EcoVadis Solution for the German Supply Chain Due Diligence Act (LkSG)

As of January 1, 2024, the second stage of the German Supply Chain Due Diligence Act (LkSG) goes into effect, mandating companies with 1,000+ employees to conduct an “abstract” risk analysis and perform “concrete” due diligence, take mitigating actions and produce detailed reporting on human rights impacts for tier-1 suppliers and suppliers in deeper tiers. Our Sustainability Intelligence Suite provides a comprehensive approach to addressing these due diligence and reporting requirements.

EcoVadis Sustainability Intelligence Suite

15 years of experience, 500 trained analysts, 2 million+ risk-screened companies and 250,000+ sustainability scorecards – all in one solution. Implement your BAFA-compliant LkSG risk management system in four steps:

Step 1: Identify Risk

Scan your supply base in days (not months!)

100% of suppliers

Step 2: Assess and Understand Performance

Engage selected suppliers with smart assessments

High risk, high spend, critical suppliers, etc.

Step 3: Drive Improvement

Suppliers get prioritized guidance & a platform to Improve & mitigate risks

Suppliers with priority Improvement areas

Step 4: Comprehensive Reporting

Easy, powerful reporting with always-on 360 monitoring

Step 1:

Fast, contactless ESG “abstract” risk analysis and document scan for 100% of suppliers with IQ Plus. Gain visibility and set priorities for due diligence steps – no supplier fees needed.

Step 2:

Follow IQ-Plus risk & spend-adjusted recommendations for which suppliers to engage in a Vitals questionnaire or Rating assessment. Review scorecards and determine the next steps.

Step 3:

Customized scorecard recommendations guide supplier Corrective Action Plans and E-learning, with 50+ courses to build capacity. Track supplier scores as they rise out of the risk range into the “performer” zone.

Step 4:

Pre-configured reports for LkSG and other international standards or local regulations (e.g. CSRD, UNGC). Get customizable dashboards and reports by ESG theme.

EcoVadis and the German Supply Chain Act: Sustainability intelligence for human rights due diligence obligations

Download

Already Trusted by 1,200+ Procurement Teams Worldwide

Detailed LkSG Requirements and How EcoVadis Can Help You Address Them

LkSG §5 Regular abstract risk analysis

With IQ Plus and Vitals, quickly identify and analyze risk exposure.

Continuously scan and profile unlimited suppliers across 220+ industries and 180+ countries for material ESG risk factors – no suppliers fee needed.
Access key supplier documents via industry-leading automated data mining.
360° Watch and live news monitoring of 100,000+ sources alert you of risk incidents.
Precise prioritization that guides due diligence next steps Carbon Heatmap to identify GHG reduction opportunities.

LkSG §5 Concrete risk due diligence and analysis

Sustainability scorecards to guide due diligence efforts.

Validated assessments for high-risk and high-spend suppliers.
Assessments available in 14 languages and adapted to suppliers’ material ESG issues and their company size (XS, S, M, L).
Backed by evidence- and analysis-based methodology and a team of sustainability experts reviewing supporting documents through [950+ ESG certifications, labels and standards.
Region and industry benchmarkable scores.
Prioritized improvement areas to guide suppliers’ mitigating actions.

LkSG §6 Preventive measures

Complete program management support with expert guidance.

Program strategy and deployment planning.
Policy guidance.
Buyer training.
Supplier onboarding and support.
Communications development.

LkSG §7 Remedial actions

Corrective plans and learning solutions to build resilience and help suppliers improve.

Corrective Action Plans (CAP) based on supplier scorecards, detailing risks of non-compliance and
priority ranking. Coordinate engagement with multiple customers at the same time.
E-learning platform with 50+ courses in nine languages to train you and your suppliers on ESG topics – from setting up a whistleblower system to carbon calculation, and more.
EcoVadis-approved partners to educate suppliers to optimize their response and improve their sustainability performance and practices.

LkSG §10 Reporting

The right business intelligence and customizable dashboards.

Easily generated reports on LkSG compliance, aligned to BAFA standards.
Custom dashboard reports with the option to filter by theme and 24 KPIs.
Support with outputs for GRI, DJSI, and your sustainability/CSR reports.
Assessment scorecards shareable with clients, investors and stakeholders.