LkSG: DIHK demands further relief measures

The draft amendment to the German Act on Corporate Due Diligence in Supply Chains (LkSG) aims to ease bureaucratic burdens on companies. The German Chamber of Commerce and Industry (DIHK) welcomes the elimination of reporting obligations but calls for further measures.

The German government has presented a draft law to amend the LkSG. The objective is to reduce the bureaucratic burden on companies and make due diligence obligations more business-friendly. The DIHK views the proposed elimination of the reporting obligation positively but sees a need for further improvements.

2025-10-14-Infobox-Lieferkettensorgfaltspflicht

Background

Since 2023, the LkSG requires companies with at least 1,000 employees in Germany to uphold human rights and environmental due diligence obligations along their supply chains. For companies with complex supply chains, meeting these obligations entails significant costs and substantial bureaucratic effort. Additionally, business partners in the supply chain are heavily burdened by information requests and the passing on of due diligence obligations ("trickle-down effect"). While the competitiveness of German companies suffers, it remains questionable whether the regulations contribute to sustainably improving the human rights situation in supplier countries.

Important for companies

Relief through the elimination of the reporting obligation: Companies will no longer be required to prepare yearly LkSG reports. All other due diligence obligations remain unchanged and must still be documented internally.
Reduced sanctions: Fines will only be imposed in cases of severe breaches of duty.
Trickle-down effect: The proposed changes do not provide relief for suppliers. Practical solutions are necessary. Standardized self-assessments and digital tools can reduce administrative efforts.
Focus on EU regulations: Companies must continue to prepare for the upcoming implementation of the EU CSDDD.

DIHK's demands

Abolition of the LkSG or at least further relief measures
Fines only as a last resort in cases of severe human rights violations
Abolition of disproportionate revenue-based fines
Abolition of exclusion rules in public contracts or only a temporary exclusion for serious violations
Supervisory authorities: Focus on incident-based audits and adopt a dialogue-based approach
Better consideration of the burden on SMEs in supply chains and a focus on practical solutions