Implementation of the German Act on Corporate Due Diligence Obligations in Supply Chains
Since January 1, 2023, the German Act on Corporate Due Diligence Obligations in Supply Chains (Lieferkettensorgfaltspflichtengesetz; LkSG) obliges companies with more than 3,000 employees to prevent or minimize human rights-related and environmental risks in their own operations and supply chains.
In order to fulfill our human rights and environmental due diligence obligations, we set up an appropriate and effective risk management system in accordance with the LkSG, and we are incrementally embedding this system in all relevant business processes. In addition to defining responsibilities for the effective implementation and monitoring of requirements under the LkSG, our focus in the first half of 2023 was on the implementation of a systematic risk analysis, the core of our risk management approach. We identify the risks our business activities pose to people and the environment both in our own operations and along our supply chains, with the aim of preventing, minimizing or eliminating these risks. To achieve this goal, we have already begun to refine existing preventive measures and implement new ones. For example, we are revising our codes of conduct, adapting them to the requirements of the LkSG and conducting awareness-raising measures in procurement.
Since January 1, 2023, our current whistle-blower management has been accessible for all LkSG topics, making it possible to report human rights-related and environmental risks as well as corresponding breaches of duty.