Sustainability in Supply Chains: A Study on the Impact of Regulatory Frameworks

Strategic Insights -

A new study conducted by researchers at the University of Applied Science in Merseburg, Germany has shed light on the impact of regulatory frameworks on the sustainability of supply chains. The study, published in the journal Cleaner Logistics and Supply Chain, focused on the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG), which came into effect in 2023. The researchers aimed to assess the perceptions of companies in the agri-food sector regarding the LkSG's requirements and to bridge the gap between the legal framework and practical implementation.

Key Takeaways:

  • The study found that large, established companies in the agri-food sector are perceived to be less affected by the LkSG due to their existing transparency and compliance infrastructure.
  • Smaller and less established companies are expected to face significant challenges in terms of administrative burden and resource allocation.
  • The motivation behind the LkSG is generally seen as well-founded, but its complexity and compliance costs are perceived as substantial, highlighting the tension between sustainability and profit.
  • The importance rating of Key Performance Indicators (KPIs) highlights the dichotomous picture of the LkSG's effectiveness in promoting sustainability.
  • The study aimed to bridge the gap between the legal framework and practical implementation of the LkSG in the agri-food sector.
  • The study provides new insights into the perceptions of companies in the agri-food sector regarding the LkSG's requirements.
  • The study highlights the need for further research on the implementation of the LkSG in various sectors.

Statistics:

  • 17 semi-structured interviews with experts were conducted as part of the study.
  • The study focused on the agri-food supply chain, which is frequently the core of discussions regarding a lack of sustainability.
  • The LkSG holds companies accountable for protecting human rights and compliance with environmental standards.
  • The study found that larger companies are less affected by the LkSG, while smaller companies face significant challenges.

Sources:

  • "The German Act on Corporate Due Diligence Obligations in supply chains: An empirical assessment of the agri-food supply chain based on experts' perspectives." Cleaner Logistics and Supply Chain, 2025,16():100239.
  • Department of Business Administration and Information Sciences, University of Applied Science Merseburg, Eberhard-Leibnitz-Str. 2, 06217 Merseburg, Germany.
  • Abdulaziz Mardenli, Katharina Friederike Strater, Christoph Herrmann, Dirk Sackmann (authors)
  • NewsRx. Studies from University of Applied Science Provide New Data on Sustainability Research (The German Act on Corporate Due Diligence Obligations in supply chains: An empirical assessment of the agri-food supply chain based on experts' perspectives). Ecology, Environment & Conservation. September 12, 2025; p 543.