Germany passes law on stricter supply chain surveillance by Reuters

© Reuters. File Photo: On April 1, 2020, you can see the Berlin skyline during the epidemic of coronavirus disease (COVID-19) in Berlin, Germany. REUTERS / Michele Tantussi

Berlin (Reuters)-Bundestag on Friday passes supply chain legislation, paving the way for stricter regulations that force large companies to pay fines of up to 2% of global annual sales if they violate the rules Open.

Under this law, German companies larger than a certain size establish due diligence procedures to prevent human rights and environmental abuse within the global supply chain and take action if they find a breach in a foreign supplier. is needed.

From 2023, only companies with more than 3,000 employees in Germany will be affected. From 2024, this will expand to companies with more than 1,000 employees.

This means that more than 900 companies will be affected in the first phase and approximately 4,800 companies will be affected in the second phase.

According to the law, in certain cases you can be fined up to 2% of global sales.

The bill will allow the government to temporarily exclude companies fined more than € 175,000 under the new law from open bidding.

Industry lobbying groups and wholesalers said the new law would strengthen bureaucracy and warned that it could lead to higher prices.

Joachim Lang, General Manager of the Federation of German Industries, said:

Oxfam, a non-governmental organization, has criticized that companies only have to take care of direct suppliers and forced laborers are unlikely to claim damages in German courts.

($ 1 = 0.8233 euros)

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Germany passes law on stricter supply chain surveillance by Reuters

Source link Germany passes law on stricter supply chain surveillance by Reuters

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