Germany’s Supply Chain Law: 20 Months On, Progress and Challenges Abound
Manish Shukla
The German Embassy in New Delhi recently hosted a significant conference to reflect on the implementation of the German Supply Chain Due Diligence Act (SCDDA) after 20 months. The event brought together key stakeholders, including trade unions, company interest groups, and civil society organizations, to assess the real-world impact of the law on workers and communities in global supply chains.
The conference focused on the rights holders—the employees, their families, and the communities affected by the law. Discussions centered on whether working conditions had improved in areas such as occupational health and safety, contractual terms, and wage levels. The challenges faced by women in the workplace were examined in depth, and participants reviewed the complaints mechanisms established to address violations.
Ambassador of Germany to India Dr. Philipp Ackermann emphasized the transformative nature of the law, describing it as “a bold step, maybe a pioneering step, to ensure that human rights and environmental standards are upheld, not just within our borders, but along the entire global supply chain.” He noted the initial skepticism from businesses but highlighted that companies are beginning to see its broader benefits. “Companies that embrace these values will find themselves better positioned to succeed in the global marketplace. Responsible business is not just good for people and the planet, it’s also good for profit.”
The conference yielded key takeaways like
Positive progress is visible in many companies, with improvements already underway. Lower-tier suppliers remain an area of concern, requiring greater involvement from lead companies. Proactive measures can prevent the need for lengthy complaints procedures, Interests of the non-organized workforce, such as daily wagers, need to be better represented.
The conference was well-received, and a comprehensive documentation of the discussions will be produced to further the dialogue around responsible business practices in global supply chains. The German Supply Chain Due Diligence Act, which came into force on January 1, 2023, imposes new obligations for supply chain due diligence.
This development is part of a growing global movement for responsible business legal requirements, obliging companies to undertake human rights and environmental due diligence.
