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12 November 2025 Supply chain laws under pressure: Reducing bureaucracy instead of human rights?

The Supply Chain Due Diligence Act (LkSG) is regarded as a milestone: For the first time, it obliges companies to take responsibility for human rights and the environment along their entire supply chains. But this progress is on the brink.

While trilogue negotiations on the new Sustainable Corporate Responsibility Directive (CSDDD) are ongoing at EU level, the German government is already trying to weaken German law. The Federal Office of Economics and Export Control (BAFA) was instructed to suspend audits and impose fines only in ‘serious cases’. As the central supervisory authority for the implementation of the Supply Chain Act, BAFA checks whether companies comply with their due diligence obligations, imposes sanctions for infringements and provides guidance for the implementation of the legal requirements. This political signal means less control and thus less protection for those affected

The so-called Omnibus I line, which is currently being negotiated in Brussels, would be even more dangerous. It would drastically reduce the scope – only around 150 instead of more than 5,000 companies so far would be legally obliged to respect human rights. Thus, a large part of the German economy would fall out of responsibility. If Germany takes this line, it would be a massive step backwards, both legally and politically.

Women are on the way

Women are particularly at risk. They account for the largest share of the global workforce in low-wage and high-risk sectors – textile production, agriculture, care and the informal sector. They often work without an employment contract, without social security and are particularly affected by gender-based violence, wage inequality and insecure working conditions.

A weakened supply chain law thus means not only less human rights protection but also more insecurity, more exploitation and more violence against women. If identity protection is lacking in the complaint process, it is mostly workers who cannot take the risk of reporting maladministration for fear of dismissal, stigmatisation or repression.

Strong and transparent law instead of blind cuts in bureaucracy

Now the opposite of dismantling is necessary: The law needs strong oversight, transparent procedures, genuine protection of whistleblowers' identities and clear liability rules for companies. Reducing bureaucracy must not be a pretext for reducing protection.

Human rights are universal and must not be sacrificed at the expense of those most affected: Women in global supply chains.