Germany — Right before the Christmas holidays, the German Federal Office of Economics and Export Control (BAFA) published a handout on the principle of materiality. The Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG) requires companies to establish appropriate processes for implementing their due diligence obligations along the supply chain (§3). In a 30-page document (German language), the federal authority explains this principle and provides guidance for practical implementation.
NEXT STEP: The LkSG comes into force on January 1, 2023.
Source: BAFA