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14 November 2024 Improvement instead of weakening necessary: First Fashion Companies Publish Supply Chain Law Reports

© INKOTA, Clean Clothes CampaignThe first reports from seven major companies in the apparel and footwear industry on the Supply Chain Due Diligence Act (LkSG) for 2023 show the first positive impact on working conditions in global supply chains. At the same time, an analysis by INKOTA and the Clean Clothes Campaign makes it clear that improvements are urgently needed to strengthen the effect of the law.

Particularly striking is the lack of transparency in the reports of the companies adidas, Kik, NKD, Otto, Zalando, Witt and Takko. It is not clear which human rights risks exist in which parts of the supply chain or how they are specifically addressed. There are also major shortcomings in redressing human rights violations. No company indicates which reparations affected persons have received or how satisfied they were with the measures.

The analysis shows that the report questionnaire of the competent Federal Office of Economics and Export Control (BAFA) needs to be made more detailed in order to obtain more meaningful information. Transparent reporting is a prerequisite for understanding human rights compliance in global supply chains and enforcing improvements.

background

Since 2023, the Supply Chain Due Diligence Act has applied to companies with at least 3,000 employees. It commits them to ensuring human rights and environmental standards along their global supply chains and includes measures for risk assessment, prevention and remediation of violations. The current analysis shows that although initial progress has been made, improvements are still needed to make the law work.