The German government has adopted draft law to ensure corporate compliance with human rights in the supply chain.
By Paul A. Davies, Michael D. Green, Joachim Grittmann, Stefan Bartz, and Alexander Wilhelm
On 3 March 2021, the German government adopted the draft Corporate Due Diligence in Supply Chains Act (Gesetz über die unternehmerischen Sorgfaltspflichten in Lieferketten), which is intended to oblige large German companies to better fulfil their responsibilities in the supply chain with regard to internationally recognized human rights by implementing core elements of human rights due diligence.
The draft law will now be introduced in the legislative procedure and is expected to be passed this summer. If passed, the new law will enter into force in January 2023.