NGO Alliance Criticizes German Government's Position,
Berlin, December 6, 2022. The European Union wants to obligate companies to protect human rights and the environment in their supply chains. However, it remains unclear how effective the so-called EU Supply Chain Law will be. The responsible EU Council of Ministers reached an agreement last Thursday in Brussels on a position that, while going beyond the German Supply Chain Act, still contains numerous loopholes. Several EU governments, including Germany, continue to try to weaken the proposal. Activists from the "Supply Chain Law Initiative" protested against this today in Berlin and presented a petition with 90,248 signatures to Chancellor Olaf Scholz.
"Whether in the coalition agreement or at the SPD debate convention: The SPD repeatedly commits to an effective EU Supply Chain Law. Chancellor Scholz must demonstrate on the European stage that these are not just empty promises!" “This is demanded not only by 130 organizations, but also by 90,000 people who signed our petition,” commented Michelle Trimborn, spokesperson for the Supply Chain Act Initiative .
“An EU supply chain law will only be effective if victims of human rights violations have a realistic chance of claiming damages from the responsible companies in the EU. The devastating dam collapse in Brumadinho and the fires in Asian textile factories have shown that certificates and industry standards are no guarantee of human rights and must not exempt companies from liability. The German government must withdraw its demands for such loopholes,” emphasized Pirmin Spiegel, Managing Director of Misereor .
“In the textile industry, 85 percent of greenhouse gases and environmental damage occur right at the beginning of production. An effective supply chain law must therefore apply from the very first fiber and encompass all production steps.” “Chancellor Scholz must work with his coalition partners to ensure that climate due diligence obligations are enforceable along the entire supply chain, thus establishing a key lever in the fight against the climate crisis and environmental destruction,” demands Martin Kaiser, Executive Director of Greenpeace Germany .
“The EU supply chain law must obligate all companies along the entire value chain to protect human rights. It must apply, for example, if deliveries of aviation fuel to Myanmar could contribute to war crimes. There must be no exceptions for important business sectors such as arms exports or financial investments. Only through comprehensive regulation can the European Union set global standards,” emphasizes Markus Beeko, Secretary General of Amnesty International in Germany .
Last Thursday, the German government voted in favor of the joint draft at the meeting of the responsible EU Council of Ministers for Competitiveness in Brussels. This draft stipulates, among other things, that European companies should also be liable under civil law for damages they cause by neglecting human rights due diligence obligations in their supply chain. Full due diligence is not limited to the first link in the supply chain. In addition to respecting human rights, companies will also be required to adhere to environmental standards and develop climate plans. This would make the EU supply chain law significantly more comprehensive than the German supply chain law, which comes into force on January 1, 2023.
The German government had previously advocated for the exclusion of arms exports and financial investments from the law and for companies that fail to implement their climate plans not to be sanctioned. These positions are now also reflected in the EU Council decision. However, the German government was unsuccessful in its attempt to include a so-called "safe harbor clause" in the decision – a kind of free pass for companies that use certain certifications or participate in industry standards. According to the German government's proposal, this clause would have exempted companies from any potential compensation for damages they have negligently caused. This had led to strong criticism from civil society. Nevertheless, the German government is sticking to this demand under pressure from the FDP (Free Democratic Party).
The European Parliament has announced that it will take a position on the EU supply chain law next spring. The negotiations between the European Parliament, the European Commission, and the Council, known as the "trilogue," will then begin. Misereor, Greenpeace Germany, and the German section of Amnesty International are among the more than 130 organizations that have joined forces in the Supply Chain Act initiative.
- The Council decision on the EU Supply Chain Law of 1 December 2022 can be found here: https://data.consilium.europa.eu/doc/document/ST-15024-2022-REV-1/de/pdf
- A commentary from the Supply Chain Act initiative on the EU Council decision can be found here: https://lieferkettengesetz.de/pressemitteilung/statement-zum-beschluss-des-eu-ministerrats/