On 13 April 2022, the Indo-German Chamber of Commerce, in partnership with amfori and Löning - Human Rights and Responsible Business launched a Hybrid Training focusing on the German Supply Chain Due Diligence Act in a virtual event called “Growing with Responsibility: Breaking Down the German Supply Chain Due Diligence Act”.
The German Supply Chain Due Diligence Act - Lieferkettensorgfaltspflichtengesetz (LkSG) is set to be enforced on 1 January 2023 for companies with over 3000 employees and will be applicable for companies with over 1000 employees on 1 January 2024. The Act will require mandatory compliance on human rights due diligence for companies headquartered in Germany as well as potentially affect German companies’ subsidiaries and suppliers in India as well as Indian companies having business concerns in India.
The Hybrid training seeks to provide companies with practical knowledge and the means to develop and implement a robust supply chain due diligence process geared toward compliance with the German SCDD Act.
The “Hybrid Training Supply Chain Due Diligence Manager” was jointly unveiled by three prominent guests – Stefan Halusa, Director General of Indo-German Chamber of Commerce, Linda Kromjong, President of amfori, and Timotheus Felder-Roussety, Counsellor, Social & Labour Affairs - Embassy of the Federal Republic of Germany, New Delhi.
Mr. Halusa opened the session by expressing his delight with the partnership between IGCC, amfori and Löning - Human Rights and Responsible for implementing the training. He added, “We are continuously working to make industries and companies aware of the German Supply Chain Act, both in Germany and India. We want to help our member companies to prepare for the regulations and minimise the efforts to do it. We are very happy to do this with our partners.”
Ms. Kromjong provided an opening remark in the session and expressed the need for a collaborative approach to supply chain due diligence. She continued, “Supply chain due diligence implementation is not going to be easy. Companies big and small need to step up to meet the expectations of their stakeholders. Businesses should look at SCDD as a business opportunity to make sure you are in business in the short as well as in the long-term.”
Mr. Felder-Roussety, in his opening remarks, reflected on achievements in India on the topic of business and human rights. “The Indo-German Network on Business and Human Rights was set up in 2018, and has strong partners, including the Indo-German Chamber of Commerce and amfori. I am happy to see the network is alive with the implementation of the Hybrid Training. I am looking forward to the training as it looks to provide practical support for German companies in India.”
The session included a panel discussion that consisted of two industry experts: Markus Löning - Managing Director & Senior Strategy Adviser, Löning – Human Rights and Responsible Business and Anurag Garg - Managing Director & Country Head India, Vitesco Technologies.
Mr. Löning spoke about how to increase the relevance of hard laws on supply chain due diligence, such as the LkSG, which can present a tremendous opportunity for companies operating in India. He expressed his insights further “Human Rights Due Diligence (HRDD) is not going to go away. The responsibility of businesses to respect human rights is enshrined in the UN Guiding Principles. HRDD is cumbersome, but it will keep your business competitive. The regulation for mandatory human rights due diligence will continue to expand. If we look at the current trade and geo-political situation, India has a big chance to be a more important trading partner with the EU. Being on top of the HRDD requirements will enable your company to go ahead of your competitors.”
Mr. Garg shared his industry insights on how SCDD helps companies “Due Diligence helps in improving the product flow through accurate demand and sales forecasting to improve inventory management. It also allows companies to better control and improve the visibility in localising risk hot spots. Due diligence is important for a business to ensure seamless operation anytime and anywhere in the world.”
The session was moderated by Johannes Kotschenreuther, Senior Coordinator – IGCC SustainMarkets and included the screening of an awareness video, “Growing with Responsibility Benefits Everyone.”
The session and the training are conducted within the framework of initiative implemented by the Indo-German Chamber of Commerce in cooperation with the Business Scouts for Development programme funded by the German Federal Ministry of Economic Cooperation and Development (BMZ).
