Lieferkettensorgfaltspflichtengesetz: a tongue-twister of new supply chain regulations
Germany’s Supply Chain Due Diligence Act introduces human rights and environmental obligations that may indirectly affect Mexican companies integrated into global supply chains.
Germany’s Supply Chain Due Diligence Act (LkSG) establishes human rights and environmental obligations for certain companies throughout their supply chains. These include the implementation of risk management and assessment systems, preventive and remedial measures, internal reporting mechanisms, and periodic documentation requirements.
Although Mexican companies forming part of the supply chains of German companies subject to the LkSG are not directly subject to the sanctions established under German law, they may face additional contractual requirements, verification processes and requests for certifications from their customers.
Against this backdrop, strengthening due diligence, compliance and risk management processes becomes particularly relevant for companies operating in sectors such as automotive and other supply chains with a significant presence of German companies.
