Supply Chain Law

Published on January 24, 2022

The aim of the Supply Chain Law is to improve the protection of human rights all along global supply chains, preventing, for instance, child and forced labour and banning substances that are harmful to people and the environment. Companies in Germany have a responsibility to help protect human rights,
too. They must ensure that fundamental human rights standards are respected in their supply chains.This is a question of respecting basic human rights. It is not about implementing German social standards everywhere in the world.
The law sets out clear and realisable requirements for corporate due diligence, thus creating legal certainty for companies and affected persons.
The German government agreed on the draft Act on Corporate Due Diligence in Supply Chains (supply chain law). The Federal Cabinet adopted the draft legislation on 3 March 2021. It was passed in parlament on 11 June 2021. The German government is pushing for the adoption of EU-wide legal standards for fair global supply and value chains. As this can be expected to take some time yet,

Many products and raw materials that make our life in Europe more comfortable are produced or mined under unacceptable environmental and working conditions, with workers being paid a pittance or even using exploitative child labour. The Supply Chain Law contributes to sustainable production at a global level, because besides human rights environmental issues also play a part if – because of them – human rights are violated (e.g. in the case of polluted water).