🇩🇪 🇪🇺 Legislation3 Sep 2025
Germany's cabinet approves CSRD implementation and a lighter supply-chain due diligence law
On 3 September 2025 Germany's cabinet approved a bill to implement the EU sustainability reporting directive, covering up to 3,900 companies, and an amendment to the Supply Chain Due Diligence Act (LkSG) that drops its reporting duty and limits fines to serious breaches. Germany had missed the CSRD deadline. Both bills were still in Parliament in 2026, and the CSRD bill must reflect the EU's Omnibus I changes.
The German Federal Cabinet approved two sustainability bills on 3 September 2025.
CSRD implementation
- A bill implementing the Corporate Sustainability Reporting Directive (CSRD), as amended by the EU's 'stop-the-clock' directive, was sent to the Bundestag (Drucksache 21/1857).
- With a narrower scope and assurance standard, the Government expected up to 3,900 companies to be covered.
- Germany had not transposed the CSRD by the 2024 deadline. An earlier bill lapsed with the end of the last parliament.
- The Bundestag's legal affairs committee held a hearing on 13 April 2026. The bill has to be aligned with the EU's Omnibus I directive (2026/470), published on 26 February 2026.
Supply chain act (LkSG)
- The duty to report on compliance with supply-chain due diligence is removed.
- The due diligence duties themselves remain, but only serious breaches are sanctioned.
- The Bundestag debated the bill in January 2026.
Who is affected
Large German companies and groups, and the teams preparing sustainability and supply-chain reporting.
Status
Neither bill had been confirmed as passed at the time of writing. Check DIP for the current position.