New Supply Chain Act: Strict rules from 2023

New Supply Chain Act with strict rules for companies in Germany

German companies are required by law to comply with basic human rights standards in their supply chains from 2023. There are clear requirements for the implementation. Acta Nova supports this with the perfect IT platform for simple and digital process handling.

To whom does the German Supply Chain Act apply?

Globalisation has made supply chains longer and more complex. In addition, many products and raw materials come from developing countries with poor environmental and working conditions. For this reason, the Supply Chain Act was passed in Germany on 25 June 2021. The aim is to improve the protection of human rights in global supply chains. (Source: Federal Ministry for Economic Cooperation and Development Germany) Implementation must start in January 2023. Initially, this will only affect companies with more than 3,000 employees. From 2024, the law will also apply to companies with more than 1,000 employees.

The Supply Chain Act and the protection of human rights

The Supply Chain Act is intended to send a clear signal to companies that human rights must not be sacrificed to economic interests. For example, companies are responsible for ensuring that the prohibition of child and forced labour is observed, and this applies both to the company itself and to its direct suppliers. Companies are deemed to have a duty of care, from the raw materials to the finished sales products. Human rights violations in the supply chain must be identified and remedial action taken where there is clear evidence of violations.

What is the responsibility for companies?

By law, companies in Germany must ensure that human rights are respected in their supply chains. The requirements are graded according to the respective level of influence within the supply chain. For example, if a violation of human rights occurs in the company's own business operations, the measures taken must put an end to it.

In the case of direct suppliers, there must at least be a concrete plan to minimize or prevent the violation. It is clear that companies must react as soon as there are clear indications of violations.

What about an EU Supply Chain Act?

Since February 2022, there has additionally been a proposal at EU level for a directive on sustainability obligations along the supply chain of companies. Here, too, all companies of a certain size must identify and prevent risks to both people and the environment, evaluate measures, set up complaint procedures and report publicly on the exercise of due diligence. This obligation applies both to the finished product and to its disposal and is therefore even stricter.

Acta Nova: The perfect platform for mapping your supply chains

RUBICON‘s Acta Nova offers you a central platform for mapping the processes and workflows of your supply chains. All steps are transparently documented and stored in a secure and structured way.

Central documentation for a quick overview

Acta Nova is easy to use as a platform for mapping your supply chain processes and workflows. It can be flexibly adapted to a wide range of scenarios. Review and approval processes can be audited. Approvals can be digitally actioned with a mouse click, if required. All steps are documented automatically and are audit-proof. The platform combines policies, reporting and actions so that, depending on your company, all documents and information can be accessed centrally and instantly.

Modules for expansion with self-service for suppliers

Acta Nova can be enhanced with various modules to add a wide range of functions. For example, the portal function enables direct suppliers to upload documentation. They retain full control over all access rights.

This service also works on smartphones, which means that photos and GPS data from smartphones can be used for documentation purposes.

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