Webinar
Webinar Recording: Supply Chain Act Implemented Pragmatically and Legally Sound: Practical Insights with Taylor Wessing
In a recent webinar by Tacto, the Supply Chain Due Diligence Act (LkSG) and the role of the Human Rights Officer were in focus. Participants gained practical insights into the legal requirements and practical implementation, including the use of Tacto software to support compliance processes.
The German Supply Chain Act (LkSG) aims to protect human rights and environmental obligations in global supply chains. It applies to companies in Germany with more than 1,000 employees and requires them to implement appropriate measures to monitor and uphold human rights and environmental standards along their supply chain.
Two groups of companies are affected by the LkSG:
- Directly affected: Companies with more than 1,000 employees, which are required to implement the LkSG in full as of 2024.
- Indirectly affected: Companies that are urged to comply with the LkSG because of their collaboration with larger customers, without falling directly under the law themselves.
The Role of the Human Rights Officer
A central topic of the webinar was the role of the human rights officer (German: Menschenrechtsbeauftragter, MRB), who oversees the implementation of the LkSG within the company. By law, appointing a human rights officer is not mandatory, but clear responsibility for compliance with the due diligence obligations must be assigned. The challenge lies in providing the appropriate resources and competencies within the company to perform this role effectively.
Core Responsibilities of the Human Rights Officer:
- Monitoring risk management and the measures taken to comply with the LkSG.
- Regular reporting to the management team.
- Ensuring documentation and monitoring the implementation of measures.
The webinar also discussed that a committee of responsible persons can take over the human rights officer's responsibilities as an alternative, especially when no single person with the necessary competencies is available. What matters is that the chosen setup can be argued convincingly if BAFA (the German Federal Office for Economic Affairs and Export Control) conducts a review.
Support from Tacto
Tacto offers a digital solution developed specifically for mid-market companies that covers the requirements of the LkSG simply and effectively. The software supports the entire process – from risk analysis to reporting.
Key Features of the Tacto Solution:
- Risk management:
- Conducting an abstract and a concrete risk analysis along the entire supply chain.
- Identifying and managing supplier risks and risk mitigation measures.
- Measure management:
- Managing action plans for risk mitigation and monitoring progress.
- Documenting and tracking the implementation of measures through clearly assigned owners.
- Documentation and reporting:
- The software automatically generates a report tailored to BAFA's requirements. This report contains all relevant data and documentation required to comply with the LkSG.
- The software automatically generates a report tailored to BAFA's requirements. This report contains all relevant data and documentation required to comply with the LkSG.
- Efficiency gains:
- With Tacto, manual processes such as managing questionnaires or creating reports are automated, saving considerable time and increasing accuracy.
Conclusion
The LkSG presents companies with new challenges, particularly regarding the monitoring and documentation of risks in their supply chain. Appointing a human rights officer to take on these responsibilities, or establishing a committee to oversee these obligations, is decisive for meeting the legal requirements.
The Tacto software offers a practical and comprehensive solution to support companies in fulfilling these obligations. With integrated functions for risk management, measure tracking, and reporting, it not only makes compliance with the LkSG easier but also enables companies to make their supply chain more sustainable and efficient.
In our webinar "Supply Chain Act Implemented Pragmatically and Legally Sound: Practical Insights with Taylor Wessing" with Dr. Martin Rothermel, attorney at the leading LkSG law firm Taylor Wessing, and André Petry, CEO of Tacto, you will learn how the law is interpreted and gain practical insights.
