Australian mining billionaire Andrew Forrest has slammed Germany for its U-turn against EU legislation that would punish companies for environmental and human rights abuses in their supply chains.

Germany withdrew its support for the landmark Corporate Sustainability Due Diligence Directive earlier this month at the insistence of the pro-business Free Democrats (FDP), the smallest party in the country’s coalition government.

In an interview with the Financial Times, Forrest, chair and largest shareholder of Fortescue Metals Group, said Germany had “a responsibility” to back the legislation, which had been due for approval until the country’s change of mind. Fortescue is the world’s fourth-largest iron ore producer and a big German trading partner.