Effectively implement requirements of the new German law on corporate due diligence in supply chains

Integration of MBI CONIAS data into the VertiGIS solution

Supply chain visibility with MBI CONIAS Risk Intelligence Data

On June 11, 2021, the German parliament passed the “Act on Corporate Due Diligence in Supply Chains”. The new Supply Chain Act obliges companies above a certain size to better meet their responsibilities in the supply chain with regard to respecting internationally recognized human rights. It will be binding for companies with more than 3,000 employees from January 1, 2023, and for companies with more than 1,000 employees from 2024.

New law demands transparency and risk management along the entire supply chain

Many companies perceive the new Supply Chain Act as a major challenge: It requires transparency and risk management along the entire supply chain and, at the same time, special knowledge about the status of human rights violations and environmental offenses on site. Failure to comply with the new requirements on minimum social and environmental standards within the supply chain could result in loss of image, loss of sales, fines and exclusion from federal procurement procedures.

The upcoming law confronts companies with new tasks and obligations for which there is often too little in-house expertise. Risks have to be identified, analyzed and appropriate measures taken. The lack of transparency within fragmented supply chains in particular makes risk management difficult for companies. Obtaining data involves a great deal of effort and assessing the situation is associated with great uncertainty.

Solution for the analysis and visualization of risks supports risk minimization

This is where the joint approach of MBI and the VertiGIS companies comes in. MBI CONIAS data is integrated into the risk management and business continuity solution of VertiGIS. This provides an effective and globally applicable solution that enables the analysis and visualization of risks along the entire supply chain. Risks can be identified, evaluated and suitable countermeasures can be taken. In this context, indicators and further information on the human rights situation as well as the environmental situation can be shown for locations worldwide, risks can be anticipated and mitigated through appropriate measures.

CONIAS has its origins in the early detection of conflicts: This means that it not only shows where there currently are violations of the Supply Chain Act, but also where human rights violations and climate damage measures are improving or worsening. This creates transparency in the supply chain and sustainability is already achieved in the procurement process. The CONIAS data is continuously updated. In the event of changes in the characteristic values, users are informed in detail and measures are recommended. Risks can be reduced or avoided altogether through foresighted risk assessment and adequately coordinated catalogs of measures.

The detailed article, published in the VertiGIS [email protected] magazine 2021, is available in German here. For further information, please contact our Sales Team.