Germany Plans Sustainable Procurement Act

Germany Plans Sustainable Procurement Act

Germany’s Federal Government has expressed a willingness to enforce rules that require minimum environmental and social standards for European companies. 
Specifically, the German government is asking European companies to stamp out human rights breaches and environmentally destructive practices, such as deforestation, in their supply chains | Learn more on Commonshare |. 
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Support for Sustainable Supply Chains
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The country is planning to address the topic during the German EU Council Presidency, while also taking action nationally. The German government’s proposals have drawn a great deal of support from businesses as well as from NGOs and campaigners for environmental and social justice. 
Both the Global Nature Fund (GNF) and the Lake Constance Foundation expressed their support for the German government’s actions. They noted that upholding social and ecological standards | Learn more on Commonshare | along the supply chain is one of the most significant challenges for corporate social responsibility (CSR). 
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Social and Ecological Issues 
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As a result, social and ecological issues that occur in poorer producer countries may be allowed to flourish with the support of businesses and consumers in wealthier countries. GNF is particularly concerned about the impact of these supply chains on biodiversity. 
GNF suggested that studies “show that there is a significant loss of biological diversity in countries where raw materials and goods for international trade and thus export to Europe are obtained and produced, but not consumed.” 
Fortunately, many companies are already working diligently to eliminate deforestation and human rights abuses in their supply chains. The Initiative for Sustainable Agricultural Supply Chains (INA), an initiative that includes 33 companies and organizations, also voiced support for Germany’s proposed supply chain act. 
 
 

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