By Adam Turteltaub

If you’re looking for compliance direction only from the US Department of Justice, you’re missing the wider picture. There is a lot going on in Europe that companies operating in that geography need to be complying with.

Dr. Tobias Kruis, Head of Corporate Compliance, Giesecke+Devrient, shares what is going on both in this podcast in his session “Dancing with the Acronyms: Jiving Through LkSG and CSDDDD in the European Compliance Ballroom” at the 2025 SCCE Annual Compliance & Ethics Institute.

The German Supply Chain Due Diligence Act, also known under the acronym LkSG, is focused on human rights, occupational health and safety and environmental projects. It requires regular and systematic risk assessments as well as remediation and preventative measures if risks are found. Grievance procedures are also a mandate, as are annual effectiveness reports on the supplier due diligence process.

Sanctions for non-compliance can be as high as 2% of annual turnover. The German regulator has already conducted over 1,000 proactive reviews since the act was adopted.

The EU Corporate Sustainability Due Diligence Directive was adopted in 2024 and builds on some existing national laws. The aim is to ensure a level playing field for companies in Europe by requiring them to address human rights and environmental concerns in the supply chain. It has much broader reach than the German law in its requirements, including a mandate to conduct due diligence beyond the first tier of suppliers.

While enforcement has not yet begun and several changes are contemplated, compliance teams can begin preparing now, taking a risk-based approach to their due diligence efforts. They should also start building cross-functional partnerships with HR, quality, management, procurement and the sustainability teams.

Listen in to learn more about what’s happening in Europe, and then don’t miss his session “Dancing with the Acronyms: Jiving Through LkSG and CSDDDD in the European Compliance Ballroom” at the 2025 SCCE Annual Compliance & Ethics Institute.

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The Compliance Perspectives Podcast is sponsored by Athennian, a leading provider of entity management and governance software. Get started at www.athennian.com.