Supply Chain Act

Responsible Supply Chains at thyssenkrupp Materials Trading

The Supply Chain Act (Lieferkettensorgfaltspflichtengesetz – LkSG) has been in force since January 2023. It obliges German companies to ensure compliance with human rights and environmental standards in their global supply chains. Important mandatory elements of the LkSG are: Systematically analyze risks, take appropriate measures to minimize risks, and set up a complaints mechanism.

The materials trading industry is shaped by complex, global structures, making it crucial to implement the Supply Chain Due Diligence Act (LkSG) with great care. By doing so, companies achieve more than just legal compliance. They also promote a sustainable and ethical approach to business that considers the living and working conditions of all involved, as well as environmental factors.

Benefits of the LkSG in Materials Trading

The requirements of the LkSG initially mean extra effort and expense for companies. However, they also have significant benefits:

• Minimizing risks: Supply chains are under perpetual pressure to function efficiently and be profitable. However, focusing on just one of these aspects can lead to easily overlooking risks such as human rights violations or environmental offences. This can have a negative impact on companies and stakeholders. Such risks can be limited by thoroughly examining the materials supply chain.

• Sustainability and environmental protection: The LkSG promotes the fair treatment of suppliers in global materials trade. At the same time, the ecological aspects come to the fore. This way, measures are found to reduce the environmental impact of the supply chain. The living and working conditions in the affected production countries and also worldwide are improved coincidentally.

• Reputation and competitive advantage: The careful implementation of the LkSG in its own procurement can potentially contribute to strengthening a company’s reputation. Because honestly and transparently committing to fair working conditions and environmental standards helps gain the trust of customers, investors, and other stakeholders more easily.

Implementation of the LkSG at thyssenkrupp

Since the LkSG came into force, companies in Germany are obligated to ensure human rights and ecological standards along their entire supply chain. The same goes for suppliers. If you purchase your materials from thyssenkrupp Materials Trading, you can trust that we diligently implement the standards laid out in the LkSG.

The thyssenkrupp group, including thyssenkrupp Materials Trading, is committed to responsible supply chains. The principles of the LkSG are embedded in our policy statement (German language only), the thyssenkrupp Code of Conduct, and the thyssenkrupp Supplier Code of Conduct.

Among others, we have taken the following measures:

• Carefully developed risk management and clearly assigned internal responsibilities

• Regular risk analyses and preventive as well as corrective measures in collaboration with our suppliers

• Complaints mechanism ensuring that concerns are taken seriously and get processed

• Additionally, we have transparently compiled further information about sustainability topics on the Integrity Next platform for our customers