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Textile factory in Weliweriya, Sri Lanka

asian Development Bank

Textile factory in Weliweriya, Sri Lanka

Corporate Accountability

While globalisation ususally benefits businesses, its negative impacts are often disastrous for both people and the environment. Germanwatch campaigns for politicians and companies to respect their human rights and environmental responsibilities.

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Sector Dialogue Automotive Industry: Germanwatch participates in the publication of the Cross-country recommendations for responsible lithium mining and recommended actions, but criticises their limitations

Lithium mining poses numerous environmental and human rights risks. As part of the Sector Dialogue Automotive Industry, Germanwatch therefore collaborated with stakeholders from industry and politics in the development of “cross-country recommendations for responsible lithium mining and recommended actions” in the “Lithium Project Group”. The paper identifies four risk areas and makes recommendations on how they can be addressed by the companies in the supply chain that mine and purchase lithium. Germanwatch supports the recommendations. However, we do see some key gaps in achieving a globally sustainable and equitable economy within planetary boundaries.
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Corporate Accountability Legal Report |

Legal opinion: What obligations does the financial sector have under the German Supply Chain Act?

Since January 2023, the rules of the Supply Chain Act in Germany have applied to all companies above a certain size. This also includes financial institutions. However, the Federal Office for Economic Affairs and Export Control (BAFA), which is responsible for enforcing the law, argued in its guidance published in August 2023 that the law's due diligence obligations are not binding for financial institutions with regard to their core business. Contrary to the guidance, our legal opinion concludes that a correct interpretation of the LkSG clearly shows that financial institutions have a supplier relationship within the meaning of the LkSG with their customers for a number of financial products.
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