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German Regulator Adjusts Enforcement

German Regulator Adjusts Enforcement Practice Regarding the German Supply Chain Act, Trending Now in ESG

October 2025 Reprint

In response to the decision of the German government to change the German Supply Chain Due Diligence Act (LkSG) with a view to abolishing the reporting obligation and to limiting the number of omissions for which fines can be imposed, BAFA, the German regulator responsible for the enforcement of the LkSG, adjusted its enforcement practices on October 1, 2025.

BAFA's announcement is in response to instructions given by the two federal ministries responsible for the LkSG (the Ministry for Economic Affairs and Energy and the Ministry of Labor and Social Affairs). The new enforcement practice essentially forestalls the changes proposed in the amendment to the LkSG because this law does not provide for private enforcement. The new principles of enforcement apply with immediate effect (even with respect to pending cases).

While it took the three parties forming the German Federal Government almost six months to deliver on their promise in their coalition agreement to reduce the administrative burdens of the LkSG, this development is a rather bold move by the standards of German politics and law.

The new enforcement practice can be found under the following link (in German only):

https://www.bafa.de/DE/Lieferketten/Ueberblick/ueberblick_node.html#doc1469782bodyText1

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