BETA

122 Amendments of Leszek MILLER related to 2022/0051(COD)

Amendment 45 #
Proposal for a directive
Recital 15
(15) Companies should take appropriate steps to set up and carry out due diligence measures, with respect to their own operations, their subsidiaries, as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this Directive. This Directive should not require companies to guarantee, in all circumstances, that adverse impacts will never occur or that they will be stopped. For example with respect toWhen companies are not in a position to avoid adverse impacts from the value chains, they should be required to terminate the harmful business relationships where the adverse impaand to modify the struct uresults from State intervention, the company might not be in a position to arrive at such results. Therefore, the main obligations in this Directive should be ‘obligations of means’ of their value chains in order to ensure that that no longer contributes to or can be a cause of the adverse impact. The company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. Account should be taken of the specificities of the company’s value chain, sector or geographical area in which its value chain partners operate, the company’s power to influence its direct and indirect business relationships, and whether the company could increase its power of influence.
2022/11/10
Committee: IMCO
Amendment 52 #
Proposal for a directive
Recital 18
(18) The value chain should cover activities related to the production, distribution and sale of a good or provision of services by a company, includingand any of its directly and indirectly-owned subsidiaries and branches including inter alia the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. It should encompass upstream established direct and indirect business relationships that design, extract, manufacture, transport, store and supply raw material, products, parts of products, or provide services to the company and any of its directly and indirectly-owned subsidiaries and branches that are necessary to carry out the company’s activities, and also downstream relationships, including established direct and indirect business relationships, that use or receive products, parts of products or services from the company and any of its directly- and indirectly-owned subsidiaries and branches up to the end of life of the product, including inter alia the distribution of the product to retailers, the transport and storage of the product, dismantling of the product, its recycling, composting or landfillsale of products or provisions of services to consumers whatever the means (e.g. franchising, licensing), the transport and storage of the product, dismantling of the product, its recycling, composting or landfilling. As pointed out in the OECD Guidelines for Multinational Enterprises, the value chain should cover the various structures that the company and any of its directly and indirectly-owned subsidiaries and branches use to operate including inter alia franchising, licensing and subcontracting.
2022/11/10
Committee: IMCO
Amendment 60 #
Proposal for a directive
Recital 20
(20) In order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage, the due diligence obligations should be limited in this Directive to establishedcover all business relationships. For the purpose of this Directive, established business relationships should mean such direct and indirect business relationships which are, or which are expected to be lasting, in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. The nature of business relationships as “established” should be reassessed periodically, and at least every 12 months. If the direct business relationship of a company is established, then all linked indirect business relationships should also be considered as established regarding that company.
2022/11/10
Committee: IMCO
Amendment 66 #
Proposal for a directive
Recital 21
(21) Under this Directive, EU companies with more than 500 employees on average and a worldwide net turnover exceeding EUR 1508 million in the financial year preceding the last financial year should be required to comply with due diligence. As regards companies which do not fulfil those employee criteriaon, but which had more than 250 employees on average and more than EUR 408 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors, due diligence should apply 2 years after the end of the transposition period of this directive, in order to provide for a longer adaptation period. In order to ensure a proportionate burden, companies operating in such high- impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. Temporary agency workers, including those posted under Article 1(3), point (c), of Directive 96/71/EC, as amended by Directive 2018/957/EU of the European Parliament and of the Council103 , should be included in the calculation of the number of employees in the user company. Posted workers under Article 1(3), points (a) and (b), of Directive 96/71/EC, as amended by Directive 2018/957/EU, should only be included in the calculation of the number of employees of the sending company. _________________ 103 Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (OJ L 173, 9.7.2018, p. 16).
2022/11/10
Committee: IMCO
Amendment 70 #
Proposal for a directive
Recital 22
(22) In order to reflect the priority areas of international action aimed at tackling human rights and environmental issues, the selection of high-impact sectors for the purposes of this Directive should be based on existing sectoral OECD due diligence guidance. The following sectors should be regarded as high-impact for the purposes of this Directive: the manufacture of textiles, leather and related products (including footwear), and the wholesale trade of textiles, clothing and footwear; agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages; the energy; extraction, transport and handling of mineral resources regardless of where they are extracted from (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products). As regards the financial sector, due to its specificities, in particular as regards the value chain and the services offered, even if it is covered by sector-specific OECD guidance, it should not form part of the high-impact sectors covered by this Directive. At the same time, in this sector, the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings, even if they do not have a legal form with limited liability; construction, logistics and infrastructures; oil and gas production and oil refining sector; financial services; auditing and certification.
2022/11/10
Committee: IMCO
Amendment 72 #
Proposal for a directive
Recital 23
(23) In order to achieve fully the objectives of this Directive addressing human rights and adverse environmental impacts with respect to companies’ operations, subsidiaries and value chains, third-country companies with significant operations in the EU should also be covered. More specifically, the Directive should apply to third-country companies which generated a net turnover of at least EUR 1508 million in the Union in the financial year preceding the last financial year or a net turnover of more than EUR 40 million but less than EUR 150 million in the financial year preceding the last financial year in one or more of the high- impact sectors, as of 2 years after the end of the transposition period of this Directive. Business enterprises may have various structures resulting in a single company having a net turnover below the threshold. As mentioned in the Interpretative Guide to the United Nations Guiding Principles on Business and Human Rights, companies may operate inter alia through various subsidiaries or follow a franchise model. Companies may also outsource or subcontract significant activities. Therefore, net turnover generated by the company in the Union should include net turnover generated directly in the Union by the company and the net turnover generated in the Union by its directly and indirectly-owned subsidiaries and branches, as well as the net turnover generated in the Union through third party undertakings with whom the company or its directly and indirectly- owned subsidiaries and branches have entered into a vertical agreement in return for payment of royalties or an outsourcing agreement.
2022/11/10
Committee: IMCO
Amendment 78 #
Proposal for a directive
Recital 27
(27) In order to conduct appropriate human rights, and environmental due diligence with respect to their operations, their subsidiaries, and their value chains, companies covered by this Directive should integrate due diligence into corporate policies, identify, prevent and mitigate as well as bring to an end and minimise the extent of potential and actual adverse human rights and environmental impacts, establish and maintain a complaints proceduregrievance mechanism, monitor the effectiveness of the taken measures in accordance with the requirements that are set up in this Directive and communicate publicly on their due diligence and related information in order to support companies, their subsidiaries and business partners operating in developing countries to identify, prevent and effectively address actual or potential adverse impacts on human rights and environment. In order to ensure clarity for companies, in particular the steps of preventing and mitigating potential adverse impacts and of bringing to an end, or when this is not possible, minimising and providing for remediation of actual adverse impacts should be clearly distinguished in this Directive.
2022/11/10
Committee: IMCO
Amendment 84 #
Proposal for a directive
Recital 30
(30) Under the due diligence obligations set out by this Directive, a company should identify actual or potential adverse human rights and environmental impacts. In order to allow for a comprehensive identification of adverse impacts, such identification should be based on meaningful stakeholder engagement and quantitative and qualitative information. For instance, as regards adverse environmental impacts, the company should obtain information about baseline conditions at higher risk sites or facilities in value chains. Identification of adverse impacts should include assessing the human rights, and environmental context in a dynamic way and in regular intervals: prior to a new activity or relationship, prior to major decisions or changes in the operation; in response to or anticipation of changes in the operating environment; and periodically, at least every 12 months, throughout the life of an activity or relationship. Regulated financial undertakings providing loan, credit, or other financial services should identify the adverse impacts only at the inception of the contract. When identifying adverse impacts, companies should also identify and assess the impact of a business relationship’s business model and strategies, including trading, procurement and pricing practices. Where the company cannot prevent, bring to an end or minimize all its adverse impacts at the same time, it should be able to prioritize its action, provided it takes the measures reasonably available to the company, taking into account the specific circumstances.
2022/11/10
Committee: IMCO
Amendment 89 #
Proposal for a directive
Recital 31
(31) In order to avoid undue burden on the smaller companies operating in high- impact sectors which are covered by this Directive, those companies should only be obliged to identify those actual or potential severe adverse impacts that are relevant to the respective sector.
2022/11/10
Committee: IMCO
Amendment 91 #
Proposal for a directive
Recital 32
(32) In line with international standards, prevention and mitig, mitigation and remediation as well as bringing to an end and minimisation of adverse impacts should fully take into account the interests of those adversely impacted. In order to enable continuous engagement with the value chain business partn and should be designed and deter minsteaed ofn termination of business relations (disengagement) and possibly exacerbating adverse impacts, this Directive should ensure that disengagementhe basis of meaningful engagement with them. Companies should engage isn a last-resort action, in line with the Union`s policy of zero- tolerance on child labour. Terminating a business relationship in which child labour was found could expose the child to even more severe adverse human rights impacts. This should therefore be taken into account when deciding on the appropriate action to taketimely manner, efficiently and meaningfully with stakeholders impacted by the decision to suspend or terminate the adverse impacts before reaching that decision, and shall address the adverse impacts derived from those actions.
2022/11/10
Committee: IMCO
Amendment 94 #
Proposal for a directive
Recital 34
(34) So as to comply with the prevention and mitigation obligation under this Directive, companies should be required to take the following actions, where relevant. Where necessary due to the complexity of prevention measures, c. Companies should develop and implement a prevention action plan. Companies should seek to obtain contractual assurances from a direct partner with whom they have an established business relationship that it will ensure compliance with the code of conduct or the prevention action plan, including by seeking corresponding contractual assurances from its partners to the extent that their activities are part of the companies’ value chain. The contractual assurances should be accompanied by appropriate measures to verify compliance. To ensure comprehensive prevention of actual and potential adverse impacts, companies should also adapt their business models and strategies, including trading, procurement, purchasing and pricing practices, and make investments which aim to prevent adverse impacts, provide targeted and proportionate support for an SME with which they have an established business relationship such as financing, for example, through direct financing, low-interest loans, guarantees of continued sourcing, and assistance in securing financing, to help implement the code of conduct or prevention action plan, or technical guidance such as in the form of training, management systems upgrading, and collaborate with other companies.
2022/11/10
Committee: IMCO
Amendment 109 #
(39) So as to comply with the obligation of bringing to an end and minimising the extent of actual adverse impacts under this Directive, companies should be required to take the following actions, where relevant. They should neutralise the adverse impact or minimise its extent to the greatest extent possible, with an action proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. Where necessary due to the fact that the adverse impact cannot be immediately brought to an end, companies should develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. Companies should also seek to obtain contractual assurances from a direct business partner with whom they have an established business relationship that they will ensure compliance with the company’s code of conduct and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s value chain. The contractual assurances should be accompanied by the appropriate measures to verify compliance. Finally, companies should also make investments aiming at ceasing or minimising the extent of adverse impact to the greatest extent possible, provide targeted and proportionate support for an SMEs with which they have an established business relationship and collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end.
2022/11/10
Committee: IMCO
Amendment 115 #
Proposal for a directive
Recital 42
(42) Companies should provide the possibility for persons and organisations to submit complaintgrievances directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. Organisations who could submit such complaintgrievances should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and, civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impactnd human rights and environmental defenders. Companies should establish a procedure for dealing with those complaintgrievances and inform all relevant stakeholders, including workers, trade unions and other workers’ representatives, where relevant, about such processes. Recourse to the complaintgrievances and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. In accordance with international standards, complaintgrievances should be entitled to request from the company appropriate follow-up on the complaintgrievance and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. This access should not lead to unreasonable solicitations of companiesgrievance.
2022/11/10
Committee: IMCO
Amendment 122 #
Proposal for a directive
Recital 43
(43) Companies should monitor the implementation and effectiveness of their due diligence measures. They should carry out periodic assessments of their own operations, those of their subsidiaries and, where related to the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, minimisation, bringing to an end and mitigation of human rights and environmental adverse impacts. Such assessments should verify that adverse impacts are properly identified, due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. In order to ensure that such assessments are up-to- date, they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.
2022/11/10
Committee: IMCO
Amendment 123 #
Proposal for a directive
Recital 44
(44) Like in the existing international standards set by the United Nations Guiding Principles on Business and Human Rights and the OECD framework, it forms part of the due diligence requirement to communicate externally relevant information on due diligence policies, processes and activities conducted to identify and address actual or potential adverse impacts, including the findings and outcomes of those activities. The proposal to amend Directive 2013/34/EU as regards corporate sustainability reporting sets out relevant reporting obligations for the companies covered by this directive. In order to avoid duplicating reporting obligations, this Directive should therefore not introduce any new reporting obligations in addition to those under Directive 2013/34/EU for the companieNotwithstanding the reporting requirements under Directive 2013/34/EU, Member States should ensure that companies report on the matters covered by thatis Directive as well as the reporting standards that should be developed under it. As regards companies that are within the scope of this Directive, but do not fall under Directive 2013/34/EU, in order to comply with their obligation of communicating as part of the due diligence under this Directive, they should publish on their website an annual statement in a language customary in the sphere of international businessby publishing on their website, in an accessible and timely manner, their due diligence policies, prevention action plans, correction action plans, procedures for dealing with grievances, reports on the outcome of the assessments as well as other relevant information.
2022/11/10
Committee: IMCO
Amendment 128 #
Proposal for a directive
Recital 45 a (new)
(45 a) A full, safe, meaningful and effective engagement of all relevant stakeholders throughout all the steps of due diligence process in the whole value chain is fundamental in order to ensure a proper implementation of this Directive. In line with international standards, that process should be interactive, responsive, continuous, gender-responsive, child- sensitive and adapted to vulnerable stakeholders. Their involvement should take place timely and prior to decisions that could cause any adverse impacts. All relevant information needed by stakeholders to make informed judgments should be made available in an accessible and transparent manner, including meaningful information about operations, projects and investments and their actual and potential adverse impacts.
2022/11/10
Committee: IMCO
Amendment 129 #
Proposal for a directive
Recital 46
(46) In order to provide support and practical tools to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, using relevant international guidelines and standards as a reference, and in consultation with Member States and stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, the European Union Agency for Criminal Justice Cooperation (Eurojust), the European Union Agency for Law Enforcement Cooperation (Europol), the European Public Prosecutor’s Office, the European Anti-Fraud Office (OLAF) and where appropriate with international bodies having expertise in due diligence, should have the possibility to issue guidelines, including for specific sectors or specific adverse impacts.
2022/11/10
Committee: IMCO
Amendment 135 #
Proposal for a directive
Recital 49
(49) The Commission and Member States should continue to work in partnership with third countries to support upstream economic operators build the capacity to effectively prevent and mitigate adverse human rights and environmental impacts of their operations and business relationships, paying specific attention to the challenges faced by smallholders. They should use their neighbourhood, development and international cooperation instruments to support third country governments and upstream economic operators in third countries addressing adverse human rights and environmental impacts of their operations and upstream business relationships. This could include working with partner country governments, the local private sector and stakeholders on addressing the root causes of adverse human rights and environmental impacts. In the same line, the Commission and Member States should provide targeted support to stakeholders in developing countries, in order to ensure their meaningful engagement in all due diligence processes. In particular, support should be provided to national and local civil society organisations to monitor corporate practices and hold companies accountable and dedicated measures and funds should ease access to justice.
2022/11/10
Committee: IMCO
Amendment 141 #
Proposal for a directive
Recital 56
(56) In order to ensure effective compensation of victims of adverse impacts, Member States should be required to lay down rules governing the civil liability of companies for damages arising due to its failure to comply with the due diligence process. Thefrom adverse impacts. Companies should be strictly liable for damages arising from any adverse impacts and resulting from their own operations or those of their subsidiaries. For damages arising from adverse impacts resulting from the operations of partners with whom they have a business relationships, companyies should be liable for damages if they failed to comply with the obligations to prevent and mitigate potential adverse impacts or to bring actual impacts to an end and minimise their extent, and as a result of this failure an adverse impact that should have been identified, prevented, mitigated, brought to an end or its extent minimised through the appropriate measures occurred and led to damage.
2022/11/10
Committee: IMCO
Amendment 144 #
Proposal for a directive
Recital 57
(57) As regards damages occurring at the level of established indirect business relationships, the liability of the company should be subject to specific conditions. The company should not be liable if it carried out specific due diligence measures. However, it should not be exonerated from liability through implementing such measures in case it was unreasonable to expect that the action actually taken, including as regards verifying compliance, would be adequate to prevent, mitigate, bring to an end or minimise the adverse impact. In addition, in the assessment of the existence and extent of liability, due account is to be taken of the company’s efforts, insofar as they relate directly to the damage in question, to comply with any remedial action required of tany person with a legitimate interest should be entitled to obtain from the company the full extent of damages resulting from any adverse impact and the company should benefit from a legal assurance to obtain compensation from the partners with whom it has an establishemd by a supervisory authority, any investments made and any targeted support provided as well as any collaboration with other entities to address adverse impacts in its value chainsusiness relationship and who are responsible for the adverse impact.
2022/11/10
Committee: IMCO
Amendment 148 #
Proposal for a directive
Recital 58
(58) The liability regime does not regulate who should provcompany should bear the burden of proof to demonstrate that the company’s action was reasonably adequate under the circumstances of the case, therefore this question is left to national law.
2022/11/10
Committee: IMCO
Amendment 165 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point a
(a) on obligations for companies (a) regarding actual and potential human rights adverse impacts and, actual and potential environmental adverse impacts, with respect to their own operations, the operationsproducts and services, those of their subsidiaries, and the value chain operations carried out by entities with whom the company has an established business relationship and;
2022/11/10
Committee: IMCO
Amendment 169 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
(b a) on access to justice, including judicial and non judicial remedies for victims of the adverse impacts and persons or group of persons with legitimate interests;
2022/11/10
Committee: IMCO
Amendment 172 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 2
The nature of business relationships as ‘established’ shall be reassessed periodically, and at least every 12 months.deleted
2022/11/10
Committee: IMCO
Amendment 175 #
Proposal for a directive
Article 1 – paragraph 2
2. This Directive shall not constitute grounds for reducing the level of protection of human rights, including access to justice or of protection of the environment or the protection of the climate provided for by the law of Member States at the time of the adoption of this Directive.
2022/11/10
Committee: IMCO
Amendment 182 #
Proposal for a directive
Article 2 – paragraph 1 – point a
(a) the company had more than 500 employees on average and had a net worldwide turnover of more than EUR 1508 million in the last financial year for which annual financial statements have been prepared;
2022/11/10
Committee: IMCO
Amendment 185 #
Proposal for a directive
Article 2 – paragraph 1 – point b – introductory part
(b) the company did not reach the thresholds under point (a), but had more than 250 employees on average and had a net worldwide turnover of more than EUR 408 million in the last financial year for which annual financial statements have been prepared, provided thatand at least 50% of this net turnover was generated in one or more of the following sectors:
2022/11/10
Committee: IMCO
Amendment 187 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii
(iii) theenergy, extraction, transports and handling of mineral resources regardless from where they are extracted (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products).
2022/11/10
Committee: IMCO
Amendment 188 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii a (new)
(iii a) mechanical and electronic engineering industry;
2022/11/10
Committee: IMCO
Amendment 189 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii a (new)
(iii a) construction, logistics and infrastructures;
2022/11/10
Committee: IMCO
Amendment 190 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii c (new)
(iiic) oil and gas production and oil refining sector;
2022/11/10
Committee: IMCO
Amendment 191 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii d (new)
(iiid) financial services;
2022/11/10
Committee: IMCO
Amendment 192 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii e (new)
(iiie) auditing and certification;
2022/11/10
Committee: IMCO
Amendment 194 #
Proposal for a directive
Article 2 – paragraph 2 – introductory part
2. This Directive shall also apply to companies which are formed in accordance with the legislation of a third country, and fulfil one of the following conditions:generated a net turnover of more than EUR 8 million in the Union in the financial year preceding the last financial year.
2022/11/10
Committee: IMCO
Amendment 199 #
Proposal for a directive
Article 2 – paragraph 2 – point a
(a) generated a net turnover of more than EUR 150 million in the Union in the financial year preceding the last financial year;deleted
2022/11/10
Committee: IMCO
Amendment 203 #
Proposal for a directive
Article 2 – paragraph 2 – point b
(b) generated a net turnover of more than EUR 40 million but not more than EUR 150 million in the Union in the financial year preceding the last financial year, provided that at least 50% of its net worldwide turnover was generated in one or more of the sectors listed in paragraph 1, point (b).deleted
2022/11/10
Committee: IMCO
Amendment 217 #
Proposal for a directive
Article 3 – paragraph 1 – point e – introductory part
(e) ‘business relationship’ means a relationship withbetween the company or one of its subsidiaries, a contractor, subcontractor or any other legal entities (‘partner’) within their value chain;
2022/11/10
Committee: IMCO
Amendment 219 #
Proposal for a directive
Article 3 – paragraph 1 – point f
(f) ‘established business relationship’ means a business relationship, whether direct or indirect, which is, or which is expected to be lasting, in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the value chain;deleted
2022/11/10
Committee: IMCO
Amendment 227 #
Proposal for a directive
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production, distribution or sale of goods or the provision of services by a company, or any of its directly and indirectly-owned subsidiaries and branches, including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. As regards companies within the meaning of point (a)(iv), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
2022/11/10
Committee: IMCO
Amendment 244 #
Proposal for a directive
Article 3 – paragraph 1 – point n
(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries, and other individuals, groups, communities or entities whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships;:
2022/11/10
Committee: IMCO
Amendment 247 #
Proposal for a directive
Article 3 – paragraph 1 – point n – point i (new)
i) the company’s employees, the employees of its subsidiaries and value chain workers, and other individuals, including children, groups, communities or entities whose rights or interests are or could be affected by the potential or actual adverse impacts on human rights, climate and environment caused by a company, its subsidiaries and its business relationships, including through the value chain;
2022/11/10
Committee: IMCO
Amendment 248 #
Proposal for a directive
Article 3 – paragraph 1 – point n – point ii (new)
ii) other legal or natural persons promoting, protecting and defending, as part of their statutory purpose or otherwise, human rights, the environment, including trade unions and workers representatives;
2022/11/10
Committee: IMCO
Amendment 252 #
Proposal for a directive
Article 3 – paragraph 1 – point n a (new)
(n a) ‘human rights and environmental defenders’ mean individuals, groups and structures of society, including non- government organisations, that promote, protect and defend human rights and the environment;
2022/11/10
Committee: IMCO
Amendment 253 #
Proposal for a directive
Article 3 – paragraph 1 – point n b (new)
(nb) ‘vulnerable stakeholders’ means individuals and right-holder groups that find themselves in marginalised situations and situations of vulnerability, due to specific contexts or intersecting factors, including, among others, their sex, gender, age, race, ethnicity, class, education, indigenous identity, migration status, disability, as well as social and economic status, which are the causes of differentiated and often disproportionate adverse impacts, and create discrimination and an additional barrier to participation and access to justice;
2022/11/10
Committee: IMCO
Amendment 254 #
Proposal for a directive
Article 3 – paragraph 1 – point n c (new)
(nc) ‘meaningful engagement’ means an interactive, responsive, ongoing and gender-responsive, child-sensitive process of engagement with stakeholders, adapted to vulnerable stakeholders, taking place at each phase of and throughout the entire due diligence process, which is proactive, takes place prior to taking decisions that may impact stakeholders, takes their interest into consideration and involves the timely provision of all relevant information needed by stakeholders to make informed judgments, in an accessible and transparent manner, including meaningful information about operations, projects and investments and their actual and potential adverse impacts;
2022/11/10
Committee: IMCO
Amendment 268 #
Proposal for a directive
Article 4 – paragraph 1 – point b
(b) identifying actual or potential risks and adverse impacts in accordance with Article 6;
2022/11/10
Committee: IMCO
Amendment 270 #
Proposal for a directive
Article 4 – paragraph 1 – point c
(c) preventing and mitigating potential potential and actual adverse impacts, mitigating and bringing actual adverse impacts to an end and minimising their extent in accordance with Articles 7 and 8;
2022/11/10
Committee: IMCO
Amendment 272 #
Proposal for a directive
Article 4 – paragraph 1 – point d
(d) establishing and maintaining a complaints procedureeffective grievance mechanisms in accordance with Article 9;
2022/11/10
Committee: IMCO
Amendment 274 #
Proposal for a directive
Article 4 – paragraph 1 – point e
(e) monitoring and assessing the effectiveness of their due diligence policy and measures and reviewing it in accordance with Article 10;
2022/11/10
Committee: IMCO
Amendment 275 #
Proposal for a directive
Article 4 – paragraph 1 – point f
(f) disclosing relevant information and publicly communicating on due diligence in accordance with Article 11.;
2022/11/10
Committee: IMCO
Amendment 276 #
Proposal for a directive
Article 4 – paragraph 1 – point f a (new)
(f a) engaging meaningfully and safely with stakeholders throughout the due diligence process.
2022/11/10
Committee: IMCO
Amendment 279 #
Proposal for a directive
Article 5 – paragraph 1 – introductory part
1. Member States shall ensure that companies integrate due diligence into all their corporate policies and have in place a due diligence policy. The due diligence policy shall containbe developed with meaningful engagement of stakeholders and shall contain at least all of the following:
2022/11/10
Committee: IMCO
Amendment 283 #
Proposal for a directive
Article 5 – paragraph 1 – point a
(a) a description of the company’s approach, including in the long term, to due diligencedue diligence strategy, including in the short, medium and long term, which includes a comprehensive description of the company’s corporate structure, business relationships, and value chains, including inter alia a list of the company’s business relationships and production sites;
2022/11/10
Committee: IMCO
Amendment 287 #
Proposal for a directive
Article 5 – paragraph 1 – point b
(b) a code of conduct to be established with the full engagement of trade unions and workers’ representatives as well as other stakeholders, describing rules and, principles and commitments to be followed by the company’s employees and, subsidiaries and business relationships in the company’s entire value chain;
2022/11/10
Committee: IMCO
Amendment 289 #
Proposal for a directive
Article 5 – paragraph 1 – point c
(c) a description of the processes put in place to implement due diligence, including: - the measures taken to verify compliance with the code of conduct and to extend its application to established business relationships.including tools, methodology, objectives and timeline of the measures; - the measures to extend its application to business relationships, including contractual provisions; and - a description of the measures to ensure the safety and meaningful engagement with stakeholders
2022/11/10
Committee: IMCO
Amendment 293 #
Proposal for a directive
Article 5 – paragraph 1 – point c a (new)
(c a) a strategy of co-investment to build the capacity of weaker business partners to carry out due diligence, taking into account the leverage of the company to ensure that the costs of the due diligence process are not passed on to business partners in a weaker position.
2022/11/10
Committee: IMCO
Amendment 296 #
Proposal for a directive
Article 5 – paragraph 2
2. Member States shall ensure that the companies review, publish and update their due diligence policy once they identify any new actual and potential adverse impacts and at least annually.
2022/11/10
Committee: IMCO
Amendment 304 #
Proposal for a directive
Article 6 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and actual and potential adverse environmental impacts arising from their own operations or those of their subsidiaries and, where related to entities on their value chains, from their established with which companies have a business relationships, in accordance with paragraph 2, 3 and 4.
2022/11/10
Committee: IMCO
Amendment 308 #
Proposal for a directive
Article 6 – paragraph 1 a (new)
1a. Member States shall ensure that companies map their value chains and publicly disclose relevant information including names, locations, types of products and services supplied, and other relevant information concerning subsidiaries and business.
2022/11/10
Committee: IMCO
Amendment 313 #
Proposal for a directive
Article 6 – paragraph 2
2. By way of derogation from paragraph 1, companies referred to in Article 2(1), point (b), and Article 2(2), point (b), shall only be required to identify actual and potential severe adverse impacts relevant to the respective sector mentioned in Article 2(1), point (b).
2022/11/10
Committee: IMCO
Amendment 316 #
Proposal for a directive
Article 6 – paragraph 2 a (new)
2 a. Member States shall ensure that, when identifying actual and potential adverse impacts, companies also identify and assess the impacts of their business models and strategies, including trading, procurement and pricing practices.
2022/11/10
Committee: IMCO
Amendment 323 #
Proposal for a directive
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying and assessing the adverse impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the complaints proceduregrievance mechanisms provided for in Article 9. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gatheralso have an effective and meaningful engagement with all relevant stakeholders, and potentially affected groups to to identify and assess information on actual or potential adverse impacts.
2022/11/10
Committee: IMCO
Amendment 324 #
Proposal for a directive
Article 6 – paragraph 4 a (new)
4 a. Member States shall ensure that stakeholders have the right to request additional information from a company regarding the actions taken in accordance with Article 4. The information shall be provided in writing and shall be adequate and comprehensible. The company shall provide information within a reasonable time. If the company refuses a request for information, it shall inform the stakeholders about the grounds for the refusal. Any stakeholder whose request for information is refused may demand a more detailed justification for the refusal. The justification shall be provided in writing within a reasonable timeframe. In the event the company does not provide sufficient justification, ignores the request, or refuses to disclose, whether in part or in full, the requested information, Member States shall ensure that supervisory authorities or a court of law are entitled, at the request of any person with legal standing under national law, to order the disclosure of the information.
2022/11/10
Committee: IMCO
Amendment 325 #
1. Member States shall ensure that companies take appropriate measures to prevent, or where prevention is not possible or not immediately possible, adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been, or should have been, identified pursuant to Article 6, in accordance with paragraphs 2, 3, 4 and 5 of this Article. The appropriate measures shall apply to a company’s own operations, subsidiaries as well as direct and indirect business relationships.
2022/11/10
Committee: IMCO
Amendment 330 #
Proposal for a directive
Article 7 – paragraph 2 – introductory part
2. Companies shall at least be required to take the following actions, where relevant:
2022/11/10
Committee: IMCO
Amendment 331 #
Proposal for a directive
Article 7 – paragraph 2 – point a
(a) where necessary due to the nature or complexity of the measures required for prevention, develop and implement a prevention action plan, with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. The prevention action plan shall be developed in consultation with affected stakeholders; on the basis of: - qualitative and quantitative indicators; - independent reports and information gathered through the complaints mechanisms provided for in Article 9; - the context of their operations, the impact of their business models and strategies, including trading, purchasing and pricing practices, and the impact of their business relationships’ business, models and strategies; - meaningful engagement with stakeholders, taking due account of barriers to participation faced by stakeholders and of specific needs by vulnerable stakeholders.
2022/11/10
Committee: IMCO
Amendment 340 #
Proposal for a directive
Article 7 – paragraph 2 – point c
(c) make necessary investments, capacity building, joint prevention and mitigation measures such as into management or production processes and, infrastructures, to comply with paragraph 1 and product traceability;
2022/11/10
Committee: IMCO
Amendment 341 #
Proposal for a directive
Article 7 – paragraph 2 – point c a (new)
(c a) adapt business models and strategies, including adequate trading, procurement, purchasing and pricing practices, in order to support business relationships compliance and to prevent potential adverse impacts;
2022/11/10
Committee: IMCO
Amendment 347 #
Proposal for a directive
Article 7 – paragraph 2 – point d
(d) provide targeted and proportionate support for an SME with which the company has an established business relationship, where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the SME;
2022/11/10
Committee: IMCO
Amendment 348 #
Proposal for a directive
Article 7 – paragraph 2 – point e
(e) in compliance with Union law including competition law, collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective.
2022/11/10
Committee: IMCO
Amendment 355 #
Proposal for a directive
Article 7 – paragraph 3
3. As regards potential adverse impacts that could not be prevented or adequately mitigated by the measures in paragraph 2, the company may seek to conclude a contract with a partner with whom it has an indirect relationship, with a view to achieving compliance with the company’s code of conduct or a prevention action plan. When such a contract is concluded, paragraph 4 shall apply.deleted
2022/11/10
Committee: IMCO
Amendment 360 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 2 a (new)
Member States shall ensure that third party auditors authorised to verify compliance are certified by public authorities, are independent and can be held accountable for the reliability and quality of the audit and for failure to conduct adequate verification.
2022/11/10
Committee: IMCO
Amendment 363 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – introductory part
As regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2, 3 and 4, the company shall be required tobecause mitigation is not possible or acceptable, or there is no reasonable prospect of change, companies shall refrain from entering into new or extending existing relations with the partner in connection with or in the value chain of which the impact has arisen and shall, where the law governing their relations so entitles them to,. In such cases companies shall take the following actions:
2022/11/10
Committee: IMCO
Amendment 366 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point a
(a) temporarily suspend commercial relations with the partner in question, while pursuing prevention and minimisation efforts, if there is reasonable expectation that these efforts will succeed in the short- termtigation efforts;
2022/11/10
Committee: IMCO
Amendment 367 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point a a (new)
(a a) engage in a timely manner, efficiently and meaningfully with stakeholders impacted by the decision to suspend or terminate the business relationship before taking such decision, and shall address the adverse impacts derived from those actions;
2022/11/10
Committee: IMCO
Amendment 369 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point b
(b) terminate the business relationship with respect to the activities concerned if the potential adverse impact is sevewhen mitigation and ceasing of the impact is made impossible, in particular by its systemic or state-imposed nature.;
2022/11/10
Committee: IMCO
Amendment 370 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point b a (new)
(b a) identify, prevent and mitigate the potential or actual adverse impacts related to the suspension or termination of the relationship.
2022/11/10
Committee: IMCO
Amendment 372 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 2
Member States shall provide for the availability of an option to suspend or to terminate the business relationship in contracts governed by their laws.
2022/11/10
Committee: IMCO
Amendment 375 #
Proposal for a directive
Article 7 – paragraph 6
6. By way of derogation from paragraph 5, point (b), when companies referred to in Article 3, point (a)(iv), provide credit, loan or other financial services, they shall not be required to terminate the credit, loan or other financial service contract when this can be reasonably expected to cause substantial prejudice to the entity to whom that service is being provided.deleted
2022/11/10
Committee: IMCO
Amendment 382 #
Proposal for a directive
Article 8 – paragraph 2
2. Where the adverse impact cannot be brought to an end, Member States shall ensure that companies minimise the extent of such an impacttigate the impact to the greatest extent possible, while continuing to pursue all efforts to bring the adverse impact to an end.
2022/11/10
Committee: IMCO
Amendment 385 #
Proposal for a directive
Article 8 – paragraph 3 – introductory part
3. Companies shall at least be required to take the following actions, where relevant:
2022/11/10
Committee: IMCO
Amendment 388 #
Proposal for a directive
Article 8 – paragraph 3 – point a
(a) neutralise the adverse impact or minimise its extenttigate it, to the greatest extent possible by appropriate remedies,, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The action shall be proportionate to the significance and scale of the adverse impact and to the contributipersons, groups of persons of the company’s conduct to the adverse impact;r communities.
2022/11/10
Committee: IMCO
Amendment 393 #
Proposal for a directive
Article 8 – paragraph 3 – point b
(b) where necessary due to the fact that the adverse impact cannot be immediately brought to an end, develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. Where relevant, tThe corrective action plan shall be developed in consultation with stakeholderswith the meaningful engagement of stakeholders, including trade unions and workers’representatives, and shall be made publicly available;
2022/11/10
Committee: IMCO
Amendment 399 #
Proposal for a directive
Article 8 – paragraph 3 – point d
(d) make necessary investments, such as into management or production processes and infrastructures, capacity building, joint prevention and mitigation measures and infrastructures, and product traceability to comply with paragraphs 1, 2 and 3;
2022/11/10
Committee: IMCO
Amendment 400 #
Proposal for a directive
Article 8 – paragraph 3 – point d a (new)
(d a) adapt business models and strategies, including adequate trading, procurement, purchasing and pricing practices, in order to support compliance by business relationships and to prevent potential adverse impacts;
2022/11/10
Committee: IMCO
Amendment 405 #
Proposal for a directive
Article 8 – paragraph 3 – point e
(e) provide targeted and proportionate support for an SME with which the company has an established business relationship, where compliance with the code of conduct or the corrective action plan would jeopardise the viability of the SME;
2022/11/10
Committee: IMCO
Amendment 406 #
Proposal for a directive
Article 8 – paragraph 3 – point f
(f) in compliance with Union law including competition law, collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective.
2022/11/10
Committee: IMCO
Amendment 410 #
Proposal for a directive
Article 8 – paragraph 4
4. As regards actual adverse impacts that could not be brought to an end or adequately mitigated by the measures in paragraph 3, the company may seek to conclude a contract with a partner with whom it has an indirect relationship, with a view to achieving compliance with the company’s code of conduct or a corrective action plan. When such a contract is concluded, paragraph 5 shall apply.deleted
2022/11/10
Committee: IMCO
Amendment 415 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – introductory part
As regards actual adverse impacts within the meaning of paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures provided for in paragraphs 3, 4 and 5, the company shall refrain from entering into new or extending existing relations with the partner in connection to or in the value chain of which the impact has arisen and shall, where the law governing their relations so entitles them to, take one of the following actions:
2022/11/10
Committee: IMCO
Amendment 418 #
(a) temporarily suspend commercial relationships with the partner in question, while pursuing efforts to bring to an end or minimistigate the extent of the adverse impact, or
2022/11/10
Committee: IMCO
Amendment 419 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point a a (new)
(a a) engage in a timely manner, efficiently and meaningfully with stakeholders impacted by the decision to suspend or terminate the business relationship before taking such decision, and shall address the adverse impacts derived from those actions;
2022/11/10
Committee: IMCO
Amendment 420 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point b
(b) terminate the business relationship with respect to the activities concerned, if the adverse impact is considered seve where mitigation and ceasing of the impact is made impossible, in particular by its systemic or state-imposed nature.
2022/11/10
Committee: IMCO
Amendment 421 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point b a (new)
(b a) identify, prevent and mitigate the potential or actual adverse impacts related to the suspension or termination of the relationship.
2022/11/10
Committee: IMCO
Amendment 423 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 2
Member States shall provide for the availability of an option to suspend or to terminate the business relationship in contracts governed by their laws.
2022/11/10
Committee: IMCO
Amendment 427 #
Proposal for a directive
Article 8 – paragraph 7
7. By way of derogation from paragraph 6, point (b), when companies referred to in Article 3, point (a)(iv), provide credit, loan or other financial services, they shall not be required to terminate the credit, loan or other financial service contract, when this can be reasonably expected to cause substantial prejudice to the entity to whom that service is being provided.deleted
2022/11/10
Committee: IMCO
Amendment 429 #
Proposal for a directive
Article 9 – title
9 Complaints procedureGrievance mechanisms
2022/11/10
Committee: IMCO
Amendment 431 #
Proposal for a directive
Article 9 – paragraph 1
1. Member States shall ensure that companies provide the possibility for persons and organisations listed in paragraph 2 to submit early warnings and complaints to them where they have legitimate concerns regarding actual or potential adverse human rights impacts, actual or potential and adverse environmental impacts with respect to their own operations, the operations of their subsidiaries, and their value chains operations carried out by entities with which the company has a business relationship. .
2022/11/10
Committee: IMCO
Amendment 441 #
Proposal for a directive
Article 9 – paragraph 2 – introductory part
2. Member States shall ensure that the mechanisms referred to in paragraph 1 are legitimate, accessible, predictable, safe, equitable, transparent and human- rights compatible and complaints may be submitted by:
2022/11/10
Committee: IMCO
Amendment 443 #
Proposal for a directive
Article 9 – paragraph 2 – point a
(a) persons who are affected or have reasonable grounds to believe that they might be affected by an adverse impactindividuals, groups, communities or entities whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships throughout the entire value chain,
2022/11/10
Committee: IMCO
Amendment 446 #
Proposal for a directive
Article 9 – paragraph 2 – point b
(b) the company’s employees, the employees of its subsidiaries, workers; trade unions and other workers’ representatives representing individuals working inthroughout all parts of the value chain concerned,
2022/11/10
Committee: IMCO
Amendment 452 #
Proposal for a directive
Article 9 – paragraph 2 – point c
(c) civil society organisations active in the areas related to the entire value chain concerned.
2022/11/10
Committee: IMCO
Amendment 454 #
Proposal for a directive
Article 9 – paragraph 2 – point c a (new)
(c a) business partners that are unable to fulfil the requirements of contractual assurances as referred to in Article 7.2(b) and 8.3(c) due to unfair purchasing practices of their buyers.
2022/11/10
Committee: IMCO
Amendment 457 #
Proposal for a directive
Article 9 – paragraph 3
3. Member States shall ensure that the companies establish a safe procedure for dealing with complaints referred to in paragraph 1, including a procedure whenby ensuring theat company considers the complaint to be unfoundedlaints are anonymous and confidential; , and inform the relevant workers and trade unions of those procedures. Member States shall ensure that where the complaint is well-founded, the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of Article 6.
2022/11/10
Committee: IMCO
Amendment 461 #
Proposal for a directive
Article 9 – paragraph 4 – point b
(b) to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint.
2022/11/10
Committee: IMCO
Amendment 463 #
Proposal for a directive
Article 9 – paragraph 4 – point b a (new)
(b a) to obtain an effective remedy from companies, as referred to in and within the meaning of Article 8(3) point (a), through the complaints mechanism and receive guarantees that harms that are the subject of the complaint will not be repeated.
2022/11/10
Committee: IMCO
Amendment 465 #
Proposal for a directive
Article 9 – paragraph 4 a (new)
4 a. Member States shall ensure that recourse to a complaint mechanism does not preclude the claimants from having unhindered access to public judicial mechanisms. Claimants shall not be required to have used or exhausted the avenues of complaint mechanisms before being entitled to file a complaint and seek justice before competent judicial bodies and courts, pursuant to Article 22.
2022/11/10
Committee: IMCO
Amendment 471 #
Proposal for a directive
Article 10 – paragraph 1
Member States shall ensure that companies carry out periodic assessments of their own operations and measures, those of their subsidiaries and, where related to those of the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, mitigation, bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out with a meaningful engagement of stakeholders. They shall be conducted at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. The due diligence policy shall be updated and the operations and measures modified in accordance with the outcome of those assessments. The company shall provide a public report of the outcome of the assessments including copies of third- party verification audits and shall inform stakeholders, including trade unions and workers’ representatives.
2022/11/10
Committee: IMCO
Amendment 477 #
Proposal for a directive
Article 11 – paragraph 1
Member States shall ensure that companies that are not subject toNotwithstanding the reporting requirements under Articles 19a and 29a of Directive 2013/34/EU, Member States shall ensure that companies report on the matters covered by this Directive by publishing on their website a, in annual statement in a language customary in the sphere of international business. The statement shall be published by 30 April each year, covering the previous calendar year accessible and timely manner, their due diligence policies, procedures for dealing with grievances, reports on the outcome of the assessments as well as other relevant information. Member States shall ensure that companies publish and update their due diligence policies promptly once they identify any new actual and potential adverse impacts and at least annually. The Commission shall adopt delegated acts in accordance with Article 28 concerning the content and criteria for such reporting under paragraph 1, specifying information on the description of due diligence, potential and actual adverse impacts and actions taken on those, as well as related information in order to support companies, their subsidiaries and business partners operating in developing countries to identify, prevent and effectively address actual or potential adverse impacts on human rights and the environment.
2022/11/10
Committee: IMCO
Amendment 480 #
Proposal for a directive
Article 11 – paragraph 2
The Commission shall adopt delegated acts in accordance with Article 28 concerning the content and criteria for such reporting under paragraph 1, specifying information on the description of due diligence, potential and actual adverse impacts and actions taken on those, as well as related information in order to support companies, their subsidiaries and business partners operating in developing countries to identify, prevent and effectively address actual or potential adverse impacts on human rights and the environment. .
2022/11/10
Committee: IMCO
Amendment 482 #
Proposal for a directive
Article 11 a (new)
Article 11 a Stakeholders engagement 1. Member States shall ensure that companies effectively, safely and meaningfully engage stakeholders when fulfilling their obligations pursuant to Articles 4 to 11. Companies shall be required to ensure: (a) that stakeholders are engaged regularly and throughout the entire due diligence process, as provided for in Articles 4 to 11; (b) effective and appropriate modes of engagement, including: appropriate timelines for stakeholder engagement activities; identifying and addressing potential barriers to participation; adequate protection of stakeholders from the risk of reprisals; ensuring anonymity, confidentiality and proactively seeking the engagement of marginalised or vulnerable stakeholders and ensuring a gender-responsive and child-friendly approach; (c) that they regularly provide meaningful information to stakeholders about actual and potential adverse human rights, environmental, rule of law and good governance impacts of particular operations, projects and investments, in a timely, culturally sensitive, and accessible manner taking into account specificities of the stakeholder group including children and gender; and (d) in case of significant changes in operations, activities or operating context, they pro-actively communicate and provide complementary and intermediary reporting. 2. Companies shall pay special attention to overlapping vulnerabilities and intersecting factors in stakeholder engagement, including by adopting a gender-responsive and a child-friendly approach. 3. Member States shall ensure that, when stakeholders request to participate in the engagement referred to in paragraph 1, companies assess and timely respond to those requests. 4. Stakeholders shall also be informed by the company on its due diligence policy and on its implementation, to which they shall be able to contribute. In particular, workers’ representatives shall be informed by the company on its due diligence policy and on its implementation, to which they shall be able to contribute, in accordance with Directives 2002/14/EC1a and 2009/38/EC1b of the European Parliament and of the Council and Council Directive 2001/86/EC1c. 1aDirective 2002/14/EC of the European Parliament and of the Council of 11 March 2002 establishing a general framework for informing and consulting employees in the European Community (OJ L 80, 23.3.2002, p. 29). 1bDirective 2009/38/EC of the European Parliament and of the Council of 6 May 2009 on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees (OJ L 122, 16.5.2009, p. 28). 1cCouncil Directive 2001/86/EC of 8 October 2001 supplementing the Statute for a European company with regard to the involvement of employees (OJ L 294, 10.11.2001, p. 22).
2022/11/10
Committee: IMCO
Amendment 485 #
Proposal for a directive
Article 13 – paragraph 1
In order to provide support to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, in consultation with Member States and stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, and where appropriate with international bodies having expertise in due diligence, may issue guidelines, including for specific sectors or specific adverse impacts. the European Union Agency for Criminal Justice Cooperation (Eurojust), the European Union Agency for Law Enforcement Cooperation (Europol), the European Public Prosecutor’s Office, the European Anti-Fraud Office (OLAF) and where appropriate with international bodies having expertise in due diligence, shall issue guidelines, including for the following aspects: – specific high-risk sectors of economic activity leading to significant adverse impacts on human rights, the environment and good governance, including but not limited to sectors referred to in Article 2(1b), - full mapping of companies’ value chains and efficient processes to monitor partners’ behaviours throughout the entire value chain, - specific adverse impacts, including adverse impacts on good governance, - responsible and sustainable trading, purchasing and pricing policies, - facilitation of access to justice for victims, including regarding collective redress, representative actions, non- discriminatory costs of proceedings and appropriate limitation periods, - prevention and mitigation of retaliation risks faced by stakeholders, including human rights and environmental defenders, for their participation, - implementation of heightened due diligence in :conflict-affected areas, occupation situations, and non-self- governing territories, - responsible disengagement from harmful business relationships, - methodology and criteria to be used by supervisory authorities to make decisions related to administrative sanctions and nature and harmonisation of effective, proportionate and dissuasive sanctions, - assessing the integrity and fitness of industry schemes and multi-stakeholder initiatives, notably the inclusion of the perspectives of civil society and stakeholders in audits.
2022/11/10
Committee: IMCO
Amendment 491 #
Proposal for a directive
Article 14 – paragraph 1
1. Member States shall, in order to provide information and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this Directive, set up and operate individually or jointly dedicated websites, platforms or portals. Specific consideration shall be given, in that respect, to the SMEs that are present in the value chains of companies.
2022/11/10
Committee: IMCO
Amendment 496 #
Proposal for a directive
Article 14 – paragraph 2 a (new)
2 a. Member States shall undertake efforts in order to provide information and support to stakeholders and their representatives to enjoy and exercise their rights resulting from this Directive, including their participation indue diligence and judicial processes. This may include setting up and operating individually or jointly dedicated websites, platforms or portals.
2022/11/10
Committee: IMCO
Amendment 517 #
Proposal for a directive
Article 17 – paragraph 8 a (new)
8 a. Member Sates shall publish and make available an annual report detailing their past activities, future work plan and priorities. This includes reporting on closed investigations and their results, potential sanctions or other decisions on investigations.
2022/11/10
Committee: IMCO
Amendment 519 #
Proposal for a directive
Article 18 – paragraph 1
1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive,. Those competences shall includinge the power to requestire companies to provide necessary information and to carry out investigations related to compliance with the obligations set out in this Directive, including interviews with stakeholders and on site examination.
2022/11/10
Committee: IMCO
Amendment 520 #
Proposal for a directive
Article 18 – paragraph 2
2. A supervisory authority may initiate an investigation on its own motion orand shall initiate an investigation as a result of substantiated concerns communicated to it pursuant to Article 19, where it considers that it has sufficient information indicating a possible breach by a company of the obligations provided for in the national provisions adopted pursuant to this Directive.
2022/11/10
Committee: IMCO
Amendment 525 #
Proposal for a directive
Article 18 – paragraph 7 a (new)
7 a. Member States shall ensure that decisions of supervisory authorities regarding a company’s compliance with this Directive shall be without prejudice to the company’s civil liability under Article 22.
2022/11/10
Committee: IMCO
Amendment 532 #
Proposal for a directive
Article 19 – paragraph 3
3. Member States shall ensure that supervisory authorities assess the substantiated concerns and, where appropriate, exercise their powers as referred to in Article 18. Member States shall ensure that, for the purpose of those assessments, companies are required to carry out meaningful engagement with affected stakeholders. Member States shall ensure that those procedures guarantee the safety of those persons, including by ensuring that concerns and information the disclosure of which could be harmful to the person concerned remain anonymous and confidential.
2022/11/10
Committee: IMCO
Amendment 535 #
Proposal for a directive
Article 19 – paragraph 4
4. The supervisory authority shall, as soon as possible and in accordance with the relevant provisions of national law and in compliance with Union law, inform the person referred to in paragraph 1 of the result of the assessment of their substantiated concern and, of its decisions, shall provide the reasoning for it and shall publish the assessment and decision.
2022/11/10
Committee: IMCO
Amendment 537 #
Proposal for a directive
Article 19 – paragraph 5 a (new)
5 a. Member States shall ensure that submission of substantiated concerns shall not preclude stakeholders from having unhindered access to public judicial mechanisms. Stakeholders shall not be required to have submitted concerns before being entitled to file a complaint to competent judicial bodies and courts, pursuant to Article 22. 5 (b).
2022/11/10
Committee: IMCO
Amendment 552 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1
The Commission shall set up a European Network of Supervisory Authorities, composed of representatives of the supervisory authorities. The Network shall facilitate the cooperation of the supervisory authorities and the coordination and alignment of regulatory, investigative, sanctioning and supervisory practices of the supervisory authorities and, as appropriate, sharing of information among them, as well as ensuring the regular public disclosure of the activities of the Network.
2022/11/10
Committee: IMCO
Amendment 589 #
Proposal for a directive
Article 24 – paragraph 1 a (new)
In accordance with article 18(2) of Directive2014/24/EU, Article 36(2) of Directive 2014/25/EU and Article 30(3) of Directive 2014/23/EU, Member States shall take appropriate measures to ensure that in the performance of public procurement or concession contracts companies comply with the obligations laid down in national provisions adopted pursuant to Articles 4, 5, 6, 7, 8, 9, 10 and 11 of this Directive.
2022/11/10
Committee: IMCO