The regulatory environment
Reporting standards such as the German Sustainability Code (DNK), CDP, or the Global Reporting Initiative (GRI) formulate various requirements for companies with regard to sustainable supply chain strategies and management. However, companies are also increasingly required by law to align their supply and service chains sustainably, e.g. through the European Corporate Sustainability Reporting Directive CSRD, the German Supply Chain Due Dilligence Act (LkSG) or the European Supply Chain Directive CSDDD. The latter reached a further milestone in December 2023 with the agreement between the Council and Parliament on its adoption, which is now expected in the course of 2024.
The requirements include, among others, a declaration of principles, the analysis of environmental and human rights and/or social risks, but also opportunities in various stages of the value chain, the development and implementation of prevention and mitigation measures, the introduction of a grievance mechanisms, documentation and reporting routines, the implementation of an ongoing due diligence management system.