After analyzing the reports, Inkota states that the Supply Chain Due Diligence Act is already having a positive impact on working conditions in global supply chains. This is precisely why the reporting requirement for human rights due diligence should not be abolished.
“The protection of human rights in supply chains requires reports – as bureaucratic as that sounds. The reporting requirement under the Supply Chain Act does not overwhelm companies, but rather enables those affected and civil society to effectively work to protect human rights in supply chains. The federal government must not interfere with this. Especially not with a chainsaw,” explained Anne Neumann, consultant for business and human rights at Inkota. Instead, more attention must be paid to transparency and clarity. It is not clear from the available reports from Adidas, Kik, NKD, Otto, Zalando, Witt and Takko which human rights risks discovered apply to which part of the supply chain and which products the companies report on.
“In some cases the companies provide very general information in the reports. In order for the law to be more effective, the BAFA control authority must ask for more details. “Particularly when human rights violations are already known, the company must also report on individual cases about how those affected can receive redress,” demanded Lavinia Muth for the Clean Clothes Campaign.
Both networks see a particularly great need to catch up when it comes to redressing human rights violations. Not a single company reports transparently what reparations it has made for human rights violations and how satisfied the complainants were with the remedial action provided. The reporting questionnaire provided to companies needs to be improved by the Federal Office of Economics and Export Control (BAFA).
The Supply Chain Due Diligence Act has been in effect for companies with at least 3,000 employees since January 1, 2023. It obliges companies to ensure compliance with human rights and environmental standards along their global supply chains. It includes measures for risk assessment, prevention and remediation of human rights and environmental violations.