New Supply-Chain Rules Are Strangling German Companies With Red Tape

Germany’s Supply Chain Act was tightened up at the beginning of the year, and the additional dose of bureaucracy is not going down well with companies that are already struggling.

Since Jan. 1, the act obliges companies with at least 1,000 employees to respect human rights and the environment by implementing defined due diligence obligations. In 2023, when the law was enforced, it only covered firms with staff of at least 3,000.