We are very pleased that Dr. Maria Flachsbarth was elected as the new chairwoman of XertifiX e.V. by the XertifiX general meeting on December 3, 2024. Mrs. Flachsbarth worked for many years as a politician, including as Parliamentary State Secretary in the Federal Ministry for Economic Cooperation and Development (BMZ). She wants to bring this wealth of experience to her work with XertifiX: “I am delighted to now be able to work with committed colleagues on the board of XertifiX e.V. and in cooperation with XertifiX Sozialprojekte e.V. to work specifically for fair working conditions in the natural stone sector, for education instead of child labor, health care and adequate nutrition for the people working in the quarries. Our goal is to work specifically towards achieving SDG 8 “Decent work and economic growth” of the UN Agenda 2030.”

We are very much looking forward to working with Maria Flachsbarth!

At the same time, we would like to thank our previous chairwoman, Ms. Ingrid Sehrbrock, for her many years of commitment to XertifiX. After more than 11 years as chairwoman of XertifiX, Ms. Sehrbrock decided not to run again and to vacate her position. During her term of office, the XertifiX standard was significantly expanded and the area of ​​​​activity expanded from India to China and Vietnam. During this time, Ingrid Sehrbrock visited India twice and China once to get a first-hand impression of the work in quarries and factories. She has made a significant contribution to the success of XertifiX in recent years, for which we are very grateful. We are therefore pleased that she will continue to support XertifiX. At the suggestion of the new chairwoman, Ingrid Sehrbrock was elected by the XertifiX Board of Directors as the new chairwoman of the XertifiX Board of Trustees, succeeding the previous chairwoman of the Board of Trustees, Mr. Heribert Scharrenbroich.

Heribert Scharrenbroich is resigning from his position as Chairman of the Board of Trustees at his own request and, together with Ms. Flachsbarth, is supporting the election of Ingrid Sehrbrock as his successor. We would like to thank Heribert Scharrenbroich very much for the many years of valuable support and advice he has given XertifiX. With his broad knowledge of development cooperation and his experience in this field, he has made a particularly significant contribution to the success of XertifiX. We are very pleased that he will remain a member of the XertifiX Board of Trustees.

Today (24th May 2024) the EU Supply Chain Act (officially: Corporate Sustainability Due Diligence Directive, CSDDD) was finally passed by the Council of the EU. The EU states now have two years to implement the directive into national law.

The CSDDD gradually applies to companies of different sizes in the EU:

• It starts in five years with companies with 5,000 or more employees and a turnover of over 1.5 billion euros.
• After six years, the CSDDD applies to companies with 3,000 employees or more and a turnover of 900 million euros
• After seven years for companies with 1,000 employees or more and a turnover of 450 million euros

The Supply Chain Act Initiative has put together a few points in which the CSDDD stands out – also compared to the existing LkSG.

In principle, it is very welcome that the CSDDD represents a paradigm shift from voluntary commitments by companies to binding requirements regarding compliance with human rights and environmental/climate protection. With the CSDDD, companies must now carry out a risk assessment of their supply chains and take remedial measures if there are negative impacts on human rights and the environment.

Unlike the LkSG, the CSDDD includes the entire supply chain from the outset, including suppliers such as quarries and mines. When companies identify risks in their supply chains, these must be weighted and addressed as a priority depending on their severity. If, in addition to the risks, it is determined that damage has already been primarily caused by the company and has occurred, then the company must make reparation.

Compared to the LkSG, the CSDDD also covers more human rights and environmental protection criteria: e.g. the right to life and freedom of thought, as well as the right to food, clothing and sanitary facilities. Conversely, the CSDDD puts small and medium-sized enterprises (SMEs) in a better position than under the LkSG, since it requires that access to training and financial support are provided if necessary. Accordingly, large companies are not allowed to pass on reporting obligations to SMEs. Unlike the LkSG, the CSDDD gives those affected the opportunity to sue companies that cause damage under civil law for damages.

What is negative about the CSDDD is that initially only companies with 5,000 or more employees are covered by the directive and that there is a long transition period until companies (of different sizes) have to comply with the directive. It is important here that the German federal government must not fall behind the German LkSG when implementing the directive, which already applies to 1,000 employees and without restriction to a minimum turnover. However, Article 1 Paragraph 2 of the CSDDD applies here, which stipulates that existing protection of human rights and the environment may not be weakened through the implementation of the CSDDD.

For a detailed assessment by the Supply Chain Act Initiative, see here:

“Was liefert das EU-Lieferkettengesetz? Kurzbewertung der EU-Lieferkettenrichtlinie (CSDDD)”

On March 15, 2024, after a long struggle, the EU countries finally agreed to a compromise on the EU Supply Chain Act (Directive). The Belgian Council Presidency was able to reach the compromise despite Germany’s abstention. This is a major political success for the EU!

However, it must be noted that the agreement could only be reached in a massively slimmed-down form compared to the original draft from last December.

The directive does not apply to companies with 500 employees or more and a turnover of 150 million euros, but only to significantly larger companies – and only in a graduated form:

• Initially, the law applies to companies with 5,000 employees or more and a turnover of 1.5 billion euros
• After 4 years, it affects companies with 4,000 employees or more and a turnover of 900 million euros
• after another year (i.e. a total of 5 years) for companies with 1,000 employees or more and a turnover of 450 million euros

Nevertheless, the current draft applies a liability rule according to which companies can be held liable in European courts if human rights are violated in their own supply chains.

It remains a big mystery why the FDP could not agree to this weak draft of the EU directive. The FDP’s argument was always a warning against excessive bureaucracy for small and medium-sized companies. This claim was pure nonsense in relation to the original draft; But in relation to the current compromise proposal, the objection is completely absurd. With a view to Germany and the current federal government, the sober conclusion remains that the FDP has broken the agreement in the coalition agreement, which should actually have prompted the German Chancellor to act. Johanna Kusch from the “Initiative Supply Chain Act”, of which XertifiX is also a member, also comments:

“After the long wrangling, the law has unfortunately been significantly weakened and only applies to a few companies– It is shameful that the federal government itself could not agree to this version. In doing so, the FDP not only duped the SPD and the Greens, but also acted against the broad majority of the population […] We are disappointed that the project has been so undermined. Chancellor Olaf Scholz could have prevented this if he had put the FDP in its place and stuck to the compromise that had already been made. Instead, he accepted with full eyes that established EU procedures were ignored and that Germany is no longer considered a reliable negotiating partner in the EU.

The EU Parliament still has to approve the directive in April, which is considered very likely.

Please see: EU states agree on supply chain law – Germany abstains

On Wednesday, February 28, 2024, a debate on the planned EU supply chain law was scheduled at relatively short notice. It became apparent that there was no majority in favor of passing the law. This is more than unfortunate! And indirectly a consequence of the policy of the German government. The FDP’s refusal to recognize and accept a negotiated legal compromise and instead to stir up sentiment among other governments against this compromise has led to German abstention and uncertainty in other EU countries.

As the Süddeutsche Zeitung reports, there would not have been a majority for the law even with the approval of the federal government. This means that what many predicted has come true: that the blockade by the FDP and the resulting abstention by the German federal government ultimately led to the failure of the law!

See also: EU states bury supply chain law

Federal Minister Heil told Reuters on February 06 that Germany is expected to abstain from the vote on the EU supply chain law (“Corporate Sustainability Due Diligence Directive (CSDDD)”). “I am very disappointed that Germany has to abstain from the upcoming vote due to an ideologically motivated blockade of the FDP,” said Heil. “An EU supply chain directive strengthens human rights in international trade relations, for example when it comes to combating child and forced labor.”

Germany’s abstention would endanger the adoption of the Supply Chain Act, as it is feared that other states will also abstain or even take a position against it.

An EU supply chain law would also be in the interest of the German economy. This would level the playing field for all companies. Instead, German companies must continue to follow the German supply chain law – while this does not apply to companies in other EU countries. Just today, numerous small, medium and large companies published their support for the CSDDD in a statement. These include companies such as ALDI Süd, KIK, EPSON, VAUDE etc. In contrast to the FDP’s claims, the companies assess the EU directive as practicable (“appropriate and implementable”) and are therefore demanding that Federal Chancellor Olaf Scholz will “secure this democratically found compromise and thus provides companies with legal certainty and fair competitive conditions.”

See: Heil no longer believes in a German yes to the EU supply chain law
See: EU Supply Chain Act: Blocking a compromise means creating legal uncertainty
See: Business & Human Rights Centre
See: Initiative supply chain law

A crucial meeting between the relevant ministries will take place in the Chancellery today, January 19th, 2024, at which it is expected to decide whether the Federal Government in the Council will approve the EU Supply Chain Act or abstain. Therefore, together with the Supply Chain Act Initiative, we are calling on our Chancellor Olaf Scholz to show his colors: