Chambers and Partners Leitfaden: Business & Human Rights 2025

In the recently published Business & Human Rights 2025 guide by Chambers and Partners, Jan-Ove Becker and Dr. Lukas Heber outline the current legal framework and recent developments concerning corporate responsibility for human rights in Germany.

The primary focus is on the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG), which has been in effect since January 2023 for companies with over 3,000 employees and will extend to those with over 1,000 employees starting in 2024. This legislation mandates companies to identify, prevent, and address human rights and environmental risks within their supply chains. Key obligations include conducting risk analyses, appointing a responsible officer, establishing a grievance mechanism, and providing annual reports. Non-compliance may result in fines and exclusion from public procurement processes.

Additionally, the authors discuss the European Corporate Sustainability Due Diligence Directive (CSDDD), anticipated to be implemented by 2027. This directive introduces extensive human rights and environmental due diligence requirements at the EU level, potentially affecting a broader range of companies. The authors emphasize the importance for businesses to proactively adapt their compliance structures in anticipation of these forthcoming regulations. The guide also touches upon the ongoing political discourse in Germany regarding potential amendments or relaxation of the LkSG.