Care in the Name of the Law

The Lieferkettensorgfaltspflichtengesetz, the Supply Chain Due Diligence Act, took effect on 1 January 2023. The word Sorgfalt, care, is in its name. The law obliges large companies to observe due diligence duties in angemessener Weise, in an appropriate manner. On 1 January 2024 the threshold fell to companies with 1,000 employees. In September 2025, the federal cabinet approved a draft amendment. Under the draft, the annual reporting duty would be dropped, and fines would apply only to serious violations. The basic duties of care would remain. On 14 January 2026 the Bundestag debated the draft for the first time and sent it to its committees.

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