After an initial compromise failed due to Germany’s resistance, among other things, the European Council finally agreed on a European supply chain law (CSDDD for short) on March 15, 2024. However, it was significantly watered down and, after a transitional period of five years, will only apply to companies with more than 1,000 employees and an annual turnover of more than 450 million euros. However, these companies must check their entire supply chain – including their suppliers’ suppliers, etc. – for violations of human and labor rights and environmental protection. Compared to the German Supply Chain Act, the controls on environmental violations are also stricter. And victims of human rights or environmental protection violations can file civil lawsuits against the companies or have them filed by trade unions and non-governmental organizations. However, companies are only liable if they have intentionally or negligently neglected their monitoring obligations. A risk-based approach applies and a distinction is made as to whether the supplier is based in Europe or an African country, for example.

Do you or your employees need appropriate training? You can find the next training dates here.

Do you need advice on how to implement the requirements in your company? Then you can rely on our expertise. Simply make an appointment for a free initial consultation.

Helpful links:

EUR-Lex – 52022PC0071 – EN – EUR-Lex (europa.eu)

Corporate sustainability due diligence – European Commission (europa.eu)