As of: February 28, 2024, 9:54 p.m
By: Andreas Höß
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Split
Vaude boss Antje von Dewitz has been relying on sustainable and fair production for many years - and incurs additional costs for it.
She says: If everyone had to adhere to certain basic rules, the competition would be fairer.
Photo: vaude © vaude
There was again no majority for the European supply chain law on Wednesday - Germany in particular blocked it.
The head of Vaude criticizes Germany's attitude.
Tettnang – There is currently no majority for the European supply chain law.
Germany abstained from a vote on Wednesday, and other small countries followed.
The Belgian Council Presidency wants to continue to advocate for the law, but it is likely to be off the table at least until the EU elections in the summer.
The FDP, like some business associations, sees the project as a bureaucratic monster that will put German companies at a competitive disadvantage.
Vaude boss on FDP blockade: “In the long term it will be damaging to our business location”
There should therefore be a sigh of relief in parts of the economy.
But not all German companies like the blockade stance.
Aldi Süd, Mars, Tchibo and the outdoor brand Vaude, among others, are supporting the European regulation.
But why?
We asked Vaude boss Antje von Dewitz that.
Ms von Dewitz, the European supply chain law is probably off the table for now. Does that make her happy?
No.
In my opinion, a European supply chain law is urgently needed.
We must finally take action together against child labor, environmental pollution and climate change.
The fact that the law has now failed in the EU Council of Ministers may perhaps be a short-term relief for many companies.
But in the long term it is damaging to our business location.
For what reason?
Germany has once again exposed itself in Europe because it blocked, at the last second, an EU law that Germany had previously negotiated for months.
In addition, Germany should agree to the European rules out of its own interest.
What do you mean?
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Germany already has its own supply chain law, which German companies with 1,000 or more employees must adhere to.
This means: If the EU regulation does not come into effect, we German companies will be at a disadvantage because we have higher requirements and costs than the rest of the EU.
The FDP is doing us a disservice instead of helping.
One point of criticism of the EU law is that German companies can be sued if they violate it. Do you think that is correct?
Yes, otherwise the law would just be a toothless tiger, right?
And what about the bureaucracy? It is said that the evidence would overburden companies.
Supply chain evidence involves work, especially at the beginning.
You have to imagine it like setting up a quality management system.
To control sustainability, you have to carry out risk analyzes and reviews, document everything and set up a system for it.
For me, this is not bureaucracy, but simply a necessary part of modern corporate management.
This is becoming increasingly important because more and more customers expect their cell phone, T-shirt or car to be manufactured without child labor or environmental sins.
What if, for example, a German mechanical engineering company has thousands of suppliers and has to be liable for them in the future. Can he even check all of this?
Many have misunderstood EU law and think that they really have to control every single supplier, including the screw manufacturer from Portugal or the cardboard manufacturer from Germany.
But that's not correct.
Companies would first have to carry out an analysis and look closely at where the greatest risks exist.
In my opinion, this is feasible and sensible.
Still, such reporting requirements make the production process more complicated and expensive, right?
Sure, but when it comes to digitalization, quality management or design, you would never question whether it is worth spending more money there.
When it comes to sustainability, however, it always means: you have to be able to afford it.
That is illogical.
In addition, if there is no Europe-wide obligation for supply chain evidence, only the pioneers who are already doing this voluntarily and at their own expense will be punished, instead of creating a level playing field for everyone.
Your company is considered a pioneer in sustainable production. What additional costs do you incur?
Roughly speaking, we have ten to 15 percent additional costs - but for everything we do in terms of sustainability and climate neutrality.
Our commitment there goes far beyond what is required by the Supply Chain Act.
We cannot pass on the additional costs entirely to the customers.
Nevertheless, in my opinion it is worth producing sustainably.
Also financially or just for ethical reasons?
When we started consistently with sustainable production 15 years ago, we were laughed at.
We created a culture and structure to find solutions to the challenges and conflicting goals, which made us very innovative.
Since then, we have grown above average compared to the European industry and more and more customers value us as a credible brand.
Sustainability is therefore not an obstacle, but rather, in our view, an important success factor.
Do you think the European supply chain law still has a chance?
In any case, I think it is urgently necessary in order to be sustainable, innovative and successful in global competition, because more and more consumers are demanding fair and sustainable production.
Companies lose their future relevance if they do not professionalize themselves here.
I am therefore still convinced that a European regulation will come sooner or later.
Interview: Andreas Höß