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19 August 2026 Investigative research reveals: Ministry of Economy bans supply chain law

Press release of the Supply Chain Act initiative, of which FEMNET is a member.

Berlin. One Investigative research by ZDF has disclosed how the Ministry of Economic Affairs under Katherina Reiche imputed to her Federal Office of Economics and Export Control (BAFA) systematically prevents it from fulfilling its statutory mandate of enforcing and monitoring the Supply Chain Due Diligence Act (LkSG). Insiders report that:Pressure from above“to close proceedings quickly, not to punish violations of the law and not to investigate new complaints in the first place. 

Sofie Kreusch, Coordinator of the Supply Chain Act initiative comments: ‘To put it clearly in a nutshell: The Ministry of Economy is leveraging an existing law to protect human rights and the environment, while complaints are piled up in the competent authority. This approach is not only highly problematic in view of the many cases of exploitation, environmental destruction and child labour in the supply chains of German companies, but also an attack on our rule of law.“

The revelations of the ZDF research coincide with the Experiences of our alliance organisations, which, together with trade unions and those affected by human rights violations, handle complaints. 

Lisa Pitz, lawyer at ECCHR Reports from practice: ‘In a complaint case accompanied by us, the responsible Head of Unit changed four times in three years, none of the posts were filled. It is becoming increasingly difficult to find and reach the currently responsible persons. Complainants also experience excessive lengths of proceedings: In one case, the admissibility of the complaint has still not been decided after one and a half years.“

The partner organizations of FEMNET Cooperation with BAFA is extremely difficult. The Chairman of the Board Dr. Gisela Burckhardt explained: ‘For a trade union or NGO in the Global South, it is an imposition to file a complaint with BAFA yourself. Although the complaint is still in English, after that the BAFA only communicates in German!“ 

Tina Lutz, Team Leader International Forest Protection and Supply Chains at German environmental aid, has had similar experiences: ‘Our impression is that BAFA relies primarily on the submissions of the companies in its investigations. In addition, non-governmental organizations are left completely in the dark about the further progress of the proceedings. This is non-transparent and therefore unacceptable.“

Against the background of Recently Revealed Influenza the fossil lobby on the Chancellery and Ministry of Economy in the weakening of the EU supply chain directive, this process gains an additional political explosiveness. The Supply Chain Act initiative calls on the Federal Government to implement an independent implementing authority as required by the EU Supply Chain Directive. 

background

The Supply Chain Act initiative It is supported by more than 90 human rights organisations, environmental associations, trade unions, church and development policy organisations.