Supply Chain Act in the Bundestag: Business Associations Push for Relief - German business leaders slam weak reforms to supply chain law
Germany’s Supply Chain Due Diligence Act (LkSG) is facing criticism from business leaders over proposed revisions. The government plans to ease rules for companies, but industry groups argue the changes fall short of what’s needed. At stake are reporting requirements on human rights and environmental risks for firms in 18 key sectors, including energy, health, chemicals, and logistics.
The law currently applies to businesses with 50 or more employees or revenues exceeding €10 million. Under the proposed updates, mandatory reporting on violations could be dropped, and sanctions would only target serious breaches.
Rainer Dulger, head of the Confederation of German Employers, dismissed the revisions as 'minor adjustments' and called for faster adoption of EU-level concessions. His comments reflect broader frustration among business associations, who claim the government has failed to deliver meaningful relief.
The Federation of German Wholesale, Foreign Trade, and Services (BGA) has pushed for an end to Germany’s solo approach, urging alignment with upcoming EU regulations. BGA President Dirk Jandura warned that companies need urgent bureaucratic cuts amid economic struggles and rising global competition. The national law is expected to be replaced by an EU-wide framework in the coming years.
While the government seeks to reduce compliance burdens, opposition from industry groups persists. If approved, the changes would limit sanctions to major violations and remove some reporting duties. The debate highlights tensions between national policy and EU harmonisation as businesses demand clearer, lighter rules.
