Germany: cabinet heavily waters down due diligence law

As outlined in the coalition programme agreed in April 2025, the German cabinet on 3 September approved a significantly watered-down version of the country's Supply Chain Due Diligence Act (LkSG). Reporting requirements have been scrapped and sanctions restricted to serious breaches. The compromise, which stops short of either repealing or preserving obligations, has left both employers and NGOs dissatisfied.

By Thomas Schnee. Published on 05 September 2025 à 16h45 - Update on 05 September 2025 à 16h45

On Wednesday, the German Federal Cabinet approved significant amendments to the Supply Chain Due Diligence Act (LkSG). The government plans to exempt companies subject to the law (those with more than 1,000 employees) from certain documentation requirements. Germany’s labour ministry, which presented the bill, said that checks would not be applied as strictly as before. “We are rapidly implementing the coalition agreement in order to further ease the burden on companies.…

Thomas Schnee

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