A First Success for Human Rights
Forced and child labor, exploitative working conditions, and inadequate occupational safety are not uncommon in the textile industry. Until now, there have been no consequences – the Supply Chain Due Diligence Act aims to change that and finally ensure responsible supply chains.
The Supply Chain Act in detail
Contents & Validity:
On June 11, 2021, the Bundestag passed the Supply Chain Act. It came into force in January 2023 and initially applies to companies with 3,000 or more employees, and since 2024, to those with 1,000 or more. Companies are legally obligated for the first time to take responsibility for their supply chains and to comply with new due diligence obligations.
Responsibility for the entire supply chain:
Companies must analyze risks among direct and indirect suppliers and take countermeasures. They must issue a statement on respect for human rights. Above all, they must take action in the event of clear indications of violations.
Better Protection & Documentation Obligation:
Companies must establish a grievance mechanism for human rights violations. Affected parties can file a complaint with the BAFA. Since 2023, companies must report transparently and publicly on their activities. The BAFA monitors compliance and can impose fines.
Why the law is not yet sufficient:
The draft law has been watered down: due diligence obligations apply only to a limited extent to direct suppliers, not where human rights violations occur most frequently – at the beginning of the supply chain. Civil liability is not provided for. Environmental standards only apply in specific cases. The law is a start, but far from enough.
