🇩🇪Germany

Lieferkettengesetz-Compliance-Risiken und potenzielle Bußgelder

2 verified sources

Definition

Supply Chain Due Diligence Act (Lieferkettensorgfaltgestentzgesetz, LkSG) mandates all German companies with 1,000+ employees maintain documented supplier assessments for labour standards, environmental practices, conflict minerals. Manual tracking creates audit failure risk. Footwear industry affected: Birkenstock, Atlas, Oechsler all exceed threshold.

Key Findings

  • Financial Impact: Statutory penalty range: €5,000 (first offense) to €30,000 (repeat); estimated 15-25% of German footwear firms (50-80 companies) at medium-high non-compliance risk = €250k-€2.4m industry exposure annually
  • Frequency: Annual regulatory audits + ad-hoc government inspections triggered by NGO complaints
  • Root Cause: Manual vendor audit spreadsheets; no centralized vendor risk database; incomplete documentation of remediation efforts; lack of automated monitoring of supplier labour law changes

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Footwear Manufacturing.

Affected Stakeholders

Compliance Officer, Supply Chain Manager, Legal, Procurement Director, CSR Manager

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Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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