{"id":102417,"date":"2023-12-12T13:31:39","date_gmt":"2023-12-12T13:31:39","guid":{"rendered":"https:\/\/octagona.com\/esportare-macchinari-le-regole-allesterno-dellunione-europea\/"},"modified":"2023-12-14T14:39:48","modified_gmt":"2023-12-14T14:39:48","slug":"lksg-german-law-supply-chains","status":"publish","type":"post","link":"https:\/\/octagona.com\/en\/lksg-legge-tedesca-catene-fornitura\/","title":{"rendered":"The Lksg: Germany's supply chain law."},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">From January 1, 2024, the scope of application will be extended <\/span><b>Lieferkettengesetz (Lksg),<\/b><span style=\"font-weight: 400;\"> German law, already in effect since 2023, mandates the application of sustainability across various social issues: it pertains not only to compliance with environmental protection rules but also to human rights.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">We are within a context where<\/span> <b>l&#8217;intera <a href=\"https:\/\/octagona.com\/en\/what-supply-chain-means\/\">supply chain<\/a><\/b><span style=\"font-weight: 400;\"> is called to lead a <\/span><b>two<\/b> <b>diligence<\/b><span style=\"font-weight: 400;\"> effective and efficient, with the aim of preventing and combating violations that occur not only within one's own company, but throughout one's entire supply chain.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">All companies involved, German and foreign, will be held accountable for serious penalties for violations.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/octagona.com\/en\/lksg-legge-tedesca-catene-fornitura\/#Limportanza_della_Due_Diligence_nella_Lksg\" >L&#8217;importanza della Due Diligence nella Lksg<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/octagona.com\/en\/lksg-legge-tedesca-catene-fornitura\/#Quali_aziende_sono_impattate_dalla_Lksg\" >Which companies are impacted by the Lksg<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/octagona.com\/en\/lksg-legge-tedesca-catene-fornitura\/#Come_devono_agire_le_aziende_italiane_per_rispettare_la_Lksg\" >How should Italian companies act to comply with Lksg?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/octagona.com\/en\/lksg-legge-tedesca-catene-fornitura\/#Quali_sono_le_sanzioni_previste_dalla_Lksg\" >What are the penalties under Lksg?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/octagona.com\/en\/lksg-legge-tedesca-catene-fornitura\/#Perche_devi_dare_importanza_alla_Lksg\" >Why should Lksg be important to you<\/a><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Limportanza_della_Due_Diligence_nella_Lksg\"><\/span>L&#8217;importanza della Due Diligence nella Lksg<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">La <\/span><b>due diligence<\/b><span style=\"font-weight: 400;\"> what is requested of the direct supplier is the same as that asked of the German company: the responsibility in terms of <\/span><b>Environmental sustainability and human rights<\/b><span style=\"font-weight: 400;\"> The responsibility of companies does not end within their facilities, but rather extends throughout the entire supply chain. In particular, it is urged to establish and adopt all those <\/span><b>necessary measures<\/b><span style=\"font-weight: 400;\"> a prevenire, ridurre o eliminare qualsiasi rischio attinente alla violazione dei diritti umani o dell&#8217;ambiente. V<\/span><span style=\"font-weight: 400;\">ed in detail <\/span><span style=\"font-weight: 400;\"><strong>how it works<\/strong>.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Quali_aziende_sono_impattate_dalla_Lksg\"><\/span>Which companies are impacted by the Lksg<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">As already mentioned, <\/span><span style=\"font-weight: 400;\">as of January 1, 2023, all companies in Germany that count\u00a0<\/span><b>at least 3,000 employees<\/b><span style=\"font-weight: 400;\">, must comply with due diligence requirements regarding environmental protection and human rights in their supply chains. But beware<\/span><b>:<\/b><span style=\"font-weight: 400;\">\u00a0from <\/span><b>January 1, 2024<\/b><span style=\"font-weight: 400;\">, the law will also apply to companies with\u00a0<\/span><b>at least 1000 employees<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Although the law primarily affects companies that have <\/span><b>Registered, head and administrative office in Germany<\/b><span style=\"font-weight: 400;\">, followed by the <\/span><b>branches<\/b><span style=\"font-weight: 400;\"> and from the <\/span><b>branches<\/b><span style=\"font-weight: 400;\"> of German companies abroad, the <\/span><b>Lksg<\/b><span style=\"font-weight: 400;\"> also has an impact on direct and indirect suppliers involved in the supply chain and therefore <\/span><b>also on Italian companies<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Going into detail, the standard extends:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To Italian companies that are not based in Germany, but serve as the <\/span><b>direct suppliers<\/b><span style=\"font-weight: 400;\"> of a German company subject to the law (by becoming part of their supply chain, they are obliged to comply with the aforementioned obligations);<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To the Italian companies that are <\/span><b>indirect suppliers<\/b><span style=\"font-weight: 400;\">, i.e., the suppliers of the German company's direct suppliers. <\/span><span style=\"font-weight: 400;\">Of course, action will be taken only in cases<\/span><span style=\"font-weight: 400;\"> where there are clear and unambiguous indications suggesting their violation of human rights (<\/span><span style=\"font-weight: 400;\">If a country does not provide for the right to freedom of association, that is already a clear sign of human rights violations.<\/span><span style=\"font-weight: 400;\">).<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">So, in practice, the Italian supplier will have to ensure its reliability in relation to the law. In the event that the German company insists on exercising control even over indirect suppliers, then Italian companies that are not based in Germany should also draw up and keep an updated list of their suppliers, so as to guarantee that German customers comply with the regulations.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><img decoding=\"async\" class=\"alignnone wp-image-102412 size-large\" src=\"https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Punti-della-Lieferkettengesetz-1024x576.png\" alt=\"The Lksg: the German law on supply chains.\" width=\"640\" height=\"360\" srcset=\"https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Punti-della-Lieferkettengesetz-1024x576.png 1024w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Punti-della-Lieferkettengesetz-300x169.png 300w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Punti-della-Lieferkettengesetz-768x432.png 768w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Punti-della-Lieferkettengesetz-1536x864.png 1536w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Punti-della-Lieferkettengesetz-18x10.png 18w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Punti-della-Lieferkettengesetz.png 1920w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/h2>\n<h2><\/h2>\n<p>&nbsp;<\/p>\n<h3><\/h3>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Come_devono_agire_le_aziende_italiane_per_rispettare_la_Lksg\"><\/span>How should Italian companies act to comply with Lksg?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The following <\/span><b>9 measures<\/b><span style=\"font-weight: 400;\"> I am a perfect summary of what will be necessary starting in January 2024 (for all Italian companies with headquarters in Germany that have at least 1000 employees; but they also extend to Italian suppliers in the ways previously reported). What are these measures in concrete terms?<\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Establishment or expansion of a\u00a0<\/span><b>system<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><b>of risk management<\/b><span style=\"font-weight: 400;\">\u00a0that also covers sustainability aspects in the supply chain;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Definition of a responsibility\u00a0<\/span><b>internal<\/b><span style=\"font-weight: 400;\">For example, the appointment of a human rights officer with adequate authority and expertise;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Regular risk analysis<\/b><span style=\"font-weight: 400;\">the company is committed to identifying the stages of its production and supply chain and, therefore, systematically and comprehensively identifying any negative impacts on human rights and the environment;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Issuance of a\u00a0<\/span><b>statement of principle<\/b><span style=\"font-weight: 400;\"> that highlights the main human and environmental risks and the respective measures identified for the prevention of such. This must be approved by management and reflect the company's values. It is recommended that it be communicated on the company website in a direct and transparent manner.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Arrangement of<\/b><b> preventive measures<\/b><span style=\"font-weight: 400;\">\u00a0In its own business sector and to direct suppliers,<\/span><span style=\"font-weight: 400;\"> while in the case of indirect providers they will apply only if there is actually evidence identifying violations;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Application of m<\/b><b>corrective measures\u00a0<\/b><span style=\"font-weight: 400;\">in the event of a violation of a protected legal position in order to end or reduce it. They must be timely and effective;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Establishment of a\u00a0<\/span><b>complaints procedure<\/b><span style=\"font-weight: 400;\">\u00a0or complaint handling communicated in a transparent and easily accessible manner to stakeholders;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Implementation of its own <\/span><b>Duties of due diligence at indirect suppliers<\/b><span style=\"font-weight: 400;\">: <\/span><span style=\"font-weight: 400;\">the goal is to \u201cpush\u201d them to conform <\/span><span style=\"font-weight: 400;\">To the standard, in case of violation.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Drafting a\u00a0<\/span><b>annual report<\/b><span style=\"font-weight: 400;\"> to be presented to the German Federal Ministry for Economic Affairs and Export Control<\/span><b>BAFA<\/b><span style=\"font-weight: 400;\">) that summarizes the points listed so far: the company's identification of risks, the measures implemented to carry out due diligence, how effective these measures have been, and what conclusions have been drawn for future measures.\u00a0<\/span><\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Quali_sono_le_sanzioni_previste_dalla_Lksg\"><\/span>What are the penalties under Lksg?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Se le aziende non rispettano gli obblighi di effettuare un&#8217;analisi dei rischi, istituire una procedura di reclamo, adottare misure preventive e porre efficacemente rimedio alle violazioni dei diritti umani accertate, possono incorrere in multe fino a 8 milioni di euro o fino al 2% del loro fatturato annuo. Le multe legate al fatturato si applicano solo alle aziende con un fatturato annuo superiore a 400 milioni di euro.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><img decoding=\"async\" class=\"alignnone wp-image-102411 size-large\" src=\"https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Sanzioni-Lieferkettengesetz-1024x576.png\" alt=\"The Lksg: the German law on supply chains.\" width=\"640\" height=\"360\" srcset=\"https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Sanzioni-Lieferkettengesetz-1024x576.png 1024w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Sanzioni-Lieferkettengesetz-300x169.png 300w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Sanzioni-Lieferkettengesetz-768x432.png 768w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Sanzioni-Lieferkettengesetz-1536x864.png 1536w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Sanzioni-Lieferkettengesetz-18x10.png 18w, https:\/\/octagona.com\/wp-content\/uploads\/2023\/12\/Sanzioni-Lieferkettengesetz.png 1920w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/h2>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Perche_devi_dare_importanza_alla_Lksg\"><\/span>Why should Lksg be important to you<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The imminent extension of the Lksg can only be considered in <\/span><b style=\"font-size: 1rem;\">positive outlook<\/b><span style=\"font-weight: 400;\">: on the one hand it provides new opportunities for the creation of <\/span><b style=\"font-size: 1rem;\">business relations<\/b><span style=\"font-weight: 400;\"> more and more <\/span><b style=\"font-size: 1rem;\">sustainable <\/b><span style=\"font-weight: 400;\">for all those who are interested in broadening their business horizons; on the other hand, it guarantees Italian supplier companies to maintain a <\/span><b style=\"font-size: 1rem;\">bargaining power<\/b><span style=\"font-weight: 400;\"> strong and stable vis-\u00e0-vis their German partners. Suffice it to say that German companies subject to Lksg will inevitably tend to favor those trading partners who show themselves willing to cooperate actively and transparently.<\/span><\/p>\n<div class=\"ptNLrf\">\n<div style=\"text-align: justify;\" data-is-tv=\"false\"><span style=\"font-weight: 400;\">In addition, we should not forget that the supply chains of Italian companies are strongly <\/span><b>interconnected <\/b><span style=\"font-weight: 400;\">con quelle tedesche (essendo la Germania il primo partner commerciale del nostro paese), e che l\u2019ampliamento dell&#8217;applicazione della norma fa s\u00ec che il numero di imprese coinvolte cresca.\u00a0<\/span><\/div>\n<div data-is-tv=\"false\">\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The entire commercial, industrial, and financial sector is therefore called upon to work on adapting and\/or adopting its compliance, while awaiting similar legislation to be approved by<\/span><b>\u2019European Union<\/b><span style=\"font-weight: 400;\">, with the aim of promoting a sense of equitable and sustainable cooperation. <\/span><\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Dal 1\u00b0 gennaio\u00a02024 si estender\u00e0 l\u2019applicazione della Lieferkettengesetz (Lksg), la legge tedesca gi\u00e0 in vigore dal 2023 che prevede l\u2019applicazione della sostenibilit\u00e0 su diversi temi sociali: non riguarda solamente il rispetto di regole per la salvaguardia dell\u2019ambiente, ma anche dei diritti umani. Ci troviamo all\u2019interno di un contesto in cui l&#8217;intera supply chain \u00e8 chiamata [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary octgn-read-more-link\" href=\"https:\/\/octagona.com\/en\/lksg-legge-tedesca-catene-fornitura\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":3,"featured_media":102410,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[274],"tags":[],"class_list":["post-102417","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>La Lksg: la legge tedesca sulla catena di fornitura<\/title>\n<meta name=\"description\" content=\"Dal 1\u00b0 gennaio 2024 la Lksg (ossia, lalegge tedesca sulle catene di fornitura) prevede il rispetto della 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