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EU Supply Chain Act: Commission announces draft for February - more than 100 companies call for liability rule

More than 100 companies and investors from Europe are in favour of a far-reaching EU supply chain law, which also calls for civil liability for companies. The European Commission will discuss this on 23 February.

‘German clothing companies are also in favour of an EU supply chain law that is more far-reaching and comprehensive than the German one. This is a glimmer of hope for many exploited seamstresses, because they could sue for damages if companies do not comply with their duty of care. Now the ball lies, among other things, with the new German federal government, that it is committed to a demanding law at EU level.“, commented Dr Gisela Burckhardt, CEO of FEMNET.

Below is the press release of the Supply Chain Act initiative of 08.02.2022

Berlin. The EU's commitment to human rights and environmental standards in its supply chains for companies across Europe is supported by business: Today, more than 100 companies and investors have voted in favour of an EU supply chain law. The EU Commission had postponed the project several times last year, now it is on the agenda for its meeting on 23 February. Civil society organisations in many EU countries are calling for an effective law that improves the situation of those affected.

"Without clear rules, companies are far too seldom concerned about human rights and environmental standards in their supply chains, with fatal consequences. Many countries have therefore submitted national laws. The EU now has a historic opportunity to create clear rules of the game across Europe to protect those affected.” Commented Johanna Kusch, spokesperson for the Supply Chain Act Initiative.

In a statement published today by the Business and Human Rights Resource Centre, more than 100 German and European companies and investors are in favour of an EU supply chain law. For the first time, they also call for the introduction of a liability rule that would allow those affected to receive compensation. The list of signatories includes well-known names such as Hapag-Lloyd, Ikea and Danone.

"Many companies support an EU supply chain law and consider that human rights due diligence in supply chains is part of it", explains Friedel Hütz-Adams, research assistant at SÜDWIND e.V. "Therefore, so many companies also advocate civil liability: they need a level playing field and the knowledge that their competitors also need to act."

The EU Commission had postponed the draft of an EU supply chain law originally planned for June 2021 several times last year. European business associations are engaged in massive lobbying against important parts of the project, including Germany's Federal Association of German Industry (BDI), the Mittelstands- und Wirtschaftsunion (SME and Economic Union) and the Verband Deutscher Maschinen- und Anlagenbau (VDMA). This is shown in a briefing published today by Misereor and the Global Policy Forum.

"In contrast to many open-minded companies, German business associations are doing everything they can to prevent an effective EU supply chain law. The Federal Government has committed itself to such a law in the coalition agreement and must now deliver", demands Armin Paasch of Misereor.

In Germany, the ‘Initiative Supply Chain Act’ advocates an EU regulation, as the German Supply Chain Act is not far-reaching enough: Without a civil liability regime, it would have too little effect on those affected. In addition, it makes too small a contribution to climate and environmental protection, applies to too few companies and makes too many exceptions to due diligence obligations. The initiative therefore calls on the Federal Government to actively advocate for more far-reaching regulation at EU level.

“In the coalition agreement, the Federal Government agreed to promote an effective EU supply chain law. For us it is clear: ‘Effective’ is such a scheme only if it holds companies liable for misconduct – and finally prevents corporations from fuelling the climate crisis and species extinction’, Ceren Yildiz, research associate at the German Federal Government for the Environment and Nature Conservation (BUND).

Like Südwind e.V. and Misereor, the BUND is one of the 130 human rights, development and environmental organisations, trade unions and church actors that have joined forces to form the Supply Chain Act initiative.

Contact:

• Supply Chain Act initiative: Johannes Heeg, Spokesperson, Tel.: 0151-10611346, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
• BUND: Sigrid Wolff, Press Spokesperson, Tel.: 030-27586497, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
• Misereor: Barbara Wiegard, Press Spokesperson, Tel.: 030-44351988, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
• SOUTH WIND: Friedel Hütz-Adams, Research Associate, Tel.: 0160-99404467, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The Supply Chain Act initiative is supported by:

Arbeitsgemeinschaft der Eine Welt-Landesnetzwerke in Deutschland e.V. (agl), Brot für die Welt, Bund für Umwelt und Naturschutz Deutschland e.V. (BUND), Christian Initiative Romero e.V. (CIR), CorA Network for Corporate Responsibility, German Trade Union Confederation (DGB), European Center for Constitutional and Human Rights (ECCHR), FEMNET e.V., Forum Fairer Handel e.V., Germanwatch e.V., Greenpeace e.V., INKOTA-netzwerk e.V., Bischöfliches Hilfswerk MISEREOR e.V., Oxfam Deutschland e.V., SÜDWIND e.V., ver.di – United Services Union, WEED – World Economy, Ecology & Development e.V., Weltladen-Dachverband e.V., Werkstatt Wirtschaft e.V.

A further 110 organisations support the Supply Chain Act initiative.