Unofficial Resource Centre translation

On 29 August 2025, the German Institute for Human Rights submitted a written statement to the Federal Ministry of Labour and Social Affairs (BMAS) in response to a written consultation on the draft bill to amend the German Supply Chain Due Diligence Act (LkSG).

The draft bill is intended to ease the burden on German companies, but it accepts significant setbacks in the level of human rights protection that has already been achieved. The plan is to completely abolish the reporting obligation for companies. However, this obligation is a core element of human rights due diligence, ensuring transparency vis-à-vis the supervisory authority, the Federal Office for Economic Affairs and Export Control (BAFA), and the public, including potentially affected parties and consumers...

‘The complete abolition of the reporting obligation is a step backwards for human rights protection,’ says Lissa Bettzieche, lawyer and researcher at the German Institute for Human Rights...

Following the implementation of the Corporate Sustainability Reporting Directive (CSRD), a reporting obligation is to be reintroduced. However, it is uncertain when this will happen and whether the future reporting obligation will be of comparable quality and scope. The German Government should therefore develop a method that is appropriate for companies and complies with EU requirements, and introduce it as soon as possible in a legally binding form...

The institute also sees a need for improvement in the planned reduction of the grounds for fines in the LkSG. Although breaches in connection with preventive and remedial measures and complaint mechanisms can still be sanctioned, operational due diligence obligations – such as the risk analysis and responsibility for monitoring risk management – are just as important for the effectiveness of the LkSG.

‘The risk analysis plays a central role in risk management, because the subsequent due diligence duties of care are based on its findings,’ says Bettzieche...