🇩🇪Germany

Lieferkettensorgfaltspflicht-Compliance Overhead (LkSG Aufwand)

1 verified sources

Definition

LkSG requires companies to monitor human rights and environmental compliance across supply chains. Manual CoC documentation processes force companies to hire dedicated compliance officers, conduct repetitive supplier audits, and maintain complex spreadsheets for 5-year retention periods. No integrated system = duplicative effort across teams.

Key Findings

  • Financial Impact: €80,000–€150,000/year (estimated: 0.5–1 FTE compliance officer @ €60k + external audit coordination €20k–50k/year)
  • Frequency: Continuous (ongoing compliance obligation from 2023 onwards for 3,000+ employee firms; 2024 for 1,000+ employee firms)
  • Root Cause: LkSG § 1-6 mandates risk management systems but does not specify digitalization; most firms implement manual or spreadsheet-based tracking. Supply chain act enforcement creates perpetual audit burden.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Environmental Services.

Affected Stakeholders

Compliance Officer, Supply Chain Manager, Quality Assurance, Human Resources (due diligence)

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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