[ParlTrack]

Proposal for a directive
Article 2 – paragraph 1 – point b a (new)

(ba) With reference to the companies mentioned in point b of this Article, the Commission shall develop simplified reporting obligations and, within one year of the entry into force of this proposal, provide interpretative guidelines to help SMEs meet their obligations.

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 2 – paragraph 2 – point b a (new)

(ba) With reference to the companies mentioned in point b of this Article, the Commission shall develop simplified reporting obligations and, within one year of the entry into force of this proposal, provide interpretative guidelines to help SMEs meet their obligations.

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 3 – paragraph 1 – point f

(f) ‘established business relationship’ means a direct business relationship~~, whether direct or indirect,~~ which is, or which is expected to be lasting, in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the value chain;

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 7 – paragraph 1

1. Member States shall ensure that companies take appropriate measures to prevent, or where prevention is not possible or not immediately possible, adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been, or should have been, identified pursuant to Article 6, in accordance with paragraphs 2~~, 3, 4 and 5~~ of this Article.

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 7 – paragraph 2 – point b

(b) seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s value chain (contractual cascading)~~. When such contractual assurances are obtained, paragraph 4 shall apply.~~;

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 7 – paragraph 2 a (new)

2a. With regard to the potential negative impacts that could not be avoided by the measures referred to in paragraph 2, Article 8 shall apply.

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 7 – paragraph 3

3. As regards potential adverse impacts that could not be prevented or adequately mitigated by the measures in paragraph 2, the company may seek to conclude a contract with a partner with whom it has an indirect relationship, with a view to achieving compliance with the company’s code of conduct or a prevention action plan. When such a contract is concluded, paragraph 4 shall apply.deleted

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 7 – paragraph 4

4. The contractual assurances or the contract shall be accompanied by the appropriate measures to verify compliance. For the purposes of verifying compliance, the company may refer to suitable industry initiatives or independent third-party verification. When contractual assurances are obtained from, or a contract is entered into, with an SME, the terms used shall be fair, reasonable and non-discriminatory. Where measures to verify compliance are carried out in relation to SMEs, the company shall bear the cost of the independent third-party verification.deleted

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 7 – paragraph 5

5. As regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2, 3 and 4, the company shall be required to refrain from entering into new or extending existing relations with the partner in connection with or in the value chain of which the impact has arisen and shall, where the law governing their relations so entitles them to, take the following actions: (a) relations with the partner in question, while pursuing prevention and minimisation efforts, if there is reasonable expectation that these efforts will succeed in the short-term; (b) terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe. Member States shall provide for the availability of an option to terminate the business relationship in contracts governed by their laws.deleted temporarily suspend commercial

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 7 – paragraph 6

6. By way of derogation from paragraph 5, point (b), when companies referred to in Article 3, point (a)(iv), provide credit, loan or other financial services, they shall not be required to terminate the credit, loan or other financial service contract when this can be reasonably expected to cause substantial prejudice to the entity to whom that service is being provided.deleted

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 15

1. companies referred to in Article 2(1), point (a), and Article 2(2), point (a), shall adopt a plan to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. This plan shall, in particular, identify, on the basis of information reasonably available to the company, the extent to which climate change is a risk for, or an impact of, the company’s operations. 2. in case climate change is or should have been identified as a principal risk for, or a principal impact of, the company’s operations, the company includes emission reduction objectives in its plan. 3. companies duly take into account the fulfilment of the obligations referArticle 15 deleted Combating climate change Member States shall ensure that Member States shall ensured to in paragraphs 1 and 2 when setting variable remuneration, if variable remuneration is linked to the contribution of a director to the company’s business strategy and long- term interests and sustainability.hat, Member States shall ensure that

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 19 a (new)

Article 19a The reasoned complaints referred to in this Article shall refer only to potential breaches of the due diligence obligations of companies set out in Articles 6 to 11.

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 20 – paragraph 2

2. In deciding whether to impose sanctions and, if so, in determining their nature and appropriate level, due account shall be taken of the legal framework applicable in the country where the adverse impact occurred, the company’s efforts to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles 7 and 8, cumulative effects of the different measures and sanctions already imposed on the company as well as collaboration with other entities to address adverse impacts in its ~~value~~supply chains, as the case may be.

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 20 – paragraph 3

~~3. When pecuniary sanctions are imposed, they shall be based on the company’s turnover.~~deleted

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 20 a (new)

Article 20a Member States shall promote due process in relation to decisions of the supervisory authorities, including as regards rights of appeal before the courts.

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 22 – paragraph 2

2. Notwithstanding paragraph 1, Member States shall ensure that where a company has taken the actions referred to in Article 7(2), point (b) and Article 7(4), or Article 8(3), point (c), and Article 8(5), it shall not be liable for damages caused by an adverse impact arising as a result of the activities of an indirect partner with whom it has an established business relationship, unless it was unreasonable, in the circumstances of the case, to expect that the action actually taken, including as regards verifying compliance, would be adequate to prevent, mitigate, bring to an end or minimise the extent of the adverse impact. In the assessment of the existence and extent of liability under this paragraph, due account shall be taken of the company’s efforts, insofar as they relate directly to the damage in question, to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as any collaboration with other entities to address adverse impacts in its value chains.deleted

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 22 – paragraph 5

5. Member States shall ensure that the liability provided for in provisions of national law transposing this Article is of overriding mandatory application in cases where the law applicable to claims to that effect is not the law of a Member State.deleted

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 24

~~Member States shall ensure that companies applying for public support certify that no sanctions have been imposed on them for a failure to comply with the obligations of this Directive.~~Article 24 deleted Public support

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 25

1. when fulfilling their duty to act in the best interest of the company, directors of companies referred to in Article 2(1) take into account the consequences of their decisions for sustainability matters, including, where applicable, human rights, climate change and environmental consequences, including in the short, medium and long term. 2. their laws, regulations and administrative provisions providing for a breach of directors’ duties apply also to the provisions of this Article.Article 25 deleted Directors’ duty of care Member States shall ensure that, Member States shall ensure that

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 26

Setting up and overseeing due diligence 1. directors of companies referred to in Article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in Article 4 and in particular the due diligence policy referred to in Article 5, with due consideration for relevant input from stakeholders and civil society organisations. The directors shall report to the board of directors in that respect. 2. directors take sArticle 26 deleted Member States shall ensure that Member Stateps ~~to adapt the corporate strategy to take into account the actual and potential adverse impacts identified pursuant to Article 6 and any measures taken pursuant to Articles 7 to 9.~~shall ensure that

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Article 26 a (new)

Article 26a Termination of contract Member States shall grant companies the right to recourse to contract termination clauses governed by national law.

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Annex I – Part I – point 18

18. Violation of the prohibition of causing any measurable environmental degradation, such as harmful soil change, water or air pollution, harmful emissions or excessive water consumption or other impact on natural resources, that (a) preservation and production of food or (b) clean drinking water or (c) access sanitary facilities or destroys them or (d) normal use of property or land or the normal conduct of economic activity of a person or (e) deforestation, in accordance with Article 3 of the Universal Declaration of Human Rights, Article 5 of the International Covenant on Civil and Political Rights and Article 12 of the International Covenant on Economic, Social and Cultural Rights;deleted impairs the natural bases for the denies a person access to safe and makes it difficult for a person to harms the health, safety, the affects ecological integrity, such as

2022/10/28
Committee: ITRE

Paolo BORCHIA

Proposal for a directive
Annex I – Part I – point 21

21. Violation of a prohibition or right not covered by points 1 to 20 above but included in the human rights agreements listed in Section 2 of this Part, which directly impairs a legal interest protected in those agreements, provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the obligations referred to in Article 4 of this Directive taking into account all relevant circumstances of their operations, such as the sector and operational context.deleted

2022/10/28
Committee: ITRE

23 Amendments of Paolo BORCHIA related to 2022/0051(COD)

ParlTrack - 2011-2024