Podcast 'Perspectives on the Omnibus Proposal': The experiences of Germany and Norway on mHREDD legislation

Key Lessons from the German Supply Chain Act (LkSG):

Positive impacts:

• Clear obligations helped companies implement meaningful human rights due diligence (HRDD).
• Companies hired HR experts and set up implementation teams.
• The law enabled exploited workers (e.g., truck drivers) to claim stolen wages and other remedies...

Challenges:

• Over-focus on Tier 1 suppliers created inefficiencies; real human rights risks often lie deeper in the supply chain.
• Bureaucratic, checkbox-style compliance...
• Legal uncertainty around civil liability created confusion...

Insights from the Norwegian Transparency Act:

Positive outcomes:

• Demonstrated that regulating risk-based HRDD... is feasible.
• Covers ~9,000 companies, including SMEs, who largely reported the law as “clear and manageable.”
• Encouraged deeper supply chain engagement, responsible recruitment, living wages...

Challenges:

• Some legal terms remain unclear, requiring better guidance...
• Remediation is still poorly understood and implemented.

📘 Lessons Learned for the CSDDD:

• The original 2024 CSDDD draft incorporated many positive elements:
  • Clear climate obligations.
  • Civil liability provisions.
  • Tier-n, risk-based approach (inspired by Norway).
  • Authority-led, evidence-based enforcement (inspired by Germany).
  • Provisions for supporting SMEs.
• However, the Omnibus proposal risks:
  • Reversing progress by replacing simplification with deregulation.
  • Creating confusion with new terms that diverge from international standards.
  • Weakening core obligations...

🛠️ Policy Recommendations from Speakers:

• Daniel Schönfelder:
  • Avoid tier-1-only focus; promote risk-based due diligence across the chain.
  • Don’t dilute the directive to respond to lobbying—focus on evidence-based regulation...
• Kristel Tonstad:
  • Avoid introducing unnecessary new terminology...
  • Keep rights-holders central and support global consistency.