Companies that are legally required to adopt LkSG compliance with the law may face financial or trade limitations as a result of noncompliance. The supply chain act Germany presently states that the following consequences may occur:
- Fines of up to EUR 800,000, or up to 2% of the company’s annual global revenue.
- Administrative enforcement actions may result in a pecuniary penalty of up to EUR 50,000.
- Exclusion from securing governmental contracts in Germany for up to three years.