Around two months after the Supply Chain Act came into force, Federal Labor Minister Hubertus Heil (SPD) called on the entire economy to implement it. “We also have good examples in Germany, in the textile industry, also in the chocolate industry and in the automotive sector,” said Heil at the end of a five-day trip through West Africa with Development Minister Svenja Schulze (both SPD). Of their own accord, these German companies already ensure compliance with human rights and environmental standards during production throughout their supply chain. “But we still have a few business associations that haven’t understood that those who make global profits also have to take responsibility for human rights.”
Heil said in Agboville in the Ivory Coast (Côte d’Ivoire): “I can’t hear the whining of some big associations anymore.” The supply chain law, which came into force at the beginning of 2023, obliges companies with at least 3,000 employees to exclude child labor or serious environmental violations in the manufacture of their products. In 2024, the threshold will drop to 1,000 employees. “In my view, child labor is a crime, we can no longer look the other way,” said Heil.
The companies must create reports on clean supply chains and remedy abuses. The Federal Office of Economics and Export Control (Bafa) intends to verify the existence of the reports from mid-2024. Another supply chain law is being drafted at EU level, which will probably contain even stricter rules. “There is no way around global responsibility for anyone in this networked world – that must be clear,” said Heil.
After visiting a cocoa plantation, Schulze said: “Everyone likes chocolate, but nobody wants children to have to work for it or forests to be destroyed.” To do this, Germany must now also support local producers in Africa. There should not be less trade, but fairer trade. “That’s why I offered to help the cocoa farmers to cope with the new law.”
With a view to the Ivorian government’s corresponding plans, Schulze said: “If we succeed in establishing digital traceability, this will have a double benefit.” It can be ensured that the chocolate does not lead to forest destruction. “And cocoa farmers can get a fairer share of the price by transparently getting the money straight to their phones.”