The purpose of the directive is to improve the regulatory framework on human rights and sustainability due diligence, which will aid in the EU's transition to a climate-neutral and green economy.

European Union member states will each designate an authority to supervise and enforce the directive, including fines and compliance orders.

[7] The Belgian Council Presidency then announced that it would examine whether the concerns of the Member States could be allayed in consultation with the European Parliament.

[8] After further negotiations, the EU member states agreed on a substantially weakened version of the directive on March 15, 2024, which now received a qualified majority.

Germany, which has the Supply Chain Act, abstained due to its internal blocking stance of the small party in the governing coalition, the economic liberal FDP.