What the new - SUPPLY CHAIN ACT. - delivers – and what it

If companies violate their due diligence obligations, they act in violation of the law and can be fined by the competent authority, the Federal Office for Economic Affairs and Export Control (BAFA), based on the severity of the offense as well as the company's total turnover. [...] Beyond these conventions, the law covers the protected goods of soil, water and air in the context of human rights risks. [...] The following points contribute to the fact that the law is not effective enough: 1) The comprehensive due diligence obligations apply only to the company's own business operations and direct suppliers, but not to indirect suppliers. [...] partially undermines, with regard to the scope of due diligence, the participation of affected stakeholders in the due diligence process and remediation, requirements of the UN Guiding Principles. [...] The Initiative Lieferkettengesetz expects the future German government to improve the law accordingly and to advocate for a supply chain law at EU level that addresses the above- mentioned weaknesses.