Businesses around the globe, including those situated in Germany, continue to face difficulties because of disruptions in their supply chain created, in particular, by COVID-19 and the war in Ukraine.

To add to that, the new German Supply Act on Corporate Diligence Obligations in Supply Chains (the “Act”) is likely to place further pressure on companies because of the steps that they are required to take to ensure compliance.

In our latest insight, we explain which companies the Act will apply to, highlight the requirements under the Act in relation to risk management, explain the due dilligence obligations and steps a company can take if a supplier is in breach.