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Spinat-Blätter

Comparison between CSDDD & Supply Chain Act (LkSG)🚚

Writer: Anna NeumannAnna Neumann
May 31, 20242 min read

Supply chain sustainability is a crucial consideration for sustainable operations. Recent directives at both the German (LkSG) and EU (CSDDD) levels mandate companies to assess and mitigate potential risks within their value chains. 


➡️However, these directives differ in several aspects:


1. What is it about?

  • LkSG: Specifies due diligence duties throughout the supply chain.

  • CSDDD: Requires analysis of supply chain impact on environment and human rights, with additional specific standards of due diligence including commitments to the 1.5°C target.



Comparison between CSDDD & LkSG: What is it about?

2. What about Climate Change?

  • LkSG: No specific focus on climate mitigation within the supply chain.

  • CSDDD: Mandates companies to develop and implement an annual transition plan in line with the CSRD, ensuring alignment with the transition to a sustainable economy and limiting global warming to 1.5°C, as per the Paris Agreement.



Comparison between CSDDD & LkSG: What about Climate Change?

3. What part of Supply Chain is considered?

  • LkSG: Considers only upstream value chain.

  • CSDDD: Requires consideration of both upstream and downstream value chains.




Comparison between CSDDD & LkSG: What part of Supply Chain is considered?

4. When to report?

  • LkSG: First report due within 4 months after the end of the fiscal year, by 2023 for companies with over 3,000 employees, and by 2024 for those with over 1,000 employees.

  • CSDDD: Reporting deadlines vary - by 2027 for companies with at least 5,000 employees and over 1.5 billion EUR turnover, by 2028 for those with at least 3,000 employees and over 900 million EUR turnover, and by 2029 for companies with at least 1,000 employees and over 450 million EUR turnover.




Comparison between CSDDD & LkSG: When to report?


5. How many companies are affected?

  • LkSG: Around 4,800 German companies are directly affected.

  • CSDDD: Affects approximately 5,500 large EU companies.




Comparison between CSDDD & LkSG: How many companies are affected?


6. Who should report?

  • LkSG: Applies to companies with 1,000 employees and a minimum turnover of 450 million EUR.

  • CSDDD: Applies to both EU and non-EU companies with at least 1,000 employees, with EU companies requiring a global net turnover of at least 450 million EUR, and non-EU companies needing a net turnover of at least 450 million EUR within the Union.




Comparison between CSDDD & LkSG: Who should report?




➡️We at Greenativity are happy to support you in preparing all necessary milestones, processes, and documentation for LkSG & CSDDD compliance. 


🤝Contact us for a free initial compliance check!



 
 
 

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