SUPPLY CHAIN SUSTAINABILITY / LIEFERKETTENGESETZ

Lieferkettengesetz

From start to finish, fulfill your LkSG requirements with a single comprehensive solution.
Lieferkettensorgfaltspflichtengesetz, or the Supply Chain Act, is a German law that requires companies to act against human rights and environmental violations in their supply chain, all through the entire upstream and downstream value chain. The first roll out came into force on January 1st, 2023 for companies based and/or operating in Germany with more than 3,000 employees. From 2024 onwards, the employee thresholdwill be reduced to 1,000.

Daato offers a fully comprehensive solution for any company to find all in one place to fulfill the requirements of LkSG, which is easy to implement and simple to report according to BAFA.

Your LkSG Reporting Solution

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Set up a comprehensive risk management system​
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Analyze risks in regular basis​
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Apply preventative measures and take actions​
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Consider both direct and indirect suppliers, including sub tiers​
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Documentation with history logs (for audit)​
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Designation of responsibilities​
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Documentation and BAFA report
Daato’s LkSG solution has been reviewed by law firm for compliance

Start your LkSG compliance now

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Abstract Risk Analysis

Assess your suppliers at scale with Daato’s S-Score, the most advanced supplier sustainability risk score in the market based on country, product or material, and historic media monitoring scores.

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Concrete Risk Assessment

Send fully LkSG-focused intelligent supplier Self-Assessment Questionnaires (SAQs) dependant on their S-scores.
Each SAQ has been checked and approved by renowned law firm to ensure your due diligence compliance.

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Mitigation Actions

Receive action plan suggestions to mitigate flagged risks and automatically document all the steps in your audit log. You can use Daato’s tool to launch risk-specific training material and commission on-premise audits.

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Automated Risk Monitoring

Automate 24/7 real-time supplier monitoring globally across news, webpages, social media and NGOs with our integrated solution partner CURE Intelligence.
Avoid extra noises by filtering the LkSG-related topics.

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BAFA-Compliant Report

Generate your BAFA-compliant report ready for audit.
You also have the possibility to include your due diligence compliance data in your other ESG reports such as your EU Taxonomy alignment or ESRS.

Supplier score extended visual

Abstract Risk Analysis

Assess your suppliers at scale with Daato’s S-Score, the most advanced supplier sustainability risk score in the market based on country, product and material, dependency and historic media monitoring scores.

Extended supplier assessment  visual

Concrete Risk Assessment

Send dynamic supplier Self-Assessment Questionnaires  dependent on their S-scores, or bring your own to Daato.
Each SAQ has been checked and approved by a law firm to ensure your due diligence compliance.

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Live Risk Monitoring

Conduct efficient, global real-time monitoring of your suppliers’ risks with our integrated solution partner CURE Intelligence.

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Preventative Actions

Assess your suppliers at scale with Daato’s S-Score, the most advanced supplier sustainability risk score in the market based on country, product and material, dependency and historic media monitoring scores.

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Compliant Report

Generate your BAFA-compliant report ready for audit.
You also have the possibility to include your due diligence compliance data in your other ESG reports such as your EU Taxonomy alignment.

Why Daato?

Flexibility
Fully customizable to fit any supply chain characteristics.
Full Legislative Scope
All requirements of the directive are covered on Daato.
Supplier Friendly
Less frustration from your suppliers to boost their engagement.
Lieferkettensorgfaltspflichtengesetz requirements How to achieve them with Daato
§4.1 Establish a risk management system Assess, map and prioritze risks in your direct and indirect supply chains
§4.3 Set clear responsible individuals internally Assign and document responsibilities through our intuitive stakeholder management board
§5 Perform regular risk analyses Run social media monitoring to continuously assess risks associated with your suppliers
§6.2 Issue a policy statement  Bring your supplier code of conduct or build your own
§6.4 Lay down preventive measures to direct suppliers Share training videos on specific risks and receive guidance to build your prevention strategy
§7.1-3 Take remedial action Use our guidance to best tackle the identified risks and plan corrective measures
§8 Establish a complaints procedure  Open a whistle blower channel and streamline your action plan for each complaints
§9 Implement due diligence obligations with regard to risks at indirect suppliers Impose more disclosure for suppliers linked to high-risk materials to take actions where violations occur
§10.1-2 Document and report Generate your report in the format required by BAFA

Other relevant frameworks

Take advantage of Daato's modular approach to sustainability and consolidate your ESG data, processes and performance indicators.
Here are the relevant frameworks overlapping with LkSG:
ESRS for CSRD compliance
EU Taxonomy
European's Corporate Sustainability Due Diligence Directive
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Choose an all-in-one ESG management solution to ensure your compliance and start building your sustainability strategy