Facts and Findings

Sustainability in Global Supply Chains

Discussion about a legal obligation for compliance with human rights and environmental standards

How can a global supply chain be set up in a more sustainable way? Who is at what point responsible? To what extent can enterprises be held accountable? Many questions are coming up when we discuss about the sustainability of a global supply chain. From a christian-democratic point of view a legal obligation for compliance with human rights and environmental standards is quite favorable. But the economy’s point of view is also has important arguments that need to be considered.

- Against the backdrop of long-standing violations against human rights and environmental standards, a discussion is being held on how supply chains can be made more sustainable, which actors are respon- sible and at which points, and to what extent companies should be obliged to comply with human rights and environmental standards.

- In addition to the Christian democratic system of val- ues, factors making the case for a statutory regulation of corporate due diligence are also the creation of an equal legal framework for companies, the possibility to reduce litigation and reputational risks, and the access to sustainable financing.

- Regarding purely national solutions, critics highlight competitive disadvantages for German companies, effects on human rights and environmental protection in manufacturing countries that are difficult to assess, as well as difficulties in implementation.

- Whether or not a supply chain law is successful largely depends on the specific design of responsibilities and liability mechanisms laid down therein as well as its integration into the international context.


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Veronika Ertl

Veronika Ertl bild

Leiterin des Regionalprogramms Energiesicherheit und Klimawandel Naher Osten und Nordafrika

veronika.ertl@kas.de +49 30 26996-3821