LkSG - Perspective and Event Types

How Prewave covers defined due diligence obligations of the LKSG

The new LkSG 2024 perspective was published in July 2024. It was created taking into account customer feedback and minor adjustments to the peer score indices and weightings from BAFA's LkSG risk database.

The new peer scores only relate to the LkSG 2024 perspective; the previous LkSG perspective peer scores remain unchanged.

The current list of all indices used for the country scores can be found here.

💡Question: I have already carried out my abstract risk analysis for 2024 before publication. Should I do it again now?

Answer: We recommend continuing to work with the LkSG perspective and using the LkSG 2024

If no abstract risk analysis has been carried out to date, we recommend starting with the LkSG 2024 perspective right away.

2 new event types were introduced:

- Living Wage

- Biodiversity

Based on User Feedback, weighting of Protest/Demonstration for example now only spreads as "Low" on Company Level, meaning Protests at Sites other than the main supplier will not drag the score down anymore.

The core elements of the due diligence obligations include the establishment of a risk management system to identify, prevent or minimize the risks of human rights violations and damage to the environment.

1) Which human rights are at issue?

The Supply Chain Act contains an exhaustive list of eleven internationally recognised human rights conventions, and defines typical supply chain risks that need to be considered when fulfilling due diligence obligations. These include, in particular, the prohibition of child labour, slavery and forced labour, the freedom from discrimination, the disregard of occupational safety and health obligations, withholding an adequate wage, the disregard of the right to form trade unions or employee representation bodies, the denial of access to food and water as well as the unlawful taking of land and livelihoods.

2) What environmental issues are considered?

The Supply Chain Act focuses on certain environment-related obligations that are mandatory for enterprises taken from three international conventions: the Minamata Convention on Mercury, the Stockholm Convention on Persistent Organic Pollutants and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal. Violations of environment-related obligations are also sanctioned by the monitoring authority.

Covered environment-related risks are those that lead to human rights violations (e.g., poisoned water), for example. Also, banning substances that are dangerous to humans and the environment.

At Prewave four Event Groups are implemented in accordance with the Supply Chain Act. The three Event Groups “Labor Rights”, “Human Rights” and “Health & Safety” cover the human rights violations extensively, while environmental issues form a separate event group.

Next, every specific Eventtype is defined in detail and mapped to LKSG pursuant to Section 2(2) and Section 2(3).

Labor Rights:

Prewave Eventtype	Definition	Definition based on Query Terms	LKSG Mapping + BAFA Description
Labor demonstration	Workers/employees of a company, labor union or any business entity protest or demonstrate on the streets or any other public place.	Collective action by employees, unions, or workers, including strikes, marches, and demonstrations, to advocate for improved working conditions, fair wages, or other employment-related issues.	-
Labor dispute	Workers/employees of a company, labor union or any business entity are in a dispute with their employer regarding terms, but not yet in strike or protest.	Disagreement or conflict between employees and employers over employment terms, workplace conditions, or other work-related issues.	§2 (2) 6. M4 Disregard for freedom of coalition - freedom of association and right to collective negotiations
Protest/ Demonstration	Any form of protest or demonstration on the streets or any other public place with a reasonable amount of people.	Collective gathering of people in a public space to express opinions or demands, often taking forms such as protests, rallies, processions, and sometimes leading to civil unrest or disorder.	-
Labor strike	Workers/employees of a company, labor union or any business entity stop work as a form of protest.	Coordinated stoppage of work by employees aimed at forcing concessions from employers regarding wages, conditions, or policies,often involving actions like picketing, walkouts, and other forms of industrial action.	-
Labor rights violation	Any violation of labor rights. A specialization of human rights violations, but more generic than child labor or wage theft.	Actions by employers or authorities that infringe on workers' rights, such as union busting, wrongful termination, denial of benefits, and suppression of collective bargaining and strikes.	§2 (2) 6. M4 Disregard for freedom of coalition - freedom of association and right to collective negotiations
Worker suicide	A worker/employee ended his/her life as a result of poor working conditions or any other job related issues.	Act of an employee taking their own life, often influenced by job-related factors such as poor working conditions, excessive stress, or workplace harassment.	§2 (2) 5. M10 The prohibition of an act or omission in breach of duty which is directly capable of impairing in a particularly serious manner a protected legal position (arising from the human rights conventions within the meaning of Section 2 (1)) and the unlawfulness of which is obvious on a reasonable appraisal of all the circumstances under consideration.
Living wage (LkSG 2024)	The data, adjusted for inflation and cost of living differences, is measured in international-$ at 2017 prices and reflects income or consumption per capita, attributing household income equally to each member. It also includes non-market income sources, such as food grown by subsistence farmers for personal consumption.	Peer score only	-

Human Rights:

Prewave Eventtype	Definition	Definition based on Query Terms	LKSG Mapping + BAFA Description
Child Exploitation	Anything else apart from child labor that involves forcing children to do something - including sexual abuse	Abuse and mistreatment of children through activities such as trafficking, forced labor, sexual exploitation, drug trafficking, and physical abuse, often perpetrated by adults for personal or financial gain.	§2 (2) 2. M1 ban on child labor
Child Labor	Children are forced to work // A company uses children (below legal working age, usually under 14-16 years) as workers.	Exploitation of children through work that is harmful to their physical and mental development, including forced labor, slavery, and other abusive practices, often violating child labor laws.	§2 (2) 1., §2 (2) 2. M1 ban on child labor
Discrimination	Discrimination incidents involving a workers/employees being treated differently because of their age/disability/nationality/race/religion/sex/etc.	Unjust or prejudicial treatment of individuals based on characteristics such as race, gender, age, religion, disability, or sexual orientation, manifesting in practices like unequal pay, harassment, hate speech, and denial of opportunities.	§2 (2) 7. M5 prohibition of unequal treatment in employment
Human Rights Violation	Any action that breaches or ignores basic human rights or relevant humanitarian law, be it intentional or unintentional.	Severe abuses or infringements on individuals' fundamental rights and freedoms, including torture, illegal detention, forced sterilization, enforced disappearance, and other inhumane treatments that breach international and humanitarian laws.	§2 (2) 11., §2 (2) 12. M9 prohibition of commissioning or using private/public security forces that can lead to impairments due to a lack of instruction or control. M10 The prohibition of an act or omission in breach of duty which is directly capable of impairing in a particularly serious manner a protected legal position (arising from the human rights conventions within the meaning of Section 2 (1)) and the unlawfulness of which is obvious on a reasonable appraisal of all the circumstances under consideration.
Modern Slavery	Institutional slavery in which a person or people lose their freedom to stop working, leading to exploitation/ A company is associated with using people as a free labor force, taking away their freedom to stop working.	Severe exploitation of individuals through forced labor, debt bondage, human trafficking, and other forms of involuntary servitude, often violating their basic human rights and freedoms.	§2 (2) 3., §2 (2) 4. M2 ban on forced labor and all forms of slavery
Sexual Wrongdoing	Any kind of wrongdoing that is related to sexual activities, except for those involving children. Also includes sexual incidens that are inappropriate, like sexual harassment or any form of exploitation.	Various forms of abuse and mistreatment, including sexual abuse, trafficking, harassment, and assault, where individuals are coerced or manipulated into sexual activities against their will.	§2 (2) 4. M2 ban on forced labor and all forms of slavery
Unethical Labor	Unethical employment or treatment of any type of employee or worker, anywhere / Unfair and/or unethical labor practices, meaning bad treatment of the employees, humiliation, passport retention, illegal employment, etc.	Mistreatment and exploitation of employees through actions such as harassment, psychological violence, bullying, improper monitoring, and the creation of a toxic work environment, often violating ethical and legal standards.	§2 (2) 4. M2 ban on forced labor and all forms of slavery. M10 The prohibition of an act or omission in breach of duty which is directly capable of impairing in a particularly serious manner a protected legal position (arising from the human rights conventions within the meaning of Section 2 (1)) and the unlawfulness of which is obvious on a reasonable appraisal of all the circumstances under consideration.
Wage Theft	An employer fails to pay workers/employees the minimum wage, withholds overtime pay or denies social rights, such as parental leave or sick leave. Doesn't pay any wages or is in arrears to the workforce.	Unfair treatment of employees regarding their compensation, including unpaid wages, wage theft, illegal deductions, misclassification of workers, and violations of minimum wage and overtime pay laws.	§2 (2) 8. M6 prohibition of withholding a reasonable wage

Health & Safety:

Prewave Eventtype	Definition	Definition based on Query Terms	LKSG Mapping + BAFA Description
Accident	Any form of general accident that has an impact on anything / An unexpected, physically damaging incident occurs in connection to a company (either on the production site, office or during transportation or supply) affecting either people, production or property.	Unexpected and often harmful event, such as a collision, derailment, or disaster, leading to damage, emergencies, or casualties.	§2 (2) 5. M3 disregard for occupational safety and work -related health risks
Bomb threat	A threat to detonate an explosive or incendiary device to cause property damage, death or injuries, whether or not such a device actually exists.	Warning or indication of the presence of an explosive device, including bomb scares, suspicious packages, and related threats, potentially indicating a terrorist threat.
Building collapse	A collapse or partial collapse of an industrial building or any other structure, causing it to be (temporarily) inoperative and thus interrupting business.	Sudden failure of a building or infrastructure due to structural failure, leading to significant damage and potential casualties, encompassing incidents such as building failures and industrial collapses.
Disease	Members of a company or organization are affected by a serious disease.	Situation where a company or organization is significantly impacted by an illness or disease outbreak, leading to disruptions in operations and potential health risks to employees.
Employee Infection	Employee, worker contaminated with a pathogenic microorganism or agent that causes them to be sick.	Occurrence where employees are significantly affected by a contagious disease, such as COVID-19, leading to multiple confirmed or suspected cases, disrupting operations, and posing health risks to the workforce.
Explosion	An explosion or detonation at any place.	Sudden and violent release of energy, often involving the detonation of explosives or a burst, resulting in a blast that can cause significant damage and injuries.
Fatality	One or several people die as a result of a tragedy at a worksite (toxicity, accident, explosion, etc.) or during work-related activities (transportation, protest).	Death resulting from an incident or accident, often characterized by terms such as mortality, casualty, and deadly events, leading to significant loss and impact.
Fire	A fire that has happened or is happening to a property.	Combustion event that produces heat, flames, and smoke, often requiring firefighting efforts and resulting in damage to properties, such as buildings and forests, and posing significant safety risks.
Health & Safety Issues	An incident or conditions related to occupational / workplace health and safety problems.	Conditions and practices that pose risks to the well-being of employees, including chemical exposure, faulty equipment, excessive working hours, and inadequate maintenance, potentially leading to accidents, illnesses, and injuries.
Injury	An accident resulting in injuries.	Physical harm or damage to an individual resulting from an incident or accident, including fractures, traumatic injuries, and other forms of pain and injury.
Quarantine	A restriction on the movement of people and goods which is intended to prevent the spread of disease or pests. It is often used in connection to disease and illness, preventing the movement of those who may have been exposed to a communicable disease, but do not have a confirmed medical diagnosis.	Isolation measures, such as quarantine and shelter-in-place, involve restricting the movement of individuals to prevent the spread of contagious diseases or to ensure safety during emergencies.
Shooting	A shooting or attempted shooting, or use of firearms against people or property by someone associated to a company or at a service/production site.	Use of firearms to inflict harm, including incidents such as shootings, massacres, mass shootings, and gunfire attacks, often resulting in injuries or fatalities.

Environment:

Prewave Eventtype	Definition	Definition based on Query Terms	LKSG Mapping + BAFA Description
Chemical Leakage	Chemical leakage by a company or production site/ Chemical substance is emanating from company site.	Accidental release of hazardous substances, including leaks, seepages, and spillages, leading to environmental contamination and potential health risks.	§2 (2) 9. M7: Destruction of the natural livelihood by environment impurities.
Deforestation	The removal of a forest or stand of trees from land which is then converted to a non-forest use.	Large-scale removal or destruction of forests through activities such as clear-cutting, illegal logging, and land conversion, leading to forest degradation, loss of biodiversity, and environmental harm.	§2 (2) 10. M8: Illegal violation of land rights.
Environmental Issue	Negative, adverse or harmful effects or mistreatment of the biophysical environment from human activity / A company exerts negative effects on the biosphere, especially on the flora and fauna.	Deterioration of the natural environment through processes such as deforestation, pollution, climate change, and unsustainable resource use, leading to loss of biodiversity, ecosystem damage, and health hazards.	§2 (2) 9. M7: Destruction of the natural livelihood by environmental impurities.
Land conflict	Illegitimate or illegal acquisition of land, especially agricultural land, by any economical actor.	Land conflict and indigenous issues refer to disputes and controversies involving the illegal acquisition, forced displacement, and violation of land rights of indigenous and native peoples, leading to social, economic, and cultural harm.	§2 (2) 10. M8: illegal violation of land rights.
Pollution	Pollution or contamination by a company or production site that has negative effects on nature, people or animals.	Introduction of harmful substances or contaminants into the natural environment, resulting in air, water, and soil degradation, adverse health effects, and ecological damage.	§2 (2) 9.; §2 (3) 4, 5. M7 Destruction of the natural livelihood by environmental impurities
Toxication	Toxic pollution (gas, liquid or radiation) by a company or production site.	Release of harmful chemicals and substances, such as lead, asbestos, and mercury, into the environment, causing poisoning, carcinogenic, genotoxic, and mutagenic effects, and leading to serious health and ecological risks.	§2 (3) 1,2,3 U1 forbidden production, use and/or disposal of mercury (minamata convention)
POP pollution	Forbidden production and/or use of fabrics in the area of application of the Stockholmer Convention (POP) and non-environmentally friendly use of pop-containing waste.	Contamination of the environment with persistent organic pollutants (POPs), which are toxic chemicals that resist degradation, accumulate in living organisms, and pose serious health and ecological risks.	§2 (3) 4, 5. U2 forbidden production and/or use of fabrics in the area of application of the Stockholmer Convention (POP) and non-environmentally friendly use of pop-containing waste
Waste Disposal Problem	Any kind of problem related to the disposal and management of waste, like especially illegitimate and illegal disposals.	Problems associated with the handling, disposal, and treatment of various types of waste, including hazardous, toxic, e-waste, and infectious waste, often involving illegal dumping and disposal violations, which pose significant environmental and health risks.	§2 (3) 6, 7, 8. U3 prohibited import/export of dangerous waste in the sense of the Basel Convention
Biodiversity	Displays average basin risk scores of countries and territories as well as administrative divisions level 1 (sub-national divisions), and their respective rankings.	Peer score only	-