What does the German Supply Chain Due Diligence Act actually cover: A 2024 Guide

You’ve hopefully already read my first article why the "German Supply Chain Due Diligence Act Remains Essential for Global Businesses: A 2024 Guide", but which global environmental and human rights laws does it seek to protect?

To help you quickly get up to speed, below you will find a concise summary of the important components that must be taken into account.

The three classes of protection

The act groups the protections into three classes:

1. Human rights risks

2. Environment-related risks

3. Protected legal positions, which includes all 11 Human Rights conventions.

What are the 11 Human rights risks covered by the German Supply Chain Due Diligence Act?

1. Child Employment: Prohibition against employing children below the compulsory schooling age, with certain conditions based on ILO Convention No. 138.

2. Worst Forms of Child Labor: Prohibition against employing children under 18 in the worst forms of labor, as defined by ILO Convention No. 182, which includes:

   • Slavery-like practices, trafficking, and forced labor.

   • Child involvement in prostitution or pornography.

   • Child involvement in illicit drug activities.

   • Work harmful to child health, safety, or morals.

3. Forced Labor: Prohibition against employing persons in forced labor, excluding conditions in line with ILO Convention No. 29.

4. Slavery & Similar Practices: Prohibition against all forms of slavery, serfdom, and extreme workplace exploitation.

5. Occupational Safety: Prohibition against ignoring workplace safety laws that risk accidents or health hazards due to:

   • Insufficient safety standards.

   • Lack of protective measures against harmful substances.

   • Inadequate work organization leading to fatigue.

   • Insufficient employee training.

6. Freedom of Association: Ensuring employees' rights to:

   • Form or join trade unions.

   • Not be discriminated against due to union involvement.

   • Trade union operation rights, including strikes and bargaining.​

7. Equal Treatment: Prohibition against unequal treatment in employment based on various grounds like nationality, gender, age, etc.

8. Living Wage: Prohibition against withholding an adequate living wage, in line with local regulations.

9. Environmental Harm: Prohibition against causing significant environmental harm affecting food, water, sanitation, or health.

10. Land Usage: Prohibition against unlawful eviction or taking of land, forests, and waters crucial for livelihoods.

11. Security Forces: Prohibition against using private/public security forces improperly, which might lead to:

    • Torture or cruel treatment.

    • Physical harm.

    • Impairment of organizational rights and association freedom.

What are 8 Environment related-risks covered by the German Supply Chain Due Diligence Act?

1. Mercury in Products: Prohibition against manufacturing mercury-added products as per the Minamata Convention.

2. Mercury Use: Restriction against using mercury and its compounds in manufacturing processes from the specified phase-out date in the Minamata Convention.

3. Mercury Waste: Prohibition against handling mercury waste in violation of the Minamata Convention.

4. Chemical Production and Use: Prohibition against producing and using certain chemicals as per the Stockholm Convention on Persistent Organic Pollutants (POPs Convention) and subsequent EU regulations.

5. Waste Handling: Prohibition against environmentally unsound waste handling, collection, storage, and disposal as defined by the POPs Convention.

6. Hazardous Waste Export: Restriction against exporting hazardous waste as per the Basel Convention and EU Regulation (EC) No 1013/2006, with specifics:

   • ​To a party prohibiting such import.

   • To an importing state not providing written consent.

   • To a non-party of the Basel Convention.

   • To states where waste isn't managed environmentally soundly.​

7. Hazardous Waste Export Restrictions: Prohibition against exporting hazardous wastes from countries in Annex VII of the Basel Convention to non-Annex VII countries.

8. Waste Import from Non-Parties: Prohibition against importing hazardous and other wastes from non-parties to the Basel Convention.

What are the 11 Human Rights Conventions  covered by the German Supply Chain Due Diligence Act?

1. Convention of the International Labour Organization concerning Forced or Compulsory Labour
2. Protocol to Convention of the International Labour Organization concerning Forced or Compulsory Labour
3. Convention of the International Labour Organization concerning Freedom of Association and Protection of the Right to Organise
4. Convention of the International Labour Organization concerning the Application of the Principles of the Right to Organise and to Bargain Collectively
5. Convention of the International Labour Organization concerning Equal Remuneration for Men and Women Workers for Work of Equal Value
6. Convention of the International Labour Organization concerning the Abolition of Forced Labour
7. Convention of the International Labour Organization concerning Discrimination in Respect of Employment and Occupation
8. Convention of the International Labour Organization concerning the Minimum Age for Admission to Employment
9. Convention of the International Labour Organization concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour
10. International Covenant on Civil and Political Rights
11. International Covenant on Economic, Social and Cultural Rights

The German Supply Chain Due Diligence Act still the standard to follow

As I concluded in my previous article on why the "German Supply Chain Due Diligence Act Remains Essential for Global Businesses: A 2024 Guide" , ensuring your business, or those that you advise have risk management systems in place, which allows the probability of a violation to be measured from factual indicators is crucial.

To find out more about how 7 Satya can help you comply with the new regulations please get in touch.

 

About the author

Tim Shutler, COO of 7 Satya

Tim Shutler, COO of 7 Satya