“We have to be careful”
Entrepreneur Otto defends the supply chain law
This audio version was artificially generated. More information | Send feedback
In an interview, Otto Group supervisory board head Michael Otto speaks against the abolition of the German supply chain law. However, bureaucracy must be dismantled, he demands.
Hamburg entrepreneur Michael Otto warns of the abolition of the German supply chain law. “The principle is correct that we have the supply chain law and also need,” said Otto. It is not appropriate to rethink or change all provisions. “We have to be careful not to make a role backwards,” said the billionaire. It was correct that companies would have to worry about social and environmental standards.
The national supply chain law, which has been in force since the beginning of 2023, obliges companies of a certain size to comply with social and environmental standards in the global supply chains. In the election program, the CDU speaks to abolish it. The EU Commission wants to postpone the European supply chain law, which also exists. The first implementation periods should apply in 2028 instead of 2027.
Simplify reporting obligations
Otto basically considers the German supply chain law to be correct, but he expresses criticism of so -called reporting obligations. The national law and other rules at EU level oblige companies to submit reports. Otto said that reporting should be simplified. Companies would have to answer hundreds of questions based on the various regulations. Some of them were similar, but are not identical, which is why you still have to deal with everyone.
Otto, 81, is one of the most famous and wealthiest entrepreneurs in Germany. For 26 years he led the mail order company founded by his father in Hamburg. He expanded it into an international group, today's Otto Group. According to its own statements, this has been committed to social and environmental standards in the supply chain for more than two decades.
