Activities of Maria ARENA related to 2021/0104(COD)
Shadow opinions (1)
OPINION on the proposal for a directive of the European Parliament and of the Council amending Directive 2013/34/EU, Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting
Amendments (81)
Amendment 40 #
Proposal for a directive
Recital 8
Recital 8
(8) The ultimate beneficiaries of better sustainability reporting by undertakings armust be individual citizens and savers. Savers who want to invest sustainably willmust have the opportunity to do so, while all citizens shouldmust benefit from a stable, sustainable and inclusive economic system. To realise these benefits, the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). The first group of users consists of investors, including asset managers, who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. The second group of users consists of organisations, including non- governmental organisations, civil society and social partners, that wish to better hold undertakings to account for their impacts on people and the environment. Other stakeholders may also make use of sustainability information disclosed in annual reports. The business partners of undertakings, including customers, may rely on this information to understand, and where necessary report on, the sustainability risks and impacts through their own value chains. Policy makers and environmental agencies may use such information, in particular on an aggregate basis, to monitor environmental and social trends, to contribute to environmental accounts, and to inform public policy. Few individual citizens and consumers directly consult undertaking’s reports, but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. Many investors and asset managers purchase sustainability information from third party data providers, who collect information from various sources, including public corporate reports. There is an urgent need to make this data available at a reasonable cost.
Amendment 53 #
Proposal for a directive
Recital 15
Recital 15
(15) Articles 19a and 29a of Directive 2013/34/EU apply to large undertakings that are public-interest entities with an average number of employees in excess of 500, and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis, respectively. In view of the growth of users’ needs for sustainability information, additional categories of undertakings should be required to report such information. It is therefore appropriate to require all large undertakings and all undertakings listed on regulated markets, except micro undertakings, to report detailed sustainability information. In addition, all undertakings that are parent unand small and medium-sized undertakings operating in high-risk economic sectors, to report dertakings of large groups should prepare sustainability reporting at group leveliled sustainability information.
Amendment 54 #
Proposal for a directive
Recital 16
Recital 16
(16) The requirement that also large non-listed undertakings and small and medium-sized undertakings operating in high-risk economic sectors should disclose information on sustainability matters is mainly driven by concerns about the impacts and accountability of such undertakings, including through their value chain. In this respect, all large undertakings , and small and medium-sized undertakings operating in high-risk economic sectors should be subject to the same requirements to report sustainability information publicly. In addition, financial market participants also need information from those large non-listed undertakings.
Amendment 55 #
Proposal for a directive
Recital 18 a (new)
Recital 18 a (new)
(18 a) Environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters are not contingent on the size of an undertaking. Therefore, SMEs which are operating in economic sectors determined to be high risk should also be required to disclose information on sustainability matters, irrespective of whether or not they are listed on regulated markets.
Amendment 58 #
Proposal for a directive
Recital 27
Recital 27
(27) To ensure consistency with international instruments such as the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct, the due diligence disclosure requirements should be specified in greater detail than is the case in Article 19a(1), point (b), and Article 29a(1), point (b) of Directive 2013/34/EU. The disclosure requirements related to the due diligence requirements in this Directive will need to be adapted once the upcoming directive on sustainable corporate governance and due diligence has been adopted so that the requirements in this Directive are aligned with those in the upcoming directive. Due diligence is the process that undertakings carry out to identify, prevent, mitigate and remediate the principal actual and potential adverse impacts connected with their activities and identifies how they address those adverse impacts. Impacts connected with an undertaking’s activities include impacts directly caused by the undertaking, impacts to which the undertaking contributes, and impacts which are otherwise linked to the undertaking’s value chain. The due diligence process concerns the whole value chain of the undertaking including its own operations, its products and services, its business relationships and its supply chains. In alignment with the UN Guiding Principles on Business and Human Rights, an actual or potential adverse impact is to be considered principal where it measures among the greatest impacts connected with the undertaking’s activities based on: the gravity of the impact on people or the environment; the number of individuals that are or could be affected, or the scale of damage to the environment; and the ease with which the harm could be remediated, restoring the environment or affected people to their prior state.
Amendment 61 #
Proposal for a directive
Recital 18
Recital 18
(18) Considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (SMEs) listed on regulated markets comprise a significant proportion of all listed undertakings in the Union, in order to ensure investor protection it is appropriate to require that also those SMEs disclose information on sustainability matters. The introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. It will therefore help to protect and enhance the access of smaller listed undertakings to financial capital, and avoid discrimination against such undertakings on the part of financial market participants. The introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in Regulation (EU) 2019/2088. SMEs listed on regulated markets should, however, be provided with sufficient time to prepare for the application of the requirement to report sustainability information, due to their smaller size and more limited resources, and taking account of the difficult economic circumstances created by the COVID-19 pandemic. They should alsoshould be given the possibility to report according to standards that are proportionate to the capacities and resources of SMEs. Non- listed SMEs can also choose to useThere must also be a timeline set for non-listed SMEs to apply these proportionate standards on a voluntary basis. The SME standards will set a reference for undertakings that are within the scope of the Directive regarding the level of sustainability information that they could reasonably request from SME suppliers and clients in their value chains.
Amendment 64 #
Proposal for a directive
Recital 37 a (new)
Recital 37 a (new)
(37 a) The Commission should be empowered to adopt delegated acts in accordance with Article 49 to establish and amend the list of high-risk sectors of economic activity set out in Article 2, point 20a. That list should take into account the work of the Platform on Sustainable Finance established in accordance with Article 20 of Regulation (EU) 2020/852 and the OECD Due Diligence Guidance for Responsible Business Conduct, including for mining, quarrying, extractive industries, agriculture, forestry, construction, transportation, electricity, gas, steam and air conditioning supply, clothing and footwear, finance and international shipping, and health, social, elder cares. The list of sectors taken into account in this definition should take account of correspondence with the NACE classification1a. _________________ 1aStatistical classification of economic activities in the European Union, NACE Rev. 2.
Amendment 64 #
Proposal for a directive
Recital 19
Recital 19
(19) Directive 2004/109/EC of the European Parliament and of the Council49 applies to all undertakings with securities listed on regulated and SMEs growth markets. In order to ensure that all undertakings with securities listed on regulated markets, including third country issuers, fall under the same sustainability reporting requirements, Directive 2004/109/EC should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report. __________________ 49 Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC (OJ L 390, 31.12.2004, p. 38).
Amendment 66 #
Proposal for a directive
Recital 43
Recital 43
(43) Sustainability reporting standards should specify the information that undertakings should disclose on social factors, including employee factors and human rights. Such information should cover the impacts of undertakings on people, including on human health. The information that undertakings disclose about human rights should include information about forced labour in their value chains where relevant. Reporting standards that address social factors should specify the information that undertakings should disclose with regard to the principles of the European Pillar of Social Rights that are relevant to businesses, including equal opportunities for all and working conditions. The European Pillar of Social Rights Action Plan adopted in March 2021 calls for stronger requirements on undertakings to report on social issues. The reporting standards should also specify the information that undertakings should disclose with regard to the human rights, fundamental freedoms, democratic principles and standards established in the International Bill of Human Rights and other core UN human rights conventions, the United Nation Guiding Principles on Business and Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the fundamental conventions and governance conventions of the International Labour Organisation, particularly on child and forced labour and freedom of association and collective bargaining, the European Convention on Human Rights (ECHR), European Social Charter, the OECD Guidelines for multinational enterprises, and the Charter of Fundamental Rights of the European Union.
Amendment 67 #
Proposal for a directive
Recital 24
Recital 24
(24) The list of sustainability matters on which undertakings are required to report should be as coherent as possible with the definition of ‘sustainability factors’ laid down in Regulation (EU) 2019/2088. That list should also correspond to the needs and expectations of users and undertakings themselves, who often use the terms ‘environmental’, ‘social’ and ‘governance’ as a means to categorise the three main sustainability matters. The list of sustainability factors laid down in Regulation (EU) 2019/2088 does not explicitly include governance matters. The definition of sustainability matters in Directive 2013/34/EU should therefore be based on the definition of ‘sustainability factors’ laid down in Regulation (EU) 2019/2088, but with the addition of governance matters. The list of environmentally sustainable matters should be based on, and take account of underlying indicators and methodologies set out in Regulation(EU) 2020/852 and various delegated acts adopted pursuant to it, as they jointly create a classification system of environmentally sustainable economic activities.
Amendment 73 #
Proposal for a directive
Recital 48
Recital 48
(48) Directive 2013/34/EU does not require that the financial statements or the management report are provided in a digital format, which hinders the findability accessibility and usability of the reported information. Users of sustainability information increasingly expect such information to be findable and machine- readable in digital formats and published under open data principles. Digitalisation creates opportunities to exploit information more efficiently and holds the potential for significant cost savings for both users and undertakings. Undertakings should therefore be required to prepare their financial statements and make publicly available their management report in XHTML format in accordance with Article 3 of Commission Delegated Regulation (EU) 2019/815,63 and to mark- up sustainability information, including the disclosures required by Article 8 of Regulation (EU) 2020/852, in accordance with that Delegated Regulation. A digital taxonomy to the Union sustainability reporting standards will be necessary to allow for the information reported to be tagged in accordance with those standards. These requirements should feed into the work on digitalisation announced by the Commission in its Communication A European strategy for data64 and in the Digital Finance Strategy for the EU.65 These requirements also complement the creation of a European single access point for public corporate information as envisaged in the capital markets union action plan, which also considers the need for structured data. _________________ 63 Commission Delegated Regulation (EU) 2018/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format (OJ L 143, 29.5.2019, p. 1). 64 https://ec.europa.eu/digital-single- market/en/european-strategy-data 65 https://ec.europa.eu/info/publications/2009 24-digital-finance-proposals_en
Amendment 73 #
Proposal for a directive
Recital 26
Recital 26
(26) Articles 19a(1) and 29a(1) of Directive 2013/34/EU require undertakings to disclose information about five reporting areas: business model, policies (including due diligence processes implemented), the outcome of those policies, risks and risk management, and key performance indicators relevant to the business. Article 19a(1) of Directive 2013/34/EU does not contain explicit references to other reporting areas that users of information consider relevant, some of which align with disclosures included in international frameworks, including the recommendations of the Task Force on Climate-related Financial Disclosures. Disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. In addition to the reporting areas identified in Articles 19a(1) and 29a(1) of Directive 2013/34/EU, undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters, any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate- neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect, or are affected by sustainability matters; any sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. Once the disclosure of elements such as targets and the progress towards achieving them is required, the separate requirement to disclose the outcomes of policies is no longer necessary.
Amendment 75 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 2 – point 17
Article 2 – point 17
(17) ‘sustainability matters’ means refers to environmental, social and employee matters, respect for human rights, anti- corruption and anti-bribery matters (sustainability factors), as defined in Article 2, point (24) of Regulation (EU) 2019/2088 of the European Parliament and of the Council\*4, and governance factorswell as proportionate and commensurate due diligence by undertakings to identify, prevent, mitigate, remediate, and communicate on adverse impacts on human rights, labour rights, including trade unions rights, the environment and good governance in relation to their own activities, their value chains and business relationships, with reference to applicable legal duties, standards and guidance;
Amendment 75 #
Proposal for a directive
Recital 27
Recital 27
(27) To ensure consistency with international instruments such as the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct, the due diligence disclosure requirements should be specified in greater detail than is the case in Article 19a(1), point (b), and Article 29a(1), point (b) of Directive 2013/34/EU. Due diligence is the process that undertakings carry out to identify, prevent, mitigate and remediate the principal actual and potential adverse impacts connected with their activities and identifies how they address those adverse impacts. Impacts connected with an undertaking’s activities include impacts directly caused by the undertaking, impacts to which the undertaking contributes, and impacts which are otherwise linked to the undertaking’s value chain. The due diligence process concerns the whole value chain of the undertaking including its own operations, its products and services, its business relationships and its supply chains. In alignment with the UN Guiding Principles on Business and Human Rights, an actual or potential adverse impact is to be considered principal where it measures among the greatest impacts connected with the undertaking’s activities based on: the gravity of the impact on people or the environment; the number of individuals that are or could be affected, or the scale of damage to the environment; and the ease with which the harm could be remediated, restoring the environment or affected people to their prior state.
Amendment 76 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 2 – point 20 a (new)
Article 2 – point 20 a (new)
(20 a) ‘high-impact undertakings’ means undertakings active in one or more of the following high-impact sectors mining, quarrying, extractive industries, agriculture, forestry, construction, transportation, electricity, gas, steam and air conditioning supply, clothing and footwear, finance and international shipping, and health, social, elder cares. A high-impact sector is a sector that is associated, as a result of its business and value chain characteristics, with a high likelihood of actual or potential severe impacts on the environment, good governance, social or human rights, due to factors including their size, business and value chain characteristics.. The list of sectors taken into account in this definition should take account of correspondance with the NACE classification. The list of high-impact sectors should be reviewed every three years by the European Commission and modified, as appropriate, through a Delegated Act. This review should take into account existing EU sector-specific legislation and sector-specific disclosures in recognized international reporting frameworks such as Global Reporting Initiative standards which address sector- specific environmental and social negative impacts;
Amendment 77 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 2 – point 20 b (new)
Article 2 – point 20 b (new)
(20 b) ‘severe impacts’ are adverse impacts on people and the environment connected to the undertaking’s value chain by its own operations, its products and services, its business relationships, its subsidiaries, and its supply chain, based on the gravity of the impact on the sustainability matter, the number of individuals that are or could be affected, or the scale of damage to the environment and the ease with which the harm could be remediated, restoring the environment or affected people to their prior state, cause the greatest harm relative to other impacts the undertaking has identified;
Amendment 78 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 1
Article 19a – paragraph 1
1. Large undertakings governed by the law of a Member State or established in the territory of the Union, including non-EU companies with substantial business in the EU, and, as of 1 January 2026, all publicly listed small and medium- sized undertakings which are undertakings referred to in Article 2, point (1), point (a), as well as high-risk non-listed small and medium-sized undertakings, shall include in the management report information necessary to understand the undertaking’s impacts on sustainability mattersfactors, due diligence, and information necessary to understand how sustainability matters, as defined in art 19a (17), affect the undertaking’s development, performance and position.
Amendment 80 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 2 – subparagraph 1 – point e – point i
Article 19a – paragraph 2 – subparagraph 1 – point e – point i
(i) the due diligence process implemented with regard to sustainability matters in line with, the EU Directive on Sustainable Corporate Governance, national legislation, and the UN Guiding Principles for Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct;
Amendment 81 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 2 – subparagraph 1 – point e – point ii
Article 19a – paragraph 2 – subparagraph 1 – point e – point ii
(ii) the principal actual or potential adverse impacts connected with the undertaking’s value chain, including its own operations, its products and services, its business relationships and its supply chain;
Amendment 82 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 2 – subparagraph 1 – point e – point iii
Article 19a – paragraph 2 – subparagraph 1 – point e – point iii
(iii) anyll actions taken, and the result of such actions, to prevent, mitigate or remediate actual or potential adverse impacts and the effectiveness of their results;
Amendment 83 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 2 – subparagraph 1 – point e – point iii a (new)
Article 19a – paragraph 2 – subparagraph 1 – point e – point iii a (new)
(iii a) the structure of the undertaking’s value chain including through a disaggregated mapping of its own operations, subsidiaries, suppliers and business relationships;
Amendment 84 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 2 – subparagraph 1 – point e – point iii b
Article 19a – paragraph 2 – subparagraph 1 – point e – point iii b
Amendment 87 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 7 – subparagaph 1
Article 19a – paragraph 7 – subparagaph 1
7. An undertaking which is a subsidiary undertaking shall be exempted from the obligations set out in paragraphs 1 to 4 if that undertaking and its subsidiary undertakings are included in the consolidated management report of a parent undertaking, drawn up in accordance with Articles 29 and 29aare included in the consolidated management report of apparent undertaking, if this report is drawn up in accordance with Articles 29 and 29a and if information required by Article 19b is reported on country-by-country basis. An undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4 where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking and where the consolidated management report is drawn up in a manner that may be considered equivalent, in accordance with the relevant implementing measures adopted pursuant to Article 23(4), point (i), of Directive 2004/109/EC of the European Parliament and of the Council*6, to the manner required by the sustainability reporting standards referred to in Article 19b of this Directive.
Amendment 88 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 7 a (new)
Article 19a – paragraph 7 a (new)
7 a. The Commission shall be empowered to adopt delegated acts in accordance with Article 49 to establish and amend the list of high-risk sectors of economic activity set out in Article 2, point (20a). That list shall take into account the work of the Platform on Sustainable Finance established in accordance with Article 20 of Regulation (EU) 2020/852 and the OECD Due Diligence Guidance for Responsible Business Conduct, including for mining, quarrying, extractive industries, agriculture, forestry, construction, transportation, electricity, gas, steam and air conditioning supply clothing and footwear, finance and international shipping and health, social, elder cares. The list of sectors taken into account in this definition shall take account of correspondence with the NACE classification1a. _________________ 1aStatistical classification of economic activities in the European Union, NACE Rev. 2.
Amendment 89 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 1 – subparagraph 1 – point b – point ii
Article 19b – paragraph 1 – subparagraph 1 – point b – point ii
(ii) information that undertakings shall report that is specific to the sector in which they operate, with particular attention paid to high-risk business sectors.
Amendment 89 #
Proposal for a directive
Recital 36
Recital 36
(36) Sustainability reporting standards should take account of the Commission guidelines on non-financial reporting60 and the Commission guidelines on reporting climate-related information61 . They should also take account of other reporting requirements in Directive 2013/34/EU in particular reporting on payments to governments by undertakings active in the extractive industry and the logging of forests, as well as other reporting requirement not directly related to sustainability, with the aim of providing the users of the reported information with a better understanding of the development, performance, position and impact of the undertaking, by maximising the links between the sustainability information and other information reported in accordance with Directive 2013/34/EU. __________________ 60 2017/C 215/01. 61 2019/C 209/01.
Amendment 90 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point a a (new)
Article 19b – paragraph 2 – subparagraph 2 – point a a (new)
Amendment 93 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point b – point ii
Article 19b – paragraph 2 – subparagraph 2 – point b – point ii
(ii) working conditions, including secure and adaptable employment, wages, social dialogue, collective bargaining and the involvement of workers, respect for trade union rights, respect for the right of workers to be informed and consulted in accordance with international European and national labour law, where applicable respect for the right of workers to elect worker board level representatives, ,work- life balance, and a healthy, safe and well- adapted work environment;
Amendment 93 #
Proposal for a directive
Recital 37
Recital 37
(37) Sustainability reporting standards should be proportionate, and should not impose unnecessary administrative burden on companies that are required to use them. In order to minimise disruption for undertakings that already report sustainability information, sustainability reporting standards should take account of existing standards and frameworks for sustainability reporting and accounting where appropriate. Those include the Global Reporting Initiative, the Sustainability Accounting Standards Board, the International Integrated Reporting Council, the International Accounting Standards Board, the Task Force on Climate-related Financial Disclosures, the Carbon Disclosure Standards Board, and CDP (formerly the Carbon Disclosure Project). Standards of the European Union should take account of any sustainability reporting standards developed under the auspices of International Financial Reporting Standards Foundation. To avoid unnecessary regulatory fragmentation that may have negative consequences for undertakings operating globally, European standards should contribute to the process of convergence of sustainability reporting standards at global level, in particular by supporting the process to develop standards by the International Sustainability Standards Board.
Amendment 95 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii
(iii) respect for the human rights, fundamental freedoms, democratic principles and standards established in the International Bill of Human Rights and other core UN human rights conventions, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the ILO fundamental conventionand governance conventions, the European Convention of Human Rights, the European Social Charter, the OECD Guidelines for Multinational Enterprises and the Charter of Fundamental Rights of the European Union, and the EU labour law acquis.
Amendment 98 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii a (new)
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii a (new)
(iii a) the undertaking’s value chain linked to severe actual and potential impacts, including sector-specific information on suppliers, types of products and services supplied, and on sourcing and traceability of commodities and materials associated with high likelihood of actual or potential adverse impacts on sustainability matters.
Amendment 99 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii b (new)
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii b (new)
Amendment 100 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii c (new)
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii c (new)
(iii c) affected communities, including information on: - human rights impact assessments carried out by the undertaking; - respect for indigenous peoples’ rights and implementation of the undertaking’s policy on Free Prior and Informed Consent - health, safety and security of person; - freedom of assembly and freedom of expression- human rights impacts related to land and access to water economic impacts on communities.
Amendment 101 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii d (new)
Article 19b – paragraph 2 – subparagraph 2 – point b – point iii d (new)
Amendment 101 #
Proposal for a directive
Recital 40
Recital 40
(40) It should be ensured that the information reported by undertakings in accordance with the sustainability reporting standards meet the needs of users. The reporting standards should therefore specify the information that undertakings are to disclose on all major environmental factors, including their impacts and dependencies on climate, air, land, soil, water and biodiversity. Regulation (EU) 2020/852 provides a classification of the environmental objectives of the Union. For reasons of coherence, it is appropriatenecessary to use a similar classification to identify the environmental factors that should be addressed by sustainability reporting standards. The reporting standards should consider and specify any geographical or other contextual information that undertakings should disclose to provide an understanding of their principal impacts on sustainability matters and the principal risks to the undertaking arising from sustainability matters.
Amendment 102 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point c – point ii
Article 19b – paragraph 2 – subparagraph 2 – point c – point ii
(ii) business ethics and corporate culture, including anti-corruption and anti- bribery programmes, assessment of corruption risks, and whistleblowing systems and results;
Amendment 107 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19d – paragraph 1
Article 19d – paragraph 1
1. Undertakings subject to Article 19a shall prepare their financial statements and their management report in a open data and machine-readable single electronic reporting format in accordance with Article 3 of Commission Delegated Regulation (EU) 2019/815*15 and shall mark-up their sustainability reporting, including the disclosures laid down in Article 8 of Regulation (EU) 2020/852, in accordance with that Delegated Regulation.
Amendment 108 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29a – paragraph 1
Article 29a – paragraph 1
1. Parent undertakings of a large group shall include in the consolidated management report information necessary to fully understand the group's and its subsidiaries’ and business relationships impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group's development, performance and position. The report shall explain the impact of each subsidiary on sustainability factors.
Amendment 109 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29a – paragraph 2 – subparagraph 1 – point e – point i
Article 29a – paragraph 2 – subparagraph 1 – point e – point i
(i) the due diligence process implemented with regard to sustainability matters in line with, the EU Directive on Sustainable Corporate Governance, national legislation, and the UN Guiding Principles for Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct;
Amendment 110 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29a – paragraph 2 – subparagraph 1 – point e – point iii a (new)
Article 29a – paragraph 2 – subparagraph 1 – point e – point iii a (new)
(iii a) the structure of the undertaking’s value chain including through a disaggregated mapping of its own operations, subsidiaries, suppliers and business relationships;
Amendment 110 #
Proposal for a directive
Recital 46
Recital 46
(46) Undertakings in the same sector are often exposed to similar sustainability- related risks, and they often have similar impacts on society and the environment. Comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. Sustainability reporting standards adopted by the Commission should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. Standards applicable to undertakings active in the extractive industry and the logging of forests should be consistent with reporting requirements of Chapter 10 of Directive 2013/34/EU and require sustainability disclosures to be made at project-level. Project-level disclosures are crucial for investors who need consistent and detailed information on projects to fully understand the impact of climate-related financial risk on the economic producibility of reserves in the fossil fuels sector and also to understand the resilience of supply of critical transition minerals. Project-level disclosure is equally crucial for communities affected by the extractive and logging industries and civil society organisations of resource-rich countries, to understand and scrutinize the benefits of the oil, gas, mining and logging industries and their environmental, social and governance impacts. Standards should also take account of the difficulties that undertakings may encounter in gathering information from actors throughout their value chain, especially from SME suppliers and from suppliers in emerging markets and economies.
Amendment 111 #
Proposal for a directive
Article 3 – paragraph 1 – point 14 – point e
Article 3 – paragraph 1 – point 14 – point e
Directive 2006/43/EC
Article 28 – paragraph 4 – subparagraph 1
Article 28 – paragraph 4 – subparagraph 1
The audit report shall be signed and dated by the statutory auditor. Where an audit firm carries out the statutory audit and, where applicable, the assurance of sustainability reporting, the audit report shall bear the signature of at least the statutory auditor(s) carrying out the statutory audit and the assurance of sustainability reporting on behalf of the audit firm. Where more than one statutory auditor or audit firm have been simultaneously engaged, the audit report shall be signed by all statutory auditors or at least by the statutory auditors carrying out the statutory audit and the assurance of sustainability reporting on behalf of every audit firm. In exceptional circumstances Member States may provide that such signature(s) need not be disclosed to the public if such disclosure could lead to an imminent and significant threat to the personal security of any person.; If an undertaking works with statutory auditors, audit firms or independent assurance services firms in the design, implementation or assessment of their due diligence process, that undertaking should not in addition request assurance of sustainability reporting from the same entity.
Amendment 112 #
Proposal for a directive
Recital 47
Recital 47
(47) To meet the information needs from users in a timely manner, and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to Article 4, paragraphs 6 and 7 of Regulation (EU) 2019/2088, the Commission should adopt a first set of reporting standards by 31 October 2022. That set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters, and that financial market participants need to comply with the disclosure obligations laid down in Regulation (EU) 2019/2088. The Commission should adopt a second set of reporting standards at the latest by 31 October 2023, specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary, and information that is specific to the sector in which an undertaking operates. Standards for undertakings active in sectors that have severe impacts on sustainability factors should be developed as a priority. The Commission should review the standards every 3 years to take account of relevant developments, including the development of international standards.
Amendment 118 #
Proposal for a directive
Recital 47 a (new)
Recital 47 a (new)
(47a) Undertakings active in the extractive industry as defined in Article 41 (1) of directive 2013/34/EU should be subject to additional sustainability disclosure requirements. These undertakings have high market capitalization, drive economic growth across the world and are an important source of government revenues in many countries. They also have exceptional sustainability impacts in terms of greenhouse gas emissions, pollution, biodiversity loss and human health. Extractive activities can also fuel corruption, conflict and threaten human rights when safeguards are not met or if projects are poorly managed. The extractive industry is a major cause of climate change (particularly through fossil fuel production). It also stands to be transformed by the energy transition, which will likely result in a drastic reduction in the production of fossil fuels and a substantial increase in the exploitation of minerals needed for clean energy technology. European capital markets are exposed to climate-related risk with the vulnerability of coal, oil and gas companies being particularly pronounced. These climate related risks will also have real consequences for extractive industry stakeholders in producing countries.
Amendment 120 #
Proposal for a directive
Recital 47 b (new)
Recital 47 b (new)
(47b) Undertakings active in the extractive industry must be required to publish the contracts and other documents upon which these projects are based. Access to oil, gas and mining contracts agreed between governments and extractive industry companies is important to measure the environmental performance of oil, gas and mining companies. It is common for host governments to detail specific environmental obligations for the extractive industries in contracts, particularly where national environmental legislation does not provide detail on these issues. Many contracts include stabilization clauses that provide investors with protection from changes in the law. Contractual clauses may restrict application of new climate regulations. Arbitration and force majeure clauses, also common in contracts, may also discourage host governments from taking action on climate change. Contracts detail the overall distribution of risk and reward between governments, companies and citizens affected by extractive industry projects. Without an understanding of this information it is impossible for stakeholders to make sufficient plans for an orderly and just transition to a greener economy. Environmental impact assessments and management plans are usually linked to extractive industry contracts, and can be considered as part of the wider group of documents that are associated with extractive industry contracts. Publication of contracts should be accompanied with publication of related impact assessments and management plans.
Amendment 126 #
Proposal for a directive
Recital 70 a (new)
Recital 70 a (new)
(70a) In its report on the review clause in Article 48 of Directive 2013/34/EU1a, the Commission concluded that the review highlights a number of weaknesses in reporting standards. These weaknesses include the identification of governments, project definition and joint ventures. With reporting to date, the right government entities cannot easily be identified and held to account. Sustainability objectives, including a stable investment climate in resource-rich countries, cannot be achieved if citizens are unable to hold specific government entities to account. Undertakings should be required to consistently report on projects which are based on ‘substantially interconnected’ legal agreements. Reporting on each project varies across companies, making it difficult to have a complete and consistent overview of projects involving several companies. Investors managing risk and citizens holding governments to account require consistency in the identification of projects involving substantially interconnected legal agreements in order to progress sustainability objectives. Improved reporting on joint ventures is needed given the prevalence of such structures in the oil, gas and mining industry. Without improved joint venture reporting, major payments to governments risk being hidden from view. Payments to governments for the purchase of oil, gas and minerals by undertakings active in physical trading are now a commonly recognized payment stream within the EITI framework and should be added as a payment category under article 41(5). __________________ 1aReport from the Commission to the European Parliament, the Council and the European Economic and Social Committee on the review clauses in Directives 2013/34/EU, 2014/95/EU, and 2013/50/EU, COM/2021/199 final, 21 April 2021.
Amendment 130 #
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2013/34/EU
Article 1 – paragraph 3 – subparagraph 1 – point b a (new)
Article 1 – paragraph 3 – subparagraph 1 – point b a (new)
(ba) legal entities such as foundations and legal arrangements similar to trusts as referred to in Directive 2015/849 of the European Parliament and of the Council;
Amendment 138 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 2 – paragraph 1 – point 20 a (new)
Article 2 – paragraph 1 – point 20 a (new)
(20a) A 'high-risk sector' is a sector that is associated, as a result of its size, business and value chain characteristics, with a high likelihood of actual or potential severe impacts on sustainability matters.
Amendment 140 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
(20b) ‘Science-based target’ is a target defined on the basis of conclusive scientific environmental evidence and with independent scientific validation, that when achieved by the undertaking ensures that the undertaking’s impacts, as specified in Article 19a, will be aligned with the sustainability goals and criteria of the European Union for the specific environmental issue.
Amendment 144 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
(20c) ‘Severe impacts’ are adverse impacts on people and the environment connected to the undertaking’s value chain by its own operations, its products and services, its business relationships, its subsidiaries, and its supply chain, based on the gravity of the impact on the sustainability matter, the number of individuals that are or could be affected, or the scale of damage to the environment; and the ease with which the harm could be remediated, restoring the environment or affected people to their prior state, cause the greatest harm relative to other impacts the undertaking has identified.
Amendment 154 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 1
Article 19 a – paragraph 1
1. Large undertakings and, as of 1 January 2026, small and medium-sized undertakings which are undertakings referred to in Article 2, point (1), point (a), and small and medium-sized undertakings operating in high-risk sectors, shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.
Amendment 166 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 1 – point a – point iii
Article 19 a – paragraph 2 – subparagraph 1 – point a – point iii
(iii) the plans of the undertaking to ensure that its business model and strategy 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; including a transition pathway, comprising of short-term and medium- term absolute emission reduction targets for 2025 and 2030, reviewed every five years up to 2050, to achieve carbon neutrality by 2050 at the latest, and implementing actions and related financial and investment plans, to ensure that its business model and strategy 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 with no or limited overshoot and recourse to compensation technologies, and pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change; and the degree of exposure of the undertaking to sectors listed in Divisions 05, 06,09, 19, 35, 46.71, 73.1 of Annex I to Regulation (EC) No 1893/2006 insofar as they relate to coal, oil, gas-related activities;
Amendment 176 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 1 – point a – point v
Article 19 a – paragraph 2 – subparagraph 1 – point a – point v
(v) how sustainability matters and related science-based targets, in connection with risks, opportunities, and severe impacts, have been integrated into the undertaking’s strategy, and how the undertaking’s strategy has been implemented with regard to sustainability matters;
Amendment 180 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 1 – point b
Article 19 a – paragraph 2 – subparagraph 1 – point b
(b) a description of the targets related to sustainability matters set by the undertakingime-bound short-term, mid-term and long-term targets set by the undertaking with respect to the undertaking's risks, opportunities, severe impacts and timely alignment with relevant public goals, whether such targets are science-based alongside corresponding evidence, implementing actions and related financial and investment plans and of the progress the undertaking has made towards achieving those targets;
Amendment 184 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 1 – point c
Article 19 a – paragraph 2 – subparagraph 1 – point c
(c) a description of the role of the administrative, management and supervisory bodies with regard to sustainability matters; including with regard to: (i) discussing the results of the due diligence process implemented with regard to sustainability matters to identify severe impacts, including any direct engagement with the stakeholders affected by the identified impacts; (ii) discussing the risks to the undertaking and opportunities for the undertaking related to sustainability matters; (iii) approving the undertaking’s strategy and science-based targets related to sustainability matters and of financial resources for their implementation, and monitoring progress and challenges linked to the implementation of the strategy; (iv) providing specific oversight on the implementation of the undertaking’s strategy related to sustainability matters, including through setting up dedicated committees; (v) expertise on sustainability matters possessed by the members of the administrative, management and supervisory bodies;
Amendment 187 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 1 – point d
Article 19 a – paragraph 2 – subparagraph 1 – point d
(d) a description of the undertaking’s policies in relation to sustainability matters including at minimum with respect to identified severe impacts, risks, and opportunities;
Amendment 189 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 1 – point e – point i
Article 19 a – paragraph 2 – subparagraph 1 – point e – point i
(i) the due diligence process implemented with regard to sustainability matters; in line with applicable EU legislation on due diligence [Directive XXX] and the UN Guiding Principles for Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct, including information on: - identification, assessment and prioritisation of actual and potential adverse impacts; - ceasing, prevention and mitigation of such impacts, - tracking implementation and their results, - identification and engagement of the adversely affected people, and - alert mechanisms and how complaints and grievances are received
Amendment 192 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 1 – point e – point ii
Article 19 a – paragraph 2 – subparagraph 1 – point e – point ii
(ii) the principal actual or potential adseverse impacts connected with the undertaking’s value chain as identified through the due diligence process, including its own operations, its products and services, its business relationships, its subsidiaries, and its supply chain, including information on people affected by those impacts and the effect of the undertaking’s business policies, practices and decisions on the identified issues, including of the undertaking’s purchasing policies and practices;
Amendment 197 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 1 – point e – point iii
Article 19 a – paragraph 2 – subparagraph 1 – point e – point iii
(iii) any actions taken, and the result of such actions, to prevent, mitigate or remediate actual or potential adseverse impacts and the effectiveness of their results;
Amendment 200 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 1 – point g
Article 19 a – paragraph 2 – subparagraph 1 – point g
(g) indicators relevant to the disclosures referred to in points (a) to (f), including key performance indicators set out in the delegated act supplementing Article 8 of the Regulation (EU) 2020/852.
Amendment 207 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 2 – subparagraph 3
Article 19 a – paragraph 2 – subparagraph 3
Undertakings shall report the process carried out to identify the information that they have included in the management report in accordance with paragraph 1, including how it is informed by the due diligence process, and in this process they shall take account of short, medium and long-term horizons.
Amendment 213 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 3 – subparagraph 2
Article 19 a – paragraph 3 – subparagraph 2
Where appropriatenecessary for the understanding of the undertaking's impacts or risks, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain, including the undertaking’s own operations, assets, products and services, its business relationships and its supply chain, involved in such risks and impacts.
Amendment 222 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 7 – subparagraph 1
Article 19 a – paragraph 7 – subparagraph 1
An undertaking which is a subsidiary undertaking shall be exempted from the obligations set out in paragraphs 1 to 4 if and 2, with exception of obligations set out in paragraph 1 (b), (e) and (f), and corresponding obligations set out in (g), if that undertaking and its subsidiary undertakings are included in the consolidated management report of a parent undertaking, drawn up in accordance with Articles 29 and 29a. An undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4and 2, with the exception of obligations set out in paragraph 1 (b), (e) and (f), and the corresponding obligations set out in (g), where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking and where the consolidated management report is drawn up in a manner that may be considered equivalent, in accordance with the relevant implementing measures adopted pursuant to Article 23(4), point (i), of Directive 2004/109/EC of the European Parliament and of the Council*6, to the manner required by the sustainability reporting standards referred to in Article 19b of this Directive. __________________ *6 Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC (OJ L 390, 31.12.2004, p. 38).’;
Amendment 224 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 7 – subparagraph 2
Article 19a – paragraph 7 – subparagraph 2
The consolidated management report of the parent undertaking referred to in subparagraph 1 shall be published in accordance with Article 30, in the manner prescribed by the law of the Member State by which the undertaking that is exempted from the obligations set out in paragraphs 1 to 4and 2, with the exception of obligations set out in paragraph 1 (b), (e) and (f), and the corresponding obligations set out in (g), is governed.
Amendment 227 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 7 – subparagraph 3
Article 19 a – paragraph 7 – subparagraph 3
The Member State by which the undertaking that is exempted from the obligations set out in paragraphs 1 to 4and 2, with the exception of obligations set out in paragraph 1 (b), (e) and (f), and the corresponding obligations set out in (g), is governed, may require that the consolidated management report referred to in the first subparagraph of this paragraph is published in an official language of the Member State or in a language customary in the sphere of international finance, and that any necessary translation into those languages is certified.
Amendment 229 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 7 – subparagraph 4 – introductory part
Article 19 a – paragraph 7 – subparagraph 4 – introductory part
The management report of an undertaking that is exempted from the obligations set out in paragraphs 1 to 4and 2, with the exception of obligations set out in paragraph 1 (b), (e) and (f), and the corresponding obligations set out in (g), shall contain all of the following information:
Amendment 230 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
(b) the fact that the undertaking is exempted from the obligations set out in paragraphs 1 to 4and 2, with exception of obligations set out in paragraph 1 (b), (e) and (f), and corresponding obligations set out in (g), of this Article.
Amendment 231 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19 a – paragraph 7 a (new)
Article 19 a – paragraph 7 a (new)
7a. The Commission shall, by 31 October 2023 at the latest, adopt a delegated act in accordance with Article 49 listing for which sectors small and medium sized-undertakings are to report according to Articles 19a and 29a. The list of sectors shall list sectors according to the Division level of NACE Rev, 2 as defined by Article 2(c) of Regulation (EC) No1893/2006. The delegated act shall list sectors that according to their nature or their overall impact on environmental, social or governance factors pose a high risk on sustainability matters.
Amendment 240 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 1 – subparagraph 1 – point b – point ii
Article 19b – paragraph 1 – subparagraph 1 – point b – point ii
(ii) information that undertakings shall report that is specific to the sector in which they operate. , prioritizing the high-risk sectors;
Amendment 251 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point a – point i
Article 19b – paragraph 2 – subparagraph 2 – point a – point i
(i) climate change mitigation, including - emissions on all scopes of greenhouse gas emissions including Scope 1, 2 and 3 GHG emissions, and other relevant indicators; - the transition, financial and investment plans and absolute emission reduction targets of the undertaking for 2025 and 2030, reviewed every five years up to 2050 and targeted date to achieve carbon neutrality; and - substantiated explanation on the alignment of the undertaking’s business model and strategy with the goal of limiting of global warming to 1.5 °C with no or limited overshoot and recourse to compensation technologies, pursuant to the latest evidence provided by the IPCC;
Amendment 255 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point a – point iii
Article 19b – paragraph 2 – subparagraph 2 – point a – point iii
(iii) the sustainable use and protection of water and marine resources;
Amendment 258 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point a – point iv
Article 19b – paragraph 2 – subparagraph 2 – point a – point iv
(iv) resource use and circular economythe transition to a circular economy, including resource use;
Amendment 262 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point a – point v
Article 19b – paragraph 2 – subparagraph 2 – point a – point v
(v) pollution prevention and control;
Amendment 265 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 – point a – point vi
Article 19b – paragraph 2 – subparagraph 2 – point a – point vi
(vi) protection and restoration of biodiversity and ecosystems;
Amendment 277 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2 – subparagraph 2 a (new)
Article 19b – paragraph 2 – subparagraph 2 a (new)
All information that undertakings are to disclose about environmental factors as defined in point (a) shall be based on, and take account of relevant underlying indicators and methodologies set out in Regulation (EU) 2020/852 and the delegated acts adopted pursuant to it.
Amendment 284 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b a (new)
Article 19b a (new)
Article 19ba Sustainability reporting related to Regulation (EU) 2020/852 1. Any undertaking which is subject to an obligation to publish non-financial information pursuant to Article 8 of Regulation (EU) 2020/852 shall include information on how and to what extent the undertaking’s activities are associated with economic activities that do not qualify as environmentally sustainable under Articles 3 and 9 of Regulation (EU) 2020/852. 2. In particular, non-financial undertakings shall disclose the following: (a) the proportion of their turnover derived from products or services associated with, and the proportion of their capital expenditure and the proportion of their operating expenditure related to assets or processes associated with, economic activities that do not meet the substantial contribution criteria but do meet the Do No Significant Harm criteria specified in relevant Delegated Acts under Articles 10 to 15 of Regulation (EU) 2020/852; (b) the proportion of their turnover derived from products or services associated with, and the proportion of their capital expenditure and the proportion of their operating expenditure related to assets or processes associated with, economic activities that do neither meet the substantial contribution criteria nor the Do No Significant Harm criteria specified in relevant Delegated Acts under Articles 10 to 15 of Regulation (EU)2020/852. 3. The Commission shall adopt a delegated act in accordance with Article 49 to supplement paragraphs 1 and 2 of this Article to specify the content and presentation of the information to be disclosed pursuant to those paragraphs, including the methodology to be used in order to comply with them, taking into account the specificities of both financial and non-financial undertakings and the technical screening criteria established pursuant to this Regulation. The Commission shall adopt that delegated act by 31 October 2022.
Amendment 286 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b b (new)
Article 19b b (new)
Article 19bb Sustainability reporting related to undertakings required to report on payments to governments Undertakings subject to an obligation to prepare and make public a report on payments made to governments pursuant to article 42 shall disclose, at project level as defined in Article 41 (b) (4), all documents and data required to understand their sustainability reporting under article 19a. Documents shall include: (a) All contracts, licenses, leases and concessions including annexes and amendments, which provide the terms attached to the exploitation of oil gas and mineral resources; (b) Any agreements, or sets of agreements involving the provision of goods and services (including loans, grants and infrastructure works), in full or partial exchange for oil, gas or mining exploration or production concessions or physical delivery of such commodities; (c) Any agreements that mandate social expenditures by companies; (d) Any environmental and/or social impact assessments.
Amendment 298 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29a – paragraph 2 – subparagraph 1 – point a – point iii
Article 29a – paragraph 2 – subparagraph 1 – point a – point iii
(iii) the plans of the group including a transition pathway, comprising of short- term and medium-term absolute emission reduction targets for 2025 and 2030, reviewed every five years up to 2050, to achieve carbon neutrality by 2050 at the latest, and implementing actions and related financial and investment plans, to ensure that the group’s business model and strategy 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 with no or limited overshoot and recourse to compensation technologies, and pursuant to the latest recommendations of the IPCC; and the degree of exposure of the undertaking to sectors listed in Divisions 05, 06, 09, 19, 35, 46.71 of Annex I to Regulation (EC) No 1893/2006 insofar as they relate to coal, oil, gas-related activities;
Amendment 307 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29a – paragraph 2 – subparagraph 1 – point b
Article 29a – paragraph 2 – subparagraph 1 – point b
(b) a description of the targets related to sustainability matters set by the groupime-bound short-term, mid-term and long-term targets set by the group with respect to the risks, opportunities, severe impacts and timely alignment with relevant public goals, whether such targets are science- based alongside corresponding evidence, implementing actions and related financial and investment plans and of the progress of the undertaking towards achieving them;
Amendment 316 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29a – paragraph 2 – subparagraph 1 – point g
Article 29a – paragraph 2 – subparagraph 1 – point g
(g) indicators relevant to the relevant to the disclosures referred to in points (a) to (f)., including key performance indicators set out in the delegated act supplementing Article 8 of the Regulation (EU) 2020/852;
Amendment 322 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29a – paragraph 3 – subparagraph 2
Article 29a – paragraph 3 – subparagraph 2
The information referred to in paragraphs 1 and 2 shall include information about the group’s value chain, including its own operations, its products and services, its business relationships and its supply chain, where appropriatenecessary for understanding of the undertaking’s impacts or risks.