Supply chain law

Supply chain law marks a paradigm shift in international commercial law: companies are increasingly legally obliged to comply with human rights and environmental due diligence obligations along their global supply chains. In Germany, the Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz - LkSG), which has been in force since January 1, 2023, forms the central legal basis. It obliges companies above a certain size to analyze risks relating to human rights violations and environmental violations, take preventive measures and fulfill reporting obligations.

The topic is currently once again in the spotlight due to the adoption of the EU Supply Chain Directive (Corporate Sustainability Due Diligence Directive - CSDDD). The directive, which is due to come into force in 2026, goes beyond the German LkSG in many respects - for example, through a civil liability regulation and an extended scope to cover the entire value chain. This poses new legal challenges, for example with regard to the precise delimitation of corporate responsibility, dealing with complex supplier structures and the practical enforceability of control obligations in countries with a weak rule of law.

Key points of criticism and open legal questions currently concern the compatibility of obligations with international trade agreements, the possible overburdening of small and medium-sized companies, civil liability in the event of third-party violations and the need for effective state and civil society control mechanisms. The interplay between national and European law will also be a central topic of legal interpretation and practical application in view of the coexistence of the LkSG and CSDDD.

See the following publications:

• Hennrichs, Joachim, KMU im untermotorisierten "Omnibus", NZG 2025, 387 (with Hommelhoff and Allgeier).
• Hennrichs, Joachim, CSDDD declaration of protection instead of CSRD sustainability report, Audit Committee Quarterly 2025 II, p. 12 f. (with Hommelhoff) - available online.
• Widdrat, Leon/Harnischmacher, Sebastian, Applicability of the LkSG to legal entities under public law, CRZ 2023, 37 - 43.

Current research projects

The directors and staff of the Institute continuously monitor the development of German and European supply chain law. In addition to several publications, the dissertation of our former employee Dr. Leon Widdrat "LkSG and civil liability" (more on the INUR.blog) in particular is currently in the publication process, in which he has examined the civil law implications of the LkSG, taking into account developments at European level. In addition, an article on the prohibition of deterioration under Art. 1 para. 2 CSDDD and the effects on possible adaptation options with regard to the LkSG is currently in the drafting process.