Last night, the EU Commission, the Council and the Parliament reached a political agreement on the key points of the EU supply chain law. Pirmin Spiegel, Managing Director of Misereor, described the EU Supply Chain Act as an elementary building block of fair and sustainable globalisation. He called on the German government to approve the compromise now.

"The agreement is an important sign of hope for the people who suffer from the human rights violations and environmental pollution caused by companies: indigenous communities in Latin America, seamstresses in Bangladesh, miners in South Africa, but also migrant workers on vegetable plantations in southern Spain," explains Pirmin Spiegel. "European companies are legally obliged to effectively prevent the destruction of the environment and livelihoods, child labour and starvation wages in their supply chains. If European companies contribute to damage by violating due diligence obligations, those affected can claim compensation in local civil courts".

The Misereor CEO is critical of the fact that financial market transactions are not initially to be covered by the EU directive. A revision clause merely provides that a decision on subsequent inclusion can be made at a later date. The requirements for climate protection in companies' supply chains are also inadequate. "The agreement that has now been reached is therefore a compromise with weaknesses. Nevertheless, important measures to protect people and nature have been agreed that will have an impact. We therefore expect the German government to give its approval in the Council before Christmas," said Mr Spiegel.

In accordance with the political agreement that has now been reached, the text of the directive will be finalised in the further process. The final adoption in the Council and the European Parliament will not take place until next year.