Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

New year, new rules for German businesses as Supply Chain Act comes into force

New year, new rules for German businesses as Supply Chain Act comes into force

From 2023, German companies must ensure that human rights are respected along their supply chains.
 In the new year, German companies will be forced to monitor their supply chains more strictly. 

On January 1, the new Supply Chain Act comes into force, a piece of legislation that dates back to Angela Merkel's time as chancellor. As a result, companies with more than 3,000 employees will be required to comply with certain obligations for their entire supply chain.

According to the Development Ministry, about 900 German companies will be affected. From 2024, the law will also apply to companies with more than 1,000 employees.

Among other things, the companies concerned must carry out a risk analysis, introduce risk management and a complaints mechanism, and report on these measures publicly. In the event of violations within the business or by direct suppliers, companies must take appropriate action.

The Supply Chain Act lists 11 internationally recognized human rights that companies may no longer violate. It includes bans on child labor, slavery, and forced labor.

The rules will be monitored by a new branch of the Federal Office of Economics and Export Control (BAFA) that will carry out the auditing through mandatory reports submitted by companies and “risk-based inspections.”

If companies violate the new rules, they could face fines of up to €8 million or up to 2 percent of annual global sales. In addition, companies can be excluded from public tenders.

There has been criticism of the rules from business leaders and politicians.

“The law has become a bureaucracy monster that neither promotes its acceptance among the affected companies nor has much to do with the basic idea of the law,” said Holger Görn, president of the Kiel Institute for the World Economy. Several business associations called for the law to be postponed.

At the end of September, the Free Democrats, a member of the governing coalition, advocated a postponement of the act coming into force. The Greens and SPD, however, wanted to press ahead.

In December, the Christian Democrats, which had originally endorsed the Supply Chain Act, introduced an unsuccessful motion in the Bundestag to move the start date to 2025.

Corresponding legislation at the EU level is still being discussed. It will likely be stricter than the German rules, but still has to be negotiated with the European Parliament before coming into force.

Berlin will then have to adapt its own law.
Newsletter

Related Articles

0:00
0:00
Close
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
French farmers are not messing around.
×