Photo Source: Reuters

Understanding the European Supply Chain Act: A New Era of Corporate Responsibility

David Mattersdorfer
7 min readSep 6, 2023

Key Take-aways

1. The European Supply Chain Act (ESCA) represents a significant shift in corporate responsibility, holding companies accountable for social and environmental impacts across their value chains.

2. It focuses on risk management, emphasising fundamental human rights and environmental protection in line with international standards.

3. Main target might be EU companies with over 250 employees and a €40 million turnover.

4. Fines for not being compliant can be up to € 8 million or 2% of the yearly turnover.

5. High-risk industries, including textiles and leather, agriculture and water supply, mining, and financial services face stricter due diligence requirements and fines.

6. Affected companies are estimated to have about 2–3 years from now till they need to be compliant

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In June 2023, a significant milestone was reached in the realm of corporate responsibility when a majority of Members of the European Parliament (MEPs) voted in favour of the ESCA and further tightening it. The ESCA is…



David Mattersdorfer

Implementing Circular Economy ≫ | Managing Director | Lecturer | Entrepreneur