The EU Parliament today gave its approval to a European supply chain due diligence law, which has been available as the Corporate Sustainability Due Diligence Directive since February 2022.

This is intended to ensure fairer supply chains globally in terms of environmental and climate protection as well as human rights. A risk-based approach is to be followed so that damage can be prevented. Climate protection plans in line with the 1.5° target are also to be drawn up for companies.

The guidelines are now to be finalised.

From the point of view of the circular economy, exemptions should apply to secondary raw materials - it is not possible to provide detailed evidence of waste; the supply chain of the original products and the quality-assured cycle of the disposal companies should suffice.

Without an exemption, comparable to the EU Conflict Minerals Regulation, companies will be subject to double reporting obligations and the preservation of raw materials in the cycle will be greatly reduced. The constant promotion of primary raw materials would run counter to the objectives of the Due Diligence Act.