On 22 July 2021, the new law regarding the obligation of companies to monitor their supply chains (the Supply Chain Act) was published in the Federal Gazette, which marks the end of the legislative process. The purpose of the new law, which is due to enter into force on 1 January 2023, will ensure that internationally accepted human rights standards and certain environmental standards are observed. Initially, the new law will apply to companies or groups of companies that normally have more than 3,000 employees. Companies will be required to perform risk assessments in their supply chains and make reasonable efforts to avoid, mitigate or eliminate violations. There will be administrative fines and the risk of temporary exclusion from public tender processes in case of non-compliance.
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