LkSG Software comprises digital tools and platforms designed to help businesses comply with Germany’s Lieferkettensorgfaltspflichtengesetz (LkSG). These solutions streamline supplier data collection, risk evaluation, and continuous monitoring. They typically include integration with external data sources, automated workflows for due diligence, and audit-ready documentation features—ideal for companies subject to LkSG obligations.

Core Functions and Compliance Features

Key features often include:

• Supplier intake & mapping: visualizing entire supplier hierarchies and product relationships

• Abstract risk assessment: using industry and country risk indices to prioritize suppliers

• Concrete risk evaluation: combining supplier self-reports and external data for detailed human rights or environmental risk scoring

• Complaint & remediation workflows: integrated whistleblower system, predefined corrective measures, and status tracking

• Automated reporting: generation of compliant documentation, including BAFA reports and management dashboards

Why It Matters

Companies subject to the LkSG (especially those with 3,000+ employees since 2023, and those with 1,000+ in 2024) must demonstrate due diligence throughout their supply chains. LkSG software automates these obligations, reducing manual effort, minimizing legal risk, and ensuring transparency. It also forms a solid foundation for upcoming related legislation, such as the EU’s draft Corporate Sustainability Due Diligence Directive (CSDDD).