Germany Eases Business Burden: Supply Chain Act Reporting Obligations Dropped
The German government is set to ease the burden on businesses by removing reporting obligations under the Supply Chain Act. The cabinet's decision aims to reduce bureaucracy, but it raises questions about companies' commitment to environmental and human rights standards in their supply chains.
In a move to boost economic growth, the government plans to abolish reporting obligations regarding due diligence in the Supply Chain Act. This change is expected to reduce bureaucratic hurdles for companies. However, it remains unclear how businesses will ensure compliance with environmental and human rights standards without formal reporting requirements.
The government's decision comes before the EU's final ruling on the EU Due Diligence Directive. In 2019, over 50 companies and organizations jointly supported the German Supply Chain Due Diligence Law draft, advocating for improvements aligned with international and EU standards. Despite the abolition of some reporting obligations, companies still emphasize the need for thorough risk management and documentation to comply with remaining due diligence duties.
The German government's decision to remove reporting obligations under the Supply Chain Act aims to foster economic growth by reducing bureaucracy. However, the impact on companies' commitment to environmental and human rights standards in their supply chains remains uncertain. Critics, such as Ramona Pop, President of the Federation of German Consumer Organizations, argue that the government's actions undermine the Supply Chain Act.
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