On July 22, 2021, the German Supply Chain Due Diligence Act (SCDDA) was published in the German Federal Law Gazette. Effective from January 1, 2023, onwards, the SCDDA will be applicable to German companies of all sectors with 3,000 employees or more, and will further expand to cover companies with 1,000 employees or more by January 1, 2024. According to SCDDA, German companies, and foreign companies with a branch or subsidiary office in Germany, will be responsible to meet human rights and environmental requirements of its global supply chain.
The SCDDA will heavily impact companies involved in business operations, factory production, sourcing, etc., in China whilst activities of direct and indirect suppliers throughout the entire product cycle (from raw materials to the end product) will need to demonstrate compliance with measures on preventing human rights and environmental rights violations.
IHK Pfalz, also known as the Chamber of Commerce and Industry for the Palatinate, provides expert opinions on various issues, such as economic matters, spatial planning, and many other projects to boost economic growth of the Palatinate’s business sector. Since the German Supply Chain Due Diligence Act (SCDDA) was passed by the German Bundestag on June 11, 2021, Cisema is one of the recommended social auditors for German SCDDA by IHK Pfalz to support German companies with supply chain audits in China.