Germany: governing coalition to propose law on supply chain due diligence by end of March 2021

On Friday 12 February, Germany’s economy, labour and cooperation minsters reached an agreement on the major points of a new ‘supply chain law’, which will increase the due diligence obligations of German companies when it comes to human rights and environmental issues at foreign subcontractors and suppliers. The legislation will apply to companies that employ at least 3,000 staff from 2023 and to firms with more than 1,000 staff from 2024. The text is due to be presented to the cabinet at the end of March, before being the subject of a vote in the Bundestag.
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After more than three years of wrangling between a reluctant Peter Altmaier (CDU), minister for economic affairs, and Hubertus Heil (SPD) and Gerd Müller (CSU), respectively ministers for employment and cooperation, the government coalition finally agreed on the broad outlines of a ‘supply chain law’ on 12 February. The law is intended to reinforce German companies due diligence obligations with regard to human rights violations committed by their foreign supply chain. A formal bill is due to b

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