EU Parliament Approves Delay of Supply Chain Law on Human Rights

Thu 3rd Apr, 2025
The European Parliament has voted in favor of postponing the implementation of the EU Supply Chain Law. In a session held in Strasbourg, members approved a proposal from the EU Commission that will see the initial provisions of the law, which was passed last year after extensive negotiations, come into effect only from July 2028. The full set of regulations aimed at ensuring respect for human rights within global supply chains is now set to be implemented a year later, in 2029. Prior to this decision, EU member states had already voiced their support for delaying the law, making the parliamentary approval a mere formality. The EU Commission introduced the delay in January as part of a broader initiative aimed at reducing bureaucratic burdens, an effort that has received significant backing from member countries. The Commission intends to ease the regulations further, allowing companies to ensure compliance with human rights and environmental standards only within their direct supply chains rather than throughout entire supply chains. Additionally, companies will now only need to provide proof of compliance every five years, rather than annually as previously required. The Commission also plans to limit EU-wide civil liability for violations of these regulations. The extent of any further amendments to the law remains uncertain and is expected to be a topic of vigorous discussion among EU member states. Business representatives have expressed strong criticism of the original version of the law, which they argued imposed excessive bureaucratic obligations and undermined their competitiveness. The law, approved last April, was already significantly diluted compared to its initial draft. The final version applies to companies with at least 1,000 employees and a global annual turnover exceeding EUR450 million, thresholds that were notably lower in the original proposal. Furthermore, additional requirements for the textile and food production sectors were removed during the legislative process. The passage of this law followed prolonged negotiations, including a notable delay caused by the Free Democratic Party's (FDP) opposition to Germany's approval. Italy and several smaller member states also hesitated to endorse the initial proposal. As the EU moves forward with this delayed legislation, the balance between corporate responsibility and regulatory oversight will remain a critical point of contention, shaping the landscape of ethical business practices in Europe.

More Quick Read Articles »