Supply chain due diligence legislation in Germany: Scope of application
According to Article 1 of the SCDDA, the scope of application (regulated entities) is phased as follows:
- From January 2023: The law applies to enterprises headquartered in Germany (established under German law) and foreign enterprises with branches in Germany that employ 3,000 or more employees in Germany.
- From January 2024: The law applies to enterprises headquartered in Germany and foreign enterprises with branches in Germany that employ 1,000 or more employees in Germany.
It is clear that the SCDDA targets large enterprises operating in Germany, defined by the number of employees in Germany.
However, in terms of due diligence scope, the SCDDA requires regulated enterprises to carry out due diligence on their own operations, those of their subsidiaries, and their suppliers involved in the supply of goods and services.
Source: Compiled by the TTWTO-VCCI Research Group