Consumer protection groups have voiced criticism regarding a planned reform of Germany’s supply chain due diligence law, approved by the federal government on Wednesday The reform reportedly removes the requirement for companies to demonstrate compliance with human rights and environmental standards within their supply chains, pushing the obligation back to 2027
Ramona Pop, Executive Board member of the Federation of German Consumer Organisations (VZBV), stated that the government is “taking the second step before the first” She explained that the move preempts the ongoing revisions to the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), with the outcome of that democratic process still pending Pop argues the reform creates a gap where companies face no reporting obligations, hindering verification of their adherence to environmental and human rights due diligence
The VZBV points to consistent consumer support for a robust supply chain law, asserting it’s essential for enabling sustainable consumption Without such a law, consumers are unable to ascertain whether products are genuinely produced sustainably and fairly The organization expressed incomprehension at the government’s decision to eliminate what it considers a central component of the law
Additionally, consumer groups have criticized the government’s consultation process with relevant associations Pop deemed the twelve-hour timeframe provided to review the draft legislation as “unprecedented and unacceptable” emphasizing the importance of thorough reflection of proposals through formal hearings as a cornerstone of democratic governance She suggested the expedited procedure raises concerns about a push to create a “fait accompli”
Germany’s supply chain law has been implemented since 2023, with companies employing over 1,000 people required to comply with due diligence obligations from 2024 The cabinet now intends to abolish reporting requirements concerning compliance with these obligations, coinciding with the planned approval on September 3rd of a draft law to implement the EU Corporate Sustainability Reporting Directive (CSRD), which would define reporting requirements for the CSDDD However, the legislative process at the EU level remains incomplete