Germany: law on due diligence in supply chains adopted by the Bundestag

Passed by the Bundestag on Friday 11 June, the 'Act on Corporate Due Diligence Obligations in Supply Chains' will come into force in two stages from 2023. From now on, companies headquartered in Germany will be partly responsible for non-compliance with social and environmental standards by their direct suppliers. This legislation is one of the most controversial of Angela Merkel's last term in office. In detail, it is clear that the long stalemate between employers' lobbies and the Ministry of Economic Affairs and the Ministries of Labour and Cooperation has paid off. In its final version, the text has been considerably softened.