German Government Takes Another Step Forward in Holding Corporations Responsible For Supply Chain Human Rights Abuses and Environmental Issues
Germany has taken another step forward in its intent to ensure it pays its part in tackling #humanrights abuses and #environmental issues, with German Chancellor Angela Merkel’s Cabinet backing plans this week to introduce a new law which makes companies responsible for issues throughout their global #supplychain.
Put forward in proposal format in February by a quorum of #germany's MPs, the Cabinet now has backed the so-called 'Lieferkettengesetz' (supply chain law).
Companies with annual revenues of more than €400M could face fines of up to 2% of that amount -- €8M – if their supply chains fall foul of the law.
Based on the revenue put forward, there would be over 600 German companies included at the onset of the law’s enactment, likely to be in early 2023.
Business #leadership with vision will see this as not only a wake-up call to manage risk but also as a springboard for positive change.
What shifts to your #leadership can better support positive change, steering a course for a sustainable #future?
#sustainabledevelopment #diversityequityandinclusion #esg #sustainability
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