2 Sep 2022

The Federal Government will support the EU Commission's proposal in the negotiations for an EU supply chain law. This was agreed during the closed meeting of the Federal Cabinet in Meseberg this week, Federal Labour Minister Hubertus Heil (SPD) announced in Berlin on Friday. The planned EU regulation will significantly improve legal protection for victims of human rights violations, Heil explained. The European Union wants to oblige companies to ensure that their international suppliers also respect human rights and environmental standards. Sanctions are foreseen in the event of violations.

The EU Commission is also planning legal changes for lawsuits against violations that go beyond German law. Heil explained that the German Supply Chain Act had already improved the possibilities for those affected by human rights violations to claim their rights by allowing non-governmental organisations and trade unions to stand in in German courts on their behalf. The planned EU law would go a step further and also allow claims for damages under German law.

The EU supply chain law is expected to be agreed upon by member states, if possible, before the end of the year. The final text of the law will be negotiated between the Council of the European Union and the European Parliament.

Unofficial translation by Business & Human Rights Resource Centre