The associations contend that the proposed changes are “insufficient” to provide companies with any noticeable relief, as principal due diligence and documentation requirements remain despite the elimination of some reporting obligations and reduced sanctions.
German Textile and Fashion Industry Association CEO Uwe Mazura said: “Germany must end its national go-it-alone approach and use the current amendment to the Local Tax Code (LkSG) to deliver tangible relief. Postponing this until 2029 is not an option. We call on the Bundestag and the Federal Government to implement the necessary measures immediately.”
Under current regulations, companies with their main place of business in Germany that employ at least 3,000 people, and from January 2024, those with 1,000 or more, must disclose measures aimed at preventing human rights abuses and environmental damage within their operations and supply chains.
The law obliges affected firms to conduct regular risk analyses, at minimum annually, of their own activities as well as those of direct suppliers regarding human rights and environmental risks.
Companies must also undertake ad hoc risk assessments of indirect suppliers when they possess substantiated knowledge of potential human rights or environmental violations.
The business associations contend that, while the current amendment would ease certain formal obligations, it does not adjust the core due diligence burdens placed on companies.
In correspondence addressed to both the Bundestag and the Federal Government, they argued: “Therefore, no noticeable relief is to be expected.”
They called for a suspension of national provisions under LkSG and urged the government to promptly enact supply chain regulatory changes agreed at the EU level in December 2025 (Omnibus I), as stated in the coalition agreement.
If a full suspension is not implemented, the associations recommended that German requirements be brought into immediate alignment with those under the European Supply Chain Directive (CSDD), which applies only to large enterprises.
They argued that companies excluded from European obligations should not be subject to stricter national rules, warning that failure to align could result in competitive disadvantages and legal uncertainty.
“German fashion leaders seek supply chain law suspension” was originally created and published by Just Style, a GlobalData owned brand.
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