From Compliance to Circularity: Navigating Germany’s Lieferkettengesetz

July 24, 2025

Compliance or Crisis?

Imagine waking up to a headline: "Your brand is linked to environmental damage overseas." It’s every sustainability manager's worst nightmare. Yet, with Germany’s Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, or short: Lieferkettengesetz) stepping up enforcement in 2024, such nightmares could quickly become realities for companies unprepared to navigate their environmental responsibilities. 


Initially enacted in January 2023, the Lieferkettengesetz aimed primarily at safeguarding human rights. Starting 2024, however, its scope expands significantly to emphasize environmental compliance, making companies accountable not only for their direct operations but also for the environmental practices of their entire supply chain. Violations, such as improper waste disposal or unchecked pollution, are no longer externalities; they're direct compliance risks. 

Each of these reporting components must be completed and publicly validated, with BAFA set to audit submissions from January 2026 onwards. Failing to report thoroughly could mean facing hefty penalties, bans from public contracts, and serious reputational damage.


Need help building audit-ready systems or simplifying this compliance burden?  Reach out to us here.

According to the German Federal Ministry for Economic Cooperation and Development (BMZ), from 2024, businesses employing over 1,000 people will be obligated to systematically identify and mitigate environmental risks throughout their global supply chains (source: BMZ, 2023). Such stringent measures reflect a global shift: brands can no longer operate with the traditional "out of sight, out of mind" mentality. 


But how does a brand practically track waste management compliance across global, often opaque supply chains? The complexity multiplies when dealing with fragmented recycling systems, inconsistent infrastructure, and informal waste management actors particularly in emerging markets where much of our global production and waste handling occurs. 


Here’s where digital twinning step into the story. 


GreenForest Solutions’ suite of software and service systems is purpose-built for complex, dynamic scenarios. It’s more than just a tracking solution; it’s a digital ecosystem that enables traceability and quality compliance across emerging markets. 


PROcycle bridges the gap between EU-based brands and waste operators in countries such as Kenya and India. It simplifies product declaration and compliance management, while providing transparent insights into how products and packaging are handled after consumer use. 


PROcess is an end-to-end traceability solution for post-consumer products, covering the entire journey from collection to recycling. It ensures that the data brands report is accurate, complete, and independently verified. 


PROcure  closes the loop for brands seeking access to secondary raw materials - “recyclates” - sourced from global recyclers who have been onboarded and vetted by GreenForest Solutions for both socio-environmental responsibility and quality standards. 


When Lieferkettengesetz auditors knock at the door, there's no scrambling for data through sleepless nights. There’s only transparent and verified data. Our suite doesn't manage brands’ compliance; it empowers them to proactively manage environmental impacts, aligning with growing consumer demand for transparency and sustainability. It’s about managing business risks and embracing the circular economy. 

In 2024, supply chains will come under greater scrutiny than ever before. Brands facing this new regulatory landscape must decide: Will compliance remain a risk-management exercise, or can it become a transformative journey toward genuine circularity? 


For forward-thinking brands, the choice is clear. 


https://www.gfs.earth/solutions 


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About GreenForest Solutions: GreenForest Solutions (GFS) is a global leader in sustainable waste management and circular economy solutions. We specialise in Extended Producer Responsibility (EPR) strategies, waste system design, and capacity building to transform waste into valuable resources. Committed to creating a cleaner, greener planet, we partner with governments, businesses, and communities to develop innovative solutions that drive ecological and economic progress worldwide.


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