What will the EU’s new supply chain law mean for european companies? | DW News

It’s been a long time in the making and almost failed but now EU member countries have agreed to a law that will force companies to uphold environmental and human rights standards in their supply chains the green light came only after major compromises on the original Tes were made tin production at the company

Stanol in Germany here efforts have been made for several years to trace the supply chain for the tin used the company does this voluntarily due to the proposed law many more companies in the EU will need to check if their supply chains use child labor or cause environmental damage such as through

Deforestation though not as many companies are affected as initially planned the original version aimed to include all companies that have more than 500 employees and an annual turnover of at least 10050 million EUR now the proposed rules will only apply to EU companies with more than th000

Staff and a turnover above €450 million EUR that would have meant around 20,000 companies would be forced to document the origin of everything they sold countries including Germany and Italy which are home to many small and medium-sized companies feared the original Law would hit them unfairly that number has fallen to under

6,000 even so the German Chamber of Commerce says the new law means a lot of red tape and would also make products more expensive for companies and consumers the worldwide fund for nature also opposes the compromise but it says the EU has reduced the package to a

Shadow of its former self the European Parliament will now have to give its approval to the changes to the legislation if it’s to become law

It’s been a long time in the making and almost failed but now EU member countries have agreed to a law that will force companies to uphold environmental and human rights standards in their supply chains. The green light came only after major compromises on the original text were made.

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30 comments

  5. If we had to weigh everything on a scale of hyper moral then 66% of goods will disappear from the shelves & only 2 or 3 electric cars will make it to europe (heres to made in the prc batteries & child workers in the mines).

    (Warning sarcasm & irony makes this comment smell of socks after sport).

  7. Chinese 🇨🇳 electric cars are getting pushback from everywhere.
    Batteries in these cars come from the Xinjiang region, where they are produced by:
    – coal-fired plants and
    – Uyghur forced labor in their production.

  10. يا ناس يا امة محمد صارت قلوبكم بلا رحمه ولا شفقه أنسانيه كم شكيت وكم بكيت كم ناديت وكم ناشدت ولكن لا حياة لمن تنادي هل يرضيكم أن أخواني يبكون ويموتون من الجوع وأنتم موجودون يعلم الله العلي العظيم أننا لا نملك حتى قيمة كيلو دقيق أبي متوفي وأخواني صغار ليس لنا أحد أقسم بالله العظيم أنهم ناموا أمس جوعانين وهم يبكون والدموع جفت من البكاء يا أهل الخير هل يرضيكم أ من أمس لحد الآن بدون أكل ياأخوة الإسلام نحن أسره أيتام ونازحين ومشردين مستأجرين بيت الشهر ب 15 الف رياال والان صارت علينا 60 الف ایجار اربعه شهور وصاحب البيت كل ساعه يجي يبهدلنا أننا ويهددنا بالطرد واحنا لا نتملك قوت يومنا نزحنا من بيوتنا بسبب الحرب وعايشين اناوامي واخوتي سغار والدنا متوفي الله يرحمه ومامعنا أحد في هذا الدنيا يقف جاانبنا في هذه الظروف القاسيه أرجووكم ساعدونا وفرحونا أرجوكم أوقفوا معنا والله العظيم أننا بأمس الحاجه انابنت عيني بصيره ويدي قصيره ليس لي أب مثلكم واخواني سغار شوف كيف حالتهم وساعدنا وأنقذنا قبل أن يطردونا في الشارع نتبهدل أو نموت من الجوع أنا اقسم بالله الذي رفع سبع سموات بلاعمدوبسط الارض ومهدها اني لااكذب عليكم بحرف من هذا الرساله واني ماطلبتكم إلا من ضيق ومن قسوة الضروف والحال الذي احنافيه وانا واسرتي نسألكم بالله ياأهل الخير الي عنده القدره على مساعدتنا لايتاخر علينا للحظة هذا رقمي واتساب 00967714964841 اللي يستطيع يساعدنا يراسلني واتساب الله يجزيكم خير@… ..

  14. China doesn't care about this law, EU already ban or sanction China products that it had little effect. The law only apply EU ememies not allies, like India, Vietnam, Bangladesh and etc… 😂😂😂😂, all of these countries will pass even it well documented child labour and human right. 😂😂😂😂

  15. I think the impact for companies is lower than companies think. The EU already applies Rules-of-Origin for goods coming from outside the EU or via Free-Trade Agreements. Extending this documentation by two additional components shouldn't be so hard.

    This is also one more reason to source components from within the EU or countries with Free-Trade Agreements (since these new requirements will be included) instead of relying on imports from questionable sources in 3rd countries.

    And thirdly the "Brussels-Effect" meaning rules to trade with the EU are exported to all countries doing bussiness with the EU leading to improvements in these countries who seek to do bussiness. A smart way to make the world better by greed (the wish to sell in the EU). Encouraging these countries to adopt these policies in order to continue or expand bussiness.

    It also improves competition and fairness worldwide with countries who already adhere to the rule and make their products more interesting and competetive as potential sources for EU companies and helps leveling the playfield and rewards environmental friendly innovations stronger.

    Next step should be including Climate Gas emission footprint to encourage Green Energy and Green Production, fair taxation and labour laws.

  18. "The Worldwide Fund for Nature"… why do so many of these groups sound like front groups for highly powerful interests?

  19. So the customer will be hit with another price increase, and many people in the 3rd world countries will loose their jobs. That's a good one 😂.

  21. After the release of the public study 'Global 2000, Report to the (USA) President' in 1980, this comes 40 years too late. Better late than never they say, but is this still going to save your and my grand children? I fear not.

  24. As usual, the law is watered down. Honestly, I'm not sure how enforceable it will be, and how much damage it could cause in poor countries that will be cut off from supply chains and thus deprived of income. As usual, problems are being solved in the wrong places and in the wrong way.

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