Brussels, 23.02.2022. The European Commission today presented its proposal for a supply chain law. It is intended to oblige companies to ensure compliance with social and environmental standards in their supply chains. However, the rules only affect a small proportion of companies.  

"The collapse of a textile factory, an oil spill in Nigeria, unworthy working conditions in supplier companies; I could go on and on. They all stand for human rights violations, environmental destruction or poor working conditions in the supply chains of international companies. A supply chain law at European level was therefore long overdue," says MEP Manuela Ripa from the Ecological Democratic Party.

Among other things, it alludes to the collapse of the Rana Plaza textile factory in Bangladesh in 2013. Over 1,000 people were killed there as a result of the collapse. The workers were sent to work even though cracks had been detected in the building the day before the accident. Incidents like this show that human rights violations and disregard for environmental protection are still the rule rather than the exception in many supply chains.

This assumption is confirmed by a study by the EU Commission, which shows that only 37% of the companies surveyed are currently actively pursuing environmental and human rights due diligence. "Human rights and sustainability must finally be fully integrated into the business activities of companies. Companies that violate human rights or damage the environment must be held accountable without exception," demands Ripa.

"It is very welcome that the European Commission's proposal goes beyond the German Supply Chain Act. I am particularly pleased that environmental due diligence obligations have been included in the proposal in addition to human rights obligations. In future, companies will be obliged to check their operations for harmful climate impacts and to integrate environmental protection into their corporate strategy," said the MEP. The European Commission is also responding to the European Parliament's call for companies to be held accountable in European courts for what happens within their supply chains.

However, the proposal also has weaknesses. The proposed rules would only apply to around 13,000 EU companies; small and medium-sized companies would be exempt. And a real import ban on products from forced labor also needs to be improved. Manuela Ripa therefore concludes with clear words: "We must now take action as the European Parliament and fight for a strict, universally applicable supply chain law without loopholes!"