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ZENODO
Doctoral thesis . 2026
License: CC BY
Data sources: ZENODO
ZENODO
Thesis . 2026
License: CC BY
Data sources: Datacite
ZENODO
Thesis . 2026
License: CC BY
Data sources: Datacite
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Sovereign AI for Supply Chain Due Diligence: A Standardized Compliance Framework for the German LkSG

Authors: Meziouni, Reda;

Sovereign AI for Supply Chain Due Diligence: A Standardized Compliance Framework for the German LkSG

Abstract

Background & Context The German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG), in force since January 2023, obligates companies with 1,000 or more employees to identify, prevent, and mitigate human rights and environmental risks across their supply chains. The Problem Despite this clear regulatory mandate, the industry's approach to compliance remains fragmented: Suppliers report data in inconsistent formats. Risk scores are calculated through manual and unreproducible processes. Dominant ESG platforms create data sovereignty risks through centralised, cloud-based architectures. Methodology & Solution This thesis addresses these challenges by designing, building, and validating a sovereign AI-driven compliance framework tailored for the renewable energy and green hydrogen sector. Following the Design Science Research (DSR) methodology (Peffers et al., 2007), the proposed framework operates as a four-layer headless microservice: Standardised JSON Schema: Extends the WBCSD PACT protocol with LkSG §4–§10 compliance data. Deterministic Rule Engine: Produces transparent, reproducible risk scores. Sovereign AI Narrative Layer: Utilizes Mistral 7B running entirely offline via Ollama to ensure data privacy. FastAPI Audit Trail: Generates immutable, legally defensible assessment artifacts. To ensure reliability, a hallucination guard and human-in-the-loop mechanism guarantee that the AI remains assistive while human compliance officers retain ultimate decision-making authority. Validation & Impact The framework was validated through rigorous technical testing across three distinct supplier risk profiles. It was further refined through structured consultations with eight industry practitioners from DHL, DHL Supply Chain, DHL IT Services, and other key organisations. A stakeholder impact analysis demonstrates significant value creation across multiple dimensions: Economic: Compliance cost reduction. Political: Enhanced data sovereignty. Social: Improved worker protection. Environmental: Enforcement of Green Hydrogen certifications. Key Contributions This thesis contributes the first open human rights due diligence (HRDD) data model extension for the WBCSD PACT ecosystem. Ultimately, it offers a sovereign, transparent, and extensible alternative to traditional, centralised ESG compliance platforms. Keywords: LkSG, supply chain due diligence, sovereign AI, WBCSD PACT, JSON Schema, Green Hydrogen, compliance automation, human-in-the-loop, Design Science Research

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Keywords

lksg, csrd

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green