coercive sanctions and fines.

Our solutions for the law on corporate due diligence in supply chains

Regardless of how far your company is already prepared for the Supply Chain Due Diligence Act - we offer you customised services to help you successfully master the requirements.
Individual solutions & project support

You have not yet taken any action for the Supply Chain Act?
You feel overwhelmed in this regard?

In this case we offer you:

  • Tailor-made solutions:
    Together with you, we develop practical and realistic measures as well as a strategy tailored to your company, with which you can successfully fulfil the required due diligence obligations in your supply chains.
  • Project support:
    We support you with our know-how in creating the necessary conditions and establishing them in your supply chains so that you comply with the requirements of the Supply Chain Act. Through our global network of locations, we are able to provide you with competent support wherever you are.
Anamnesis & Gap Analysis

You are already sure about your strategy. But you are still missing individual building blocks to fulfil the Supply Chain Act?

In this case we offer you:

  • Anamnesis:
    In a joint workshop, we shed light on your business activities to obtain a current status quo with regard to your supply chains.
  • Gap analysis:
    Together with you, we identify possible gaps in your sustainability concept and define a roadmap as well as roles and responsibilities for the targeted implementation of appropriate measures to comply with the Supply Chain Act.

You are already extensively prepared for the Supply Chain Act?
You have defined your strategy and responsibilities?

In this case, the following certifications offer you an optimal starting point for the practical implementation of your due diligence obligations:


  • Green Button 2.0 -
    the German government seal for sustainable textiles, which requires compliance with corporate due diligence as one of the two pillars for awarding the label

Hohenstein is an OEKO-TEX® founding member and a certification body approved by the German Federal Ministry for Economic Cooperation and Development (BMZ) to award the Green Button textile label.


Your reliable solution when it comes to implement human rights and environmental due diligence obligations in your and your suppliers' management processes along the textile and leather industries.

Green Button

In addition to environmental requirements for products and manufacturing conditions, the German state seal for sustainable textiles also sets demanding requirements for corporate due diligence processes. With certification, you thus also fulfil the conditions of the Supply Chain Due Diligence Act.


Law on Corporate Due Diligence in Supply Chains
Further services on the topic of sustainability & product stewardship