Activities of Jorge BUXADÉ VILLALBA related to 2022/0051(COD)
Plenary speeches (1)
Corporate Sustainability Due Diligence (debate)
Shadow reports (1)
REPORT 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 (179)
Amendment 266 #
Proposal for a directive
Recital 3 a (new)
Recital 3 a (new)
(3a) As there is a very high standard regarding human rights and the environment in the EU, with existing legally binding frameworks, EU-based companies should be understood to act in accordance with existing national and EU law. Therefore, supply chains within the EU should be exempted from the directive and European companies should apply this directive only for operations outside the EU in the sectors posing the highest risks.
Amendment 267 #
Proposal for a directive
Recital 3 b (new)
Recital 3 b (new)
(3b) The duty of due diligence within the EU should apply only to activities carried out by companies established in third countries.
Amendment 271 #
Proposal for a directive
Recital 4 a (new)
Recital 4 a (new)
(4a) In its legislative activities, the EU must prioritise both employment protection in Europe and the competitiveness of its companies, especially in view of their difficulties in accessing raw materials and energy sources at competitive prices.’
Amendment 275 #
Proposal for a directive
Recital 5
Recital 5
(5) Existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. The United Nations Guiding Principles on Business and Human Rights79 which are not binding for EU businesses, recognise the responsibility of companies to exercise human rights due diligence by identifying, preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. Those Guiding Principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused, contributed to or are linked with in their own operations, subsidiaries and through their direct and indirect business relationships. _________________ 79 Guiding Principles on Business and Human Rights: United Nations’ “Guiding Principles on Business and Human Rights: Implementing the United Nations ‘Protect, Respect and Remedy’ Framework” (2011), available at https://www.ohchr.org/Documents/Publicat ions/GuidingPrinciplesBusinessHR_EN.pd f.
Amendment 276 #
Proposal for a directive
Recital 5
Recital 5
(5) Existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and valuesupply chains. The United Nations Guiding Principles on Business and Human Rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying, preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. Those Guiding Principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused, contributed to or are linked with in their own operations, subsidiaries and through their direct and indirect business relationships. _________________ 79 United Nations’ “Guiding Principles on Business and Human Rights: Implementing the United Nations ‘Protect, Respect and Remedy’ Framework”, 2011, available at https://www.ohchr.org/documents/publicati ons/guidingprinciplesbusinesshr_en.pdf.
Amendment 277 #
Proposal for a directive
Recital 6
Recital 6
Amendment 279 #
Proposal for a directive
Recital 7
Recital 7
Amendment 282 #
Proposal for a directive
Recital 8
Recital 8
Amendment 287 #
Proposal for a directive
Recital 9
Recital 9
(9) In the European Climate Law86, the Union also legally committed to becoming climate-neutral by 2050 and to reducing emissions by at least 55% by 2030. Both these commitments require changing the way in which companies produce and procure. The Commission’s 2030 Climate Target Plan87 models various degrees of emission reductions required from different economic sectors, though all need to see considerable reductions under all scenarios for the Union to meet its climate objectives. The Plan also underlines that “changes in corporate governance rules and practices, including on sustainable finance, will make company owners and managers prioritise sustainability objectives in their actions and strategies.” The 2019 Communication on the European Green Deal88 sets out that all Union actions and policies should pull together to help the Union achieve a successful and just transition towards a sustainable future. It also sets out that sustainability should be further embedded into the corporate governance framework. _________________ 86 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) PE/27/2021/REV/1 (OJ L 243, 9.7.2021, p. 1). 87 SWD/2020/176 final. 88 COM/2019/640 final.
Amendment 291 #
Proposal for a directive
Recital 10
Recital 10
Amendment 297 #
Proposal for a directive
Recital 12 a (new)
Recital 12 a (new)
(12a) Environmental sustainability must be developed together with economic and social sustainability. In pursuing action in this area, the European Union must give priority to joint research and technological development, while limiting any new proposals that increase the bureaucratic, administrative or economic burden on EU businesses.
Amendment 300 #
Proposal for a directive
Recital 13
Recital 13
(13) The European Parliament, in its resolution of 10 March 2021 calls upon the Commission to propose Union rules for a comprehensive corporate due diligence obligation100. The Council Conclusions on Human Rights and Decent Work in Global Supply Chains of 1 December 2020 called upon the Commission to table a proposal for a Union legal framework on sustainable corporate governance, including cross- sector corporate due diligence obligations along global supply chains101. The European Parliament also calls for clarifying directors` duties in its own initiative report adopted on 2 December 2020 on sustainable corporate governance. In their Joint Declaration on EU Legislative Priorities for 2022102, the European Parliament, the Council of the European Union and the Commission have committed, to deliver on an economy that works for people, and to improve the regulatory framework on sustainable corporate governance. _________________ 100 European Parliament resolution of 10 March 2021 with recommendations to the Commission on corporate due diligence and corporate accountability (2020/2129(INL)), P9_TA(2021)0073, available at https://oeil.secure.europarl.europa.eu/oeil/p opups/ficheprocedure.do?lang=en&referen ce=2020/2129(INL). 101 Council Conclusions on Human Rights and Decent Work in Global Supply Chains, 1 December 2020 (13512/20). 102 Joint declaration of the European Parliament, the Council of the European Union and the European Commission on EU Legislative Priorities for 2022, available at https://ec.europa.eu/info/sites/default/files /joint_declaration_2022.pdf.
Amendment 302 #
Proposal for a directive
Recital 14
Recital 14
(14) This Directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification, prevention and mitigation, bringing to an end and minimisation of potentialforeseeable, based on the state of knowledge, or actual adverse human rights and environmental impacts connected with companies’ own operations, subsidiaries and valuesupply chains.
Amendment 306 #
Proposal for a directive
Recital 14
Recital 14
(14) This Directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification, prevention and mitigation, bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations, subsidiaries and value chains.supply chains. (This amendment applies throughout the text and is related to the amendment of the definition in Article 3(1), point (g). Adopting it will necessitate corresponding changes throughout.)
Amendment 314 #
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 valuesupply 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 valuesupply chain, sector or geographical area in which its valuesupply 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 315 #
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 valuesupply 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 mightis 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 valuesupply chain, sector or geographical area in which its valuesupply 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 316 #
Proposal for a directive
Recital 16
Recital 16
(16) The due diligence process set out in this Directive should cover the six steps defined by the OECD Due Diligence Guidance for Responsible Business Conduct, which include due diligence measures for companies to identify and address adverse human rights and environmental impacts. This encompasses the following steps: (1) integrating due diligence into policies and management systems, (2) identifying and assessing adverse human rights and environmental impacts, (3) preventing, ceasing or minimising actual and potential, based on the state of knowledge, foreseeable adverse human rights, and environmental impacts, (4) assessing the effectiveness of measures, (5) communicating, (6) providing remediation.
Amendment 320 #
Proposal for a directive
Recital 17
Recital 17
(17) Adverse human rights and environmental impact occur in companies’ own operations, subsidiaries, products, and in their valuesupply chains, in particular outside of the EU at the level of raw material sourcing, manufacturing, or at the level of product or waste disposal. In order for the due diligence to have a meaningful impact, it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services, at the level of own operations, subsidiaries and in value chains.
Amendment 324 #
Proposal for a directive
Recital 18
Recital 18
(18) The valuesupply chain should cover activities related to the production of a good or 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 established business relationships of the company. It should encompass upstream established direct athose operations or services with third parties following the conclusion of a bind 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 landfillingg legal contract by which the company obtains the material, capital or service necessary to commercialise its corporate purpose.
Amendment 327 #
Proposal for a directive
Recital 18
Recital 18
(18) The valuesupply chain should cover activities related to the production of a good or 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 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 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 338 #
Proposal for a directive
Recital 19
Recital 19
(19) As regards regulated financial undertakings providing loan, credit, or other financial services, “valuesupply 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 coveredfalling within the by the scope of this Directive.
Amendment 342 #
Proposal for a directive
Recital 20
Recital 20
(20) In order to allow companies to properly identify the adverse impacts in their valuesupply chain and to make it possible for them to exercise appropriate leverage, the due diligence obligations should be limited in this Directive to establisheddirect contractual business relationships. For the purpose of this Directive, establisheddirect 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 companysupply chain and which link both parties through a legal contract.
Amendment 345 #
Proposal for a directive
Recital 20
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 established 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 valuesupply 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.
Amendment 350 #
Proposal for a directive
Recital 21
Recital 21
(21) Under this Directive, EU companies with more than 5000 employees on average and a worldwide net turnover exceeding EUR 1500 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. 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 in their operations outside the EU. 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 except in the case of ships' crews, seasonal workers employed in the agriculture, livestock or fisheries sector, and temporary workers in the Horeca sector. 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 354 #
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). 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, based on the state of knowledge, foreseeable 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 368 #
Proposal for a directive
Recital 27
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 potentialforeseeable, based on the state of knowledge, and actual adverse human rights and environmental impacts, establish and maintain a complaints procedure, 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. In order to ensure clarity for companies, in particular the steps of preventing and mitigating potential adverse impacts that are foreseeable, based on the state of knowledge, and of bringing to an end, or when this is not possible, minimising real adverse impacts should be clearly distinguished in this Directive.
Amendment 383 #
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, based on the state of knowledge, foreseeable 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 387 #
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, based on the state of knowledge, foreseeable severe adverse impacts that are relevant to the respective sector.
Amendment 393 #
Proposal for a directive
Recital 33
Recital 33
(33) Under the due diligence obligations set out by this Directive, if a company identifies potential adverse human rights or environmental impacts that are foreseeable, based on the state of knowledge, it should take appropriate measures to prevent and adequately mitigate them. To provide companies with legal clarity and certainty, this Directive should set out the actions companies should be expected to take for prevention and mitigation of potential adverse impacts that are foreseeable, based on the state of knowledge, where relevant depending on the circumstances.
Amendment 398 #
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, based on the state of knowledge, foreseeable 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 training, management systems upgrading, and collaborate with other companies.
Amendment 399 #
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’ valuesupply 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,. Companies may 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.
Amendment 403 #
Proposal for a directive
Recital 35
Recital 35
(35) In order to reflect the full range of options for the company in cases where potential impactsforeseeable impacts, based on the state of knowledge, could not be addressed by the described prevention or minimisation measures, this Directive should also refer to the possibility for the company to seek to conclude a contract with the indirect business partner, with a view to achieving compliance with the company’s code of conduct or a prevention action plan, and conduct appropriate measures to verify compliance of the indirect business relationship with the contract.
Amendment 404 #
Proposal for a directive
Recital 35
Recital 35
(35) In order to reflect the full range of options for the company in cases where potential impacts could not be addressed by the described prevention or minimisation measures, this Directive should also refer to the possibility for the company to seek to conclude a contract with the inits direct business partner, with a view to achieving compliance with the company’s code of conduct or a prevention action plan, and conduct appropriate measures to verify compliance of the indirect business relationship with the contract.
Amendment 406 #
(36) In order to ensure that prevention and mitigation of potential adverse impacts is effective, companies should prioritize engagement with business relationships in the value chain, instead of terminating the business relationshipm, as a last resort action after attempting at preventing and mitigating adverse potential impacts without success. However, the Directive should also, for cases where potential adverse impacts could not be addressed by the described prevention or mitigation measures, refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question and, where the law governing their relations so entitles them to, to either temporarily suspend commercial relationships with the partner in question, while pursuing prevention and minimisation efforts, if there is reasonable expectation that these efforts are to succeed in the short-term; or to terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe. In order to allow companies to fulfil that obligation, Member States should provide for the availability of an option to terminate the business relationship in contracts governed by their laws. It is possible that prevention of adverse impacts at the level of indirect business relationships requires collaboration with another company, for example a company which has a direct contractual relationship with the supplier. In some instances, such collaboration could be the only realistic way of preventing adverse impacts, in particular, where the indirect business relationship is not ready to enter into a contract with the company. In these instances, the company should collaborate with the entity which can most effectively prevent or mitigate adverse impacts at the level of the indirect business relationship while respecting competition law.
Amendment 407 #
Proposal for a directive
Recital 36
Recital 36
(36) In order to ensure that prevention and mitigation of potential adverse impacts that are foreseeable, based on the state of knowledge, is effective, companies should prioritize engagement with business relationships in the value chain, instead of terminating the business relationship, as a last resort action after attempting at preventing and mitigating adverse potential impactsimpacts that are foreseeable, based on the state of knowledge, without success. However, the Directive should also, for cases where potential adverse impacts that are foreseeable, based on the state of knowledge, could not be addressed by the described prevention or mitigation measures, refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question and, where the law governing their relations so entitles them to, to either temporarily suspend commercial relationships with the partner in question, while pursuing prevention and minimisation efforts, if there is reasonable expectation that these efforts are to succeed in the short-term; or to terminate the business relationship with respect to the activities concerned if the potential adverse impact that is foreseeable, based on the state of knowledge, is severe. In order to allow companies to fulfil that obligation, Member States should provide for the availability of an option to terminate the business relationship in contracts governed by their laws. It is possible that prevention of adverse impacts at the level of indirect business relationships requires collaboration with another company, for example a company which has a direct contractual relationship with the supplier. In some instances, such collaboration could be the only realistic way of preventing adverse impacts, in particular, where the indirect business relationship is not ready to enter into a contract with the company. In these instances, the company should collaborate with the entity which can most effectively prevent or mitigate adverse impacts at the level of the indirect business relationship while respecting competition law.
Amendment 412 #
(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 to facilitate the dissemination of information on such schemes or initiatives and their outcomes. The Commission, in collaboration with Member States, may issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives.
Amendment 422 #
Proposal for a directive
Recital 40
Recital 40
Amendment 428 #
Proposal for a directive
Recital 42
Recital 42
(42) Companies should provide the possibility for persons and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential, based on the state of knowledge, foreseeable human rights and environmental adverse impacts. Organisations who could submit such complaints 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 impact. Companies should establish a procedure for dealing with those complaints and inform workers, trade unions and other workers’ representatives, where relevant, about such processes. Recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. In accordance with international standards, complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potentialforeseeable, based on the state of knowledge, or actual severe adverse impacts that are the subject matter of the complaint. This access should not lead to unreasonable solicitations of companies.
Amendment 438 #
Proposal for a directive
Recital 44
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 or impacts that could be anticipated in line with existing knowledge, 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 companies covered by that 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 business.
Amendment 471 #
Proposal for a directive
Recital 56
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. The company should be liable for damages if they failed to comply with the obligations to prevent and mitigate potential adverse impacts that could be anticipated in line with existing knowledge 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.
Amendment 488 #
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 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 into corporate management systems. Directors should also adapt the corporate strategy to actual and potential impacts identifiedimpacts and impacts that could be anticipated in line with existing knowledge and any due diligence measures taken.
Amendment 491 #
Proposal for a directive
Recital 66
Recital 66
(66) In order to specify the information that companies not subject to reporting requirements under the provisions on corporate sustainability reporting under Directive 2013/34/EU should be communicating on the matters covered by this Directive, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of determining additional rules concerning the content and criteria of such reporting, specifying information on the description of due diligence, potentialimpacts that could be anticipated in line with existing knowledge and actual impacts and actions taken on those. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making107. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 107 OJ L 123, 12.5.2016, p. 1.
Amendment 496 #
Proposal for a directive
Recital 71
Recital 71
(71) The objective of this Directive, namely better exploiting the potential of the single market to contribute to the transition to a sustainable economy and contributing to sustainable development through the prevention and mitigation of potential or actual human rights and environmental adverse impacts, or such impacts that could be anticipated in line with existing knowledge, in companies’ value chains, cannot be sufficiently achieved by the Member States acting individually or in an uncoordinated manner, but can rather, by reason of the scale and effects of the actions, be better achieved at Union level. In particular, addressed problems and their causes are of a transnational dimension, as many companies are operating Union wide or globally and value chains expand to other Member States and to third countries. Moreover, individual Member States’ measures risk being ineffective and lead to fragmentation of the internal market. Therefore, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective.
Amendment 502 #
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 widverse impacts, or such impacts that could be anticipated in line with existing knowledge, on the fundamental rights enshrined in the EU Charter of Fundamental Rights, especially the respect to their own operations, the operaights of the child and the prohibitions of their subsidiarieschild labour, and on the value chain operations carried out by entities with whom the company has an established business relationship andenvironment of the operations linked to their sole or main corporate purposes and the operations of their subsidiaries.
Amendment 503 #
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 operationdverse impacts, or such impacts that could be anticipated in line with existing knowledge, on the fundamental rights enshrined in the EU Charter of Fundamental Rights, especially the rights of the child and the prohibition of child labour, and on the environment of the operations linked to their sole or main corporate purposes, the operations of their subsidiaries, and the valuesupply chain operations carried out by entities with whom the company has an established business direct contractual relationship and
Amendment 520 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 2
Article 1 – paragraph 1 – subparagraph 2
Amendment 525 #
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
2. This Directive shall not constitute grounds for reducing the level of protection of human rights 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.
Amendment 530 #
Proposal for a directive
Article 1 – paragraph 3
Article 1 – paragraph 3
3. This Directive shall be without prejudice to obligations in the areas of human rights, protection of and the environment and climate change under other Union legislative acts. If the provisions of this Directive conflict with a provision of another Union legislative act pursuing the same objectives and providing for more extensive or more specific obligations, the provisions of the other Union legislative act shall prevail to the extent of the conflict and shall apply to those specific obligations.
Amendment 537 #
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 in respect of their operations outside the Union and which fulfil one of the following conditions:
Amendment 541 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) the company had more than 5 000 employees on average and had a net worldwide turnover of more than EUR 1500 million in the last financial year for which annual financial statements have been prepared;
Amendment 548 #
Proposal for a directive
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
Amendment 597 #
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 in respect of their operations in the Union, and fulfil one of the following conditions:
Amendment 608 #
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
Amendment 626 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
3. For the purposes of paragraph 1, the number of part-time employees shall be calculated on a full-time equivalent basis. Temporary agency workers shall be included in the calculation of the number of employees in the same way as if they were workers employed directly for the same period of time by the company. The number of workers on temporary postings shall not include crews of vessels and, therefore, they shall not be taken into account when calculating the number of employees in the user company, as provided for in Article 1(2) of Directive 96/71/EC, amended by Directive (EU) 2018/957 of the European Parliament and of the Council.
Amendment 627 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
3. For the purposes of paragraph 1, the number of part-time employees shall be calculated on a full-time equivalent basis. Temporary agency workers shall be included in the calculation of the number of employees in the same way as if they were workers employed directly for the same period of time by the company, except for companies in the primary sector (agriculture, forestry, fisheries (including aquaculture), food production and wholesale trade in agricultural raw materials, live animals, wood, food and beverages) and the tertiary sector (hotel, restaurant and catering sector).
Amendment 636 #
Proposal for a directive
Article 2 – paragraph 4 a (new)
Article 2 – paragraph 4 a (new)
4a. This Directive shall also apply to companies that operate primarily online and in the territory of the European Union, including e-commerce, whether or not they are established in a Member State.
Amendment 637 #
Proposal for a directive
Article 2 – paragraph 4 b (new)
Article 2 – paragraph 4 b (new)
4b. This Directive shall in all cases apply to companies that are publicly owned or where more than 50% of the share capital is held by the government of an EU Member State or by third countries.
Amendment 638 #
Proposal for a directive
Article 2 – paragraph 4 c (new)
Article 2 – paragraph 4 c (new)
4c. This Directive shall also apply to economic activities carried out by national and Community public administrations.
Amendment 639 #
Proposal for a directive
Article 2 – paragraph 4 d (new)
Article 2 – paragraph 4 d (new)
4d. This Directive shall also apply to associations, foundations, non-profit organisations (NPOs) and NGOs that receive any kind of aid, allocation or grant from European, state, regional or local funds, irrespective of the amount, the number of employees or the financial results.
Amendment 650 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – introductory part
Article 3 – paragraph 1 – point a – point iv – introductory part
(iv) a regulated financial undertaking, regardless of its legal form or public or private ownership, which is
Amendment 651 #
Amendment 652 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – indent 8
Article 3 – paragraph 1 – point a – point iv – indent 8
Amendment 656 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – indent 19 a (new)
Article 3 – paragraph 1 – point a – point iv – indent 19 a (new)
— a company with public ownership or participation as defined in Article 2(3) of Directive (EU) 2019/1024 or operating in the sectors covered by Directive 2014/25/EU or acting as a public service operator pursuant to Article 2 of Regulation (EC) No 1370/2007;
Amendment 659 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – indent 19 b (new)
Article 3 – paragraph 1 – point a – point iv – indent 19 b (new)
— a ‘non-profit organisation’ pursuant to the European Parliament resolution of 17 February 2022 with recommendations to the Commission on a statute for European cross-border associations and non-profit organisations (2020/2026(INL)), meaning a voluntary and permanent association of natural or legal persons with a common interest, activity or purpose, or an organisation that is not based on membership and whose assets are allocated to the pursuit of a specific aim, such as a foundation, which, irrespective of the form in which the association or organisation is established: a) pursues a primary aim other than that of generating a profit, meaning that if any profits are earned from the organisation’s activities, they cannot be distributed as such among its members, founders or any other private parties, but must be invested for the pursuit of its objectives; b) is independent, in the sense that the organisation is not part of a government or administrative structure and is free from any undue interference by the state or by commercial interests. Governmental funding shall not preclude an organisation being deemed independent, as long as the autonomy of the organisation’s functioning and decision-making is not affected; c) is self- governed, in the sense that the organisation has an institutional structure that allows it to fully exercise its internal and external organisational functions and to make essential decisions in an autonomous manner and without undue interference by the state or other external actors;
Amendment 661 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – indent 19 c (new)
Article 3 – paragraph 1 – point a – point iv – indent 19 c (new)
— a ‘non-governmental organisation’, meaning a voluntary self- governing body or organisation established to pursue the essentially non- profit-making objectives of its members or founders, as defined in Recommendation CM/Rec(2007)14 of the Council of Europe Committee of Ministers to member states on the legal status of non- governmental organisations in Europe;
Amendment 663 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – indent 19 d (new)
Article 3 – paragraph 1 – point a – point iv – indent 19 d (new)
— an EU institution, body or agency, a state, regional or local administration of a Member State, or a third country operating and carrying out activities, in any way, in the territory of the Union;
Amendment 668 #
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 that have been ratified, in accordance with the rules applicable to them, by each and every EU Member State, as listed in the Annex, Part II;
Amendment 678 #
Proposal for a directive
Article 3 – paragraph 1 – point c
Article 3 – paragraph 1 – point c
(c) ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of one of the rights or prohibitions listed in the Annex, Part I Section 1, as enshrined in the international conventionsaid down in the EU Charter of Fundamental Rights and the rights and prohibitions laid down in the international conventions that have been ratified, in accordance with the rules applicable to them, by all the EU Member States and that are listed in the Annex, Part I Section 2;
Amendment 693 #
Proposal for a directive
Article 3 – paragraph 1 – point e – introductory part
Article 3 – paragraph 1 – point e – introductory part
(e) ‘businessdirect contractual relationship’ means a relationship with a contractor, subcontractor or any other legal entities (‘partner’) where a written contract has been signed by both parties
Amendment 703 #
Proposal for a directive
Article 3 – paragraph 1 – point e – point ii
Article 3 – paragraph 1 – point e – point ii
(ii) that performs business operations related to the products or services of the company that constitute its sole or main activity for or on behalf of the company;
Amendment 715 #
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
(f) ‘established business relationship’ means a direct contractual business relationship, whether direct or indirect, which is, or which is expected to be which is lasting, in view of its intensity or duration, and which does not represent a negligible or merely ancillary part of the valuesupply chain;
Amendment 719 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
Amendment 720 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘valuesupply 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 entitiesoperations or services involving third parties following the conclusion of a binding legal contract by which the company obtains the material, capital or service necessary to commercialise its corporate purpose;
Amendment 733 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘valuesupply 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), ‘valuesupply 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 valuesupply chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
Amendment 736 #
Proposal for a directive
Article 3 – paragraph 1 – point g a (new)
Article 3 – paragraph 1 – point g a (new)
(ga) SMEs shall not be included under supply chain of any companies covered by this Directive;
Amendment 737 #
Proposal for a directive
Article 3 – paragraph 1 – point g b (new)
Article 3 – paragraph 1 – point g b (new)
(gb) ‘risk-based approach’ means the measures that a company establishes in order to carry out due diligence, proportionate to the severity and probability of the adverse impact on human rights and the environment that may be generated by its operations;
Amendment 739 #
Proposal for a directive
Article 3 – paragraph 1 – point h
Article 3 – paragraph 1 – point h
Amendment 749 #
Proposal for a directive
Article 3 – paragraph 1 – point j
Article 3 – paragraph 1 – point j
(j) ‘industry initiative’ means a combination of voluntary value chain due diligence procedures, tools and mechanisms, including independent third- party verifications, developed and overseen by governments, industry associations or groupings of interestedsector-specific organisations;
Amendment 770 #
Proposal for a directive
Article 3 – paragraph 1 – point n
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 businessdirect contractual relationships;
Amendment 779 #
Proposal for a directive
Article 3 – paragraph 1 – point o – point iii
Article 3 – paragraph 1 – point o – point iii
Amendment 789 #
Proposal for a directive
Article 3 – paragraph 1 – point q a (new)
Article 3 – paragraph 1 – point q a (new)
(qa) ‘person concerned’ means a natural or legal person who has rights that may be affected by the final decision adopted in the process of remedying foreseeable damage, based on the level of knowledge available or of adverse impacts, or who has personal and direct interests that may also be affected by that decision, acting either by themselves or through a representative;
Amendment 801 #
Proposal for a directive
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Member States shall ensure that companies, when not operating within the European Union, adopt a risk-based approach to their operations and conduct human rights and environmental due diligence as laid down in Articles 5 to 11 (‘due diligence’) by carrying out the following actions:
Amendment 805 #
Proposal for a directive
Article 4 – paragraph 1 – point b
Article 4 – paragraph 1 – point b
(b) identifying actual or potential adverse impacts, or ones foreseeable based on the level of knowledge available, in accordance with Article 6;
Amendment 809 #
Proposal for a directive
Article 4 – paragraph 1 – point c
Article 4 – paragraph 1 – point c
(c) preventing and mitigating potential adverse impacts that are foreseeable based on the level of knowledge available, and bringing actual adverse impacts to an end and minimising their extent in accordance with Articles 7 and 8;
Amendment 810 #
Proposal for a directive
Article 4 – paragraph 1 – point d
Article 4 – paragraph 1 – point d
Amendment 814 #
Proposal for a directive
Article 4 – paragraph 1 – point e
Article 4 – paragraph 1 – point e
Amendment 816 #
Proposal for a directive
Article 4 – paragraph 1 – point f
Article 4 – paragraph 1 – point f
Amendment 823 #
Proposal for a directive
Article 4 – paragraph 2
Article 4 – paragraph 2
2. Member States shall ensure that, for the purposes of due diligence, companies are entitled to share resources and information within their respective groups of companies and with other legal entities in compliance with applicable competition lawestablished outside the European Union conduct human rights and environmental due diligence as laid down in Articles 5 to 11 (‘due diligence’) in their business operations in those sectors where the companies detect the possibility of a risk.
Amendment 826 #
Proposal for a directive
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
2a. Member States shall ensure that, for the purposes of due diligence, companies are entitled to share resources and information within their respective groups of companies and with other legal entities in compliance with applicable competition law, and that the parent company can conduct due diligence procedures for its subsidiaries and companies it holds which fall within the scope of this Directive. Under no circumstances may the resources and information relate to the personal data, in the broadest sense, of users or consumers.
Amendment 829 #
Proposal for a directive
Article 4 a (new)
Article 4 a (new)
Article 4a Without prejudice to civil liability of subsidiaries in accordance with Article 22, Member States shall ensure that parent companies falling under the scope of this Directive may fulfil the obligations set out in Article 5, Article 6, Article 7, Article 8, Article 9, Article 10, Article 11 and Article 15(1) and (2) on behalf of companies which are their subsidiaries falling under the scope of this Directive.
Amendment 834 #
Proposal for a directive
Article 5 – paragraph 1 – introductory part
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 policyand implement the due diligence processes as set out in Article 4 for the first link in their supply chain. The due diligence policy shall contain all of the following:
Amendment 839 #
Proposal for a directive
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) a description of the company’s approach, including in the long term, to due diligence;
Amendment 850 #
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 establisheddirect business relationships;
Amendment 852 #
Proposal for a directive
Article 5 – paragraph 1 – point c a (new)
Article 5 – paragraph 1 – point c a (new)
(ca) The business sectors which the company has identified as being the highest risk in its direct business operations, based on its risk approach;
Amendment 859 #
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States shall ensure that the companies update their due diligence policy annuallywhen significant and decisive events or circumstances arise.
Amendment 866 #
Proposal for a directive
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
2a. Due diligence processes must conform to the provisions of Directive 2016/943 of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets).
Amendment 871 #
Proposal for a directive
Article 6 – title
Article 6 – title
Identifying actual and potential adverse impacts that are foreseeable based on the level of knowledge available
Amendment 879 #
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 potentialsevere adverse human rights impacts and adverse environmental impacts, foreseeable based on the level of knowledge available, arising from their own operations or those of their subsidiaries and, where related to their valuedirect supply chains, from their established businessdirect contractual relationships, in accordance with paragraphs 2, 3 and 4.
Amendment 898 #
Proposal for a directive
Article 6 – paragraph 2
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, foreseeable based on the level of knowledge available, relevant to the respective sector mentioned in Article 2(1), point (b).
Amendment 905 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
3. When companies referred to in Article 3, point (a)(iv), provide credit, loan or other financial services, the identification of actual and potential adverse human rights impacts and adverse environmental impacts shall be carried out only before providing that service.. , foreseeable based on the level of knowledge available, shall be carried out only before providing that service; and only where the recipient of the financial service is another undertaking subject to this Directive and that undertaking cannot provide documentary evidence of compliance with the due diligence obligations.
Amendment 912 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying 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 procedure provided for in Article 9. Companies shall. Where companies consider it appropriate, wthere relevant, alsoy shall carry out consultations with potentially affected groups including workers, employers and other relevant direct stakeholders to gather information on actual or potential adverse impacts or those foreseeable based on the level of knowledge available.
Amendment 921 #
Proposal for a directive
Article 7 – title
Article 7 – title
Preventing potential adverse impacts foreseeable based on the level of knowledge available
Amendment 924 #
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, foreseeable based on the level of knowledge available, that have been, or should have been, identified pursuant to Article 6, in accordance with paragraphs 2, 3, 4 and 5 of this Article.
Amendment 934 #
Proposal for a directive
Article 7 – paragraph 2 – point a
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 non-binding consultation with affected stakeholders;
Amendment 942 #
Proposal for a directive
Article 7 – paragraph 2 – point b
Article 7 – paragraph 2 – point b
(b) seek contractual assurances solely from a business partners governed by the requirements set out in Article 2 of this Directive and 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 itsthose partners governed by the requirements set out in Article 2 of this Directive, to the extent that their activities are part of the company’s value chain (contractual cascading)supply chain, solely for the first link in their supply chain. When such contractual assurances are obtained, paragraph 4 shall apply;
Amendment 954 #
Proposal for a directive
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
Amendment 961 #
Proposal for a directive
Article 7 – paragraph 2 – point e
Article 7 – paragraph 2 – point e
Amendment 968 #
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
Amendment 973 #
Proposal for a directive
Article 7 – paragraph 4
Article 7 – paragraph 4
Amendment 988 #
Proposal for a directive
Article 7 – paragraph 5
Article 7 – paragraph 5
Amendment 1010 #
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 1032 #
Proposal for a directive
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
(a) neutralise the adverse impact or minimise its extent, 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 contribution of the company’s conduct to the adverse impact;
Amendment 1044 #
(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, the corrective action plan shall be developed in consultation with stakeholders;
Amendment 1049 #
Proposal for a directive
Article 8 – paragraph 3 – point c
Article 8 – paragraph 3 – point c
(c) seek contractual assurances from a direct partners governed by the requirements set out in Article 2 of this Directive and with whom it has an established direct 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) governed by the requirements set out in Article 2 of this Directive, to the extent that they are part of the supply chain, while always and in all circumstances excluding from that supply chain all the SMEs participating therein. When such contractual assurances are obtained, paragraph 5 shall apply.
Amendment 1061 #
Proposal for a directive
Article 8 – paragraph 3 – point e
Article 8 – paragraph 3 – point e
Amendment 1068 #
Proposal for a directive
Article 8 – paragraph 3 – point f
Article 8 – paragraph 3 – point f
Amendment 1073 #
Proposal for a directive
Article 8 – paragraph 4
Article 8 – paragraph 4
Amendment 1081 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1
Article 8 – paragraph 5 – subparagraph 1
The contractual assurances or the contract shall be accompanied by the appropriate measures to verifyagreed upon to verify possible compliance. For the purposes of verifying compliance, the company may refer to suitable industry initiatives or independent third-party verificationall of the initiatives it considers suitable in the circumstances.
Amendment 1086 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 2
Article 8 – paragraph 5 – subparagraph 2
When contractual assurances are obtained from, or a contract is entered into, with an SME, the terms used shall becontractual terms or assurances used shall in all cases be voluntary, agreed, fair, reasonable and non- discriminatory. Where voluntary measures to verify compliance are carried out in relation to SMEs, the company shall bear the cost of the independent third-party verification.
Amendment 1092 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – introductory part
Article 8 – paragraph 6 – subparagraph 1 – introductory part
Amendment 1093 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point a
Article 8 – paragraph 6 – subparagraph 1 – point a
Amendment 1096 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point b
Article 8 – paragraph 6 – subparagraph 1 – point b
Amendment 1114 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 2
Article 8 – paragraph 6 – subparagraph 2
Member States shall provide for the availability ofmay adapt contracts governed by their laws to include an option to terminate the business relationship in contracts governed by their laws.
Amendment 1115 #
Proposal for a directive
Article 8 – paragraph 7
Article 8 – paragraph 7
Amendment 1131 #
Proposal for a directive
Article 9 – title
Article 9 – title
Amendment 1136 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that companies provide the possibility for persons and organisationstakeholders listed in paragraph 2 to submit complainrequests to them in writing where they have legitimate concerns regarding actual or potential adverse human rights impacts and adverse environmental impacts, or such impacts that could be anticipated in line with existing knowledge, with respect to their own operations, the operations of their subsidiaries and their value chaindirect business relationships.
Amendment 1157 #
Proposal for a directive
Article 9 – paragraph 2 – point a
Article 9 – paragraph 2 – point a
(a) personsstakeholders, as defined in Article 3 of this Directive, who are affected or have reasonable grounds to believe that they might be affected by an adverse impact,
Amendment 1166 #
Proposal for a directive
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
Amendment 1176 #
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
3. Member States shall ensure that the companies establish a procedurea procedure is established for dealing with complainrequests referred to in paragraph 1, including a procedure when the company considers the complainrequest to be unfounded, and inform the relevant workers and trade unions of those procedures. Member States shall ensure that where the complainrequest 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.
Amendment 1194 #
Proposal for a directive
Article 9 – paragraph 4 – point a
Article 9 – paragraph 4 – point a
(a) to request appropriate follow-up on the complaint from the company withto which they have filed a complaint pursuant to paragraph 1complained under the applicable national law, and
Amendment 1197 #
Proposal for a directive
Article 9 – paragraph 4 – point b
Article 9 – paragraph 4 – point b
(b) to meet in person or online with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impactsor their legal representatives to discuss actual severe adverse impacts, or such impacts that could be anticipated in line with existing knowledge, that are the subject matter of the complaint.
Amendment 1211 #
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 valuefirst link in the supply chains of the company, or those of their establisheddirect business relationships, to monitor the effectiveness of the identification, prevention, mitigation, bringing to an end and minimisation of the extent ofwhere there is a relevant and decisive event or circumstance relating to human rights andor the environmental adverse impacts. Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out at least every 12 months andcarried out whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. The due diligence policy shallmay be updated in accordance with the outcome of those assessments.
Amendment 1215 #
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 valuesupply 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 124 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 1227 #
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
Member States shall ensure that companies that are not subject to reporting requirements under Articles 19a and 29a of Directive 2013/34/EU, and in accordance with Directive 2016/943/EU, report on the matters covered by this Directive by publishing on their website an annual statement in a language customary in the sphere of international business. The statement shall be published by 30 April each year, covering th, if they have one, a statement in the official language of the Member State in which the due diligence processes laid down in Articles 4 and 5 of this Directive parevious calendar year carried out.
Amendment 1234 #
Proposal for a directive
Article 11 – paragraph 2
Article 11 – paragraph 2
Amendment 1261 #
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 shallMember States may adopt guidance about voluntary model contract clauses.
Amendment 1266 #
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, may issue guidelines, including for specific sectors or specific adverse impacts.
Amendment 1276 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shallmay, in order to provide information and support to companies and the partners with whom they have established direct business relationships in their valuesupply 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 and economic support shall be given, in that respect, to those SMEs that are present in the valueobliged to implement due diligence processes because they are part of the supply chains of companiesanother company that requires it.
Amendment 1284 #
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Without prejudice to applicable State aid rules, Member States mayshall financially support SMEs that are obliged to implement due diligence processes because they are part of the supply chain of another company that requires it.
Amendment 1287 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Commission may, in exercising the powers assigned to it, 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 1300 #
Proposal for a directive
Article 14 – paragraph 4
Article 14 – paragraph 4
4. Companies may rely on industry schemes and multi-stakeholder initiatives to support the implementation of their obligations referred to in Articles 5 to 11 of this Directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. The Commission and the Member States may facilitate the dissemination of information on such schemes or initiatives and their outcome. The Commission, in collaboration with Member States, may issue non-binding guidance for assessing the fitness of industry schemes and multi- stakeholder initiatives.
Amendment 1311 #
Proposal for a directive
Article 15
Article 15
Amendment 1315 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
Amendment 1316 #
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 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. This plan shall, in particular, identify, on the basis of information reasonably available to the company, the extent to which climate change is a risk for, or an impactand covered by the Directive of the European Parliament and of the Council amending Directive 2013/34/EU, Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting shall adopt the plan mentioned in Article 1 point 3 (Article 19a point (2) (a) (iii)) of, the company’s operationsat Directive.
Amendment 1330 #
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
Amendment 1333 #
Proposal for a directive
Article 15 – paragraph 3
Article 15 – paragraph 3
Amendment 1334 #
Proposal for a directive
Article 15 – paragraph 3
Article 15 – paragraph 3
Amendment 1340 #
Proposal for a directive
Article 16 – paragraph 2
Article 16 – paragraph 2
2. Member States shall ensure that the name, address, electronic mail address and telephone number of the authorised representative is notified to a supervisory authority in the Member State where the authorised representative is domiciled or established, ensuring adherence to the General Data Protection Regulation (2016/679/EU). Member States shall ensure that the authorised representative is obliged to provide, upon request, a copy of the designation in an official language of a Member State to any of the supervisory authorities.
Amendment 1345 #
Proposal for a directive
Article 17 – paragraph 4
Article 17 – paragraph 4
4. Where a Member State designates more than one supervisory authority, it shall ensure that the respective competences of those authorities are clearly defined and that they cooperate closely and effectively with each other. Where a Member State designates supervisory authorities attached to regional or autonomous community administrations, it shall, in all cases, designate a competent national authority that will be responsible for resolving any conflicts over territorial jurisdiction within the Member State and dealing with any appeals.
Amendment 1348 #
Proposal for a directive
Article 17 – paragraph 6
Article 17 – paragraph 6
6. By the date indicated in Article 30(1), point (a), Member States shall inform the Commission of the names and contact details of the supervisory authorities designated pursuant to this Article, as well as of their respective competence where there are several designated supervisory authorities. They shall inform the Commission of any changes thereto.
Amendment 1360 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall ensure that the supervisory authorities have adequate powers and resources, in accordance with the applicable national law, to carry out the tasks assigned to them under this Directive, including the power to request information and carry out investigations related to compliance with the obligations set out in this Directive.
Amendment 1364 #
Proposal for a directive
Article 18 – paragraph 2
Article 18 – paragraph 2
2. A supervisory authority may initiate an investigation, in accordance with the applicable national law, on its own motion or 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.
Amendment 1370 #
Proposal for a directive
Article 18 – paragraph 3
Article 18 – paragraph 3
3. Inspections shall be conducted in compliance with the national law of the Member State in which the inspection is carried out and with prior warningofficial notification to the company, except where prior notification hinders the effectiveness of the inspection. Where, as part of its investigation, a supervisory authority wishes to carry out an inspection on the territory of a Member State other than its own, it shall seek assistance from the supervisory authority in that Member State pursuant to Article 21(2).
Amendment 1374 #
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 2
Article 18 – paragraph 4 – subparagraph 2
Taking remedial action which rectifies in full the actual adverse impact does not preclude the imposition of administrative sanctions or the triggering of civil liability in case of damages, in accordance with Articles 20 and 22, respectively.
Amendment 1376 #
Proposal for a directive
Article 18 – paragraph 5 – introductory part
Article 18 – paragraph 5 – introductory part
5. When carrying out their tasks, supervisory authorities shall have at least the following powers:powers in accordance with the national law of the Member State;
Amendment 1377 #
Amendment 1380 #
Proposal for a directive
Article 18 – paragraph 5 – point b
Article 18 – paragraph 5 – point b
Amendment 1382 #
Proposal for a directive
Article 18 – paragraph 5 – point c
Article 18 – paragraph 5 – point c
Amendment 1389 #
Proposal for a directive
Article 18 – paragraph 6
Article 18 – paragraph 6
Amendment 1424 #
Proposal for a directive
Article 20 – paragraph 1
Article 20 – paragraph 1
1. Member States shall lay down, in accordance with their national law, the rules on sanctions applicable to infringements of national provisions adopted pursuant to this Directive, and, in accordance with their national law, shall take all measures necessary to ensure that they are implemented. The sanctions provided for shall be effective, proportionate and dissuasive.
Amendment 1451 #
Proposal for a directive
Article 20 – paragraph 4
Article 20 – paragraph 4
4. Member States shall ensure, in accordance with their national law, that any decision of the supervisory authorities containing sanctions related to the breach of the provisions of this directive is published.
Amendment 1456 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1
Article 21 – paragraph 1 – subparagraph 1
The Commission shall, at no extra cost to European budgets, 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.
Amendment 1464 #
Proposal for a directive
Article 21 – paragraph 3
Article 21 – paragraph 3
3. Supervisory authorities shall take all appropriate steps needed to reply to a request for assistance by another supervisory authority without undue delay and no later than 1 month after receiving the request. Such steps may include, in particular, the transmission of relevant information on the conduct of an investigation without disclosing reserved or confidential information.
Amendment 1469 #
Proposal for a directive
Article 22
Article 22
Amendment 1550 #
Proposal for a directive
Article 24
Article 24
Amendment 1552 #
Proposal for a directive
Article 24
Article 24
Amendment 1558 #
Proposal for a directive
Article 25
Article 25
Amendment 1561 #
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
Amendment 1565 #
Proposal for a directive
Article 25 – paragraph 2
Article 25 – paragraph 2
Amendment 1574 #
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 policy referred to in Article 5, with due consideration for relevant input from stakeholders and civil society organisations. The directors shall report to the board of directors in that respect.
Amendment 1582 #
Proposal for a directive
Article 28
Article 28
Amendment 1601 #
Proposal for a directive
Article 29 – paragraph 1 – point b
Article 29 – paragraph 1 – point b
Amendment 1608 #
Proposal for a directive
Article 29 – paragraph 1 – point c
Article 29 – paragraph 1 – point c
(c) whether the Annex needs to be modified, including in light of international developments
Amendment 1609 #
Proposal for a directive
Article 29 – paragraph 1 – point d
Article 29 – paragraph 1 – point d
Amendment 1621 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 1
Article 30 – paragraph 1 – subparagraph 1
Member States shall adopt and publish, by … [OJ to insert: 23 years from the entry into force of this Directive] at the latest, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.
Amendment 1628 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – point a
Article 30 – paragraph 1 – subparagraph 2 – point a
(a) from… [OJ to insert: 2 years from the entry into force of this Directive legislation which the Member States transpose] as regards companies referred to in Article 2(1), point (a), and Article 2(2), point (a);
Amendment 1629 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – point a
Article 30 – paragraph 1 – subparagraph 2 – point a
(a) from… [OJ to insert: 23 years from the entry into force of this Directive] as regards companies referred to in Article 2(1), point (a), and Article 2(2), point (a);
Amendment 1630 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – point b
Article 30 – paragraph 1 – subparagraph 2 – point b
Amendment 1634 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – point b
Article 30 – paragraph 1 – subparagraph 2 – point b
(b) from … [OJ to insert: 45 years from the entry into force of this Directive] as regards companies referred to in Article 2(1), point (b), and Article 2(2), point (b).