Today the German parliament passed the supply chain law (“Gesetz über die unternehmerischen Sorgfaltspflichten in Lieferketten“), this is a success for our society and good news for everyone who works under exploitative conditions in the supply chains of German companies. It is to be noted however that there is still much room for improvement regarding the specifics, as the law has been compromised strongly in favor of the business lobby.
IT COULD BE STRONGER
The “Law on Entrepreneurial Due Diligence in Supply Chains” will come into force in 2023 and will apply to cover companies with 3,000 or more employees. From 2024 onwards, companies with 1,000 or more employees. From now on, these companies must identify risks for human rights violations and environmental degradation with direct suppliers and, if necessary, with indirect suppliers, take countermeasures and document these to the Federal Office of Economics and Export Control (BAFA).
Initially the law was drafted to apply to more companies as well as hold them more accountable. The passed law is a lenient one which lowers companies duties of care and no longer creates civil liability. This means that those affected by human rights violations cannot claim damages from companies on the basis of this law.
You can find a detailed analysis by the Iniative Lieferkettengesetz here and watch the decision-making process in the video below (both in German).
