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Gesetzentwurf der Bundesregierung über die unternehmerischen Sorgfaltspflichten in Lieferketten

Draft Law on Corporate Due Diligence in Supply Chains

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Summary

The Gesetzentwurf der Bundesregierung über die unternehmerischen Sorgfaltspflichten in Lieferketten is a German government draft law proposing to establish mandatory due diligence obligations for companies with regards to human rights and environmental issues in their supply chains. The proposed legislation requires companies above a certain size to conduct risk assessments and take appropriate measures to prevent human rights violations, environmental harm, and other negative impacts in their supply chains. Companies will also be required to set up grievance mechanisms and report on their due diligence activities. The law is designed to apply to German companies with a certain number of employees, as well as foreign companies supplying goods or services to the German market. Companies that fail to comply with the law could face fines, liability claims, and other penalties. The draft law aims to promote sustainable and responsible business practices, and to ensure that companies operating in Germany respect human rights and environmental standards throughout their supply chains. It is currently under consideration in the German parliament and is expected to be enacted in the near future.

Issuer

Germany

Year

2021

Region

Europe

Issuer (type)

German Bundestag (Government)

Instrument type

Law

Disclosure instrument

Yes

Geographical scope

National

Mandatory or voluntary

Mandatory

Text analysis

    • Very High 1.98%
    • Moderate 0.17%
    • E focus: energy, environment, fisheries, forests, hazardous substances, pollution, recycling, soil, waste, water, water scarcity, emissions
    • S focus: collective bargaining, compensation, conflict minerals, discrimination, forced labor, forced labour, gender equality, human rights, recruitment, temporary workers, value creation, working time, children
    • G focus: audit, collective bargaining, conflict minerals, corruption, forced labor, forced labour, gender equality, human rights, temporary workers, value creation, working time, accountability
    • Accommodation, Administrative services, Agriculture, Arts, Construction, Finance, Information, Management, Manufacturing, Mining, Public administration, Real estate, Retail trade, Transportation, Wholesale trade