The supply chain law in Germany will continue to apply in the new year. From 2024, it will affect companies with more than 1,000 employees; previously the limit was 3,000. Since the beginning of 2023, German companies have had to take responsibility for child and forced labor in the supply chain of their products by law. Because when a T-shirt arrives in a store in Germany, a chocolate bar in a supermarket or a sofa in a furniture store, the products often have undergone many stages of production in different countries. The Supply Chain Due Diligence Act (LkSG), as it is officially called, which is often criticized by business, holds companies accountable.
According to its own information, the responsible Federal Office for Economic Affairs and Export Control (BAFA) did not have to impose sanctions for violations in the first year. According to the authority, the obligated companies are taking a closer look at their supply chains and are largely successfully implementing the legal requirements.
Negotiators from the European Parliament and the EU states also agreed on an EU-wide supply chain law in December. In principle, the rules apply to companies with more than 500 employees and at least 150 million euros in sales. It is planned, for example, that companies can be held accountable in European courts if human rights violations occur in their supply chains. The agreement on the EU law still needs to be confirmed by the European Parliament and the EU states. (dpa)