EU countries are set to vote on a significantly watered-down law holding companies liable for human rights and environmental abuses in their supply chain, as part of a last-ditch effort to persuade Germany and Italy to support the contested regulation.
Only companies with more than 1,000 employees and €300mn in turnover would be affected, according to a compromise draft seen by the Financial Times, up from 500 employees and €150mn turnover previously.
The law, which was initially designed to make companies liable for their suppliers’ wrongdoing in places like China’s Xinjiang region, was voted down last week after Berlin and Rome withdraw their support at the last minute.
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