Despite ongoing discussions in Brussels and Berlin about the “Stop-the-Clock” initiatives, the German Supply Chain Due Diligence Act (LkSG) remains in full force for 2026. For companies with at least 1,000 employees, the mandate is clear: you must maintain an effective risk management system that spans your entire supply chain—not just your direct suppliers.

The Shift from Reporting to Remediation In 2026, the BAFA (Federal Office for Economic Affairs and Export Control) has pivoted its focus. It is no longer enough to simply file a report; auditors are now demanding evidence of preventative measures and a functioning complaints procedure (Beschwerdeverfahren). If you cannot show how you responded to a specific risk in your tier-2 supply chain, you face fines of up to 2% of annual turnover.

Mastering the LkSG with Enactia:

1. Risk Analysis 4.0: Automate the identification of human rights and environmental risks across your global supplier base.

2. Digital Grievance Mechanism: Deploy a compliant, multilingual complaints channel that integrates directly into your risk register.

3. Policy & Training Hub: Automatically distribute your “Policy Statement” (Grundsatzerklärung) to all stakeholders and track digital signatures for audit-ready proof.

The Result? You transform a complex administrative burden into a transparent, ethical supply chain that strengthens your brand’s “Made in Germany” reputation.

Automate your LkSG workflows and secure your supply chain. > Request your Enactia LkSG Demo here →