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Although the German government has advocated an effective EU supply chain law in the coalition agreement, German MEPs - in particular the European People's Party (EPP) - are actively trying to make the future EU law ineffective. Together with an alliance of 130 development, environmental, human rights and trade unions, FEMNET advocates an effective EU supply chain law and addresses the MEP, Axel Voss, with an open letter.

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Bonn. On 1 January 2023, the Supply Chain Due Diligence Act (LkSG) entered into force in Germany. From the point of view of NGOs, it is a good start, but we are not yet at the finish line. At EU level, the Commission’s proposal for an EU due diligence law has been in place since February 2022 and at the beginning of December 2022, EU Member States agreed on their provisional position in the Council. The Committee on Legal Affairs is currently preparing the position of the European Parliament. Time and again, the question arises as to whether multi-stakeholder initiatives (MSIs) and certifications should play a role as proof of compliance with companies' human rights and environmental due diligence obligations, and if so, which ones? For some, membership in an MSI or submission of a certification should already be proof that the company complies with its due diligence obligations. Others hope that by joining MSI or using recognized certifications, companies can no longer be held liable for slight negligence.

All these discussed roles for MSI and certifications consider the NGOs signing here to be dangerous loopholes to the detriment of people and the environment, which must be prevented. This short paper puts together the main arguments against these loopholes (safe harbour).

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10 years after the devastating fire in the Ali Enterprises factory in Karachi, the International Accord for Pakistan was finally announced on Wednesday, 14.12.2022. The agreement is based on the Bangladesh Accord, which was signed in response to the collapse of the Rana Plaza textile factory in 2013. It provides for essential mechanisms to improve safety standards in factories that are legally binding on the signatory brands. Trade unions and NGOs celebrate the announcement of the agreement as a great success.

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The report of the ARD magazine Monitor clearly shows how behind the scenes economic and political actors are influencing and trying to dilute the proposal for an EU supply chain law. A loophole for businesses. Because if they join certain industry initiatives, such as the Textile Alliance, or use state-approved certifications of due diligence, they should only be liable for damages that they have committed intentionally or grossly negligently.

"Such a dilution of the EU draft would render the law toothless and must under no circumstances exist", says Gisela Burckhardt, CEO of FEMNET. The Supply Chain Act initiative, in which FEMNET is a member together with 130 NGOs, comments on the report of the ARD policy magazine and the Federal Government's attempt to influence the EU Supply Chain Act.

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As the supporting organisation of the Supply Chain Act initiative, FEMNET joins the call Justice is Everybody’s Business to. The campaign is supported by numerous civil society and trade union organisations from across Europe and beyond. It is committed to using laws to hold companies to account that violate workers' rights and destroy the livelihoods of communities.

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Gisela Burckhardt addressed critical questions for FEMNET to Zalando and Hugo Boss at their shareholder meetings in May 2022. Both events took place virtually, which prevents critical inquiries. Overall, both companies remained very inconclusive in their responses.

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With more than 220 civil society networks, individual organisations and trade unions from all over the world, we are addressing the European Parliament and the EU Member States today with a joint statement. Whether from India, Brazil, USA, China or Bangladesh, all drawing organizations have one thing in common: They are calling for a strong EU supply chain law. Only a strong EU supply chain law can effectively improve the conditions for people, the environment and the climate along global value chains!

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On 23 February 2022, the EU presented its draft pan-European supply chain law. This is a good signal for compliance with human rights and climate protection along global supply chains. In terms of the size of the companies, the EU draft is more ambitious than the German one. At the same time, there is also a lack of sufficient liability rules for companies or references to gender-sensitive measures to protect workers, especially women and girls, from exploitation and violence.

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The Supply Chain Act for Germany has been adopted since June 2021 and finally holds German companies accountable. Now, an EU supply chain law is the next step in protecting human rights and the environment in supply chains. However, there have been delays here for months.

"It is very worrying that the business lobby in Brussels seems to be trying to gain time to prevent or postpone an EU supply chain law. Now the traffic light coalition must show that it is serious about what it promised in the coalition agreement. A strong EU supply chain law would also improve the protection of women's rights in the garment supply chain," said Gisela Burckhardt, FEMNET CEO. FEMNET therefore supports the open letter of the European Supply Chain Initiative to the European Commission.

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