Child labor, forced laborm slavery Disregard of occupational health and safety Disregard for freedom of association Unequal treatment in employment Commissioning/ use of private/ public security forces with disregard for human rights Withholding adequate wages Social factor Environment Labour & Human Rights Non-environmentally sound handling, collection, storage and disposal of waste(POPs Convention) Production and use of persistent organic pollutants(Stockholm Convention) Production of mercury-added products, use of mercury and mercury compounds, treatment of mercury waste(Minamata Convention) Export and import of hazardous waste(Basel Convention) Environmental factor Harmful contamination of soil, water and air, as well as harmful noise emission and excessive water consumption Unlawful eviction and unlawful taking of land, forests and waters Figure 3: Social and Environmental Risks and Obliga ons IMPLICATIONS Supply Chain Act not Implemented? Possible Consequences: Fines can be imposed by BAFA in the event of non-implementation. Fines of upto 8 million euros possible if LkSG has not been implemented. Companies with 400 million euros annual turnover can receive fines of up to 2% of the average annual turnover. Sanctions and fines Companies can be excluded from public contracts in the event of serious offences. Fines under the German Supply Chain are entered in the competi­tion register, which can put companies at a competitive disadvantage. Exclusion from Public Contracts If companies receive subsidies and violate the due diligence obligations, this can lead to severe consequences. Subsidies may not be granted or may be reclaimed. Funds that had already been approved no longer have to be paid out. Reclaiming Subsidies