News - © FEMNET 24 February 2022 EU supply chain law: Not consistent enough for a "big hit" On Feb. 23, 2022 the EU presented its draft for a Europe-wide supply chain law. This is a good signal for the observance of human rights and climate protection along global supply chains. In terms of the size of companies, the EU draft is more ambitious than the German one. However, it lacks sufficient liability regulations for companies or references to gender-sensitive measures to protect workers, especially women and girls, from exploitation and violence. "We are pleased that the EU supply chain law reaches a little further in some aspects than the German one. For instance, even medium-sized companies in high-risk sectors such as clothing with 250 or more employees will have to prove that they are fulfilling their due diligence obligations, which will affect many clothing companies. This is an overdue step, because compliance with human rights should not depend on the size of the company. It is also positive that, in contrast to the German law, the EU allows civil action by affected parties before a court in Europe in the event of a violation of labor rights. However, the scope of the civil liability provision is limited. If EU companies have received contractual assurances from their business partners that they will comply with the company's code of conduct, EU companies can be safe from civil liability claims. Also of high concern is the restriction of due diligence obligations to companies that have so-called "established business relationships" with their suppliers. This is virtually an invitation to companies to change their suppliers frequently, which would be the opposite of acting responsibly. As in the German law, there is no reference in the EU Commission's draft to the particular affectedness of women in the supply chain with regard to gender-based violence in the workplace, which makes gender-sensitive measures necessary. There is also no reference to ILO Convention 190 on gender-based violence in the workplace, which was adopted two years ago," comments Dr. Gisela Burckhardt, FEMNET Board Chair, on the EU draft supply chain law. Press statement of the Initiative Supply Chain Act of 23.02.2022 Berlin, 23.02.2022. The EU Commission presented its draft for a Europe-wide supply chain law today. Johannes Heeg, spokesperson for the civil society alliance "Initiative Supply Chain Law", explains: "With this draft, the EU is finally laying the foundation for less exploitation and environmental destruction in the supply chains of European companies. However, to make a big impact, the EU would have to make demands more consistently: due diligence obligations for more than just one percent of companies. Precise climate-related obligations in the supply chain. And a liability regulation without loopholes that finally creates justice for those affected by human rights violations. On these points, the Commission gave in to lobbying pressure from the major business associations. The German government therefore now has a clear mandate to act: it must use its influence in the EU to push for improvements. After all, it has committed itself to an 'effective' EU supply chain law in the coalition agreement. It is encouraging that the EU draft closes some loopholes in the German law and makes companies responsible along their entire supply chain. The envisaged civil liability also gives cause for hope. Nevertheless, it remains questionable whether those affected will really be able to claim damages from companies in the future. The limitation of due diligence obligations to 'established business relationships' is critical - no one should be able to circumvent these obligations by frequently changing business partners. The fact that companies must now draw up a climate protection plan in line with the 1.5°C target of the Paris Agreement is to be welcomed in principle. What is unacceptable, however, is that companies that fail to live up to their plan have no liability to fear. Given the rapid pace of climate change, the plan is simply not on schedule at this point." Background: The EU Commission today presented its draft for a Europe-wide supply chain law. Johannes Heeg, spokesperson for the civil society alliance "Initiative Supply Chain Law", explains: "With this draft, the EU is finally laying the foundation for less exploitation and environmental destruction in the supply chains of European companies. However, to make a big impact, the EU would have to tackle the hot potato more consistently: due diligence obligations for more than just one percent of companies. Clear climate-related obligations in the supply chain. And a liability regulation without loopholes that finally creates justice for those affected by human rights violations. On these points, the Commission gave in to lobbying pressure from the major business associations. The German government therefore now has a clear mandate to act: it must use its influence in the EU to push for improvements. After all, it has committed itself to an 'effective' EU supply chain law in the coalition agreement. It is encouraging that the EU draft closes some loopholes in the German law and makes companies responsible along their entire supply chain. The envisaged civil liability also gives cause for hope. However, it remains questionable whether those affected will really be able to claim damages from companies in the future. The limitation of due diligence obligations to 'established business relationships' is critical - no one should be able to circumvent these obligations by frequently changing business partners. The fact that companies must now draw up a climate protection plan in line with the 1.5°C target of the Paris Agreement is to be welcomed in principle. What is unacceptable, however, is that companies that fail to live up to their plan have no liability to fear. Given the rapid pace of climate change, the plan is simply not timely at this point." Contact: Initiative Supply Chain Johannes Heeg, Spokesperson, Phone.: 0151-10611346, E-Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
