Supply Chain Act

The Supply Chain Due Diligence Act (LkSG), also referred to as the Supply Chain Act, draws on the United Nations Guiding Principles on Business and Human Rights and the 2016 German National Action Plan on Business and Human Rights.

It has applied to Vonovia and to all its affiliated companies in Germany and other countries since January 1, 2023. The focus is on the company's own business area and its direct and indirect suppliers.

The LkSG is a German federal law that regulates the protection of human rights and environmental standards within supply chains. It applies to companies that are located in Germany and employ 3,000 people or more (1,000 or more beginning January 1, 2024). The aim of the law is to prevent human rights violations along supply chains. It obligates companies to analyze, prevent and minimize risks to human rights and the environment. The law's subject matter includes a ban on child labor, modern slavery and forced labor, protection from torture, unlawful seizure of land and forced eviction, and freedom from discrimination and unequal treatment. Occupational safety and related health risks must also be taken into consideration.

The LkSG requires companies to establish an appropriate and effective risk management system that covers compliance and procurement in order to identify and monitor risks in both their own business and in supply chains. Moreover, companies are required to take measures to prevent risks and to take remedial action in case of non-compliance. In addition to publishing a declaration, the companies concerned are also required to raise awareness among employees and suppliers about their human rights due diligence obligations and to provide them with information on the subject. The establishment of a complaint management and whistleblower system and annual reporting are also compulsory.

Vonovia is committed to meeting its human rights due diligence obligations. We have defined appropriate procedures and are implementing the associated processes in order to fulfill LkSG requirements. Among other measures, we have published a new declaration of respect, deepened our risk analysis for our own business area as well as the supply chain, and expanded our whistleblower system.

The Federal Office for Economic Affairs and Export Control (BAFA) is the agency responsible for control and enforcement. It monitors reporting requirements and conducts risk-based checks on companies, and can impose fines of between €50,000 and 2% of a company's average annual turnover depending on the nature of the violation.


The document is currently only available in German.


Our Compliance Policy

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Portrait Pressesprecherin Silke Hoock

Silke Hoock

Spokeswoman Sustainability, New Construction (Serial-Modular), Renewable Energy, Skilled Workers