EU Directive on supply chain due diligence can make sustainable consumption easier for consumers

The Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband e.V. – vzbv) has issued a statement on the European Commission's proposal for a Directive on corporate sustainability due diligence.

In the statement, vzbv calls for the following:

• The scope of the Directive should cover more companies.
• Instead of "established" business relationships, a risk-based approach should determine the scope of companies' due diligence obligations.
• The European Commission should regulate industry initiatives and the role of audits and certifications more thoroughly.

On 23 February 2022, the European Commission published a proposal for a Directive on corporate sustainability due diligence. If the European Parliament and the Council of the European Union adopt the proposal, Member States must implement it within two years.

The proposed Directive currently provides for implementation of the legal obligations in the Member States by existing authorities and agencies. Once the German government has to implement the EU Directive, the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG) will in all likelihood be amended to comply with European law.