_Together with
TÜV we perform
supply chain
due diligence

we bring light into the dark

home

CLAYSTON LEGAL

German supply chain act
came into effect on
1 january 2023

The Supply Chain Due Diligence Act (LkSG) has been
in force since the beginning of 2023. Companies with
3.000 or more employees must evaluate compliance
with environmental and human rights in their supply
chains (Section 1 LkSG). These obligations encompass
not only a company's operation but also extend to its
direct suppliers.

Who we are

CLAYSTON cooperates with TÜV AUSTRIA to implement the Supply Chain Due Diligence Act (LkSG)
requirements. With our two-vison approach, we can ensure that companies' suppliers respect human rights and
protect the environment. We do this by looking twice: first on-site at the suppliers and second in the company itself.

Through TÜV Austria's close-knit network, we inspect production facilities and companies across industries
in the Asia-Africa region. Inspections cover compliance with organizational structures, human rights, and
environmental standards. TÜV Austria has over 100 years of experience in testing, inspection, certification,
conformity assessment, industry services and training.

CLAYSTON provides extensive legal and strategic advice to suppliers and companies on a wide range of
issues, co-inspects the suppliers. This can include, for example, advice on contractual issues or support
in conflict management. CLAYSTON has expert knowledge in corporate and commercial law, contract law,
and international business law. The firm is internationally recognized and operates offices in 24 countries.

Our offer
for
subject companies

Advisory

We are advising on compliance with the act.
We help companies understand the requirements
of the law and develop a compliance plan.

Risk Assessment

We are conducting a risk assessment. We help
companies identify and assess human rights risks
and environmental violations in their supply chain.

Due Diligence

We are developing and implementing due diligence
measures. We help companies develop and implement
measures to prevent or mitigate these risks.

Grievance

We are establishing a grievance mechanism. We help
companies develop a grievance tool for workers to
report violations.

Training

We are providing training to employees. We provide
training to employees on the requirements of the law
and how to implement due diligence measures.

Our offer
for suppliers

Survey & Inspection

We send a survey and identify risks.
We inspect and assess the severity of risks.

Actions

We can suggest taking appropriate action to
mitigate the risks, including a whistle-blower
system. We can provide training on human
rights and environmental standards.
We can work with the supplier to develop
and implement corrective action plans