The Federal Government’s coalition committee has decided to limit the scope of the Supply Chain Act, from autumn onwards, to large corporations with 5,000 or more employees and an annual turnover of 1.5 billion euros. Misereor human rights expert Armin Paasch has criticised the decision as “a step backwards, contrary to international law, in the protection of human rights and the environment in the business sector” and is calling on the Bundestag to reject the coalition committee’s proposal:

“The protection of human rights in the business sector is not superfluous bureaucracy, but a requirement of humanity and international law. Following today’s decision, the Federal Government intends to exempt 95 per cent of German companies currently subject to the Supply Chain Act from their responsibility for human rights and the environment within their supply chains. Countless garment workers, indigenous people, smallholders and agricultural workers would thereby lose the protection of their human rights under German law: a clear violation of the prohibition under international law on retrogression in human rights protection.

It is to be welcomed that the Federal Government intends to implement the EU Supply Chain Directive in a timely manner. However, the planned ‘one-to-one implementation’ contradicts the prohibition on retrogression in the protection of human rights. Instead of deciding in advance on unilateral watering down of the Supply Chain Act, the Federal Government should present a balanced draft for an effective law on international corporate responsibility, as it had already announced in the coalition agreement.

In accordance with the EU Supply Chain Directive, this law must enable transparent stakeholder participation, guarantee the right of those affected to full compensation, facilitate their access to the courts, and ensure the independence of the implementing authority from external influences. Unfortunately, none of this has been the case so far in the implementation of the German Supply Chain Act.”