17 February, 2021German unions have argued for years that a law on due diligence in supply chains – Sorgfaltspflichten - is necessary. Now their arguments are being taken seriously, and a new law on due diligence in supply chains is expected to be passed before the elections in autumn 2021.
The law will incorporate the provisions of the UN Guiding Principles for Business and Human Rights and the OECD Guidelines for Multinational Enterprises into German domestic legislation. Although the draft text of the law has not been published yet, ministers announced details at a press conference on 12 February.
The law will place legal obligations on companies headquartered in Germany to ensure that human rights and related environmental standards are observed at all levels of the supply chain. The law is expected to come into force at the beginning of 2023, and will initially cover companies with more than 3,000 employees. From 2024, it will cover companies with more than 1,000.