- This Act applies not only to companies with their registered office or principal place of business in Germany, but also to foreign companies that have a branch office in Germany. The new obligations for supply chain due diligence will inevitably impact foreign companies doing business with German companies.
- One of the core elements of duty of care is the establishment of a risk management system to identify, avoid or minimize the risks of human rights violations and damage to the environment. The law sets out what preventive and remedial measures are necessary, and requires complaints procedures and regular reporting.
- The law obliges companies to fulfill their due diligence obligations in their supply chains with regard to respecting internationally recognized human rights and certain environmental standards. The responsibility of the companies no longer ends at their own factory gate, but exists along the entire supply chain.
- Fines can be imposed if companies fail to meet their legal obligations. These can amount to up to 8 million euros or up to 2 percent of global annual sales.
To learn more, please visit the official page
of the Federal Ministry of Economics and Climate Protection
Meanwhile, there are some challenges in meeting GSCA requirements, as well as meeting greater ESG goals. The further down a supply chain you dive, the harder it is to get timely, trusted and accurate data. Without understanding the entire negative impact and environmental risks, including supply chains, it is impossible to make systematic change and build a sustainable business.
Marine Digital provides ESG analytics and monitoring for all companies
using ocean shipping and maritime supply chains. Analyzing and measuring economic, environmental, and operational risks in maritime transportation and logistics, our machine learning solution ensures transparent and trusted assessment of the supply chain's sustainability and performance as well as potentials for optimization of financial costs and environmental impacts.
A wide variety of stakeholders, different methodologies and reporting standards make supplier monitoring complicated. To overcome these obstacles, we apply truly one-of-the-kind approaches to efficiency factors' analyses aligned with IMO Protocol, GHG Protocol
The ESG analytics gap across the value chain is still a barrier to sustainability for businesses and building a strong ESG strategy, and we know how hard to get reliable and trusted data.
You can learn more about Marine Digital ESG Solution
here, or if you have any questions, contact our experts.
Read more about ESG Reporting: What You Need To Know