The debate on human rights and labour standards in supply chains increasingly shifts towards calls for hard law obligations.

The difficulty with this approach is how to define what appropriate standards are when it comes to details of work safety regulations or minimum wages across regions and countries.

The article in German publication FAZ on 15 June 2019 (below) gives useful insight into this ongoing debate and highlights that the call for stipulating enforceable obligations for companies is gaining ground.

For example, the governing coalition in Germany is deliberating whether to implement legislation which might impose obligations on German companies to guarantee the protection of human rights in their international supply chains. This mirrors an increasing international trend.

Companies and their insurers will need to get ready to face these new challenges and liability risks.