March 2021

International trade and business operations by German and European companies represent an opportunity to create jobs and generate prosperity along global supply chains. On the downside, these activities can also have substantial negative effects on the people and the environment along those same supply chains. In addition to the duty of the state to respect, protect and fulfil human rights, companies also have the responsibility to respect human rights.

In order to ensure the practical implementation of this responsibility as well as to create clear rules and the same conditions for all companies in Germany, the German Federal Cabinet adopted a draft Due Diligence Act in March.

This draft Act is currently being discussed in the German Parliament, after which it will be passed on to the Federal Council in the summer. While there may still be changes made to the final text of the law during parliamentary deliberations, many of its practical implications for corporations are already clear.

In this briefing paper, we are addressing some of the most pressing questions companies have in relation to this new law.

Download the paper