Complimentary Quick Guide

Germany is the latest in the line of European states introducing national legislation on human rights due diligence (with relevant laws already adopted in France and the Netherlands, and slated for 2021 in Norway and Switzerland). Germany's proposed Supply Chain Law aims to create an obligation for businesses to conduct human rights and environmental due diligence at all tiers of their supply chains.

The proposed law, expected to take effect before the end of 2021 and strongly supported by the German business community and consumers, intends to hold companies responsible for ensuring adherence to social and environmental standards in their global supply chains. Businesses that fail to comply with the proposed Supply Chain Law’s requirements may face civil liability and be subject to administrative fines, while victims of human rights abuses would be entitled to file damage claims before German courts.

Key facts about the proposed Supply Chain Law:

• The proposed law will apply to companies that are based in Germany and: employ 500+ people OR have an annual turnover of EUR 40M+ OR balance sheet total of EUR 20M+
• Companies will have to ensure that social and environmental standards are observed at all tiers of their value chain, including suppliers of all sizes and in other countries
• Required reporting on companies’ due diligence and remediation efforts will include public reports on the company website and a separate report to a federal authority

Download our quick guide to learn more about the impact of Germany's proposed Supply Chain Law on your business, and discover what practical steps you can take to protect your global supply chain from ethical risk.