EU softens supply chain law, sparing mid-sized firms from strict rules
The EU has scaled back its supply chain law after intense trilogue negotiations. The revised directive now targets only the largest corporations, easing pressure on mid-sized firms. Hesse’s Minister for European Affairs and Deregulation, Manfred Pentz, has called the agreement a significant shift in the right direction.
Originally, the EU Supply Chain Directive threatened to burden many businesses with heavy climate obligations and broad liability rules. After negotiations, these requirements were removed, offering relief to companies that had feared excessive bureaucracy. The final text now applies only to corporations with over 5,000 employees and annual revenues exceeding €1.5 billion.
The revised directive lifts regulatory burdens from many mid-sized companies. Pentz remains cautious but optimistic, arguing that the deal proves EU bureaucracy can be streamlined. The new rules will now focus solely on the largest corporations, marking a shift in how supply chain obligations are enforced.
