The German Supply Chain Act: An Indication of What's to Come with Social Sustainability

The German Supply Chain Act: An Indication of What's to Come with Social Sustainability

This IDC Market Note explores the context for creating and enacting the German Supply Chain Act, which other governments are following suit, and what this may mean for businesses and IT vendors. Modern slavery and forced labor affect over 50 million people, with over 86% of forced labor cases found in private sector industries. To help address this growing trend, Germany recently passed legislation requiring German companies to comply with nine high-level requirements to protect people and the environment. According to Michelle Cullen, research advisor, Social Sustainability at IDC, "The German Supply Chain Act is likely an indication of the future direction of ESG reporting as the country moves to include scope 3, with a broadening that also encompasses social factors."

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