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Germany blocks EU supply chain legislation to safeguard human rights

February 13, 2024

Credits @FFHR.CZ 

A proposed European supply chain regulation that would hold firms liable for any abuses against workers in the global supply chain has been put on hold since Germany’s coalition partner has not agreed to support it.

According to Human Rights Watch, the bill would protect the most vulnerable people from child and forced labour, hazardous and exploitative working conditions, and toxic pollution.

Germany noted “unreasonable bureaucratic hurdles” in the proposed bill. Italy later announced that it would likewise abstain from voting.

Beginning in 2027, the EU’s corporate sustainability due diligence regulation (CSDDD) requires major EU corporations to identify and remedy concerns such as forced labour and environmental degradation, such as deforestation, in their supply chains.

According to reports, the rule would apply to EU corporations with more than 500 workers and a net global revenue of more than € 150 million, as well as non-EU companies with EU turnover over this threshold, but only after three years.

Violations can result in fines of up to 5 per cent of a company’s global sales. Critics claim that this increases reporting duties for EU corporations that are already required to comply with a different set of ecological, social, and governance (ESG) disclosures beginning this year.


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