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Supply chain due diligence law: the key questions answered

Explainer: Germany's supply chain due diligence act has applied since 2023.

By the editors14 March 20244 min read

Germany's supply chain due diligence act has applied since 2023.

Anyone looking into “Supply chain due diligence law” quickly encounters a wealth of figures and opinions. For a sober assessment it pays to go to primary sources: official statistics, publications from the responsible authorities and companies' own reports.

The key is to separate short-term swings from structural developments. Individual monthly readings can be distorted by one-off effects; trends over several quarters are more telling.

For executives, the main question regarding “Supply chain due diligence law” is their own exposure: which costs, revenues and financing conditions depend on it, directly or indirectly?

A proven approach is to run scenarios and monitor leading indicators regularly. That puts decisions on a solid footing without reacting to every headline.