There is a growing number of legislations from governments, particularly in the EU, on mandatory human rights due diligence. This metric tracks which companies are subject to these laws. 

German Supply Chain Act

The Supply Chain Act (Lieferkettensorgfaltspflichtengesetz) is a German law requiring companies to monitor human rights and environmental risks in their supply chains.

The law requires companies to carry out analyses on supply chain contracts to identify risks to human rights and requires companies to take action against identified risks. The companies will have to publish an annual report containing the analyses. Companies must also establish a complaint procedure for workers to report potential risks. The law additionally gives civil society organisations the ability to sue companies on behalf of workers over breaches of human rights in supply chains. Companies that fail to respect the terms of the law can face fines of up to two percent of the company's annual revenues.

From 2023: Companies based in Germany with more than 3,000 employees, or German-registered branches of foreign companies with more than 3,000 employees

From 2024: Companies based in Germany with more than 1,000 employees, or German-registered branches of foreign companies with more than 1,000 employees.

Source: Wikipedia.org