New BAFA FAQ on the Supply Chain Due Diligence Act – key take aways
The Federal Office for Economic Affairs and Export Control (BAFA) has published a supplementary FAQ document that specifies the requirements for a risk-based approach in implementing the Supply Chain Due Diligence Act (LkSG).
It complements existing guidelines but has not been integrated into the official FAQ catalog. In terms of content, BAFA clarifies the meaning of a risk-based approach:
- Companies are expected to prioritize risks and take differentiated measures – blanket requirements for all suppliers are explicitly not intended.
- A new feature is an anonymously accessible reporting channel through which suppliers can report to BAFA if they are confronted with unreasonable obligations by contractual partners. Such notifications may trigger a BAFA audit.
BAFA’s intention: Information was previously gathered indiscriminately from all suppliers or codes of conduct were imposed across the board. Nevertheless, implementation remains complex, especially for companies with complex supply chains.
Result: Companies should develop and document a realistic concept that focuses on prioritized risks. Those who treat their suppliers in a differentiated and risk-based manner are on the safe side – both substantively and during the next BAFA audit. The goal of the LkSG is not mere formalism, but a sustainable transformation of the supply chain.
We regularly advise on the implementation of the LkSG – especially on contract design, risk analysis, and structuring of internal processes.
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