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German Supply Chain Act clears final hurdle

On 27 May 2021, the grand coalition agreed on the amended government draft of the Supply Chain Act.

On 27 May, the grand coalition agreed on the amended government draft of the Supply Chain Act (“Draft Act on Corporate Due Diligence in Supply Chains”). This clears the way for the law to be passed by the Bundestag in June 2021. It is then to come into force in 2023.

The planned law will result in increased requirements for companies with regard to human rights and environmental risks along the entire supply chain. These include, among other things, a risk analysis of the supply chain, a policy statement with a human rights strategy and mandatory reporting. Even though the draft law only provides for direct concern for companies with 3,000 employees or more in 2023 and 1,000 employees in 2024, it can be assumed that smaller companies in the supply chain will also be indirectly affected by the requirements.

If you would like to find out more about the extent to which your company is affected by the Supply Chain Act, what requirements your company will have to meet in detail and what measures you will have to take, our Short Check Supply Chain Act provides you with the information you need in a compact form.

Contact persons at Arqum:
Christian Henrichs and Ellen Leibing

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