In today's cabinet meeting, the German government intends to adopt far-reaching changes to the German Supply Chain Act. According to the draft bill, the obligation for companies to report on human rights and environmental risks is to be completely abolished and the sanction options for violations of the law are to be severely restricted. Armin Paasch, human rights expert at Misereor, criticises the amendment as a "backward step in the protection of human rights in business that is inadmissible under international law" and comments:
"With today's cabinet decision, a promising law threatens to end up as a paper tiger. In future, companies would no longer have to fear fines if they do not analyse risks to human rights and the environment, do not review the effectiveness of preventative measures or do not have a human rights officer. This is not a reduction in bureaucracy, but an open invitation to no longer take human rights so seriously. As a consequence, there is a real threat of an increase in human rights violations and environmental destruction involving German companies.
The parliamentary groups in the Bundestag should reject any weakening of the German law and instead advocate the preservation and consistent implementation of an ambitious EU Supply Chain Directive. On 26 July 2025, the German government accepted a position of the EU Council that would completely undermine the directive, against the will of the SPD-led federal ministries. Due diligence obligations would only apply to 120 German companies instead of the previous 2,900. Without a commitment from the German government to maintain the level of protection and scope of the EU directive, any advance amendment to the German law is unacceptable.
The Supply Chain Act is an important milestone in human rights protection and has brought about concrete improvements for those affected since 2023. For example, a complaint filed by Misereor's partner organisation Astac with the German authority BAFA against Rewe helped to ensure that the wages of banana workers in an Ecuadorian supplier factory were raised and they were finally able to make a living. At the same time, a study by Misereor, ECCHR and Brot für die Welt (Bread for the World) revealed a considerable need for improvements to the law in terms of transparency, the participation of those affected and more consistent sanctions. With the amendment, the German government has now decided on the exact opposite: a step backwards in human rights protection, which is expressly prohibited under international law."
