What will the German ‘Lieferkettengesetz’ (Supply Chain Act) change?

Made in China, Made in Turkey or Made in Bangladesh - on all of our clothes it states where they were made. But what many people don't know is that only the country where the label was sewn on is indicated. Before that happens, our clothes travel halfway around the world. 

For a pair of jeans to end up in our wardrobe, it has to travel a long way. Here’s an example of a possible logistic chain of a pair of jeans. First, the cotton is grown in India and then spun into yarn in Turkey. In China, the yarn is dyed before it is woven into denim in Poland. In Bangladesh, the jeans go to a sewing factory where they are sewn together, labels are attached and all the zips and buttons are added. If the jeans have a special wash or the typical destroyed look, this is not the last stop for them. They are then sent back to China or to Japan where the so-called finishing takes place. Depending on the fashion company, the jeans are then exported to a large warehouse in Europe and from there to your home or a fashion store. For those of you who have just lost track - the jeans make 8 stops in a total of 6 to 7 different countries before we can wear them. If we then give the jeans to the clothing collection after we no longer want to wear them, then they are later sent to developing countries, where they usually remain in a landfill for over 200 years. 

This global supply chain not only confuses us consumers, but basic human rights such as child labour, exploitation, discrimination and lack of labour rights are also repeatedly violated along the way. The environmental impacts of such long supply chains include water and air pollution. This is just one example of environmental destruction, and doesn’t include the impact of the chemicals from fabric dyes, or plastics used to make polyester. 

According to the German government, this is now finally going to change. In the "Act on Corporate Due Diligence in Supply Chains", or "Lieferkettengesetz" for short, German companies are to be obliged to better fulfil their global responsibility. 

Until now, companies in Germany have been earning money from the clothes that are produced in other parts of the world. This puts sustainable fashion brands that already pay attention to sustainable supply chain management at a competitive disadvantage because they cannot sell their clothes at such low prices as their fast-fashion competitors. 

What will the new law contain? 

Generally speaking, a supply chain law is supposed to implement the aspect of Corporate Social Responsibility (CSR) in a legal and binding way. This will bind companies that produce abroad to ensure that human rights are not violated in all phases of their supply chain. 

  • It obliges German companies to ensure that their products are produced in a way that is fair to people and the environment and to take action against human rights violations and environmental violations at their suppliers. 

  • With this law, it will be possible in the future for German trade unions and NGOs to sue in German courts on behalf of people in the supply chain whose human rights have been violated

If human rights or environmental standards are violated by suppliers, German companies will face fines of up to 2% of their annual turnover. The law initially applies only to corporate giants with more than 3,000 employees. In Germany, that would mean more than 924 companies. The so-called ‘Lieferkettengesetz’, for which 412 members of the German Bundestag voted "yes" and 159 "no", will not come into force until 2023. Compliance with the law will then be monitored by the Federal Office of Economics and Export Control (BAFA). 

Which countries also have a supply chain law? 

  • France: Loi de vigilance

  • United Kingdom: Mordern Slavery Act

  • Austria 

How does Kleiderly contribute? 

In the production of our eyewear collection, we take care to keep the supply chain as small and local as possible. We collect the textile waste in Germany from fashion companies and donation organisations like Textilhafen from the Berliner Stadtmission. Our pellets are then also manufactured in Germany. After manufacturing, we send the pellets to an Italian family business where our glasses are then made. The mailers are also made in Germany. Unfortunately, we still have to work with Chinese fabric pouch printers at the moment as it is near impossible to find European suppliers. However, we are trying to move this production to Europe as soon as possible. 

Sources: 

https://diercke.westermann.de/content/globale-warenketten-am-beispiel-jeans-978-3-14-100800-5-271-4-1 

https://www.bundesregierung.de/breg-de/suche/lieferkettengesetz-1872010

https://www.br.de/nachrichten/deutschland-welt/neues-lieferkettengesetz-meilenstein-fuer-menschenrechte,SaRJgIO

https://www.tagesschau.de/inland/lieferkettengesetz-109.html

https://www.tagesschau.de/inland/innenpolitik/lieferkettengesetz-107.html

https://de.statista.com/statistik/daten/studie/1859/umfrage/deutschlands-textilimporte-nach-herkunftslaendern/

https://de.wikipedia.org/wiki/Lieferkettengesetz#Kritik

https://www.atlasbig.com/en-gb/countries-by-cotton-production

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