LkSG & CSDDD: Implementing sustainable due diligence obligations in the supply chain
Meet the requirements of the LkSG and the CSDDD - with practical guidance and digital solutions for sustainable corporate responsibility.
The German Supply Chain Due Diligence Act (LkSG) and the new EU Corporate Sustainability Due Diligence Directive (CSDDD) require companies to identify, assess and minimize human rights and environmental risks along their global supply chains. Our advice helps you to implement these complex requirements efficiently - in a legally compliant with minimal effort.
Why LkSG and CSDDD are relevant for your company
Obligations under the LkSG (since 2023/2024):
- Risk analysis of human rights and environmental standards, including those of direct suppliers
- Establishment of a risk management system with preventive and corrective actions
- Implementation of preventive and corrective actions
- Establishment of a complaints mechanism for affected individuals and groups
- Obligation to document and report to the Federal Office of Economics and Export Control (BAFA)
CSDDD - will gradually replace the LkSG from 2027. This will affect companies:
- Extended due diligence obligations at European level
- Liability for violations of human rights and the environment
- Applies to large companies and indirectly also to SMEs via the supply chain
- Obligation to develop and implement a transformation plan for climate neutrality
Our solution: consulting & implementation in four modules
Methodical, pragmatic and results-oriented: Funk's approach enables companies to efficiently implement the requirements of the annual risk analysis.
Step 1: Enter all direct suppliers into a Funk template
In the first step, all direct suppliers are assigned to both a country of origin and a product group.
Step 2: Automated data analysis with the Funk LkSG tool
In accordance with the requirements of the Supply Chain Act, all direct suppliers are subjected to an automated risk analysis in the second step. Based on a wide range of data sources, the Funk LkSG tool automatically determines the country and product group risk for each supplier. The tool also shows the risk profile of almost 30 possible individual risks. The goal is to identify and exclude low risk suppliers.
Step 3: In-depth analysis of suppliers with increased risk
In the third step, only direct suppliers with elevated risk levels by country and product group are considered. The more in-depth risk analysis includes a structured assessment of individual risks according to severity and probability of occurrence. In addition, other criteria such as influence, contribution to the cause, and business activities are considered.
Step 4: Deriving preventive and remedial measures
In the final step, necessary preventive measures are derived for critical suppliers. If specific violations have already occurred, appropriate remedial measures must be implemented.
Low effort, actionable results
The results of the risk analysis and the methodical procedure are then documented in a well-founded risk report. For Funk clients, the effort involved in the four process steps is minimal. However, the informative value of the risk assessment is high and actively supports companies in identifying appropriate preventive measures. The experts at Funk have planned the risk analysis in such a way that the legal requirements are linked to the lean processes of German SMEs. Furthermore, the identified risks can be easily integrated into a company's risk list.
Your advantages at a glance
Ensure compliance, efficiency and sustainability. Our LkSG and CSDD services offer you:
- Legally compliant implementation of legal requirements
- Efficient processes through digital tools & automation
- Strengthening supplier relationships through transparency
- Improved image through responsible supply chain management
- Early adaptation to upcoming EU requirements (CSDDD)
Act now - for compliance and competitiveness
Get individual advice and protect yourself in good time. Together, we implement LkSG and CSDDD requirements in a structured and practical manner.
Contact us now without obligationIhr Kontakt
