The introduction of the Lieferkettensorgfaltspflichtengesetz (LkSG) poses significant challenges for companies. Compliance with the high requirements involves assessing suppliers, establishing a complaints mechanism, and appointing a human rights officer. Additionally, there are documentation obligations, ongoing risk assessments, and the need to adapt to market changes that are beyond a company’s control. Non-compliance can result in substantial penalties. Mathias Hess and Dr. Margarete Hetmanczyk from mh2-experts have founded a company that promises to simplify, cost-effectively, efficiently, and automate compliance with all LkSG requirements, providing relief for companies.
New regulations require compliance from more companies
Currently, only companies with more than 3,000 employees in Germany are required to comply with the provisions of the LkSG. However, starting next year, the threshold will be lowered to 1,000 employees. Furthermore, if the EU’s planned Supply Chain Act comes into effect, the threshold will be reduced to 500 employees, and even lower to 250 employees in critical sectors. Given that almost every company is part of a supply chain, it is inevitable that this issue will affect almost every company. Ignoring this topic is no longer an option.
In many companies, the lack of clear responsibility for the LkSG creates a significant challenge. Compliance, procurement, HR, and legal departments often point fingers at each other, resulting in a lack of effective implementation. This highlights the need for companies to address the issue and catch up with the requirements of the LkSG.
mh2-experts aims to relieve companies not only from bureaucratic burdens but also to educate them. Their website, www.mh2-experts.com, will feature a Quickcheck next month that provides companies with information in a matter of minutes, indicating if and when they are affected by the LkSG and in what specific way. Through their simple solutions and modules, mh2-experts already meet all the requirements of the LkSG. They offer consultation, implementation, monitoring, and can even assume the role of the human rights officer if needed. Their goal is to assist companies in fulfilling their responsibilities without having to handle complex processes themselves. This is made possible through the use of their own developed software, which can also be utilized as a service.
The founders and IT professionals advise companies to act quickly. The introduction of the General Data Protection Regulation (GDPR) led to panic attacks in some areas. With the LkSG, this can still be avoided. Due to the structure of the law, many processes can be standardized and automated. This is exactly what mh2-experts want to do.
mh2-experts provide an ideal combination of IT expertise, procurement, project management, and strategic-systemic implementation competence. Their main focus is on effectively implementing the requirements of the LkSG. They offer a simple, cost-effective, and secure solution for affected companies, automating most of the processes that arise from the LkSG. Their specialties include consulting, implementation, and service related to the LkSG. They also take on the role of the human rights officer. mh2-experts are the perfect partner for optimizing and continuously ensuring compliance with the LkSG requirements, with the goal of making compliance as efficient and simple as possible.
Overall, the smart solutions provided by mh2-experts offer companies relief from the bureaucratic burden and ensure an easy, cost-effective, and secure implementation of the Supply Chain Due Diligence Act.
