-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueWet Process Control
In this issue, we examine wet processes and how to obtain a better degree of control that allows usable data to guide our decisions and produce consistently higher-quality products.
Don’t Just Survive, Thrive
If we are to be relevant and prosper during these next critical decades in electronics, we must do more than survive. As an industry, we can and must thrive. In this issue, our contributors explore these concepts meant to help you take your business to the next level.
Material Matters
Materials management is nuanced, multifaceted, and requires a holistic systems approach for business success. When building high mix, low volume, and high technology, managing materials and overall cost containment are even greater challenges.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - pcb007 Magazine
Germany Latest EU Country to Introduce Due Diligence Rules
June 22, 2021 | IPCEstimated reading time: 2 minutes
On 11 June 2021, the German Supply Chain Act was adopted by the German Parliament by a large majority, introducing binding human rights and environmental due diligence obligations for companies. After lengthy and difficult negotiations, the political groups found compromises on several key aspects of the law ranging from the scope of companies covered to the question of liability. The aim of the law is to foster responsible business conduct and remove illicit practices such as child labour from supply chains.
Once formally signed, the law will require large German companies as well as foreign companies with branches in Germany to identify and address human rights and certain environmental risks in their own as well as in their direct suppliers’ operations. While the due diligence obligation is limited to direct suppliers, companies will have to take measures if they are made aware of potential abuses in any part of their supply chain, for example via a complaint. Companies will have to regularly conduct a risk assessment, implement preventive measures where needed and annually report on their due diligence processes.
The due diligence duty builds on the UN Guiding Principles on Business and Human Rights. Its thematic scope encompasses human rights and labor rights as expressed in ILO conventions as well as the following environmental conventions:
- The Minamata Convention on Mercury
- The Stockholm Convention on Persistent Organic Pollutants
- The Basel Convention on the Control of Transboundary Movements of Hazardous Waste
In case of violations, companies will face administrative fines of up to 800 000 EUR or two percent of annual revenue and potential exclusion from public procurement for up to three years.
The German Supply Chain Act does not create a liability regime for companies – an important aspect that was clarified in the political negotiations. It does, however, enable trade unions and NGOs to initiate legal proceedings against companies on behalf of victims.
The law will be implemented in two phases: from January 2023, companies with more than 3 000 employees will have to abide by the new rules; and as of January 2024 the threshold will be lowered to companies with more than 1 000 employees.
For Germany, the law presents a paradigm shift, away from voluntary CSR initiatives towards binding due diligence obligations. Several other Member States already have due diligence laws in place or are contemplating introducing such laws. In parallel, the pending EU proposal on Sustainable Corporate Governance (SCG) and Due Diligence legislation is expected in the second half of this year. With this pending proposal, the European Commission aims to create legal certainty across the Union by introducing a harmonized set of rules applicable across Member States.
IPC continues to engage with policymakers on this topic to advocate on behalf of the electronics industry for a framework that is feasible and workable for industry while protecting human rights and the environment.
Suggested Items
AIM Solder Appoints Kevin Kwan as Business Development Manager in Asia
09/06/2024 | AIM SolderAIM Solder, a global leader in solder assembly materials for the electronics industry, is thrilled to announce the appointment of Kevin Kwan as Business Development Manager for the Asian market.
SEMICON India 2024 to Highlight Local Semiconductor Ecosystem Growth and Industry Trends
09/06/2024 | SEMISEMICON India 2024 will bring together global leaders, semiconductor industry experts, academia, and government officials from September 11-13, 2024, at the India Exposition Mart Ltd. (IEML) in Greater Noida, Delhi NCR.
MICRONOX MX2123 to Lead KYZEN Offerings at The International Symposium on Microelectronics
09/05/2024 | KYZEN'KYZEN, the global leader in innovative environmentally responsible cleaning chemistries, will exhibit at The 2024 International Symposium on Microelectronics scheduled to take place October 1-3, 2024 at the Encore Boston Harbor.
Altus Enhances Customer Support in the North
09/05/2024 | Altus GroupAltus Group, a leading capital equipment distributor for the electronics industry in the UK and Ireland, is pleased to announce the addition of a Senior Sales Manager to its growing team.
Altium, Mouser Team Up to Advance Electronics Education and Careers Worldwide
09/05/2024 | AltiumAltium LLC, a global leader in software and solutions for the electronics industry, and Mouser Electronics, a global authorized distributor of semiconductors and electronic components, are excited to announce a strategic partnership aimed at advancing electronics education and careers worldwide.