107 Amendments of Sven SIMON related to 2020/2129(INL)
Amendment 10 #
Draft opinion
Paragraph 1
Paragraph 1
1. regrets the current low levels of supply chain due diligence; whilst recognising the efforts made by companies across the EU to improve their record in the past years;
Amendment 28 #
Motion for a resolution
Recital A
Recital A
A. Whereas the globalisation of economic activity has in many instances given rise to and aggravated adverse impacts on human rights, including social and labour rights, the environment and the good governance of states and the environment;
Amendment 31 #
Draft opinion
Paragraph 2
Paragraph 2
2. is convinced that mandatory due diligence is necessary to createrecalls that due diligence contributes to a level playing field and to avoiding unfair competitive advantages arising in international trade;
Amendment 35 #
Motion for a resolution
Recital B
Recital B
B. Whereas companies should respect human rights, and the environment and good governance and should not cause or contribute to causing any adverse impacts in this regard;
Amendment 40 #
Motion for a resolution
Recital D
Recital D
Amendment 50 #
Motion for a resolution
Recital F
Recital F
F. Whereas that debate has led, among other things, to the adoption of due diligence frameworks and standards within the UN, the OECD and the ILOOECD; whereas these standards are however voluntary and, consequently, their uptake has been limited;
Amendment 51 #
Draft opinion
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. stresses that any new due diligence regulation should focus on digital solutions to minimise bureaucratic burdens on the economy, especially for small and medium-sized enterprises;
Amendment 52 #
Motion for a resolution
Recital G
Recital G
G. Whereas, according to a Commission study, only 37% of business respondents currently conduct environmental and human rights due diligence, and only 16% cover the entire supply chain;
Amendment 55 #
Motion for a resolution
Recital H
Recital H
Amendment 66 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Considers that voluntary due diligence standards have severe limitations and that the Union should urgently adopt minimumadopt clear requirements for undertakings to identify, prevent, cease, mitigate, and monitor, disclose, account, address and remediate human rights, and environmental and governance risks in their entire value chainrisks in the first tier of their supply chain outside of the EU; believes that this would be beneficial for stakeholders, as well as for businesses in terms of harmonization, legal certainty and a level playing field; stresses that this would enhance the reputation of EU undertakings and of the Union as a standard setter; stresses that any framework should be based on an obligation of means rather than an obligation of results
Amendment 71 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. RStresses that it is the responsibility of states and governments to safeguard human rights in their countries and that this responsibility shall not be transferred to private actors; recalls that due diligence is primarily a preventative mechanism and that companies should be first and foremost required to identify risks or adverse impacts and adopt policies and measures to address them; highlights that if an undertaking causes or contribumitigates to an adverse impact it should provide for a remedy; hem;
Amendment 82 #
Draft opinion
Paragraph 5
Paragraph 5
5. is convinced that the future regulation should be based onnotes the guidance provided by the UN Guiding Principles and the OECD Guidelines for Multinational Enterprises for future regulation;
Amendment 82 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Stresses that human rights abuses and breaches of social and environmental standards can be the result of a company’s own activities or of those of its business relationships; underlines therefore that due diligence should encompass the entire value chain;direct suppliers in the first tier of the supply chain outside the European Union.
Amendment 92 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Considers that the scope of any future mandatory EU due diligence framework should be broad and cover all undertakings governed by the law of a Member State or established in the territory of the Union, including those providing financial products and services, regardless of their size or sector of activity and of whether they are publicly owned or controlled undertaking with more than 5000 employees;
Amendment 97 #
Motion for a resolution
Paragraph 5
Paragraph 5
Amendment 114 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks; considers that those strategies should cover every actual or potential adverse impacts although the severity of the risk shouldmust be considered in the context of a prioritisation policy; requires that, before any initiative is proposed, a robust impact assessment is carried out focusing on the administrative burden on businesses, the value added by EU companies, the employment by EU companies and the engagement of EU companies in international markets.
Amendment 119 #
Draft opinion
Paragraph 8
Paragraph 8
8. emphasises the importance of addressing and enforcing due diligence obligations within FTA Trade and Sustainable Development chapters and bodies established by FTAs; recognises the progress that was made in recent FTAs such as the agreements with Vietnam and Mercosur;
Amendment 124 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Highlights that sound due diligence requires that all stakeholders be involved and consulted effectively and meaningfully;
Amendment 127 #
10. Considers that, to enforce due diligence, Member States should designate national authorities to share best practices as well as to supervise and impose sanctions, including criminal sanctions in severe castaking into account the severity and repeated nature of the infringements; considers that the Commission shall set up a European Due Diligence Network to ensure, together with the national competent authorities, the coordination and convergence of regulatory and supervisory practices, and monitor the performance of national competent authorities;
Amendment 144 #
Motion for a resolution
Paragraph 12
Paragraph 12
Amendment 155 #
Motion for a resolution
Paragraph 13
Paragraph 13
Amendment 160 #
Motion for a resolution
Paragraph 14
Paragraph 14
Amendment 167 #
Motion for a resolution
Paragraph 15
Paragraph 15
Amendment 190 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 2
Annex I – part 1 – paragraph 9 – point 2
2. Within a context of mounting evidence of human rights violations and environmental degradation, concern grew about ensuring businesses respected human rights, in particular when operating in countries with weak legal systems and enforcement, and holding them accountable for causing or contributing to harm. In this light, the UN Human Rights Council in 2008 unanimously welcomed the “Protect, Respect and Remedy” Framework. This framework rests on three pillars: the state duty to protect against human rights abuses by third parties, including businesses, through appropriate policies, regulation, and adjudication; the corporate responsibility to respect human rights, which means acting with due diligence to avoid infringing on the rights of others and to address adverse impacts that occur, and greater access by victims to effective remedy, both judicial and non- judicial.
Amendment 194 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 4
Annex I – part 1 – paragraph 9 – point 4
4. Businesses thus currently have at their disposal an important number of international due diligence instruments that can help them fulfil their responsibility to respect human rights. While it is difficult to overstate the importance of these instruments for businesses that take their duty to respect human rights seriously, their voluntary nature can hampers their effectiveness and their effect has indeed proved limited, with a restricted number of businesses voluntarily implementing human rights due diligence in relation to their activities and those of their business relationships. Respect for human rights continues to play a marginal role in undertakings’ policies and strategies. This is exacerbated by many undertakings’ excessive focus on short-term profit maximisation.
Amendment 219 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 8
Annex I – part 1 – paragraph 9 – point 8
8. In order to ensure a level playing field the responsibility for companies to respect human rights under international standards should be transformed into a legal duty at Union level. By coordinating safeguards for the protection of human rights, and the environment and good governance, this Directive will ensure that all undertakings operating in the iInternal mMarket are subject to harmonised minimum due diligence obligations, which will improve theits functioning of that market.
Amendment 226 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 9
Annex I – part 1 – paragraph 9 – point 9
9. The establishment of mandatory due diligence requirements at EU level willcan be beneficial to businesses in terms of harmonization, legal certainty and the securing of a level playing field, and willmight give companies subject to them a competitive advantage in the EU, inasmuch as societies are increasingly demanding from undertakings that they become more ethical and sustainable. This Directive, by setting a European due diligence standard, could help foster the emergence of a global standard for responsible business conduct.
Amendment 231 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 10
Annex I – part 1 – paragraph 9 – point 10
10. This Directive is aimeds at preventing and mitigating adverse human rights, governance and environmental impacts throughout the value chainfirst tier of the supply chain outside the EU, as well as ensuring that undertakings can bhave theld accountable for these risks and that anyone who has suffered harm in this regard can effectively exercise the right to obtain remedy obligation to identify these risks.
Amendment 246 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 13
Annex I – part 1 – paragraph 9 – point 13
13. The Directive applies to all undertakings governed by the law of a Member State or established in the territory of the Union regardless of their size, sector, and whether they are private or state-owned. All economic sectors, including the financial sector, are covered by this Directivewith more than 5000 employees.
Amendment 253 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 14
Annex I – part 1 – paragraph 9 – point 14
14. A degree of pProportionality ishas to be built into the due diligence process, as this process is contingent on the risks a company is exposed to. This would imply that many sSmall and medium-size undertakings and micro-enterprises may need less extensive andare excluded from a formalised due diligence processes. An undertaking that, after carrying out a risk assessment, concludes that it does not identify any risks in its business relationships, would only need to fill in and communicate a statement, which should in any case be reviewed in case of changes to the undertakings’ operations or operating context. Micro-enterprises in most sectors tend to encounter low risks in their business relationships and, consequently, it is considered appropriate to allow Member States to decide whether micro- enterprises should be exempted from the application of the requirements in this Directive.
Amendment 264 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 16
Annex I – part 1 – paragraph 9 – point 16
16. Due diligence is defined in this Directive as the process put in place by an undertaking in order to identify, cease, prevent, mitigate, monitor, disclose, account for, address and remedy the risks posed to human rights, including social and labour rights, the environment, including climate change, and to governancemitigate and monitor the risks posed to human right and the environment, both by its own operations and its direct contractual business relationships.
Amendment 274 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 17
Annex I – part 1 – paragraph 9 – point 17
17. In relation to human rights risks, Annex I to this Directive lists a number ofthe instruments undertakings should take into consideration when assessing their potential risks. The list is conceived as non-exhaustive, undertakings being strongly encouraged to take into consideration other human rights instruments that would enable them to carry out a complete due diligence process to prevent any risk for human rightsexhaustive and can be reviewed by the Commission by means of a delegated act where necessary to include the reference to human rights instruments that may be adopted in the future.
Amendment 276 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 18
Annex I – part 1 – paragraph 9 – point 18
Amendment 280 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 19
Annex I – part 1 – paragraph 9 – point 19
19. This Directive establishes a non-n exhaustive list of environmental risks. To contribute to the internal coherence of EU legislation and to provide legal certainty, this list is based on Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment in which undertakings may find guidance for assessing their risks by means of a reference to a list of relevant Union acts set out in Annex II to this Directive.
Amendment 285 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 20
Annex I – part 1 – paragraph 9 – point 20
Amendment 292 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 21
Annex I – part 1 – paragraph 9 – point 21
21. Environmental, governance and human right risks are not gender-neutral. Undertakings should be encouraged to integrate the gender perspective into their due diligence processes. They can find guidance in the UN booklet Gender Dimensions of the Guiding Principles on Business and Human Rights.
Amendment 302 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 22
Annex I – part 1 – paragraph 9 – point 22
22. AThe adverse impacts or violations of human rights and social and environmental standards by undertakings can be the result of their own activities or of those of their direct contractual business relationships, in particular suppliers, sub-contractors and investee undertakings. In order to be effective, undertakings’ due diligence should encompass the entire value chain.
Amendment 308 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 23
Annex I – part 1 – paragraph 9 – point 23
23. Due diligence is primarily a preventative mechanism that requires companies to identify potential or actual adverse impacts and to adopt policies and measures to cease, prevent, mitigate, monitor, disclose, address, remediate them, and account fmitigate and monitor how they address those impactsese. Undertakings shouldmay be required to produce a document in which they make explicit their due diligence strategy with reference to each of those stages. This. Any due diligence strategyframework should be duly integrated into the company’s overall business strategybased on an obligation of means rather than an obligation of results.
Amendment 314 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 24
Annex I – part 1 – paragraph 9 – point 24
24. Due diligence should not be a ‘box- ticking’ exercise but shouldmay consist of an ongoing assessment of risks, which are dynamic and may change on account of new business relationships or contextual developments. Undertakings should therefore in an ongoing manner monitor and adapt their due diligence strategies accordingly. Those strategies should cover every actual or potential adverse impacts, although the severity of the risk shouldmust be considered if the establishment of a prioritisation policy is required.
Amendment 327 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 26
Annex I – part 1 – paragraph 9 – point 26
26. Sound due diligence requires that all stakeholders may be consulted effectively and meaningfully, and that trade unions in particular be appropriately involved. The consultation and involvement of stakeholders can help companies to identify risks more precisely and to set up a more effective due diligence strategy. This Directive therefore requires the consultation and involvement of stakeholders in all stages of the due diligence process. Furthermore, their involvement and consultation may help to push back against pressure from financial markets and short-term investors and give voice to those with a strong interest in the long-term sustainability of the company. Stakeholder participation may help improve the long- term performance and profitability of companies, as their increased sustainability would have positive aggregate economic effects.
Amendment 331 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 27
Annex I – part 1 – paragraph 9 – point 27
Amendment 336 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 28
Annex I – part 1 – paragraph 9 – point 28
Amendment 340 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 29
Annex I – part 1 – paragraph 9 – point 29
29. Complaint procedures should ensure that the anonymity, safety, physical and legal integrity of whistle- blowers is protected,must be in line with Directive (EU) 2019/1937 of the European Parliament and of the Council.;
Amendment 345 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 30
Annex I – part 1 – paragraph 9 – point 30
30. This Directive requires undertakings to make all necessary efforts to identify all their suppliers. In order to be fully effective, due diligence should not be limited to the first tier downstream and upstream in the supply chain but should encompass all suppliers and sub- contractors, particularly those that, during the due diligence process, might have been identified by the undertaking as posing major risks. This Directive, however, recognises in the first tier of the supply chain outside the EU. This Directive, however, does not lose sight of the fact that not all undertakings have the same resources or capabilities to identify all their suppliers and therefore makesubjects thatis obligation subject to the principles of reasonableness and proportionality, taking into account the severity and repeated nature of the infringements, which in no case should be interpreted by undertakings as a pretext not to comply with their obligation to make all necessary efforts in that regard.;
Amendment 353 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 31
Annex I – part 1 – paragraph 9 – point 31
31. For due diligence to be embedded in the culture and structure of a company, it is necessary that the members of the administrative, management and supervisory bodies of the company be responsible for the adoption and implementation of the due diligence strategy. The board of directors should have the appropriate knowledge, training and experience in due diligence matters. The Directive requires that large companies have an advisory committee from whose expertise on due diligence matters the undertaking should benefit. This Directive also requires that remuneration policies be brought in line with the objectives of this Directive.
Amendment 359 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 32
Annex I – part 1 – paragraph 9 – point 32
32. Coordination of undertakings’ due diligence efforts at sectoral level could enhance the consistency and effectiveness of their due diligence strategies. To this end, this Directive provides that Member States could encourage the adoption of due diligence action plans at sectoral level. To avoid sStakeholders’ views being ignored, the Directive requires that stakeholders are encouraged to participate in the definition of these plans.
Amendment 362 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 33
Annex I – part 1 – paragraph 9 – point 33
33. In order to be effective, a due diligence framework shouldcan include grievance mechanisms at company or sector level and in order to ensure that such mechanisms are effectivefor the effectiveness of which the participation of stakeholders should be ensurcouraged. . Thoese mechanisms shcould allow stakeholders to raise concerns and should function as early-warning risk-awareness systems. Grievance mechanisms should be entitled to make suggestions as to how risks should be addressed by the undertaking. They should also be entitled to propose an appropriate remedy when it is brought to their attention that the undertaking has caused or contributed to harm.
Amendment 371 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 34
Annex I – part 1 – paragraph 9 – point 34
34. Member States should designate one or more national authorities to supervise the correct implementation by undertakings of their due diligence obligations and ensure the proper enforcement of this Directive. Thoese national authorities should be entitled to carry out appropriate checks, on their own initiative or based on complaints received from stakeholders, and third parties, and impose penaltieimpose proportionate sanctions, taking into account the severity and repetition of infringements, in order to ensure that undertakings comply with the obligations set out in the legislation; aAt Union level, a European committee ofDue Diligence Network competent authorities should be set up by the European Commission to ensure cooperation with the national competent authorities.
Amendment 382 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 38
Annex I – part 1 – paragraph 9 – point 38
Amendment 384 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 39
Annex I – part 1 – paragraph 9 – point 39
Amendment 392 #
Motion for a resolution
Annex I – part 1 – paragraph 9 – point 40
Annex I – part 1 – paragraph 9 – point 40
40. In order to create clarity and certainty and consistency among the practices of undertakings, in particular small, medium-sized and micro- enterprises, this Directive requires the Commission to prepare an exhaustive list of guidelines in consultation with Member States and the OECD and with the assistance of a number of specialised agencies. A number of guidelines on due diligence produced by international organisations already exist which could be used as a reference for the Commission when developing guidelines under this Directive specifically for EU companies. In addition toThe Directive should aim for full harmonization of standards among Member States. Other than general guidelines which cshould guide SMEall affected undertakings in the application of due diligence in their operations, the Commission should envisage producing sector-specific guidelines and provide a regularly updated list of country fact-sheets in order to help companies assess the risks of their business operations in a given area. Those fact- sheets should indicate in particular which list of Conventions and Treaties among those listed in Article 3 ofnnex I to theis Directive have been ratified by a given country.
Amendment 400 #
Motion for a resolution
Article 1 – point 1 – introductory part
Article 1 – point 1 – introductory part
1. This Directive is aimed at ensuring that by adhering to reasonable due diligence policies and procedures, undertakings operating in the internal market fulfil their duty to respect human rights, and the environment and good governance and do not cause or contribute to risks to human rights, and the environment and good governance in their activities and those of their direct contractual business relationships.
Amendment 408 #
Motion for a resolution
Article 1 – point 1 – paragraph 1
Article 1 – point 1 – paragraph 1
To this end, it establishes minimum requirements for undertakings to identify, prevent, cease, mitigate, monitor, disclose, account, address and remediatemitigate and monitor the human rights, and environmental and governance risks that those activities may pose. By coordinating safeguards for the protection of human rights, and the environment and good governance, thoese due diligence requirements are aimedim at improving the functioning of the internal market.
Amendment 413 #
Motion for a resolution
Article 1 – point 2
Article 1 – point 2
Amendment 434 #
Motion for a resolution
Article 2 – point 1
Article 2 – point 1
1. This Directive shall apply to all undertakings governed by the law of a Member State or established in the territory of the Union with more than 5000 employees.
Amendment 446 #
Motion for a resolution
Article 2 – point 3
Article 2 – point 3
Amendment 454 #
Motion for a resolution
Article 3 – paragraph 1 – indent 1
Article 3 – paragraph 1 – indent 1
- '“due diligence'” means the process put in place by an undertaking aimed at identifying, ceasing, preventing, mitigating, monitoring, disclosing, accounting for, addressing, and remediating the risks posed to human rights, including social and labour rights, the environment, including through climate change, and to governance, bothfirst, an obligation of means and second, a business process imposed on such undertaking to take reasonable precautions to identify, mitigate and monitor the risks posed to human rights and the environment by its own operations and by those of its direct business relationships.
Amendment 464 #
Motion for a resolution
Article 3 – paragraph 1 – indent 2
Article 3 – paragraph 1 – indent 2
- ‘stakeholders’ means individuals and groups of individuals whose rights or interests may be affected by the human rights, environmental and good governance risks posed by an undertaking or its business relationships, as well as organisations whose statutory purpose is the defence of human rights, including social and labour rights, the environment and good governance, and includes but is not limited to workers and their representatives, local communities, indigenous peoples, citizens’ associations, trade unions, civil society organisations and the undertakings’ shareholder have a direct interest to take legal action in relation to human rights and environmental risks posed by an undertaking or its direct contractual business relationships.
Amendment 477 #
Motion for a resolution
Article 3 – paragraph 1 – indent 4
Article 3 – paragraph 1 – indent 4
- ‘supplier’ means all business relationshipundertakings that provide a product or service directly to an undertaking, either directly or indirectly in the context of a business relationship.
Amendment 479 #
Motion for a resolution
Article 3 – paragraph 1 – indent 6
Article 3 – paragraph 1 – indent 6
- ‘value chain’ means all activities, operations, business relationships and investment chains of an undertaking inside or outside the EU. Value chain includes entities with which the undertaking has a direct or indirect business relationship, upstream and downstream, and which either (a) supply products or services that contribute to the undertaking’s own products or services, or (b) receive products or services from the undertaking.first tier of the supply chain outside the EU’ means an upstream network characterized by direct contractual business relationships between a company and its suppliers located outside the EU to produce and distribute a specific product to the final buyer
Amendment 483 #
Motion for a resolution
Article 3 – paragraph 1 – indent 7
Article 3 – paragraph 1 – indent 7
Amendment 491 #
Motion for a resolution
Article 3 – paragraph 1 – indent 8
Article 3 – paragraph 1 – indent 8
- ‘human rights risk’ means any potential or actual adverse impact that may impair the full enjoyfilment of human rights byof individuals or groups of individuals in relation to the internationally recognized human rights, understood, at a minimum, as those expressed in the International Bill of Human Rights, the United Nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities, and the principles concerning fundamental rights set out in the ILO Declaration on Fundamental Principles and Rights at Work, as well as those recognised in the ILO Convention on freedom of association and the effective recognition of the right to collective bargaining, the ILO Convention on the elimination of all forms of forced or compulsory labour, the ILO Convention on the effective abolition of child labour, and the ILO Convention on the elimination of discrimination in respect of employment and occupation. They further include, but are not restricted to, adverse impacts in relation to other rights recognised in a number of ILO Conventions, such as freedom of association, minimum age, occupational safety and health, and equal remuneration, and the rights recognised in the Convention on the Rights of the Child, the African Charter of Human and Peoples’ Rights, the American Convention on Human Rights, the European Convention on Human Rights, the European Social Charter, the Charter of Fundamental Rights of the European Union, and national constitutions and laws recognising or implementing human rights instruments listed in Annex I. The Commission is empowered to adopt delegated acts in accordance with Article 18(a), to amend this exhaustive list.
Amendment 502 #
Motion for a resolution
Article 3 – paragraph 1 – indent 9
Article 3 – paragraph 1 – indent 9
- ‘environmental risk’ means any potential or actual adverse impact as regards climate change, air and water pollution, deforestation, loss in biodiversity, and greenhouse emissions that may impair the right to a healthy environment, whether temporarily or permanently, and of whatever magnitude, duration or frequency. These include, but are not limited to, adverse impacts on the climate, the sustainable use of natural resources, and biodiversity and ecosystems. These risks include climate change, air and water pollution, deforestation, loss in biodiversity, and greenhouse emissions, in breach of the applicable legal obligations provided for in the Union acts listed in Annex II. The Commission is empowered to adopt delegated acts in accordance with Article 18(a), to amend this exhaustive list.
Amendment 506 #
Motion for a resolution
Article 3 – paragraph 1 – indent 10
Article 3 – paragraph 1 – indent 10
Amendment 516 #
Motion for a resolution
Article 4 – point 1
Article 4 – point 1
1. Member States shall lay down rules to ensure that undertakings carry out due diligence with respect to human rights, and environmental and governance risks in their operations and direct contractual business relationships.
Amendment 523 #
Motion for a resolution
Article 4 – point 2
Article 4 – point 2
2. Undertakings shall in an ongoing manner identify and assess by means of an appropriate monitoring methodology whether their operations and direct business relationships cause or contribute to any human rights, or environmental or governance risks.
Amendment 537 #
Motion for a resolution
Article 4 – point 4 – point ii
Article 4 – point 4 – point ii
Amendment 552 #
Motion for a resolution
Article 4 – point 5
Article 4 – point 5
5. Undertakings shall make all reasonable efforts to identify subcontractors and suppliers in their entire value chain first tier of the supply chain outside the EU.
Amendment 555 #
Motion for a resolution
Article 4 – point 6
Article 4 – point 6
Amendment 558 #
Motion for a resolution
Article 4 – point 8
Article 4 – point 8
Amendment 567 #
Motion for a resolution
Article 4 – point 9
Article 4 – point 9
9. Undertakings shall ensure by means of contractual clauses and the adoption of codes of conduct that their business relationships in the first tier of the supply chain outside the EU put in place and carry out human rights, and environmental and governance policies that are in line with their due diligence strategy.
Amendment 573 #
Motion for a resolution
Article 5 – point 1
Article 5 – point 1
1. The Commission and the Member States shall ensurcourage that undertakings carry out in good faith effective, meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that ias appropriate to their size and the nature and context of their operations, and shall guarantee, in particular, the right for trade unions at the relevant level to be involved in the establishment and implementation of the due diligence strategy in good faith with their undertaking.
Amendment 577 #
Motion for a resolution
Article 5 – point 2
Article 5 – point 2
Amendment 579 #
Motion for a resolution
Article 5 – point 3
Article 5 – point 3
Amendment 582 #
Motion for a resolution
Article 5 – point 4
Article 5 – point 4
Amendment 587 #
Motion for a resolution
Article 5 – point 6
Article 5 – point 6
Amendment 590 #
Motion for a resolution
Article 6 – point 1
Article 6 – point 1
Amendment 614 #
Motion for a resolution
Article 7 – paragraph 1
Article 7 – paragraph 1
This Directive is without prejudice to the obligations imposed on certain undertakings by Directive 2013/34/EU to include in their management report a non-financial statement including a description of the policies pursued by the undertaking in relation to, as a minimum, environmental, social and employee matters, respect for human rights, anti- corruption and bribery matters, and the due diligence processes implemented.
Amendment 618 #
Motion for a resolution
Article 8 – point 1
Article 8 – point 1
1. Undertakings shall revaluateiew the effectiveness and appropriateness of their due diligence strategy at least once a year, and review it accordingly when necessary.
Amendment 620 #
Motion for a resolution
Article 8 – point 2
Article 8 – point 2
Amendment 627 #
Motion for a resolution
Article 8 – point 3
Article 8 – point 3
Amendment 636 #
Motion for a resolution
Article 9 – point 1
Article 9 – point 1
1. Undertakings shallcan establish a grievance mechanism, both as an early- warning risk-awareness and as a remediation system, allowing any stakeholders to voice concerns regarding the existence of a human rights, environmental or governance risks. Member States shall ensure that undertakings are enabled to provide for such a mechanism through collaborative arrangements with other undertakings or organisations.
Amendment 641 #
Motion for a resolution
Article 9 – point 2
Article 9 – point 2
2. Grievance mechanisms shall be legitimate, accessible, predictable, safe, equitable, transparent, rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in Principle 31 of the United Nations Guiding Principles on Business and Human Rights. They shall provide for anonymous complaints.
Amendment 645 #
Motion for a resolution
Article 9 – point 4
Article 9 – point 4
Amendment 651 #
Motion for a resolution
Article 9 – point 5
Article 9 – point 5
5. Grievance mechanisms shallcould be entitled to make proposals to the undertaking on how risks should be addressed.
Amendment 653 #
Motion for a resolution
Article 9 – point 6
Article 9 – point 6
6. Grievance mechanisms shall be encouraged to be developed in partnership with stakeholders, in particular workers representatives, and be managed in cooperation with them. Workers representatives shall be given the necessary resources to carry out their responsibilities in this area, including in order to establish connections with trade unions and workers in the undertakings with which the main undertaking has business relationships.
Amendment 660 #
Motion for a resolution
Article 10
Article 10
Amendment 674 #
Motion for a resolution
Article 11 – point 2
Article 11 – point 2
Amendment 678 #
Motion for a resolution
Article 12
Article 12
Amendment 692 #
Motion for a resolution
Article 13 – point 2
Article 13 – point 2
Amendment 697 #
Motion for a resolution
Article 13 – point 5
Article 13 – point 5
Amendment 703 #
Motion for a resolution
Article 15 – point 1
Article 15 – point 1
1. Member State competent authorities referred to in Article 14 shall have the power to carry out appropriate checks within the framework of investigations to ensure that undertakings comply with the obligations set out in this Directive. Competent authorities shall be authorised to carry out checks on undertakings and interviews with affected or potentially affected stakeholders or their representatives.
Amendment 711 #
Motion for a resolution
Article 15 – point 2
Article 15 – point 2
2. Investigations referred to in paragraph 1 shall either be conducted by taking a risk-based approach or in the event a competent authority is in possession of relevant information regarding possible breaches of human rights and environmental standards, including on the basis of substantiated complaints provided by any third party.
Amendment 715 #
Motion for a resolution
Article 15 – point 3
Article 15 – point 3
3. Member States competent authorities referred to in Article 14 shall facilitate the submission by third parties of complaints referred to in paragraph 2 by measures such as a complaint submission forms and ensuring that complaints remain anonymous upon the request of the complainant. Member States. Member States competent authorities referred to in Article 14 shall ensure that that form can also beis completed electronically.
Amendment 723 #
Motion for a resolution
Article 15 – point 6
Article 15 – point 6
6. Member States shall ensure that if the failure to comply with this Directive coulddirectly leads to irreparable harm, a competent authority may order the adoption of interim measures by the undertaking concerned, or - if no other measure is available and ensuring strict compliance with the principle of proportionality - order the temporary suspension of activities.
Amendment 731 #
Motion for a resolution
Article 15 – point 8
Article 15 – point 8
Amendment 735 #
Motion for a resolution
Article 15 – point 9
Article 15 – point 9
Amendment 738 #
Motion for a resolution
Article 16 – point 1
Article 16 – point 1
1. In order to create clarity and certainty for undertakings, in particular small, medium-sized and micro undertakings, as well as ensure consistency among their practices, the Commission, in consultation with Member States and the OECD, and with the assistance of the European Union Fundamental Rights Agency, and the European Environment Agency and the European Agency for Small and Medium Enterprises, shall publish general non- binding guidelines for undertakings on how best to fulfil the due diligence obligations set out in this Directive. Thoese guidelines shall provide practical guidance on how proportionality may be applied to due diligence obligations depending on the size and sector of the undertaking. The guidelines shall be made available no later than 18 months after the date of entry into force of this directive.
Amendment 744 #
Motion for a resolution
Article 16 – point 2
Article 16 – point 2
2. The Commission, in consultation with Member States and the OECD, and with the assistance of the Fundamental Rights Agency, and the European Environment Agency and the European Agency for Small and Medium Enterprises, may prepare specific non-binding guidelines for undertakings operating in certain sectors.
Amendment 751 #
Motion for a resolution
Article 16 – point 3
Article 16 – point 3
3. In preparing the non-binding guidelines referred to in paragraphs 1 and 2 above, due account shall be taken of the United Nations Guiding Principles on Business and Human Rights, the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, the OECD Due Diligence Guidance for Responsible Business Conduct, the OECD Guidelines for Multinational Enterprises, the OECD Guidance for Responsible Mineral Supply Chains, the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear sector, the OECD guidance for Responsible Business Conduct for Institutional Investors, and the OECD-FAO Guidance for Responsible Agricultural Supply Chains.
Amendment 753 #
Motion for a resolution
Article 17
Article 17
Amendment 763 #
Motion for a resolution
Article 18 – point 1
Article 18 – point 1
1. The Commission shall set up a European committee of competent authorities to facilitateDue Diligence Network of competent authorities to ensure, together with the national competent authorities referred to in Article 14, the coordination and convergence of regulatory and supervisory practices, and monitor the performance of national competent authorities.
Amendment 766 #
Motion for a resolution
Article 18 – point 2
Article 18 – point 2
Amendment 775 #
Motion for a resolution
Article 18 a (new)
Article 18 a (new)
Article 18 a Exercise of delegation 1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2. The power to adopt delegated acts referred to in Article 3 shall be conferred on the Commission for a period of 5 years from (date of entry into force of this Regulation). 3. The delegation of power referred to in Article 3 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or a later date specified therein. It shall not affect the validity of any delegated act already in force. 4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law Making.5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 6. A delegated act adopted pursuant to Article 3 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or, if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or of the Council.
Amendment 778 #
Motion for a resolution
Article 19 – point 1
Article 19 – point 1
1. Member States shall provide for penaltiesanctions applicable to infringements of the national provisions adopted in accordance with this Directive and shall take all the measures necessary to ensure that those penaltiesanctions are enforced. The penaltiesanctions provided for shall take into account the severity and repeated nature of the infringements committed and be effective, proportionate and dissuasive.
Amendment 783 #
Motion for a resolution
Article 19 – point 2
Article 19 – point 2
Amendment 803 #
Motion for a resolution
Annex I – part 2
Annex I – part 2