EU Parliament adopts trilogue agreement: Chambers see no breakthrough in cutting red tape in EU supply chain law

After the conclusion of negotiations and the EU Parliament's decision on the supply chain law (CSDDD), Brandenburg's chambers of industry and commerce are warning of unclear implementation at national level and possible burdens for companies.

The compromise reached by the European Parliament and Commission provides for considerable weakening compared to the original drafts. In future, only very large companies with more than 5,000 employees and a turnover of 1.5 billion euros are to be affected, and far-reaching reporting obligations and a European liability regime are to be dropped. From the point of view of the Chambers of Industry and Commerce (IHKs) in Brandenburg, the compromise brings relief, but at the same time leaves many questions unanswered. 
 

"The current agreement can only be the beginning of reducing bureaucracy in the EU. The CSDDD provides initial clarity for business planning, but still does not reduce the bureaucratic burden that small and medium-sized enterprises will also suffer as a result of the law. We need practical guidelines without new bureaucracy. Only a clear and proportionate legal framework will enable Brandenburg companies to operate sustainably and competitively at the same time," says Ina Hänsel, President of the Potsdam Chamber of Industry and Commerce on behalf of the state working group of Brandenburg's Chambers of Industry and Commerce.

Effects on companies in Brandenburg 
In the opinion of the IHKs, the actual effects depend heavily on how the member states actually shape the rules. Incomprehensible bureaucracy is no basis for the future. A review of the scope of the directive in mid-2031 is therefore right and important. Almost two thirds of the Brandenburg companies surveyed in the DIHK foreign trade survey in spring 2025 already made it clear that they see their international business being jeopardized by increasing bureaucracy.

Informal passing on of reporting obligations to SMEs remains 
The passing on of obligations remains real: even if many Brandenburg companies are below the threshold values, it is to be expected that clients will continue to demand a great deal of information on sustainability obligations. This means that the administrative burden will continue to be passed on to SMEs. The CSDDD does not provide any protection or reporting options for SMEs in the event of abuse.

More bureaucracy through the back door 
Companies that are part of international supply chains will probably still have to submit ESG self-disclosures, risk analyses or certifications – especially to affected companies in Germany or other EU countries.

Competitiveness of the region depends on uniform implementation 
If EU countries regulate with varying degrees of strictness, this could lead to distortions. The Brandenburg CCIs are therefore warning against an "unequal distribution of burdens" in the internal market and are continuing to call for an immediate suspension of the German Supply Chain Duty of Care Act (LkSG), which has been in force since January 1, 2023, in the wake of the postponed transposition deadline into German law until mid-2028. Among other things, this has far stricter requirements with regard to the application thresholds, which lead to fundamental competitive disadvantages for the German economy at EU level.

After yesterday's approval by the European Parliament (EP) of the agreement reached in trilogue to simplify the Sustainability Reporting Directive (CSRD) and the Supply Chain Directive (CSDDD), the Council must now formally adopt the directive before it can be published in the Official Journal of the EU.

Background
The Brandenburg Chambers of Industry and Commerce had already campaigned for significant adjustments and simplifications to the CSDDD last year and addressed a comprehensive paper of demands to state, federal and EU politicians and held a large number of political discussions. In future, the Chambers of Commerce and Industry in Brandenburg will increase their commitment at EU level in order to make the demands of regional companies even more vocal.