As per the sources, an agreement has been released by the German government according to which throughout the global supply chains the German companies have to carry out due diligence regarding human rights and environmental issues in order to go ahead.

Hubertus Heil Labour minister, describes it as a historic breakthrough and it follows a hard-fought compromise. The European Centre for Constitutional and Human Rights promptly welcomed the move and said that for high-risk sectors such as textiles, the released new laws were crucially needed.

More than 600 companies that employ at least 3,000 staff from 2023 and around 2,900 companies with more than 1,000 staff from 2024 are eligible for the application of the new law. 

The companies will be liable for health and environmental damage as per the Supply Chain Act. environmental non-government organisations have made claims that if the companies are unable to force their suppliers to conform to their requirements, it may expose the companies to huge financial risks.