The German Supply Chain Due Diligence Act (LkSG) has been in effect since January 1, 2023, requiring all companies subject to the law to submit regular reports on compliance with their human rights and environmental due diligence obligations. These reports must be submitted to the German Federal Office for Economic Affairs and Export Control (BAFA) no later than four months after the end of the fiscal year.

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The BAFA Reporting Questionnaire: Structure and Requirements

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Reporting to BAFA is done through a structured questionnaire containing open-ended and closed questions as well as multiple-choice options. By fully and truthfully answering these questions and publishing the generated report on the company's website, companies fulfill their reporting obligations under Section 10, Paragraph 2 of the LkSG.

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The areas covered in the questionnaire include:

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• Risk Management Oversight: What responsibilities have been assigned within the company and how management is kept informed.

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• Risk Assessment and Prevention Measures: Conducting regular risk analyses and implementing preventive measures along the supply chain.

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• Identification of Violations and Remedial Actions: Documentation of identified violations and description of measures taken.

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• Grievance Mechanisms: Establishment and use of internal and external complaint mechanisms for reporting violations.

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• Review and Adaptation of Risk Management: Processes to ensure continuous monitoring and improvement of measures.

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Benefits of Well-Structured Reporting

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Thorough and complete reporting on a company's due diligence obligations offers several advantages. It demonstrates the company's transparency and commitment to human rights and environmental protection, strengthens the trust of customers and partners, and protects the company from potential sanctions due to incomplete or inaccurate reporting.

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How Tacto Helps: Automated Data Collection and Reporting

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With Tacto, companies can streamline the entire LkSG reporting process. The platform offers:

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• Automated Completion of the BAFA Questionnaire: The questionnaire is individually and automatically completed and prepared for submission to BAFA.

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• Centralized Management of All Compliance Data: All required documents and data for reporting are managed in one place.

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• Support in Fulfilling All Due Diligence Obligations: The solution helps companies meet all LkSG requirements and maintain oversight of compliance measures.

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Conclusion: The BAFA Report as an Opportunity to Optimize the Supply Chain

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The LkSG and BAFA reporting requirements are not just a legal obligation — they also offer the opportunity to future-proof the supply chain and optimize internal processes. Companies that invest in a structured, digital solution now can benefit in the long term and strengthen their market position.

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For detailed insights into the BAFA reporting process and to prepare for your reporting obligations, download our whitepaper "The BAFA Reporting Questionnaire."

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The BAFA report is generated from the answers to a structured questionnaire. The questionnaire contains open-ended and closed questions as well as multiple-choice options.

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By fully and truthfully completing the questionnaire and publishing the generated report on the company's website, companies fulfill their reporting obligations under Section 10, Paragraph 2 of the LkSG.

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If you would like to review the questions that need to be answered as part of the BAFA report and their response options, download our whitepaper The BAFA Reporting Questionnaire now.

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The German Supply Chain Due Diligence Act, in effect since January 2023, requires affected companies to regularly publish a report on their due diligence obligations. The report is generated by completing a questionnaire and must be submitted to BAFA within four months of the fiscal year-end. Companies fulfill their reporting obligations through truthful completion and publication on their website.