Status: Proposal

Law - Austria - Supply Chain Act for a social, human rights based and sustainable mode of production

Supply Chain Act for a social, human rights based and sustainable mode of production

Reporting
- Reporting on the due diligence process is required at least once a year
Due Diligence
- The due diligence process must be carried out on a regular basis
- The motion for a resolution refers to the UNGPs, the OECD guidelines for multinational enterprises and the OECD sectoral guidelines, emphasizing the need for them to be incorporated in legally binding rules
- Includes risk analysis, follow-up measures and stakeholder involvement
- Companies are required to establish an “early warning system”
- Companies are required to define in advance how violations or complaints will be dealt with

Human Rights
- Including labor rights
Environment
- All internationally recognized environmental and climate standards

Own Operations
Subsidiaries
Direct Suppliers
Indirect Suppliers
- The motion for a resolution seeks to cover the entire supply chain
Full Value Chain

Large Companies
SMEs
- Will cover all companies with a minimum turnover, which is yet to be defined

Monitoring
- State authority with civil society advisory board
Administrative Sanctions
- Proportionate, effective and dissuasive penalties and sanctions including
  Fines
  Exclusion from public procurement procedures
  Prohibition from placing goods on the market or offering services
Other
- Public registry for company reports

Civil Liability
- Guaranteed access for victims to Austrian courts
- Civil liability is foreseen for:
  damage caused by your own corporate activities
  damage caused by subsidiaries
  damage caused by companies to which a business relationship exists (if directly related to products, services or activities of the company)
Facilitating Access to Justice
- Burden of proof: companies have to prove that they have
  exercised due diligence
- Generous time limitation periods for bringing a civil lawsuit
- Financial support for claimants, including for costs for lawyers, evidence, travel, opinions and interpreters
Other
- Criminal liability in certain cases

This motion for resolution has not been voted on yet, it was on the agenda at the 15th meeting of the Environment Committee, but it was adjourned at the meeting of October 21, 2021

Law