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Why the German government softens the Supply Chain Act

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Published: July 8th, 2024,
Last updated: May 28th, 2025

At the Federal Press Conference, Christian Lindner, Olaf Scholz, and Robert Habeck, the leaders of German government coalition parties, announced plans to weaken the Supply Chain Act.
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The German government intends to significantly weaken the German Chain Act (LkSG): Two-thirds of the companies previously subject to it would no longer fall under it as of 2025, said Federal Minister of Finance Christian Lindner. This would mean the law would apply to fewer than one thousand companies. In addition, companies will be at liberty to decide whether they wish to prepare the risk assessment reports initially stipulated in the LkSG. Companies not preparing reports will „not be sanctioned,“ Table.Briefings learned from government circles.

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Lieferkettengesetz CSRD