News & Press Releases - Supply Chain Law

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On 3 September 2025, the Federal Cabinet decided to significantly weaken the German Supply Chain Act: The reporting obligation is suspended and sanctions are only provided for in the case of serious infringements. While this eliminates central instruments of national law, the Corporate Sustainability Due Diligence Directive (CSDDD) also threatens to be diluted at European level. Negotiations are ongoing in Brussels – time to take a look at the state of play.

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© Initiative Supply Chain Act

Berlin. On his inaugural visit to Brussels last Friday, Federal Chancellor Friedrich Merz announced his intention to abolish the German Supply Chain Act (LkSG). He also spoke out clearly against the planned EU Supply Chain Directive (CSDDD). A broad civil society alliance reacts with strong protest – and launches the petition “No profits without conscience - protect human rights and the environment!”

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Berlin. In the future, large companies in the EU will have to work towards compliance with human rights and environmental standards in their supply chains. Der Rat der Europäischen Union hat die entsprechende Richtlinie, das sogenannte EU-Lieferkettengesetz, heute final beschlossen. This puts an end to months of political tug-of-war, in which the FDP in particular wanted to bring the project down on the German side. EU Member States now have two years to transpose the project into national law. The Federal Government must adapt the existing German Supply Chain Act accordingly.

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© Laila Sieber

Major setback for the EU Supply Chain Act: The Committee of Permanent Representatives of the Council (COREPER) today failed to reach a qualified majority in favour of the human rights project. The Belgian Presidency of the Council of the European Union has announced that it will now enter into negotiations again with the member states and the EU Parliament. Meanwhile, there is great support for the EU Supply Chain Act among the German population: More than two-thirds of people in Germany want the law, as a new representative survey shows.

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© Initiative Lieferkettengesetz

Berlin.  The German government will not agree to the compromise on the EU supply chain law negotiated in Brussels under pressure from the FDP and major business associations. This was announced today by Labor Minister Hubertus Heil (SPD) to the Reuters news agency. The Supply Chain Act initiative condemns this withdrawal at the last minute. It damages Germany's reputation as a reliable political and economic partner in the EU and shows the low priority of human rights as well as climate and environmental protection for the German government.

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© FEMNET

Berlin. Federal Justice Minister Marco Buschmann (FDP) and Federal Finance Minister Christian Lindner (FDP) reject the compromise negotiated in Brussels on the EU supply chain law. This is the result of a statement by the two ministries, from which the dpa quotes today and which is available to the Supply Chain Act Initiative. The alliance of more than 140 civil society organisations is calling on Chancellor Olaf Scholz to use his policy competence and agree to the EU Supply Chain Act.

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