In January 2023, the Germany Supply Chain Due Diligence Act will come into effect, requiring businesses to monitor supply chains for human rights violations and compliance with environmental standards.
There has been supply chain legislation before whose goal was focused on making sure various aspects of ESG performance were enforced by companies. But, as Abigail Myers-Antiaye – the principal product compliance manager at Coupa – pointed out in a presentation at Coupa Inspire last week, supply chain practitioners have never seen compliance legislation that was so broad and impactful. In the past, this kind of ESG legislation was focused on “a specific risk domain, like child/forced labor like the 2020 Uyghur Forced Labor Act. Now we are seeing a move to all encompassing (ESG) legislation with significant penalties.”
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