We’ve written about upcoming changes to the text of Germany’s Supply Chain Act. While the legislative changes scale back the law as written, the German government is also signalling changes to how the law is enforced. Reporting from Clean Energy Wire indicates that the German economic ministry ordered the law to be applied in a “business-friendly” manner, writing:
“The coalition agreed the reform in early September. Reporting duties are scrapped retroactively, and ongoing offence investigations no longer relevant are dropped, according to the BMWE. Imposing fines will now be subject to tight conditions, such as in cases of ‘especially grave’ human rights violations, the ministry said. However, the economy ministry told BAFA to handle reported cases of administrative offences ‘very restrictively.’”
Changes to the German Supply Chain Act removed reporting requirements under the law and drastically reduced its requirements. Germany is now looking to implement the EU’s Corporate Supply Chain Due Diligence Directive (CSDDD) as its primary supply chain due diligence law. However, the CSDDD is also being scaled back as part of the EU’s omnibus negotiations. The German government expressed that it will attempt to minimize compliance burdens under both supply chain laws.
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