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Bonn was one of the first signatories of the resolution for a strong supply chain law on February 8, 2021. The resolution was initiated by 34 cities and municipalities from all over Germany that are committed to fair, ecological and human rights-compliant standards in public procurement.
A legally binding framework should oblige companies to analyse, prevent and transparently report on risks of violations of internationally recognized human, labour and environmental rights along their entire value chain. Exclusion from public procurement should be possible if it can be proven that due diligence obligations have been violated or that due diligence plans are not available or are incomplete.
Local authorities account for the majority of the purchasing volume of the public sector in Germany, which amounts to around 350 billion euros. Local authorities are therefore important pioneers in sustainable procurement. A supply chain law provides the basis for socially and ecologically responsible production and is committed to decent work for all. This can make a contribution at local level to the implementation of the global sustainability goals. A legal regulation of human rights due diligence obligations is now also welcomed by numerous German companies.
The German government agreed on a supply chain law on February 12, 2021. Representatives of the "Supply Chain Act Initiative" welcome the agreement as a first step towards strengthening human rights, but criticize the fact that it does not include a civil liability regulation. The law will affect large companies with at least 3,000 employees from 2023, and from 2024 it will also include companies with 1,000 or more employees.
