Activities of Mick WALLACE related to 2022/0051(COD)
Plenary speeches (1)
Corporate Sustainability Due Diligence (A9-0184/2023 - Lara Wolters)
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 (31)
Amendment 136 #
Proposal for a directive
Recital 19
Recital 19
(19) As regards regulated financial undertakings providing loan, credit, or other financial services, “value chain” with respect to the provision of such services should be limited to the activities of the clients receiving such services, and the subsidiaries thereof whose activities are linked to the contract in question. Clients that are households and natural persons not acting in a professional or business capacity, as well as small and medium sized undertakings, should not be considered to be part of the value chain. The activities of the companies or other legal entities that are included in the value chain of that client should not be covered.
Amendment 144 #
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 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, animal products, wood, food, and beverages; energy, the 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.
Amendment 147 #
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 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 extraction 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) and the manufacture of weapons and ammunition, including dual-use items, and the manufacture of military fighting vehicles. 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.
Amendment 150 #
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 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, fur, 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 extraction 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.
Amendment 171 #
Proposal for a directive
Recital 30
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 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.
Amendment 205 #
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, and the objective of achieving climate neutrality by2050 as established in Regulation (EU) 2021/1119. 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. The plan should take into account the entire value chain and include short-, medium- and long-term targets related to sustainability matters, including absolute greenhouse gas emission reduction targets for scope 1, 2 and 3 emissions for 2030 and reviewed every five years up to 2050, explaining their alignment with a 1.5°C climate scenario with no or limited overshoot and whether such targets are based on science, pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change; the plan should also include implementing actions to achieve the targets, an explanation of decarbonisation levers identified, and related financial and investment plans.
Amendment 225 #
Proposal for a directive
Recital 64
Recital 64
(64) Responsibility for due diligence should be assigned to the company’s directors, in line with the international due diligence frameworks. Directors should therefore be responsible for putting in place and overseeing the due diligence actions and the implementation of the plan referred to in Article 15, as laid down in this Directive and for adopting the company’s due diligence policy, taking into account the input of stakeholders and civil society organisations and integrating due diligence and actions under Article 15 into corporate management systems. Directors should also adapt the corporate strategy to actual and potential impacts identified and any due diligence and Article 15 measures taken.
Amendment 229 #
Proposal for a directive
Recital 70
Recital 70
(70) The Commission should assess and report whether new sectors should be added to the list of high-impact sectors covered by this Directive, in order to align it to guidance from the Organisation for Economic Cooperation and Development or in light of clear evidence on labour exploitation, human rights violations or newly emerging environmental threats, whether the list of relevant international conventions referred to in this Directive should be amended, in particular in the light of international developments, or whether the provisions on due diligence under this Directive should be extended to adverse climate impacts.
Amendment 264 #
Proposal for a directive
Article 2 – paragraph 1 – point a
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;
Amendment 271 #
Proposal for a directive
Article 2 – paragraph 1 – point b – introductory part
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 530% of this net turnover was generated in one or more of the following sectors:
Amendment 272 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point i
Article 2 – paragraph 1 – point b – point i
(i) the manufacture of textiles, fur, leather and related products (including footwear), and the wholesale trade of textiles, clothing and footwear;
Amendment 274 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point i a (new)
Article 2 – paragraph 1 – point b – point i a (new)
(ia) the manufacture of weapons and ammunition, including dual-use items, and the manufacture of military fighting vehicles;
Amendment 276 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point ii
Article 2 – paragraph 1 – point b – point ii
(ii) agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, animal products, wood, food, and beverages;
Amendment 278 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii
Article 2 – paragraph 1 – point b – point iii
(iii) energy, the extraction, transport 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).
Amendment 280 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii a (new)
Article 2 – paragraph 1 – point b – point iii a (new)
(iiia) financial and insurance activities as listed in Article 3 (a) (iv);
Amendment 305 #
Proposal for a directive
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) ‘adverse environmental impact’ means: (i) any adverse impact on the environment resulting from the violation of one of the following environmental categories: (a) air, including air pollution and atmosphere; (b) water, including water pollution, water contamination, access to water and depletione of the prohibitions and obligations pursuant tofreshwater; (c) soil, including soil pollution, soil contamination, soil erosion and land degradation; (d) biodiversity, including damage to wildlife, seabed and marine environment, flora, fauna, natural habitats and ecosystems; (e) climate, including greenhouse gas emissions; (f) transition to circular economy, including impairment to reusability and recyclability; (ii) any violation of one of the international environmental standards enshrined in the international environmental conventions listed in the Annex, Part II;
Amendment 335 #
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 company, 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;
Amendment 369 #
Proposal for a directive
Article 3 – paragraph 1 a (new)
Article 3 – paragraph 1 a (new)
‘targets based on science’ means sustainability targets based on science that are capable of urgently responding to scientific analysis and recommendations, and can ensure effective action;
Amendment 416 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
Amendment 485 #
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 533 #
Proposal for a directive
Article 8 – paragraph 7
Article 8 – paragraph 7
Amendment 622 #
Proposal for a directive
Article 15 – title
Article 15 – title
Combating climate change and addressing sustainability-related risk and impacts
Amendment 628 #
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 adop develop and implement a 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 th, and the objective of achieving climate neutrality by 2050 at the latest as established in Regulation (EU) 2021/1119. This plan shall take into account the entire value chain and include: (a) short-, medium- and long-term targets related to sustainability matters, including absolute greenhouse bgasis of information reasonably available to the company, the extent to which climate change is a risk for, or emission reduction targets for scope 1, 2 and 3 emissions for 2030 and reviewed every five years up to 2050, explaining their alignment with a 1.5°C climate scenario with no or limited overshoot and whether such targets are based on science, pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change. Companies active in the energy and agricultural sectors shall specify the share of methane emissions, including their methane emissions reduction plan; Before the targets are set, the identification of risks and impact of, the company’s operatios should be done beforehand; (b) implementing actions to achieve the targets that do not rely on the use of offsets and negative emissions technologies to achieve emission reduction targets, an explanation of decarbonisation levers identified, a description of the progress made and related financial and investment plans.
Amendment 643 #
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
Amendment 652 #
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 variable remuneration, if variable remuneration is linked to the contribution of a director to the company’s business strategy and long- term interests and sustainabilityalign half of directors’ variable remuneration with the achievement of the sustainability, and in particular, greenhouse gas emission reduction, targets.
Amendment 657 #
Proposal for a directive
Article 15 – paragraph 3 a (new)
Article 15 – paragraph 3 a (new)
3a. Member States shall ensure that directors are responsible for overseeing the obligations spelled out in paragraphs 1 and 2 of this article as well as the due diligence process as spelled out in Article 26.
Amendment 732 #
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Member States shall ensure that, when fulfilling their duty to act in the best interest of the company, directors of companies referred to in Article 2(1) take into account the consequences of their decisions for sustainability matters, including, where applicableintegrate sustainability risks and actual and potential impacts identified through due diligence and pursuant to Article 15 into their decisions including, human rights, climate change and environmental consequences, including in the short, medium and long term.
Amendment 739 #
Proposal for a directive
Article 26 – title
Article 26 – title
Setting up and overseeing due diligence and plans under Article 15
Amendment 742 #
Proposal for a directive
Article 26 – paragraph 1
Article 26 – paragraph 1
1. Member States shall ensure that directors of companies referred to in Article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in Article 4 and in particular the due diligence policythe implementation of the plan referred to in Article 15, with due consideration for relevant input from stakeholders and civil society organisations. The directors shall regularly report to the board of directors in that respecwho shall discuss progress and challenges in addressing salient human rights and environmental impacts, and review the company’s business model and any proposed changes to it.
Amendment 747 #
Proposal for a directive
Article 26 – paragraph 2
Article 26 – paragraph 2
2. Member States shall ensure that directors take steps to adapt the corporate strategy to take into account the actual and potential adverse impacts identified pursuant toand business model to implement the actions under Article 64 and any measures taken pursuant to Articles 7 to 9plans under Article 15.
Amendment 763 #
Proposal for a directive
Article 29 – paragraph 1 – point d
Article 29 – paragraph 1 – point d
(d) whether Articles 4 to 14 should be extended to adverse climatditional adverse impacts.