"SME statement on the German Supply Chain Act: Practical rules to ease the burden on small and medium-sized companies should be implemented quickly"

As small and medium-sized German companies, we are committed to sustainability in our business practices. Respecting fundamental human and labor rights and the protection of our natural resources are important values for us, and we also base our business activities on these values.

We therefore consider a statutory regulation to be useful for guaranteeing a level European playing field and establishing legal certainty. However, in the context of the implementation of the German Supply Chain Act, many small and medium-sized enterprises (SMEs) are facing challenges in the current already tense economic situation, where the practical benefits for human rights and the environment are often not immediately apparent. We are convinced that these problems often result from inadequate or simply incorrect application of the law. [...]

We are concerned to see that the discussion about proposed political solutions to these problems too often ignores the concrete business reality. Repealing, postponing or renegotiating laws does not help anyone, because we as companies need planning security. Instead of further discussions at EU level, which create additional uncertainty, it is important to quickly implement concrete and tangible relief for SMEs at national level, without losing sight of the goal of protecting human rights and the environment.

We therefore call for the consistent implementation of the following measures:

• Facilitation for SMEs through swift revision of the German Supply Chain Act as a result of the implementation of the EU Due Diligence Directive The EU Corporate Sustainability Due Diligence Directive (CSDDD), which was adopted in 2024, makes it clear that obligated companies must focus on the most serious human rights and environmental risks along their supply chain and prioritize them instead of collecting information and contractual assurances from their suppliers in a non-specific and large-scale manner [...]
• Effective prohibition on passing on obligations to suppliers [...]
• Harmonization of information requirements [...]
• Increased training opportunities for SMEs [...]

The full statement, including the list of signing companies (as of March 9), is available above.

The statement remains open for additional signatories. If you are interested in signing, we would be happy to forward your request to the organisers. Please send an email to Belle Benckendorff, EU/Western Europe Researcher [benckendorff@business-humanrights.org].