Germany's Lindner: streamline supply chain law, reduce bureaucracy
- Oops!Something went wrong.Please try again later.
German Finance Minister Christian Lindner wants to streamline the Supply Chain Act and reduce bureaucracy.
"The Supply Chain Act, which is extremely burdensome in practice, must be reduced and streamlined," Lindner said. "The law does little for people in emerging countries, but is a very expensive vote of no confidence in the economy," said the FDP politician in the "Table.Today" podcast from media company Table.Media.
Private auditors could take on the task of checking supply chains, instead of burdening authorities with the work, he said.
The German Supply Chain Due Diligence Act (LkSG), as it is officially known, stipulates that larger companies must analyze how great the risk is that they are profiting from human rights violations such as forced labour.
They must set up a risk management system and a complaints mechanism and report on this publicly. In the event of violations in their own business operations or at direct suppliers, the law requires companies to take appropriate remedial action without delay.
Since the turn of the year, the law also applies to companies with more than 1,000 employees.
In the podcast, Lindner also called for a new, market-based climate protection law and an investment offensive in digital business models based on the French model.
