Supply Chain Act: No German special path
17 Business associations demand suspension of the LkSG
Following the first reading of the amendment to the Supply Chain Due Diligence Act (LkSG) in the German Bundestag, 17 leading business associations have come forward with a clear message: the law must be suspended completely. The changes planned so far are not enough to noticeably relieve the burden on companies.
The draft is essentially limited to two points: the deletion of the reporting obligation and a reduction in sanctions. Everything else remains. The comprehensive due diligence obligations along global supply chains and the detailed documentation requirements remain in place. "No noticeable relief is therefore to be expected," write the associations in a letter to the Bundestag and the German government.
Their demand is clear: suspend the LkSG - and at the same time keep the promise made in the coalition agreement. The changes to supply chain regulation ("Omnibus I") adopted at EU level in December 2025 must be implemented quickly, with little bureaucracy and in a practical manner. "This promise must now be kept."
If the LkSG is not suspended, the associations are at least arguing for alignment with the European Supply Chain Directive (CSDDD). In future, this will only affect very large companies. Accordingly, companies that are no longer covered by the EU regulation should no longer be subject to national obligations. Otherwise, there is a risk of competitive disadvantages and legal uncertainty.
"Germany must end its special national path and use the current amendment to the LkSG specifically for tangible relief," the associations emphasize. A postponement until 2029 is not an option. "We call on the Bundestag and the federal government to initiate the necessary measures without delay," they conclude.
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