Karina Marzano explains Germany’s new Supply Chain Due Diligence Act

The new law is designed to help determine in what way German companies are liable for social, ecological, and legal consequences outside of Germany. In Karina Marzano’s view, this law fosters an exchange of appropriate rules and regulations in the international world of trade. Alongside their goods, Germany may also export values and standards. In addition, she sees a chance for a positive effect on transparency and increased due diligence carried out by German companies. Nevertheless, Marzano also identifies several problems that remain. She argues that especially biodiversity and “actions that intensify climate change” are not properly addressed. As an example, she points to Brazil where the cattle and soy industry continue with deforestation while they rely on German products such as fertilizers. In Marzano’s view, this is just one example that shows there is still a lack of proper responsibility and further adjustment to the law is therefore needed.