Bureau Veritas' Solution for German Supply Chain Due Diligence Act

The German Supply Chain Due Diligence Act (Supply Chain Act) came into force on January 1, 2023, and regulates companies' responsibility for compliance with human rights in global supply chains. These include protection against child labor, forced labor and discrimination; the right to fair wages and protection against environmental violations. The Supply Chain Act will initially apply to companies with more than 3,000 employees in Germany, and from 2024 also to companies with at least 1,000 employees.

What's the next step for affected companies?

•	Companies are required to set up processes, to identify, assess, prevent and remedy human rights and environmental risks and impacts in their supply chains, and in their own operations.
•	They must make sure they provide ways for employees of 'indirect' suppliers to file a complaint.
•	Companies must publish an annual report outlining the steps they have taken to identify and address these risks.

OUR Solutions

We support companies holistically in the implementation of the Supply Chain Act- Analyze value chains from direct to indirect suppliers and sort their suppliers by risk level. Continuously improve the onboarding of their suppliers in a sustainability due diligence process. Collect evidence and comply with regulatory requirements.

The due diligence obligations include:

•	Establishing a risk management system
•	Designating a responsible person or persons within the enterprise
•	Performing regular risk analyses (nota bene: minimum yearly)
•	Issuing a policy statement
•	Laying down preventive measures in its area of business and vis-à-vis direct suppliers
•	Taking remedial actions
•	Establishing a complaints procedure
•	Implementing due diligence obligations about risks at indirect suppliers
•	Documenting and reporting

Bureau Veritas will guide you in developing a solid strategy to integrate ESG into a due diligence approach to comply with the Supply Chain Act. This approach also includes support in creating the necessary documentation, which is required by the law.

OUR CLARITY SOLUTION

Clarity by Bureau Veritas is a digital solution that helps you meet your ESG obligations, analyze your supply chain and comply with the requirements of the Supply Chain Act. The tool enables the supply chain to be mapped, including risks, and the results to be validated by collecting self-assessments from your suppliers. In addition, the results of the on-site audits can also be integrated into the tool.

With direct access to the dashboard, you can get a dynamic overview of your supply chain and create reports on individual modules and calculate your personal sustainability maturity level.

4-step approach to analyze the supply chain following the supple chain act requirements

1	RISK PROFILING TO FOCUS ON HIGH-RISK SUPPLIERS
	Combining a sector-specific (NACE Codes) and country-specific method* as per BAFA’s recommendations, your suppliers are sorted by Low risk/Low-Medium risk/Medium-High risk and High-risk profiles.
2	SELF-ASSESSMENTS TO ONBOARD YOUR SUPPLIERS & COLLECT EVIDENCE
	Deploying a 34-question compliance checklist following the requirement of the supply chain act across your supply chain through the Bureau Veritas platform via a simple URL.
3	DIGITAL DASHBOARD TO GET THE GLOBAL PICTURE & GAIN IN EFFICIENCY
	Visualizing your suppliers' risk profile and/or self-assessed compliance score and accessing the evidence they shared, you are able to monitor your supply chain with a click.
4	ONSITE AUDITS TO FOLLOW UP ON REMEDIAL ACTIONS
	Wherever it’s needed, send BV auditors on the ground to conduct analysis and verifications to ensure your suppliers manage their nonconformities.

Visit our Clarity Services Page to learn more

Bureau Veritas - Your Sustainability Partner

Bureau Veritas has long partnered with different industry stakeholders to assist in product quality and compliance. Our comprehensive product Testing, Inspection and Certification solutions can improve transparency and meet regulatory compliance.

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Global network of 1000+ trained and qualified auditors	Field expertise and consultation service	Full visibility of your supply chain (Tier 2 suppliers and beyond)	Support you with an established and sophisticated approach	Clarity is BV’s digital solution to your legal obligation

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