Seventeen major business associations have demanded the immediate suspension of Germany's national Supply Chain Due Diligence Act in a letter to the government and parliament. They criticize planned changes as providing no noticeable relief and call for alignment with EU law. The law regulates compliance with human rights and environmental standards in global supply chains.
A stop signal has sounded in Berlin for the black-red coalition: 17 associations from various sectors are demanding the complete and immediate suspension of the Supply Chain Due Diligence Act (LkSG). The letter to the federal government and Bundestag, obtained by the RedaktionsNetzwerk Deutschland (RND), argues that the current plans offer no noticeable relief. The LkSG entered into force at the beginning of 2023 and obliges companies to uphold human rights and environmental standards in their supply chains. The government plans amendments for relief: the reporting obligation on compliance with due diligence duties is to be eliminated, but the duties themselves remain in place. The associations view this critically: 'The extensive due diligence obligations regarding global supply chains remain in place, as does the obligation to document entrepreneurial efforts in detail,' states the letter. The planned adjustments are insufficient 'to noticeably relieve companies.' They urge the Union and SPD to halt the law. Additionally, the government should fulfill its coalition agreement promise and implement EU changes to sustainability reporting ('Omnibus I') from December 2025 in a low-bureaucracy manner. As Plan B, the associations propose aligning the national scope with the EU supply chain directive. This applies only to companies with more than 5000 employees and annual net turnover exceeding 1.5 billion euros, whereas the LkSG applies from 1000 employees. This represents a national solo path that must be ended. Signatories include the Chemical Employers' Association, the Federal Association of Wholesale, Foreign Trade, Services, the Central Association of the German Construction Industry, the Family Businesses Foundation, and the German Retail Federation HDE. The background is a bill recently debated in parliament that 'falls far short of what the economy now needs.'
