The LkSG (lieferkettensorgfaltspflichtengesetz) not just applies only to German companies, certain foreign companies are also subject to the LkSG, provided that they have a branch office in Germany and employ over 3,000 individuals in the country. Operating and distributing products in Germany alone does not fall under the Act. Although the Act doesn’t offer a specific definition of a branch office, it generally refers to a legally and financially separate business location from the parent company, with a designated area of responsibility, and intended to operate for a significant period. Starting in 2024, the employee threshold will be lowered to 1,000.
