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Just days after Germany declared its opposition to a new piece of legislation that would require large companies to check their supply chains for environmental damages and human rights violations, investor groups have asked EU member states to back the rule.
According to Reuters, a committee of representatives from 27 EU countries, dubbed COREPER, is set to approve the law February 9. However, Germany’s decision to abstain from the vote has caused concern that the draft law could stumble.
The German government argued that the law would create more bureaucratic processes as well as legal uncertainties.
Though Germany cannot derail the legislation by itself, the measure could be in danger if it receives opposition from other major EU countries, including Italy.
"We encourage EU member states to maintain their commitment to support this directive at this week's COREPER meeting," said a joint statement from the investor groups, which include the Investor Alliance for Human Rights (IAHR), Principles for Responsible Investment (PRI), the European Sustainable Investment Forum, the Institutional Investors Group on Climate Change (IIGCC) and the Interfaith Center on Corporate Responsibility (ICCR).
COREPER did not respond to a request for comment from Reuters.
Analysts predict that the rule will apply to 17,000 companies if passed — 13,000 in the EU plus another 3,000 outside of the bloc.
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