Majority Prefer Implementation of Supply Chain Regulation, According to Public Vote
In a significant turn of events, the German government is planning to abolish the Supply Chain Due Diligence Act (LkSG) and replace it with a law on international corporate responsibility. This move is part of broader discussions within the EU regarding the Corporate Sustainability Due Diligence Directive (CSDDD), which aims to protect human rights and the environment in supply chains across member states.
The LkSG, originally requiring companies to conduct due diligence to ensure compliance with human rights and environmental standards throughout their supply chains, might see a potential weakening in enforcement, according to recent developments and the European Council's stance on diluting the CSDDD. Despite this, some companies like PSI Software have taken proactive steps, implementing the LkSG by establishing principles and appointing a Human Rights Representative to oversee compliance.
However, the proposed changes have been met with criticism from groups like Human Rights Watch, who argue that such changes would undermine efforts to hold companies accountable for abuses in their supply chains. This controversy highlights the ongoing debate about balancing corporate interests with societal and environmental responsibilities.
It's important to note that former Federal Minister of Economics, Peter Altmaier, is no longer in a position to oppose the supply chain law, as his tenure ended in 2021. The current developments in supply chain legislation are being shaped by the new government coalition.
Public support for strong supply chain regulations is high, with 75% of German citizens approving a law that requires companies to adhere to human rights in their supply chains, according to a survey by Infratest and reported by "Zeit-Online". This includes a large majority of supporters of the Union, despite Federal Minister of Economics Peter Altmaier (CDU) opposing the new regulation in the cabinet.
The vote on the supply chain law has been postponed twice due to persistent disagreements. However, it remains to be seen how the ongoing discussions and the EU's position on the CSDDD will shape the final form of the new law in Germany.
The policy-and-legislation change regarding the abolition of the Supply Chain Due Diligence Act (LkSG) and its replacement with a law on international corporate responsibility is a part of the broader politics surrounding the Corporate Sustainability Due Diligence Directive (CSDDD) in the general-news discussions within the EU.
Criticisms of the proposed changes to the LkSG have been voiced by groups like Human Rights Watch, who argue that such changes could potentially undermine efforts to hold companies accountable for abuses in their supply chains, contributing to the ongoing debate about balancing corporate interests with societal and environmental responsibilities.
