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EU Parliament takes important step towards effective supply chain law | Germanwatch

European Parliament votes for an EU policy based on human rights and environmental protectionSupply Chain Act / Weaknesses in the possibilities for data subjects to exercise their rights  

Berlin/Brussels (June 1, 2023) The Environment and Development Organization German Watch welcomes the position on the EU supply chain law adopted today in the European Parliament. The decision averted an attempt – largely supported by German Union and FDP MEPs – to water down the compromise negotiated by their own parliamentary groups at the last second. Cornelia Heydenreich, Head of Corporate Responsibility at Germanwatch: “Today, Parliament clearly came out in favor of a supply chain law that is based on international standards. Not only are human rights and the environment comprehensively protected, but those affected by human rights violations and environmental destruction are also taken seriously. However, when it comes to the opportunities for those affected to exercise their rights, the hurdles remain too high.”

Germanwatch criticizes the fact that Parliament has not focused more on a fair distribution of the burden of proof for those affected. This means that it remains difficult to prove companies have misconduct before European courts. In addition, a clear anchoring of responsibility in the management level of companies was rejected. “Companies’ due diligence obligations are only effective if they are also taken into account by management in decisions. Unfortunately, Parliament missed the opportunity to make the protection of human rights a top priority in companies as well,” commented Finn Robin Schufft, Corporate Responsibility Officer at Germanwatch.

With the decision of the EU Parliament on the Supply Chain Act, the way is now clear for the final negotiations. In the so-called trilogue, the EU Commission, Council and Parliament have to agree on a common regulation. "As the largest EU member state, Germany plays a central role in the final negotiations on the EU supply chain law and must not slow down the process of finding a compromise," demands Heydenreich. "The negotiations should now proceed quickly and be completed by the end of the year at the latest, since the election campaign for the EU parliamentary elections in the coming year would make it difficult to find a compromise."

Photo / Video: European Parliament.

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