Activities of Damien CARÊME related to 2022/0051(COD)
Shadow opinions (1)
OPINION on the proposal for a directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937
Amendments (60)
Amendment 36 #
Proposal for a directive
Recital 15
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 to business relationships where the adverse impact results 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’. 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.
Amendment 42 #
Proposal for a directive
Recital 18
Recital 18
(18) The value chain should cover activities related to the production of a good or provision of services by a company, its subsidiaries or companies in which it holds minority shareholding, including 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 or its subsidiaries. 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 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 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 landfilling.
Amendment 47 #
Proposal for a directive
Recital 20
Recital 20
Amendment 53 #
Proposal for a directive
Recital 21
Recital 21
(21) Under this Directive, all EU companies with more than 500 employees on average and a worldwide net turnover exceeding EUR 150 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 criteria, but which had more than 250 employees on average and more than EUR 40 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, except micro-enterprises, should be required to comply with due diligence. 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).
Amendment 57 #
Proposal for a directive
Recital 22
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 baseuild on existing sectoral OECD due diligence guidance. The following while opting for a broader scope. Hence, the sectors that should be regarded as high-impact for the purposes of this Directive: should include: the chemicals sector; the manufacture of textiles, leather, fur, and related products (including footwear), and the wholesale trade of textiles, clothing and footwear; plastic production, waste shipment and management; agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beveanimal products, wood, food, beverages; construction sector and infrastructure building; the transportation sector, logistics and storages; the extraction and refining 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; the energy sector including gas, nuclear, steam, electricity and other 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 regulatedources throughout their life cycle, from extraction, refining, production, combustion of fuels, transportation, storage and waste management including radioactive waste and; the financial uandertakings, even if they do not have a legal form with limited liability insurance sector.
Amendment 59 #
Proposal for a directive
Recital 23
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.
Amendment 65 #
Proposal for a directive
Recital 25
Recital 25
(25) In order to achieve a meaningful contribution to the sustainability transition, due diligence under this Directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the Annex to this Directive. In order to ensure a comprehensive coverage of human rights, a violation of a prohibition or right not specifically listed in that Annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this Directive, provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this Directive, taking into account all relevant circumstances of their operations, such as the sector and operational context. Due diligence should further encompass adverse environmental impacts resulting from the violation of one of the prohibitions and obligations pursuant toand climate impacts on the main ecosystem elements (climate, air, water, soil, biodiversity, light, noise, vibration, human health) or on the interrelations between them, on the transition to a circular economy, including but not limited to impairment to reusability and recyclability, as well as impacts resulting from any violation of one of the international environmental standards enshrined, including but not limited to, in the international environmental conventions listed in the Annex to this Directive.
Amendment 68 #
Proposal for a directive
Recital 26
Recital 26
(26) Companies have guidance at their disposal that illustrates how their activities may impact human rights and which corporate behaviour is prohibited in accordance with internationally recognised human rights. Such guidance is included for instance in The United Nations Guiding Principles Reporting Framework104 and the United Nations Guiding Principles Interpretative Guide105 . Using relevant international guidelines and standards as a reference, the Commission should be able to issue additional guidance that will serve as a practical tool for companies, especially for small and medium-sized enterprises, and for microenterprises that might be indirectly impacted by this Directive. __________________ 104 https://www.ungpreporting.org/wp- content/uploads/UNGPReportingFramewor k_withguidance2017.pdf. 105 https://www.ohchr.org/Documents/Issues/ Business/RtRInterpretativeGuide.pdf.https: //www.ohchr.org/Documents/Issues/Busine ss/RtRInterpretativeGuide.pdf.
Amendment 75 #
Proposal for a directive
Recital 28
Recital 28
(28) In order to ensure that due diligence forms part of companies’ corporate policies, and in line with the relevant international framework, companies should integrate due diligence into all their corporate policies and have in place a due diligence policy. The due diligence policy should contain a description of the company’s approach, including in the long term, to due diligence, a code of conduct describing the rules and principles to be followed by the company’s employees and subsidiaries; 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. The code of conduct should apply in all relevant corporate functions and operations, including procurement and purchasing decisions. Companies should also update their due diligence policy annually.
Amendment 79 #
Proposal for a directive
Recital 31
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 relevSMEs covered by this Directive, those companies should be supported with adequate and targeted measures antd to the respective sectorols.
Amendment 81 #
Proposal for a directive
Recital 34
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, 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 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 capacity- building via activities such as training, management systems upgrading, and collaborate with other companies to develop guidance and sectoral supporting materials, with a particular focus on limiting the potential burden on microenterprises.
Amendment 89 #
Proposal for a directive
Recital 37
Recital 37
(37) As regards direct and indirect business relationships, industry cooperation, industry schemes and multi- stakeholder initiatives can help create additional leverage to identify, mitigate, and prevent adverse impacts. Therefore it should be possible for companies to rely on such initiatives to support the implementation of their due diligence obligations laid down in this Directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. Companies could assess, at their own initiative, the alignment of these schemes and initiatives with the obligations under this Directive. In order to ensure full information on such initiatives, the Directive should also refer to the possibility for the Commission and the Member States toshould facilitate the dissemination of information on such schemes or initiatives and their outcomes. The Commission, in collaboration with Member States, mayshould issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives.
Amendment 92 #
Proposal for a directive
Recital 38
Recital 38
(38) Under the due diligence obligations set out by this Directive, if a company identifies actual human rights or environmental adverse impacts, it should take appropriate measures to bring those to an end. It can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. However, it should be clarified that, as regards established business relationships, where adverse impacts cannot be brought to an end, companies should minimise the extent of such impacts. Minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. To provide companies with legal clarity and certainty, this Directive should define which actions companies should be required to take for bringing actual human rights and environmental adverse impacts to an end and minimisation of their extent, where relevant depending on the circumstances.
Amendment 96 #
Proposal for a directive
Recital 39
Recital 39
(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, 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, provide targeted and proportionate support for an SMEs and notably microenterprises with which they have an established business relationships and collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end.
Amendment 105 #
Proposal for a directive
Recital 43
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.
Amendment 106 #
Proposal for a directive
Recital 45
Recital 45
(45) In order to facilitate companies’ compliance with their due diligence requirements through their value chain and limiting shifting compliance burden on SME business partners, the Commission should provide guidance on model contractual clauses, including with a focus on SMEs, and microenterprises that could be impacted by this Directive.
Amendment 109 #
Proposal for a directive
Recital 46
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, and where appropriate with international bodies having expertise in due diligence, should have the possibility to issue guidelineissue guidelines and other support materials, including for specific sectors or specific adverse impacts, as well as for the compliance of SMEs.
Amendment 110 #
Proposal for a directive
Recital 47
Recital 47
(47) Although SMEmicroenterprises are not included in the scope of this Directive, they could be impacted by its provisions as contractors or subcontractors to the companies which are in the scope. The aim is nevertheless to mitigate financial or administrative burden on SMEs and in particular of microenterprises, many of which are already struggling in the context of the global economic and sanitary crisis. In order to support SMEs and notably microenterprises, Member States should set up and operate supporting materials, either individually or jointly, such as dedicated websites, toolkits, portals or platforms, and Member States cshould also financially support SMEs and help them build capacity to comply with this Directive. Such support should also be made accessible, and where necessary adapted and extended to upstream economic operators in third countries. Companies whose business partner is an SME and in particular a microenterprise, are also encouraged to support them to comply with due diligence measures, in case such requirements would jeopardize the viability of the SME and use fair, reasonable, non-discriminatory and proportionate requirements vis-a-vis the SMEs.
Amendment 113 #
Proposal for a directive
Recital 48
Recital 48
(48) In order to complement Member State support to SMEs and notably microenterprises that might be indirectly impacted by this Directive, the Commission mayshould build on existing EU tools, projects and other actions helping with the due diligence implementation in the EU and in third countries. It may, and set up new support measures that provide help to companies, including measures focussing specifically on compliance of SMEs onwith due diligence requirements, including an observatory for value chain transparency and the facilitation of joint stakeholder initiatives.
Amendment 116 #
Proposal for a directive
Recital 50
Recital 50
(50) In order to ensure that this Directive effectively contributes to combating climate change, companies should adopt a plan to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. In case climate is or should have been identified as a principal risk for or a principal impact of the company’s operations, the company should include emissions reduction objectives in its plan and with the EU climate objectives enshrined in the 'European Climate Law'.
Amendment 118 #
Proposal for a directive
Recital 51
Recital 51
(51) With a view to ensure that such emission reducThe climate targets and transition plan ishould be properly implemented and embedded in the financial incentives of directors, the plan shouland be duly taken into account when setting directors’ variable remuneration, if variable remuneration is linked to the contribution of a director to the company’s business strategy and long- term interests and sustainability.
Amendment 126 #
Proposal for a directive
Recital 57
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 them 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 chains.
Amendment 144 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point a
Article 1 – paragraph 1 – subparagraph 1 – point a
(a) on obligations for companies regarding actual and potential human rights adverse impacts and environmental adverse impacts, with respect to their own operations, the operations of their subsidiaries, and the value chain operations carried out by entities with whom the company has an established business relationship and
Amendment 148 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 2
Article 1 – paragraph 1 – subparagraph 2
Amendment 157 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. This Directive shall apply to companies which are formed in accordance with the legislation of a Member State and which fulfil o, with the exception of micro-enterprises as defined by article 2(3) of the Annex of the following coCommission Recommendiations: 2003/361.
Amendment 159 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
Amendment 164 #
Proposal for a directive
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
Amendment 193 #
Proposal for a directive
Article 2 – paragraph 2 – introductory part
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:have generated a net turnover of more than EUR 8 million in the Union in the financial year preceding the last financial year.
Amendment 194 #
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
Amendment 198 #
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
Amendment 235 #
Proposal for a directive
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the Annex, Part II;and climate impact’ means an adverse impact:
Amendment 237 #
Proposal for a directive
Article 3 – paragraph 1 – point b – point i (new)
Article 3 – paragraph 1 – point b – point i (new)
(i) contributing to exceed planetary boundaries;
Amendment 238 #
Proposal for a directive
Article 3 – paragraph 1 – point b – point ii (new)
Article 3 – paragraph 1 – point b – point ii (new)
(ii) on the elements or functions of ecosystems and the interrelations between them: (a) climate, including but not limited to greenhouse gas emissions and the destruction or degradation of sinks; (b) air and the atmosphere, including but not limited to air pollution; (c) water and access to water, including but not limited to water pollution and depletion of freshwater; (d) soil, including but not limited to soil pollution, soil erosion, land use and land degradation, soil contamination from waste disposal and treatment; (e) biodiversity, including but not limited to damage to wildlife, flora, seabed and marine environment, natural habitats and ecosystems; (f) the transition to a circular economy, including but not limited to impairment to reusability and recyclability; (g) hazardous substances; (h) energy use; (i) light, noise and vibration, including but not limited to noise and light pollution; (j) human health in accordance with the ‘One Health approach’;
Amendment 239 #
Proposal for a directive
Article 3 – paragraph 1 – point b – point iii (new)
Article 3 – paragraph 1 – point b – point iii (new)
(iii) on the environment resulting from any violation of one of the international environmental standards enshrined, including but not limited to, in the international environmental conventions listed in the Annex, Part II;
Amendment 247 #
Proposal for a directive
Article 3 – paragraph 1 – point e a (new)
Article 3 – paragraph 1 – point e a (new)
(ea) 'high-impact sector' means any of the following sectors: (i) the production, use and disposal of organic and inorganic chemicals, including pharmaceuticals, plant protection products and fertilisers; (ii) the manufacture of textiles, leather, fur, and related products(including footwear), and the wholesale trade of textiles, clothing and footwear; (iii) plastic production, waste shipment and management; (iv) agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, animal products, wood, food, beverages; (v) construction sector and infrastructure building; (vi) the transportation sector, logistics and storage; (vii) the extraction and refining 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); (viii) the energy sector including gas, nuclear, steam, electricity and other sources throughout their life cycle, from extraction, refining, production, combustion of fuels, transportation, storage and waste management including radioactive waste; (ix) the services provided by regulated financial undertakings defined in Art. 3(a)(iv) such as loan, credit, financing, investment, pensions, securitisation, insurance and reinsurance, market funding, risk management, payment services and other financial services.
Amendment 250 #
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
Amendment 260 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production of goods or the provision of services by a companythe company, by its subsidiaries or by companies in which it holds minority shareholding, 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 or its subsidiaries. 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;
Amendment 298 #
Proposal for a directive
Article 5 – paragraph 1 – point c
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.
Amendment 304 #
Proposal for a directive
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
2a. For companies operating in one of the sectors referred to in Article 3 (ea), the provisions described in this Article shall include a detailed focus on the risks that are specific to that sector.
Amendment 315 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and, where related to their value chains, from their established business relationships, in accordance with paragraph 2, 3 and 4.
Amendment 320 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
Amendment 335 #
Proposal for a directive
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to prevent, or where prevention is not possible or not immediately possible, adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been, or should have been, identified pursuant to Article 6, in accordance with paragraphs 2, 3, 4 and 5 of this Article. Member States shall ensure that companies operating in a sector referred in Article 3 (ea) take all the necessary measures to target the specific risks arising from their specific sector.
Amendment 347 #
Proposal for a directive
Article 7 – paragraph 2 – point b
Article 7 – paragraph 2 – point b
(b) seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s value chain (contractual cascading). When such contractual assurances are obtained, paragraph 4 shall apply. In case the business partner belongs to one of the sectors referred to in Article 3, point (ea), the assurances shall include details on ensuring compliance with regards to the risks that are specific to that sector;
Amendment 361 #
Proposal for a directive
Article 7 – paragraph 2 – point d
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;
Amendment 396 #
Proposal for a directive
Article 8 – paragraph 3 – point c
Article 8 – paragraph 3 – point c
(c) seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and, as necessary, a corrective action plan, including by seeking corresponding contractual assurances from its partners, to the extent that they are part of the value chain (contractual cascading). When such contractual assurances are obtained, paragraph 5 shall apply. In case the business partner belongs to one of the sectors referred to in Article 3, point (ea), the assurances shall include details on ensuring compliance with regards to the risks that are specific to that sector.
Amendment 406 #
Proposal for a directive
Article 8 – paragraph 3 – point e
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;
Amendment 454 #
Proposal for a directive
Article 10 – paragraph 1
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 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 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 in accordance with the outcome of those assessments.
Amendment 459 #
Proposal for a directive
Article 12 – paragraph 1
Article 12 – paragraph 1
In order to provide support to companies to facilitate their compliance with Article 7(2), point (b), and Article 8(3), point (c), the Commission shall adopt guidance about voluntary model contract clauses, taking due consideration of the structurally more limited capacities and resources of SMEs.
Amendment 462 #
Proposal for a directive
Article 13 – paragraph 1
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, mayshall issue guidelines, including for specific sectors or specific adverse impacts, and for the compliance of SMEs taking due consideration of their structurally more limited capacities and resources.
Amendment 466 #
Proposal for a directive
Article 14 – paragraph 1
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 supporting materials such as dedicated websites, platforms or portals. Specific consideration shall be given, in that respect, to the SMEs and notably microenterprises that are present in the value chains of companies.
Amendment 471 #
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Without prejudice to applicable State aid rules, Member States may financially support SMEs, with a particular focus on microenterprises impacted by this Directive.
Amendment 473 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Commission mayshall establish due diligence advisors under the scope of the Enterprise Europe Network and shall complement Member States’ support measures building on existing Union action to support due diligence in the Union and in third countries and may devise new measures, including facilitation of joint stakeholder initiatives to help companies fulfil their obligations.
Amendment 479 #
Proposal for a directive
Article 15 – title
Article 15 – title
Combating climate changelimate targets and transition plans
Amendment 480 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Member States shall ensure that companies referred to in Article 2(1), point (a), and Article 2(2), point (a), shall adopt a, shall develop, adopt, and implement a transition plan to ensure that the business model and strategy of the company are compatiblealigned with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. This plan shall, in particular, identify, on the basis of information reasonably available to the company, the extent to which c, and with the EU climate objectives by 2030 and 2050, as established in the EU Regulation 2021/1119, pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate cChange is a risk for, or an impact. This plan shall take into account the entire value chain of, the company’s operations. and shall include:
Amendment 482 #
Proposal for a directive
Article 15 – paragraph 1 – point a (new)
Article 15 – paragraph 1 – point a (new)
(a) a description of the time-bound, short, medium, and long-term targets related to their climate objectives for at least 2030 and 2050, including interim targets, including absolute greenhouse gas emission reduction targets for scope 1, 2 and 3 and avoiding any misleading neutrality or other misleading claims. These targets should be science-based and regularly updated in line with the best available science, and reviewed every five years up to 2050;
Amendment 483 #
Proposal for a directive
Article 15 – paragraph 1 – point b (new)
Article 15 – paragraph 1 – point b (new)
(b) an identification and explanation of decarbonisation levers within the company’s operations and value chain, and related financial and investment plans;
Amendment 484 #
Proposal for a directive
Article 15 – paragraph 1 – point c (new)
Article 15 – paragraph 1 – point c (new)
(c) implementing actions and a description of the progress made to achieve the short, medium, and long-term targets, covering each of their scope 1, 2 and 3 emissions globally, with a prioritisation of decarbonisation, greenhouse gas emission reduction and the closure of carbon intensive assets over their sale to third parties, including in developing countries.
Amendment 486 #
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
2. Member States shall ensure that, in case climate change is or should have been identified as a principal risk for, or a principal impact of, the company’s operations, the company includes emission reduction objectives in its plan. companies referred to in Article 2 integrate the climate targets and transition plan referred to in this Article into the companies' strategy. Member States shall ensure that boards have an obligation to ensure that environmental and climate risks and impacts are addressed in the company’s strategy.
Amendment 490 #
Proposal for a directive
Article 15 – paragraph 3
Article 15 – paragraph 3
3. Member States shall ensure that companies duly take into account the fulfilment of the obligations referred to in paragraphs 1 and 2 when setting variablalign a significant part of directors' variable remuneration with the proper implementation of the transition plan and the achievement of their climate targets and plan, in particular absolute gremuneration, if variable remuneration is linked to the contribution of a director to the company’s business strategy and long- term interests and sustainabilityenhouse gas emission reduction targets for scope 1, 2 and 3referred to in this Article. Directors shall be liable for achieving climate objectives and thus for overseeing the obligations set out in paragraphs 1 and 1a of this Article.
Amendment 525 #
Proposal for a directive
Article 22 – paragraph 2 – subparagraph 1
Article 22 – paragraph 2 – subparagraph 1
Notwithstanding paragraph 1, Member States shall ensure that where a company has taken the actions referred to in Article 7(2), point (b) and Article 7(4), or Article 8(3), point (c), and Article 8(5), it shall not be liable for damages caused by an adverse impact arising as a result of the activities of an indirect partner with whom it has an established business relationship, unless it was unreasonable, in the circumstances of the case, to expect that the action actually taken, including as regards verifying compliance, would be adequate to prevent, mitigate, bring to an end or minimise the extent of the adverse impact.