Compared to the German Supply Chain Act, lower thresholds are to apply under EU law. For example, EU limited liability companies would be affected if they

employ at least 500 employees and generate a worldwide net turnover of at least 150 million euros

That employ at least 250 employees, generate a worldwide net turnover of at least 40 million euros and operate in a resource-intensive industry

The requirements of the draft EU Supply Chain Act are more stringently formulated than the German LkSG.

This includes, among other things, the achievement of the 1.5 degree target for each company, i.e. climate protection will become an integral part of it

The European Commission adopted a corresponding proposal in February 2022.

Currently, the traffic light coalition has agreed in Sep. 22 to support the stricter requirements of the responsible EU Commission. Development Minister Schulze commented: "If companies allow child labor or destroy the environment, they must be able to be legally prosecuted for this. One tightening with this is, among other things, the right to sue for those affected by environmental damage and human rights violations.

If the law is adopted by the EU Parliament and the other 27 EU member states, the German LkSG will have to be tightened up accordingly.

It is recommended that companies already take the EU requirements into account in their projects.