EU Parliament moves controversial supply chain law until 2028!

EU Parliament moves controversial supply chain law until 2028!

On April 3, 2025, an important decision was made in the European Parliament that will have an impact on companies in the entire European Union. The controversial European supply chain law, which aims to blame companies with more than 1,000 employees for human rights violations and environmental degradation, was postponed by one year.

The MPs voted that the first regulations of the law should only come into force until July 26, 2028. This shift was under pressure from the economy, as the EU Commission explained. However, the exact scope of the planned changes is still unclear, and it is expected that the directive will be revised and simplified in order to reduce the bureaucratic requirements for companies. This new regulation could benefit smaller companies in particular.

shift in sustainability reporting

In the same breath, the MPs also voted for a shift in rules on sustainability reporting. For companies with fewer than 500 employees in particular, parts of this law are to be postponed by two years. Such adjustments could relieve many small to medium -sized companies and ensure that they can react appropriately to the new requirements.

The approval of the EU countries for this postponement is considered a matter of form. This shows how much the current economic conditions and the concerns of companies also influence the EU's legislative agenda. However, experts warn that too much delay in the implementation of the law could hinder the necessary progress in the field of human rights and environmental protection.

The development and adoption of the supply chain law is therefore still the focus of political discussions. Will the EU successfully master the balancing act between the necessary protection of human rights and the environment and the needs of its companies? The future will show how these important topics will develop.

For more information on the background and details of the vote, read Tageschau.de and Spiegel.de .