IMDS & CDX Training | Compliance & Sustainability Solutions

German Supply Chain Due Diligence Act(GSCDDA)

The German Supply Chain Due Diligence Act (GSCDDA), formally called the Lieferkettensorgfaltspflichtengesetz (LkSG), is a law implemented in Germany to ensure that businesses respect human rights and environmental standards across their entire global supply chain.

Enforced from January 1, 2023, for large enterprises (and extending to smaller companies in 2024), the LkSG requires companies meeting specific employee thresholds to implement structured due diligence procedures within their operations and supply networks.

GSCDDA Services

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LkSG Compliance Assessment & Gap Review

Analyzing your existing supply chain processes to assess alignment with the LkSG and pinpointing areas that need enhancement.

Human Rights and Environmental Risk Evaluation

Performing comprehensive evaluations to detect potential violations of human rights or environmental standards within your supply chain.

Policy and Procedure Formulation

Supporting the creation or refinement of internal governance structures, policies, and due diligence systems in line with LkSG obligations.

Risk Mitigation and Corrective Action Planning

Advising suitable measures to proactively address identified risks and guiding remedial actions when compliance issues are detected.

Grievance Mechanism Development

Assisting in setting up a transparent, accessible, and equitable complaint handling system, as mandated by the legislation.

Supplier Assessment and Engagement Strategy

Facilitating robust supplier onboarding and oversight processes, including risk profiling, evaluations, and capability development.

Documentation and Reporting Assistance

Helping maintain accurate records and preparing the mandatory annual public report to meet LkSG disclosure requirements.

Awareness and Capacity Building

Delivering targeted training and awareness programs for employees and suppliers on LkSG compliance and best practices.

GSCDDA Performance Metrics by GPCCS

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01

Number of supply chain tiers mapped for risk assessment

Global PCCS has successfully mapped and performed risk assessments across up to 3-5 tiers of client supply chains, providing deep visibility into their upstream operations.

02

Percentage of high-risk suppliers identified/assessed

Through our rigorous due diligence process, 100% of our clients' high-risk suppliers were identified and subjected to thorough human rights and environmental assessments.

03

Number of human rights/environmental risks identified and mitigated

Our expert services identified over 75 specific human rights and environmental risks in client supply chains and provided actionable mitigation strategies, ensuring robust compliance.

04

Time saved for clients in GSCDDA risk assessment/reporting

By outsourcing the intricate GSCDDA due diligence and reporting processes, clients typically saved an average of 2-3 months in annual compliance efforts, allowing internal teams to focus on core business.

05

Reduction in compliance risks (related to GSCDDA)

Our proactive GSCDDA services contributed to an estimated 90% reduction in potential non-compliance fines and reputational damage risks for our clients operating under the German Supply Chain Due Diligence Act.

06

Percentage of supplier corrective action plans (CAPs) implemented

We facilitated the successful implementation of 95% of all identified supplier corrective action plans, significantly improving human rights and environmental performance in our clients' supply chains.

Compliance