New regulations on corporate due diligence in supply chains come into force in Germany

Published: 7-Feb-2023

CWS says that a transparent and sustainable supply chain is particularly important in the textiles industry

On January 1, 2023, the new regulations on corporate due diligence in supply chains came into force in Germany.

The regulation is intended to regulate that companies with a size of at least 3,000 employees in Germany fulfil their corporate responsibility for compliance with human rights in global supply chains, for example, protection against child labour, fair wages or protection of the environment. The following measures among others must be implemented:

  • Adoption of a human rights statement
  • Introduction of a risk management system (incl. preventive and remedial measures) to avert potential adverse impacts on human rights
  • Conduction of a risk analysis to identify adverse impacts on human rights
  • Establishment of a complaints procedure (to report potential violations of human rights), and
  • Transparent and full reporting that is connected to the fulfillment of mandatory due diligence obligations

Transparent, sustainable supply chain management has been part of CWS’ holistic sustainability approach for many years. This is particular important in the textile supply chain.

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CWS has reported on its transparent and sustainable management in its annual GRI Report since 2012, is an amfori BSCI member (Business Social Compliance Initiative) and conducts regular audits of its suppliers. CWS was also awarded with the EcoVadis Gold Status for its sustainability activities last year. The status is based on a detailed evaluation process with regard to ESG (Environmental, Social, Governance) criteria and thus a company’s social and environmental commitment. CWS’ strengths lie particularly in the areas of human and labour rights, as well as environment – both considered the most important criteria in the rating. This has put CWS in the top 5% of companies of comparable size and industry in the overall rating.

CWS promotes value-oriented and sustainable business: CWS is committed to integrity, fair conduct and compliance with legal obligations – along the entire supply chain.

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