German Act on Corporate Due Diligence Obligations in Supply Chains

As we have mentioned in our announcement dated January 24, 2023, the German Act on Corporate Due Diligence Obligations in Supply Chains (Law) entered into force on January 1, 2023. The Law imposes significant obligations on German companies in relation to environmental law and human rights, covering their supply chains.

Although at first glance it may appear that the Law applies only to German companies, Turkish companies supplying products to Germany are also affected by the Law, as German companies are also held liable for violations of the Law by companies in their supply chains. German companies, which attach great importance to compliance with the Law, are updating their supplier selection criteria to select the supplier that poses the least risk to them and even reviewing their commercial contracts with their existing suppliers. Therefore, Turkish companies should also be aware of the obligations under the Law and pay attention to comply with them.