36 2025 TSMA Transparency throughout the whole supply chain from the sourcing of raw materials up to ready-made components and products has been and still is a buzzword, which is widely used by European and national politicians. Consequently, commercial operators, which are part of the supply chain, will have to deal with additional comprehensive obligations not only in Europe, but globally. And additional obligations come hand in hand with additional higher costs to be and remain compliant. The following article aims at shedding some light into the jungle of EU and national supply chain law provisions and to which extent these might have an effect on your business by providing some information on the current (as per October 2024) status of these two legislative measures and by at the same time highlighting some of their key differences. 1. Pieces of National German and EU Legislation in the Supply Chain Area: In recent years, the landscape of corporate responsibility has undergone significant transformation, particularly in the realm of supply chain management. Two pivotal pieces of legislation—the EU Supply Chain Directive [“ESCD”] and the German Supply Chain Due Diligence Act [“GSCDDA”]—have surfaced as cornerstones in this evolution. 1.1 The German Supply Chain Due Diligence Act – GSCDDA: 1.1.1 The GSCDDA*), which came into force on January 1, 2023, mandates that large German companies/ and foreign companies with German branches regardless of their legal format with more than 3,000 employees (and from this year onward also those with over 1,000 employees) are obliged to implement rigorous due diligence processes to identify, assess, and mitigate human rights and environmental risks within their sometimes very complex supply chains. Given the fact that many of these larger German and multinational companies source and purchase products, components and parts globally directly or indirectly from suppliers, which are located in so-called “high risk” countries, it is quite obvious that this new law has a considerable impact on sourcing and purchasing strategies of these commercial operators. *) An English language version thereof can be found on the following web site: https://www.csr-in-
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