Italian companies have recently been increasingly called upon by their German customers to provide information on their own sustainability performance and to assess and avert risks in their respective supply chains as a result of German legislation.

Why? Because as of January 1, 2023, the German Supply Chain Act (LkSG) requires German companies with more than 3,000 employees (and as of January 1, 2024, companies with more than 1,000 employees) to increase transparency and engagement in their supply chains.

German companies must now, for example:

• adopt a policy statement on respect for human rights
• establish a risk management system
• take preventive and mitigative measures in their own business and toward suppliers
• report transparently on their commitment and progress
• establish grievance mechanisms

It does not make sense for Italian suppliers to limit themselves to fulfilling legal requirements, as further EU regulations are already foreseeable. Instead, the opportunities presented by the LkSG should be used to fundamentally align the company, and in particular its procurement department, in a sustainable manner and thus secure competitive advantages internationally. Numerous practical aids facilitate the procedure.

Speakers:

• Prof. Dr. Lisa Fröhlich, JARO Institut für Nachhaltigkeit und Digitalisierung e.V.
• Yvonne Jamal, JARO Institut für Nachhaltigkeit und Digitalisierung e.V.