The Supply Chain Act is coming -

what you need to pay attention to now

From 2023, the due diligence audit will come into force through the Supply Chain Act. This is intended to increasingly require companies to comply with minimum ecological and social standards along their current supply chain. SHS Viveon's automated software helps companies prepare for violations with impending sanctions and fines.

Viele Unternehmen schrecken vor Warenkreditversicherungen zurück, weil sie komplex und aufwändig im Handling sind. Stattdessen übernehmen sie selbst das Ausfallrisiko in der Annahme: Ist doch bisher immer gut gegangen. Das ist riskant.

Which companies are affected? From January 2023, large German companies with more than 3,000 employees will initially be affected by the Supply Chain Act. The scope expands to companies with more than 1,000 employees from 2024.

The requirements also apply to companies with more than 250 employees and sales of more than €40 million if they generate more than half of their sales in a "risk sector." In addition, the law has been extended to foreign companies that have a branch office in Germany and employ a corresponding number of people there.

According to estimates by the EU Commission, a total of 13,000 companies in the EU are affected.

What are the obligations under the Supply Chain Act? The Supply Chain Act is intended to help establish a process that supports corporate due diligence in respecting human rights throughout the supply chain phase

Risk management system with risk analysis

Policy statement on respect for human rights

Establishment of a complaints procedure

Documentation of compliance with due diligence + an annual transparent reporting system

Introduction of preventive measures

Taking corrective action

Companies must be able to demonstrate that they have implemented the due diligence requirements described in the law that are feasible and appropriate in light of their individual context

What are the consequences of non-compliance? Above all, the damage to a company's reputation is a consequence that should not be disregarded and which threatens non-compliance. In addition, there are the following fines for violations of the due diligence obligations:

Periodic penalty payments up to 50,000 euros

Fines of up to 800,000 euros or 2% of annual turnover for companies with more than 400 million euros in turnover

Exclusion from public tenders for up to three years

"In the future, companies will be judged not only by how solidly and successfully they operate, but by how sustainably they do so."

Talk directly to your SHS Viveon expert, we look forward to hearing from you.

SHS Viveon offers a simple and centralized solution How can compliance with my customers' supply chain laws be monitored? SHS Viveon's platform provides easy control over your customers through compliance management. This is because it clearly identifies companies, determines decision-makers and owners (UBO) as well as financial and creditworthiness indicators, and matches companies and individuals with various sanctions and PEP (Politically Exposed Persons) lists. Your compliance process is completely digitized and standardized in the process. Quite simply, everything on one platform to preserve the integrity of your business. For more information about the one central solution to keep your customers in the picture, click here: Sanctions List Check - Compliance Module

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