The German Supply Chain Act: How Can it Have an Impact and How Should Companies React?

In this joint position paper on the German supply chain act, the CSCP, the Wuppertal Institute, and Sustainabill follow up on the prior publication Sustainable Supply Chains: Global Cooperative Regional Economies for Prosperity and Resilience to elaborate on the limitations of the German Supply Chain Act. The paper provides recommendations on what should be included in future European legislation on supply chains in order to be more effective. The authors link the Supply Chain Act to the practice-oriented perspective of companies and explain what the regulations mean to them. The position paper takes up the missing pieces of the current regulation and discusses ways for companies to proactively initiate ways of win-win improvements for all stakeholders along the value chains. It stresses the role of internal process adjustments in sourcing and procurement, reformulating the sustainability strategy, the chances of cooperation in industry sectors and capacity building internally as well as within the supply chain network.

The publication is available in English and German.