Supply Chain Act, Corporate Sustainability Reporting Directive (CSRD) and the Like: Effectively Implementing Due Diligence Obligations in Supply Chain Management
German companies face major challenges as a result of the German Supply Chain Act of 2023. As part of its due diligence obligations, heightened risks regarding human rights and environmental standards must be identified and mitigated in global supply chains. In addition, under the Corporate Sustainability Reporting Directive (CSRD), which has already entered into force in 2024, supply chain and stakeholder management has also become a top priority. The Funk Risk Academy's due diligence training courses support your company in providing target-aimed and efficient training for suppliers as well as your own business units – including audit-proof course certificates. This enables you to preventively and proactively deal with your company’s supply chain risks.
What is the German Supply Chain Act?
Since January 2023, the German Supply Chain Act has obliged affected companies to comply with due diligence obligations stipulated in the Act. These requirements intend to mitigate human rights violations and environmental risks in companies’ supply chains.
Who is affected?
Since 2023:
Companies with more than 3,000 employees in Germany
Since 2024:
Companies with more than 1,000 employees in Germany
Expected from 2027 onwards:
- The Corporate Sustainability Due Diligence Directive (CSDDD) introduces an EU-wide supply chain law
- Companies with more than 1,000 employees
- > €450 million (net) turnover
What are the penalties for violations?
Companies that violate the German Supply Chain Act may face the following sanctions:
- Fines of up to eight million euros or up to two percent of annual global turnover
- Exclusion from public procurement for up to three years for serious violations
What measures must companies take?
Based on the findings of companies’ risk analysis of direct suppliers, they must implement preventive measures. Due diligence training courses are critical to raise awareness of supply chain risks in both the company's own employees as well as in suppliers with identified heightened risk.
Act now to ensure sustainable supply chain management
Funk is your reliable partner for successful compliance with your due diligence obligations under the German Supply Chain Act, the CSDDD, and the CSRD.
The German Supply Chain Act has been in force since January 2023 and sets out comprehensive requirements for annual risk analysis and risk-minimizing preventive measures along the supply chain. Funk enables companies to implement these requirements in just four steps.
We support your company in four steps on the way to sustainable supply chain management:
Preventive measures are necessary and effective
Funk supports you in the step-by-step identification, evaluation, and prioritization of human rights and environmental risks in your supply chain. We also work with you to define appropriate and effective preventive measures for any identified supply chain risks. In particular, the Supply Chain Act requires training for direct suppliers with heightened risk as well as your company’s own employees as an appropriate measure for risk mitigation. Funk has therefore developed special due diligence training courses for you in order to ensure that legal obligations are met.
Funk due diligence training courses: The viable way to reduce your supply chain risks
Via our Funk Risk Academy training courses, we provide you with targeted support in fulfilling your due diligence obligations with regard to awareness-raising preventive measures in respect of human rights and environmental standards. Companies can individually assign courses to suppliers with heightened risk via the Funk learning platform or their own learning management system. Upon successful completion of the course, an audit-proof certificate is automatically generated to attest that the prevention measure has been fulfilled.
Your advantages at a glance
- Resource-saving implementation of preventive measures
- Targeted mitigation of supplier risk with Funk due diligence training courses
- Courses are available in five UN languages as well as German, other languages can be made available upon request
- Efficient allocation of courses to suppliers via the Funk learning platform
- Receipt of a certificate after successfully completing a supplier training course
- Target group-oriented courses
- Our team of experts is continuously at your side from concept to implementation
Selection of your due diligence training courses
Our Funk due diligence training courses feature legal positions plus basic training relevant to your suppliers.
Basic Training
- Introduction to the German Supply Chain Act for suppliers
- Outlining responsibilities of suppliers in safeguarding human rights and environmental standards
- Establishment of risk management measures as a supplier
- Introduction of sustainable supplier management
- Mapping responsibilities of suppliers in the complaints process
Prevention of Child Labor
- Definition of child labor based on international conventions and directives
- Depiction of the consequences of child labor
- Highlighting high-risk commodity groups and geographical regions
- Mapping prevention measures for suppliers
Freedom of Association
- Definition of freedom of association on the basis of international conventions and directives
- Depiction of the consequences of lack of freedom of association
- Highlighting high-risk commodity groups and geographical regions
- Mapping preventive measures for suppliers
Prevention of Water Pollution
- Definition of water pollution based on international conventions and directives
- Depiction of the consequences of water pollution
- Highlighting high-risk commodity groups and geographical regions
- Mapping prevention measures for suppliers
Prevention of the Release of Mercury
- Definition of harm unfolding by the release of mercury based on international conventions and directives
- Depiction of the consequences of the release of mercury
- Highlighting high-risk commodity groups and geographical regions
- Mapping prevention measures for suppliers
Prevention of Forced Labor
- Definition of forced labor based on international conventions and directives
- Depiction of the consequences of forced labor
- Highlighting high-risk commodity groups and geographical regions
- Mapping prevention measures for suppliers
Internal Security
- Definition of air pollution based on international conventions and directives
- Depiction of the consequences of air pollution
- Highlighting high-risk commodity groups and geographical regions
- Mapping prevention measures for suppliers
Prevention of Excessive Water Use
- Definition of excessive water use based on international conventions and directives
- Outlining the consequences of excessive water use
- Highlighting high-risk commodity groups and geographical regions
- Mapping prevention measures for suppliers
Prevention of Shipment of Hazardous Waste
- Definition of hazardous waste based on international conventions and directives
- Depiction of the consequences of the shipment of hazardous waste
- Highlighting high-risk commodity groups and geographical regions
- Mapping prevention measures for suppliers
Occupational Safety
- Definition of occupational safety on the basis of international conventions and directives
- Depiction of the consequences of the lack of occupational safety
- Highlighting high-risk commodity groups and geographical regions
- Mapping preventive measures for suppliers
Prevention of Soil Pollution
- Definition of soil pollution based on international conventions and directives
- Depiction of the consequences of soil pollution
- Highlighting high-risk commodity groups and geographical regions
- Mapping prevention measures for suppliers
Prevention of Discrimination
- Definition of discrimination based on international conventions and directives
- Depiction of the consequences of discrimination
- Highlighting high-risk commodity groups and geographical regions
- Mapping preventive measures for suppliers
Working Conditions
- Definition of fair working conditions based on international conventions and directives
- Depiction of the consequences of poor working conditions
- Highlighting high-risk commodity groups and geographical regions
- Mapping preventive measures for suppliers
Prevention of Air Pollution
- Definition of fair working conditions based on international conventions and directives
- Depiction of the consequences of poor working conditions
- Highlighting high-risk commodity groups and geographical regions
- Mapping preventive measures for suppliers
Prevention of Expropriation
- Definition of expropriation based on international conventions and directives
- Depiction of the consequences of expropriation
- Highlighting high-risk commodity groups and geographical regions
- Mapping prevention measures for suppliers
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