Overview

• Chancellor Friedrich Merz has called for the repeal of Germany's Lieferkettensorgfaltspflichtengesetz and the EU's Corporate Sustainability Due Diligence Directive (CSDDD).
• The SPD, Merz's coalition partner, opposes any move to abolish the EU directive, emphasizing that only the national law was slated for repeal in the coalition agreement.
• The EU Commission rejected Merz's demand, stating that the CSDDD will be simplified but not repealed.
• Germany's Lieferkettensorgfaltspflichtengesetz, effective since January 2024, requires companies with over 1,000 employees to ensure human rights and environmental compliance in their supply chains.
• The EU's CSDDD, in force since mid-2024, mandates similar due diligence obligations for larger companies, with phased implementation through 2029.