German Supply Chain Due Diligence Act (LkSG)
Current Status and What Companies Should Know (Updated 2025)
Monitor legal developments closely
Maintain reasonable due-diligence practices
Stay prepared for upcoming EU regulations
Communicate proactively with suppliers
Overview
The German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG) originally entered into force in 2023 to improve human-rights and environmental protections across global supply chains. The law established due-diligence expectations for companies operating in Germany, focused on identifying, preventing, and addressing risks in their own operations and among direct and indirect suppliers.
While the core objective of promoting responsible sourcing remains important, the legal and political situation around LkSG has changed significantly since its introduction.
While the core objective of promoting responsible sourcing remains important, the legal and political situation around LkSG has changed significantly since its introduction.
Some of the main violations relate to:
Regulatory Status: Uncertain and Evolving
As of 2025, the future of the LkSG is under active political review in Germany, and key aspects of its enforcement and scope may change. The current government has publicly indicated an intention to amend, scale back, or repeal parts of the Act. Additionally:
Certain procedural and enforcement activities have been suspended or are being reconsidered.
The expansion of the Act to apply to additional company sizes or categories may be delayed, modified, or cancelled, depending on upcoming legislative decisions.
Planned EU-level regulations (such as the Corporate Sustainability Due Diligence Directive, CSDDD) may supersede or replace national rules.
Because legislative discussions are ongoing, the applicability and practical obligations under the Act may change without advance notice.
Important:
To avoid providing outdated or incomplete compliance information, this page does not describe specific thresholds, timelines, or mandatory duties that may no longer be accurate.
Important:
To avoid providing outdated or incomplete compliance information, this page does not describe specific thresholds, timelines, or mandatory duties that may no longer be accurate.
What This Means for Companies
Despite the regulatory uncertainty, companies with operations in Germany or supplying German customers should continue to:
Monitor legal developments closely
The scope, enforcement, and future of the LkSG — as well as potential EU-level directives — are subject to ongoing political negotiation.
The scope, enforcement, and future of the LkSG — as well as potential EU-level directives — are subject to ongoing political negotiation.
Maintain reasonable due-diligence practices
Regardless of legal obligations, risk-based supply-chain management remains a market expectation among customers, investors, and regulators worldwide.
Regardless of legal obligations, risk-based supply-chain management remains a market expectation among customers, investors, and regulators worldwide.
Stay prepared for upcoming EU regulations
Even if the LkSG is amended or repealed, the European Union is pursuing a common framework that may introduce similar due-diligence obligations in the near future.
Even if the LkSG is amended or repealed, the European Union is pursuing a common framework that may introduce similar due-diligence obligations in the near future.
Communicate proactively with suppliers
Transparency, risk identification, and basic documentation processes remain best practices that help organizations adapt to regulatory changes with minimal disruption.
Transparency, risk identification, and basic documentation processes remain best practices that help organizations adapt to regulatory changes with minimal disruption.
How ApiraSol Supports You
ApiraSol helps organizations navigate regulatory uncertainty and adopt robust, flexible supply-chain due-diligence practices that are aligned with international expectations—regardless of short-term political changes.
Our support includes:
Our support includes:
Supplier mapping and risk screening
Ongoing monitoring of ESG indicators
Documentation management and reporting support
Alerts on regulatory changes affecting supply-chain obligations
Strategic readiness for future EU or national legislation
Whether the LkSG continues in its current form, is amended, or replaced by EU-wide rules, our tools and expertise help companies stay informed and prepared.
Disclaimer: This page reflects the status of the LkSG as of 2025, during an ongoing legislative review. Because the situation may evolve, companies should seek up-to-date legal advice and monitor further announcements from German and EU authorities.
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