German Supply Chain Due Diligence Act (LKSG)

Structure LkSG due diligence and risk management

From limited visibility to structured risk analysis, remediation and reporting, Worldfavor helps you build a scalable and audit-ready due diligence process aligned with LKSG requirements.

30-minute walkthrough tailored to your supply chain

German Supply Chain Due Diligence Act (LKSG)

Structure LkSG due diligence and risk management

From limited visibility to structured risk analysis, remediation and reporting, Worldfavor helps you build a scalable and audit-ready due diligence process aligned with LKSG requirements.

30-minute walkthrough tailored to your supply chain

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Trusted globally

Used by companies managing ESG due diligence at scale

From first risk screening to ongoing supplier engagement, teams rely on Worldfavor to structure their LkSG due diligence process.

interface : Supplier list sorted by risk criticality and suggested actions associated

The challenge

LkSG requires continuous risk analysis and actionable due diligence

Companies must identify, assess and address human rights and environmental risks across their operations and supply chain. Without a structured approach, meeting LkSG requirements becomes complex, resource-intensive and difficult to scale.

Identify risks across own operations and direct suppliers

Assess human rights and environmental risks continuously

Implement and track preventive and corrective actions

Maintain compliant documentation and reporting

interface : Supplier list sorted by risk criticality and suggested actions associated

The challenge

LkSG requires continuous risk analysis and actionable due diligence

Companies must identify, assess and address human rights and environmental risks across their operations and supply chain. Without a structured approach, meeting LkSG requirements becomes complex, resource-intensive and difficult to scale.

Identify risks across own operations and direct suppliers

Assess human rights and environmental risks continuously

Implement and track preventive and corrective actions

Maintain compliant documentation and reporting

interface : Supplier list sorted by risk criticality and suggested actions associated

The challenge

LkSG requires continuous risk analysis and actionable due diligence

Companies must identify, assess and address human rights and environmental risks across their operations and supply chain. Without a structured approach, meeting LkSG requirements becomes complex, resource-intensive and difficult to scale.

Identify risks across own operations and direct suppliers

Assess human rights and environmental risks continuously

Implement and track preventive and corrective actions

Maintain compliant documentation and reporting

Access sustainability expertise at every step, powered by our platform and expert team.

Access sustainability expertise at every step, powered by our platform and expert team.

Your approach

Structure LkSG due diligence from analysis to action

Use a structured approach to identify risks, assess impacts, and implement due diligence. Worldfavor combines ready-to-use workflows and proven ESG expertise for due diligence processes.

Risk identification

Map your supply chain and define your scope

Screen your operations and supplier base to identify human rights and environmental risks early and define your due diligence scope.

Risk identification

Map your supply chain and define your scope

Screen your operations and supplier base to identify human rights and environmental risks early and define your due diligence scope.

Action and follow-up

Assess human rights and environmental risks continuously

Evaluate risks across suppliers and operations to understand severity and prioritize where action is required.

Interface: collect relevant LkSG risk data in a structured way.

Action and follow-up

Assess human rights and environmental risks continuously

Evaluate risks across suppliers and operations to understand severity and prioritize where action is required.

Action and follow-up

Implement and track corrective actions

Define clear expectations with suppliers and track progress on preventive and corrective measures across your supply chain.

Set expectations and track action implementation

Action and follow-up

Implement and track corrective actions

Define clear expectations with suppliers and track progress on preventive and corrective measures across your supply chain.

In practice

Leverage a ready-to-use framework tailored to LkSG

Start with a structured approach from day one and focus your efforts on high-risk suppliers and areas.

In practice

Leverage a ready-to-use framework tailored to LkSG

Start with a structured approach from day one and focus your efforts on high-risk suppliers and areas.

Start with a focused scope and expand as your due diligence matures

Start with a focused scope and expand as your due diligence matures

Compliance workflows

Start your LkSG due diligence with a structured foundation

Move from limited visibility to a clear and structured view of your supply chain without supplier engagement, prioritize risks, and build an audit-ready due diligence process.

Identify

Identify risks across operations and direct suppliers

Assess

Assess human rights and environmental risks continuously

Act

Define expectations and implement corrective actions with suppliers

Report

Maintain compliant documentation and reporting

AI screens suppliers, identifies risk signals, and defines where to act first.

AI screens suppliers, identifies risk signals, and defines where to act first.

Regulatory requirements

LkSG requirements made clear

LkSG requires companies to conduct due diligence on human rights and environmental risks, implement preventive and corrective measures, and maintain transparent reporting across their operations and supply chain.

Which companies are affected by LkSG

European company

German companies with more than 1,000 employees, including both domestic entities and German-registered branches of foreign companies.

European company

German companies with more than 1,000 employees, including both domestic entities and German-registered branches of foreign companies.

Non-European company

Foreign companies with operations in Germany meeting the same employee threshold through their German entities.

Non-European company

Foreign companies with operations in Germany meeting the same employee threshold through their German entities.

What LkSG requires companies to do

Identify

Identify human rights and environmental risks across operations and direct suppliers

Identify

Identify human rights and environmental risks across operations and direct suppliers

Assess

Conduct regular and event-based risk analyses

Assess

Conduct regular and event-based risk analyses

Act

Implement preventive measures and remediate identified risks

Act

Implement preventive measures and remediate identified risks

Monitor

Monitor effectiveness of actions and due diligence processes

Monitor

Monitor effectiveness of actions and due diligence processes

Report

Maintain documentation and publish annual reports

Report

Maintain documentation and publish annual reports

What this means in practice

To comply with LkSG, companies need to:

Interface: collect relevant LkSG risk data in a structured way

identify and prioritize risks across operations

Define expectations & implement corrective actions

Maintain structured and auditable documentation

Maintain a structured and auditable due diligence process

Maintain a structured and auditable due diligence process

Make LkSG actionable with Sustainable Sourcing

Free demo • No commitment • 30 minutes

Make LkSG actionable with Sustainable Sourcing

Free demo • No commitment • 30 minutes

Make LkSG actionable with Sustainable Sourcing

Free demo • No commitment • 30 minutes

The system

A system for structured and continuous due diligence

Worldfavor centralizes supplier data, risk workflows and due diligence processes so you can manage LkSG requirements in one structured system.

Supplier data

Keep supplier, risk and due diligence data in one place

Risk workflows

Structure risk analysis, assessments and follow-up actions

Expert-driven frameworks

Use continuously updated content aligned with LkSG requirements

AI-supported risk screening

Identify human rights risks and prioritize where to act before engaging suppliers

LkSG requires continuous risk management. Worldfavor is built to simplify and scale it.

LkSG requires continuous risk management. Worldfavor is built to simplify and scale it.

Enterprise readiness

Built for compliance, auditability, and resilience

Built-in expertise, automation, and a robust technical foundation to make compliance seamless, so teams can focus on action, not administration.

Learn more

Explore LkSG resources and guidance

Access practical guides, expert insights, and step-by-step explanations to better understand LkSG and how to prepare.

Learn more

Explore LkSG resources and guidance

Access practical guides, expert insights, and step-by-step explanations to better understand LkSG and how to prepare.

Frequently asked questions

Frequently asked questions

What is LkSG and which companies must comply?
Does LkSG apply to our German subsidiary or foreign entity?
What does LkSG require companies to do, and how often?
What is event-based risk analysis and when does it apply?
Does LkSG apply to indirect suppliers?
How do I identify and prioritise LkSG risks across my supply chain?
How does Worldfavor support LkSG compliance?
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Verified reviews

4.8/5

Join our satisfied customers

Ready to simplify Sustainability ?

Explore the platform free of charge in a tailored 30-minute demo.

Instant supplier ESG insights

Automated due diligence

Built-in regulatory alignment

Ready to simplify Sustainability ?

Explore the platform free of charge in a tailored 30-minute demo.

Instant supplier ESG insights

Automated due diligence

Built-in regulatory alignment

Ready to simplify Sustainability ?

Explore the platform free of charge in a tailored 30-minute demo.

Instant supplier ESG insights

Automated due diligence

Built-in regulatory alignment

Schedule demo
Schedule demo