In a decleation adopted on Wednesday with a clear majority, the EU Parliament for a Strict European Supply Chain Act. This will make companies be held liable if they violate human rights, environmental standards and good corporation. 504 MPs voted for the initiative, 79, 112 contained.
Binding EU rules on due diligence are intended to determine companies according to the resolution to determine all aspects of their value chain including indirect business relationships and investment chains. If they are due to detrimental impact on human rights, employee protection or the environment, for example, by a negative contribution to climate change or for deforestation, they had to fix them. The same should apply to corruption and bribery.
The due diligence should cover the entire value chain, desire the people’s representatives. They also have to apply for all major corporations in the European market as well as for small and medium-sized enterprises, which are borsenated or in high-risk sectors such as raw material extraction and the textile industry. For off, hard sanctions should grab. Parliament wants to open victims of human rights violations or environmental and climate damage also the way to civil reception.
In all EU trade agreements, according to the desire of the parliamentarians, the importation of products should be banned, which are related to serious human rights violations such as forced or child labor. The EU Commission should be carefully examined whether companies from the Chinese region Xinjiang, which export to the EU, are involved in human rights verstobe, in particular related to the vacuum of Uighurs.
Massive impact on the IT industry
The initiative had a massive impact on the IT industry. At Apple, Samsung Co. have been uncovered in recent years again and again in their supply chain. The manufacturers of smartphones and other networked advice therefore secured several times to reduce high standards for example when degrading tin in Africa and sudostasies. That controlled supply chains are possible from the mine to the finished mobile phone, delayed suppliers like AVX with tantalum capacitors for the fairphone already long. In 2017, the EU Parliament had already imprisoned trade in conflict minerals.
The EU Commission was committed to presenting a draft for a supply chain law in June. The deputies have already staked their line already. For example, in case of due diligence, import ban and the circle of included companies, go far beyond the design for a comparable law, which the Federal Government brought on the way last week.