Supply Chain Act
- The EU Supply Chain Act
The Supply Chain Act is a law that obliges companies to ensure compliance with human rights and environmental standards in their supply chains. The law is intended to help ensure that companies do not contribute to human rights violations or environmental pollution through their business activities.
What does this mean for companies?
The law obliges companies with at least 3,000 (since 2023) or and employees (since 01.01.2024). Companies must first carry out a risk analysis to identify potential negative impacts of their business activities on human rights and the environment in their supply chains. They must then take measures to avoid, eliminate or mitigate these risks.
What does this mean for consumers?
The Supply Chain Act ensures that companies in the EU act more responsibly. Consumers can be confident that the products they buy have been manufactured in compliance with human rights and environmental standards.
What are the benefits of the law?
The Supply Chain Act has both social and environmental benefits. It helps to ensure that human rights are respected and environmental standards are met. This creates a fairer and more sustainable economy in the EU.
Conclusion
The EU Supply Chain Act is an important step towards greater sustainability and responsibility in the economy. Companies that prepare for the law can gain a competitive advantage and win the trust of their customers.
- The Situation in Switzerland
There is currently no federal supply chain law in Switzerland. However, there are voluntary initiatives in some cantons and sectors that oblige companies to comply with human rights and environmental due diligence obligations.
Differences between EU and Swiss law
The EU supply chain act is more far-reaching than comparable laws in other countries, while the Swiss law is voluntary and is limited to the areas of conflict minerals and child labor. Companies that are confronted with risks in these areas must take appropriate measures to mitigate them.
Impact on Swiss companies
Swiss companies that offer goods or services in the EU are also affected by the EU Supply Chain Act. They must fulfill the requirements of the law if they have at least 3,000 employees in the EU.
Swiss companies that are not active in the EU should also familiarize themselves with the principles of the EU Supply Chain Act. This is because the requirements of the law are increasingly being adopted by other countries and companies.
