Ramona Pop, Executive Board Member of the Federation of German Consumer Organisations (VZBV), stated the government appears to be acting prematurely “The EU’s corporate sustainability due diligence directive is currently under revision and the outcome of that democratic process remains open However, the German government is already dismantling the national supply chain law
Pop explained this creates a gap in accountability, as the removal of reporting requirements makes it difficult to verify whether companies are fulfilling their due diligence obligations regarding environmental protection and human rights
The VZBV highlights consistent consumer support for a robust supply chain law, arguing it is essential for enabling sustainable consumption Without it, consumers lack the means to identify products genuinely produced in a sustainable and fair manner “It’s unclear why the government would eliminate the central component of the supply chain law” Pop added
Consumer groups also raised concerns regarding the government’s engagement with stakeholder organizations Pop described the twelve-hour timeframe provided for review of the draft legislation as “unprecedented and unacceptable” stating that parliamentary hearings are a fundamental aspect of democratic procedure “This approach raises questions about a desire to expedite the process and present a “fait accompli”
Germany’s supply chain due diligence law has been in effect since 2023, with companies employing 1,000 or more people required to comply with its due diligence obligations since 2024 The cabinet now intends to remove the reporting requirements relating to compliance with these obligations Simultaneously, the cabinet is scheduled to approve the draft legislation for the implementation of the EU’s Corporate Sustainability Reporting Directive (CSRD) on September 3rd, which would establish reporting requirements for the EU’s corporate sustainability due diligence directive, despite the ongoing legislative process at the EU level
