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EU Parliament Approves One-Year Delay to Supply Chain Law Implementation

The decision, pending formal approval by member states, shifts the law's start date to 2028 and aligns with proposals to reduce business bureaucracy.

Kunden in einem Textilkaufhaus: Das EU-Lieferkettengesetz soll sicherstellen, dass EU-Gesetze auch von Lieferanten außerhalb der EU eingehalten werden.
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Overview

  • The European Parliament voted to delay the EU supply chain law by one year, with the first provisions now set to take effect in July 2028.
  • The delay is part of a broader EU initiative to reduce regulatory burdens on businesses, including proposed changes to limit due diligence requirements to direct suppliers and reduce reporting frequency.
  • The law, aimed at strengthening global human rights and environmental protections, applies to companies with over 1,000 employees and €450 million in global turnover.
  • The delay has drawn criticism from environmental and human rights groups, who argue it weakens protections and undermines the law's original intent.
  • The decision awaits formal approval from EU member states, which is considered a procedural formality, as discussions on further law modifications continue.