Third-party lifecycle management for Germany operations
Last updated: August 19, 2026
Verdana is a third-party lifecycle management platform that helps companies meet Germany's supply chain due diligence obligations for suppliers and contractors, in one system built around structured risk assessment, documentation, and evidence.
The Lieferkettensorgfaltspflichtengesetz (LkSG), in force since January 2023, currently applies to companies with 1,000 or more employees in Germany, and requires risk management, regular risk analysis, a policy statement, preventive measures toward the company's own operations and direct suppliers, remedial measures, and a complaints procedure that can also receive reports concerning indirect suppliers. Verdana runs the supplier side of that: risk-based classification, structured questionnaires, evidence collection with expiry control, and a complaints channel tied to each supplier record rather than a separate system.
LkSG's scope and the EU's Corporate Sustainability Due Diligence Directive (CSDDD) are both under active reform as of this writing — Verdana's risk-based supplier segmentation and documented due diligence process is built to scale with either standard rather than assume one fixed threshold.
Germany sits alongside the rest of Europe, Latin America, and the United States in the same platform: document requirements are configured per jurisdiction, and headquarters gets one consolidated view of every supplier and contractor regardless of where they operate.
Frequently asked questions
Does the LkSG apply to our company?
It currently applies to companies with 1,000 or more employees in Germany, counting affiliated-group employees and long-term temporary workers. The scope is under active legislative reform, so the applicable threshold should be confirmed against BAFA's current guidance.
What does the LkSG actually require regarding suppliers?
Risk management with a designated internal owner, regular risk analysis, a public policy statement, preventive measures reaching the company's own operations and its direct suppliers, remedial measures when a violation is found, and a complaints procedure open to reports about indirect suppliers as well.
What's the difference between direct and indirect supplier obligations under the LkSG?
Direct suppliers get continuous preventive measures. Indirect suppliers only trigger obligations when the company has substantiated knowledge of a possible violation — the duty is risk-triggered, not a standing requirement to monitor every tier of the chain continuously.