How BAFA enforces the German Supply Chain Act: inspection practice, figures and guidance

The role of BAFA

The Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle, BAFA) is responsible for monitoring and enforcing the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG). It carries out these tasks at its branch office in Borna (Saxony) (BAFA, Überblick¹). It reports annually on its monitoring and enforcement activities in an accountability report (Rechenschaftsbericht), without naming the companies concerned. The reports for 2022, 2023 and 2024 are currently available on the BAFA website; a report for 2025 had not been published at the time of writing (accessed 18.10.2026).

How BAFA inspects: figures from 2024

The 2024 accountability report distinguishes three channels (BAFA, Rechenschaftsbericht 2024²):

• Risk-based inspections ex officio: In 2024, BAFA sent a total of 638 requests for information, mainly to companies in high-risk sectors. These include electronics, chemicals, energy, raw materials, textiles, automotive, mechanical engineering, food, logistics and construction. The inspections focused primarily on two obligations: designating who is responsible for monitoring risk management, and establishing an appropriate and effective complaints procedure. A further 87 requests concerned whether a company fell within the scope of the Act at all, and 87 concerned the risk analysis and the policy statement.
• Inspections prompted by specific events: 39 inspections were triggered by press reports, publications or studies.
• Applications and notifications: 290 complaints gave rise to 314 cases. Of these, 48 had a connection to the LkSG; the rest mostly concerned companies not subject to the Act or other matters.

In total, BAFA conducted 851 inspections ex officio in 2024 and concluded 418. It describes its approach as dialogue-oriented. Administrative offence proceedings were initiated only in a few exceptional cases.

Typical queries and findings

On the monitoring of risk management, BAFA asked above all about the resources available and about conflicts of interest where the same persons are responsible for both implementation and monitoring. With regard to the complaints procedure, it frequently requested evidence of the confidentiality, independence and freedom from instructions of the persons responsible. Further findings concerned the easy accessibility of the procedure (including by post, in person or by telephone), how easy it is to find on the website and the languages offered. The rules of procedure were often available only in German and English. Occasionally, information on the procedure being free of charge and on its timeline was missing. For minor deficiencies, BAFA sent advisory letters; larger deficiencies were followed by orders or the examination of fine proceedings.

What has changed since autumn 2025

On the instructions of the Federal Ministry for Economic Affairs and Energy and the Federal Ministry of Labour and Social Affairs, BAFA stopped reviewing company reports on 1 October 2025. Proceedings concerning offences that are to be deleted under the government bill amending the LkSG are no longer being pursued. Fines are now imposed only for serious violations connected with particularly grave human rights violations (BAFA, 01.10.2025³). Reports can no longer be submitted (BAFA, Berichtspflicht⁴). How this has affected the risk-based inspections in 2025 and 2026 cannot currently be established: an accountability report for 2025 has not yet been published on the BAFA website (accessed 18.10.2026).

Guidance documents

BAFA publishes guidance documents (Handreichungen) that explain the statutory requirements and provide practical advice (BAFA, Handreichungen⁵). Currently listed are:

• Risk analysis (“identifying, weighting and prioritising risks”)
• Organising, implementing and evaluating the complaints procedure
• Appropriateness
• Cooperation in the supply chain (with the Helpdesk on Business and Human Rights), together with questions and answers for SMEs
• Credit and insurance sector
• Standards, audits and certifications
• Protecting children’s rights under the LkSG
• Questions and answers on the risk-based approach
• Information sheet on sector initiatives and competition law

A guidance document on the transport and logistics sector, announced in the 2024 accountability report for the second half of 2025, is not yet listed on the page (accessed 18.10.2026). In addition, BAFA refers to an FAQ catalogue dated 24 July 2023.

What companies can learn from inspection practice

1. Fundamentals: Are responsibility for monitoring risk management and the complaints procedure clearly assigned, separated in terms of personnel and documented?
2. Accessibility: Is the complaints procedure easy to find, linguistically accessible to the relevant target groups and described with information on process and costs?
3. Ability to respond: Could the company respond to a request for information at short notice with supporting documents?
4. Orientation: Are the guidance documents used when designing the processes?

This post provides a general overview of the legal position and administrative practice and does not replace legal advice on individual cases.

Sources

---

1. BAFA, Überblick LkSG: https://www.bafa.de/DE/Lieferketten/Ueberblick/ueberblick_node.html (accessed 18.10.2026) ↩

2. BAFA, Rechenschaftsbericht 2024: https://www.bafa.de/SharedDocs/Downloads/DE/Lieferketten/rechenschaftsbericht_2024.pdf?__blob=publicationFile&v=2 (accessed 18.10.2026) ↩

3. BAFA, Kurzmeldung vom 01.10.2025: https://www.bafa.de/SharedDocs/Kurzmeldungen/DE/Lieferketten/20251001_Vereinfachung_LksG.html (accessed 18.10.2026) ↩

4. BAFA, Berichtspflicht (Stand 07.11.2025): https://www.bafa.de/DE/Lieferketten/Berichtspflicht/berichtspflicht.html (accessed 18.10.2026) ↩

5. BAFA, Handreichungen: https://www.bafa.de/DE/Lieferketten/Handreichungen/handreichungen_node.html (accessed 18.10.2026) ↩

← All posts