Activities of Sara MATTHIEU related to 2022/0051(COD)
Plenary speeches (1)
Corporate Sustainability Due Diligence (debate)
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 (88)
Amendment 50 #
Proposal for a directive
Recital 21
Recital 21
(21) Under this Directive, all EU companies with more than 500 employees on average and a worldwide net turnover exceeding EUR 150 million in the financial year preceding the last financial year should be required to comply with due diligence. As regards companies which do not fulfil those criteria, but which had more than 250 employees on average and more than EUR 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors, due diligence should apply 2 years after the end of the transposition period of this directive, in order to provide for a longer adaptation period. In order to ensure a proportionate burden, companies operating in such high-impact sector, except for micro-enterprises as defined by Article 3(1) of Directive 2013/34/EU, should be required to comply with due diligence. Companies operating in high-impact sectors and high risk areas should be required to comply with more targeted due diligence focusing on severe adverse impacts. Temporary agency workers, including those posted under Article 1(3), point (c), of Directive 96/71/EC, as amended by Directive 2018/957/EU of the European Parliament and of the Council103 , should be included in the calculation of the number of employees in the user company. Posted workers under Article 1(3), points (a) and (b), of Directive 96/71/EC, as amended by Directive 2018/957/EU, should only be included in the calculation of the number of employees of the sending company. _________________ 103 Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (OJ L 173, 9.7.2018, p. 16).
Amendment 54 #
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 selectionand climate issues, this Directive should provide a list of high-impact sectors for the purposes of this Directive should be based, amongst others, 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, apparel, fur, clothing and footwear; agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale retail and trade of agricultural raw materials, live animals, wood, food, and beverages; construction and infrastructure building; transportation sector; logistics and storage; ; 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 chaThe production, use and waste management of electronic products; waste management sector; employment activities, health, social and elder care; cleaning 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. household services; hospitality; financial services provided by regulated financial undertakings, according to Article 3(a)(iv), such as the provision of loan, credit, financing, investment, pensions, securitisation, insurance and reinsurance, market funding, risk management, payment services and other financial services; technology, digital activities and online platforms; manufacture and trade of weapons and ammunition, including dual-use items, manufacture and trade of military fighting vehicles; private security activities and security systems service activities, including the development and operation of biometrics and surveillance technologies.
Amendment 62 #
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 and climate 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 and climate 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 theWhere the company cannot prevent, bring to an end or minimize all its 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 circumstancessame time, it should develop and implement a prioritisation strategy in consultation with the social partners and civil society organisations, which shall take into account the level of severity, likelihood, the duration, the spread and reversibility of the potential adverse impact on human rights, the environment and climate.
Amendment 80 #
Proposal for a directive
Recital 42
Recital 42
(42) Companies should provide the possibility for persons, groups, communities, entities and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and, environmental and climate 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, human rights and environmental rights defenders, or other legal or natural persons who have as a statutory purpose the defence of human rights, climate, the environment or good governance. Companies should establish ha 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 potential or actual severe adverse impacts that are the subject matter of the complaint. This access should not lead to unreasonable solicitations of companies.
Amendment 83 #
Proposal for a directive
Recital 43
Recital 43
(43) Companies should monitortrack the implementation and monitor the effectiveness of their due diligence measures. They should carry out periodic assessments, in consultation with stakeholders, of their own operations, those of their subsidiaries and, where related to the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, minimisation, bringing to an end and mitigation of human rights and environmental adverse impacts. Such assessments should verify that adverse impacts are properly identified, due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. In order to ensure that such assessments are up-to- date, they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.
Amendment 86 #
Proposal for a directive
Recital 46 a (new)
Recital 46 a (new)
(46 a) Stakeholders, including workers as well as human rights and environmental rights defenders should be engaged effectively, meaningfully and in a structural manner by companies throughout the entire due diligence process. Companies should pay special attention to overlapping vulnerabilities and intersecting factors in stakeholder engagement, including by adopting agender and culturally responsive approach at all times. Companies should provide meaningful information to stakeholders about actual and potentialadverse human rights, environmental and climate impacts of particular operations, projects and investments, in a timely and accessible manner taking into account specificities of different stakeholders. Companies must respect the rights of Indigenous Peoples, as laid out in the United Nations Declaration on the Rights of Indigenous Peoples, including free, prior and informed consent and indigenous peoples’ right to self-determination.
Amendment 89 #
Proposal for a directive
Recital 47
Recital 47
(47) Although SMEs are not included in the scope of this Directive, they could be impacted by its provisions as contractors or subcontractors to the companies which are in the scope. The aim is neverthelesThe aim is to mitigate financial or administrative burden on SMEs, many of which are already struggling in the context of the global economic and sanitary crisis. In order to support SMEs, Member States should set up and operate, either individually or jointly, dedicated websites, portals or platforms, and Member States could also financially support SMEs and help them build capacity. Such support should also be made accessible, and where necessary adapted and extended to upstream economic operators in third countries. Companies whose business partner is an SME, are also encouraged to support them to comply with due diligence measures, in case such requirements would jeopardize the viability of the SME and use fair, reasonable, non- discriminatory and proportionate requirements vis-a-vis the SMEs.
Amendment 96 #
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 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. The company should also be liable for damages that result from adverse human rights, environmental or climate impacts that should have been identified, prevented, mitigated, brought to an end or their extent minimised by its subsidiaries.
Amendment 99 #
Proposal for a directive
Recital 57
Recital 57
(57) As regards damages occurring at the level of established indirect business relationships, the liability of the company should be subject to specific conditions. TWhen the damage results from adverse impacts caused by business relationships within a company’s supply chain, the company should not be liable if it carried out specific due diligence measures. However, it should not be exonerated from liability through implementing such measures in case it was unreasonable to expect that the action actually taken, including as regards verifying compliance, would be adequate to prevent, mitigate, bring to an end or minimise the adverse impact. In addition, in the assessment of the existence and extent of liability, due account is to be taken of the company’s efforts, insofar as they relate directly to the damage in question, to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided as well as any collaboration with other entities to address adverse impacts in its value chains.
Amendment 103 #
Proposal for a directive
Recital 59 a (new)
Recital 59 a (new)
(59 a) Trade unions, civil society organisations or other relevant actors acting in the public interest, such as National Human Rights Institutions or an Ombudsman, should be able to bring representative actions before their courts on behalf and for the protection of the collective interests of victims of actual and potentialadverse impacts, and that these entities have the rights and obligations of a claimant party in the proceedings.
Amendment 107 #
Proposal for a directive
Recital 65
Recital 65
(65) Persons who work for companies subject to due diligence obligations under this Directive or who are in contact with such companies in the context of their work-related activities can play a key role in exposing breaches of the rules of this Directive. They can thus contribute to preventing and deterring such breaches and strengthening the enforcement of this Directive. Directive (EU) 2019/1937 of the European Parliament and of the Council106 should therefore apply to the reporting of all breaches of this Directive and to the protection of persons reporting such breaches. In particular, stakeholders submitting complaints or concerns should be effectively protected, notably by ensuring the confidentiality and anonymity of the complaint or concern raised. Stakeholders should also be protected against strategic lawsuits against public participation. _________________ 106 Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (OJ L 305, 26.11.2019, p. 17).
Amendment 117 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. This Directive shall apply to companies which are formed in accordance with the legislation of a Member State and which fulfil one of the following conditions, with the exception of micro- enterprises as defined by article 3(1) of Directive2013/34/EU:
Amendment 121 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
Amendment 130 #
Proposal for a directive
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
Amendment 135 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point i
Article 2 – paragraph 1 – point b – point i
Amendment 139 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point ii
Article 2 – paragraph 1 – point b – point ii
Amendment 142 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii
Article 2 – paragraph 1 – point b – point iii
Amendment 150 #
Proposal for a directive
Article 2 – paragraph 2 – introductory part
Article 2 – paragraph 2 – introductory part
2. This Directive shall also apply to companies which are formed in accordance with the legislation of a third country, and fulfil one of the following conditions:have generated a net turnover of more than EUR 8 million in the financial year preceding the last financial year.
Amendment 154 #
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
Amendment 158 #
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
Amendment 161 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
3. For the purposes of paragraph 1, the number of part-time employeeworkers shall be calculated on a full-time equivalent basis. Temporary agency workers and other workers in non-standard forms of employment, such as on-call work, multiparty employment relationships, disguised employment and dependent self- employed, 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.
Amendment 172 #
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 prohibitionsthe enjoyment of rights, notably those listed in the Annex, Part I Section 1, as enshrined in the international conventions and European human rights instruments listed in the Annex, Part I Section 2;
Amendment 173 #
Proposal for a directive
Article 3 – paragraph 1 – point e – introductory part
Article 3 – paragraph 1 – point e – introductory part
(e) ‘business relationship’ means a relationship withbetween the company or one of its subsidiaries and a contractor, subcontractor or any other legal entities, governmental or otherwise, within their value chain (‘partner’)
Amendment 180 #
Proposal for a directive
Article 3 – paragraph 1 – point n
Article 3 – paragraph 1 – point n
(n) n) ‘stakeholders’ means: (i) the company’s employees workers, the employees workers of its subsidiaries, and other individuals, grouptrade unions and workers’ representatives, and other individuals, groups, civil society organisations, communities or entities whose rights or interests are or could be affected by the products, services and operations or by the potential or actual adverse impacts on human rights or the environment of that company, its subsidiaries, branches and its business relationships; across the entire value chain; (ii) organisations representing the individuals, groups, communities or entities included in (i), including in particular workers’ representatives ’which means representatives of recognised trade unions or other persons who are freely elected or who are designated by the workers in an organisation to represent them in accordance with national law and practice.The exclusive prerogatives and rights of trade unions, such as the right of trade unions to participate in collective bargaining, and to conclude collective agreements, and workers' right to organise themselves in trade unions, shall be preserved; (iii) organisations who have as a statutory purpose the defence of human rights or the environment;and (iv) other legal or natural persons engaged in the defence of human rights or the environment.
Amendment 190 #
Proposal for a directive
Article 3 – paragraph 1 – point q a (new)
Article 3 – paragraph 1 – point q a (new)
Amendment 192 #
Proposal for a directive
Article 3 – paragraph 1 – point q b (new)
Article 3 – paragraph 1 – point q b (new)
Amendment 195 #
Proposal for a directive
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
2 a. Member states shall ensure that;in fulfilling their obligations pursuant to article 5 to 11, companies effectively and meaningfully engage stakeholders. Such stakeholder engagement covers information, consultation and participation and takes places on a structural and regular basis throughout the entire due diligence process.Companies shall be required to ensure that: (a) comprehensive and meaningful information is provided to stakeholders in accordance with article11; (b) effective and appropriate frameworks, measures and tools of engagement are put in place, including but not limited to; (i) setting reasonable and appropriate timelines; (ii) identifying and addressing potential barriers to participation; (iii) providing adequate protection of stakeholders from the risk of retaliation; (iv) implementing an action plan to proactively seek the engagement of stakeholders in a marginalised or vulnerable situation; (c) ad-hoc and pro-active engagement with stakeholders is initiated in case of significant changes in operations, activities or operating context. (d) a gender- and culturally responsive approach is ensured at all times. (e) The involvement, information, consultation and participation rights of trade union and workers’ representatives, as provided for in Union law, national law and practice are fully respected and applied.Member States shall also ensure that trade union and workers’ representatives have access to the relevant resources, in particular in the form of training, to exercise their rights. (f) Member States shall ensure the equal and meaningful participation in consultations and negotiations of women’s organizations and women human rights defenders (g) Member States shall ensure that, when stakeholders request to be included in the engagement outlined in paragraph 1, companies assess and respond to these requests and that they provide a detailed justification in case the request is denied.
Amendment 197 #
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 policy. The due diligence policy shall be developed in consultation with all stakeholder sand shall contain all of the following:
Amendment 202 #
Proposal for a directive
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) a code of conduct describing rules and principles to be followed by the company’s employees and subsidiaries and entities with whom the company or any of its subsidiaries have business relationships;
Amendment 204 #
Proposal for a directive
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) a code of conduct describing rules and principles to be followed by the company’s employeeworkers and subsidiaries; across all corporate functions and operations,
Amendment 209 #
Proposal for a directive
Article 5 – paragraph 2 – point 1 (new)
Article 5 – paragraph 2 – point 1 (new)
(1) For undertakings operating in one oft he sectors referred to in article 3 point (ca), the description of the company’s approach, the code of conducts and description of the processes and measures required under paragraph 1 (a) to (c) shall also include a detailed focus on the risks and impacts that are specific to that sector and area.
Amendment 210 #
Proposal for a directive
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
2 a. The due diligence policy shall be developed in consultation with all stakeholders in line with article 4 paragraph 2a. Undertakings shall carry out negotiations, information and consultation with trade unions and workers’ representative including to integrate due diligence into all their corporate policies and have in place a due diligence policy within the meaning of in Directive 2009/38/EC
Amendment 213 #
Proposal for a directive
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
1 a. 1 a. Member States shall ensure that in particular for companies operating in one of the sectors referred to in Article 3, appropriate measures shall also target the risks that are specific to that sector.
Amendment 216 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
2. By way of derogation frMember States shall ensure that com paragraph 1, companies referred to in Article 2(1), point (b), and Article 2(2), point (b), shall only be required to identify actual and potential severe adverse impacts relevant to the respective sector mentioned in Article 2(1), point (b)nies map their value chain and publicly disclose information relevant to human rights, environmental and climate impacts, including names, locations, types of operations, products and services supplied, as well as other relevant information concerning subsidiaries, branches and business relationships.
Amendment 217 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
Amendment 219 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying and assessing the adverse impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, including disaggregated data, 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 relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on collect and assess sex-disaggregated data and identify gender-specific trends and patterns to understand whether their activities impact differently on men and women. Companies shall also carry out consultations with potentially affected groups including workers and other relevant stakeholders, including trade unions, civil society organisations as well as human rights and environmental rights defenders, to gather information on as well as identify and assess actual or potential adverse impacts.
Amendment 226 #
Proposal for a directive
Article 7 – paragraph 2 – introductory part
Article 7 – paragraph 2 – introductory part
2. Companies shall be required to take appropriate measures, including but not limited to the following actions, where relevant:
Amendment 231 #
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 actionppropriate measures and qualitative and quantitative indicators for measuring improvement. The prevention action plan shall be developed in consultation with affectedll stakeholders;
Amendment 234 #
Proposal for a directive
Article 7 – paragraph 2 – point b
Article 7 – paragraph 2 – point b
(b) seekobtain contractual assurances from and other assurances regarding its business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s value chain (contractual cascading). When such contractual assurances are obtained, paragraph 4 shall apply;In case the business relationship is active in one of the sectors referred to in Article 3, the assurances shall also include details on ensuring compliance with regards to the risks that are specific to that sector. With regards to contractual assurances the terms shall be reasonable and non- discriminatory. Obtaining contractual assurances shall not exempt a company from its further obligations under this Directive nor shall it as such exempt a company from its liability for adverse impacts; ,
Amendment 238 #
Proposal for a directive
Article 7 – paragraph 2 – point e a (new)
Article 7 – paragraph 2 – point e a (new)
(e a) The appropriate measures and actions shall apply to a company’s own operations, products and services, their subsidiaries as well as direct and indirect business relationships.
Amendment 240 #
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
Amendment 243 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 1
Article 7 – paragraph 4 – subparagraph 1
The contractual assurances or the contract shall be accompanied by the appropriate measures to verify compliance. For the purposes of verifying compliance, the company may refer to suitable industry initiatives or independent third-party verification.
Amendment 247 #
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 249 #
Proposal for a directive
Article 7 – paragraph 6 a (new)
Article 7 – paragraph 6 a (new)
6 a. In the event that a company is not in a position to prevent at the same time all the potential adverse impacts identified, it shall develop and implement a prioritisation strategy in consultation with all stakeholders, which shall take into account the level of severity and likelihood, the duration, the spread and the reversibility of the different potential adverse impacts on human rights, the environment and climate.
Amendment 252 #
Proposal for a directive
Article 8 – paragraph 3 – introductory part
Article 8 – paragraph 3 – introductory part
3. Companies shall be required to take the following actions, where relevantincluding but not limited to:
Amendment 257 #
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 andthrough appropriate measures, including gender and culturally responsive policies and plans. In the event that these measures are accompanied by financial compensation paid by companies for adverse impacts resulting from business relationships, companies schale of the adverse impact and to the contribul benefit from legal assurance to obtain compensation ofrom the company’s conduct to the adverse impactpartners concerned;
Amendment 264 #
Proposal for a directive
Article 8 – paragraph 3 – point b
Article 8 – paragraph 3 – point b
(b) where necessary due to the fact that the adverse impact cannot be immediately brought to an end, develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. Where relevant, tThe corrective action plan shall be developed in consultation with stakeholders including trade unions and workers representatives and civil society organisations, and shall be publicly available;
Amendment 266 #
Proposal for a directive
Article 8 – paragraph 3 – point c
Article 8 – paragraph 3 – point c
(c) seekobtain contractual assurances from a directnd other assurances regarding its direct business partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and, as necessary, a corrective action plan., including by seeking corresponding contractual assurances from its partners, to the extent that they are part of the value chain (In case the business relationship is active in one of the sectors referred to in Article 3, the assurances shall also include details on ensuring compliance with regards to the risks that are specific to that sector. With regards to contractual cascading). When such contractual assurances are obtained, paragraph 5 shall apply.surances the terms shall be reasonable and non- discriminatory. Obtaining contractual assurances shall not exempt a company from its further obligations under this Directive nor shall it as such exempt a company from its liability for adverse impacts;
Amendment 271 #
Proposal for a directive
Article 8 – paragraph 4
Article 8 – paragraph 4
4. As regards actual adverse impactThese measures and actions tshat could not be brought to an end or adequately mitigated by the measures in paragraph 3, the company may seek to conclude a contract with a partner with whom it has an indirect relationship, with a view to achieving compliance with the company’s code of conduct or a corrective action plan. When such a contract is concluded, paragraph 5 shall applyll apply to a company’s own operations, products and services, subsidiaries as well as direct and indirect business relationships.
Amendment 272 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1
Article 8 – paragraph 5 – subparagraph 1
Amendment 276 #
Proposal for a directive
Article 8 – paragraph 7
Article 8 – paragraph 7
Amendment 278 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that companies provide the possibility forestablish, in consultation with stakeholders, or participate in an effective grievance mechanisms at operational level, both as an early-warning risk- awareness and as a remediation system, that can be used by provide persons and organisations listed in paragraph 2 to submit complaints and request remedy to them where they have legitimatreasonable concerns regarding actual or potential adverse human rights impacts and adverse environmental impacts with respect to their own operations, the operations of their subsidiaries and their value chains.
Amendment 282 #
Proposal for a directive
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
1 a. Member States shall ensure that grievance mechanisms as established by companies, are legitimate, accessible, predictable, safe, equitable, transparent, rights-compatible and adaptable. Such mechanisms shall provide for the possibility to raise concerns either anonymously or confidentially, in accordance with national law.
Amendment 283 #
Proposal for a directive
Article 9 – paragraph 1 b (new)
Article 9 – paragraph 1 b (new)
1 b. Member States shall ensure that companies adopt and implement policies and processes to maintain the independence of the complaints procedure and address the needs of people who may be at heightened risk of vulnerability or marginalisation. Complaints procedure shall be gender and culturally responsive and Member States shall oblige companies to remove any barriers that women may face to effective access them.
Amendment 284 #
Proposal for a directive
Article 9 – paragraph 1 c (new)
Article 9 – paragraph 1 c (new)
1 c. Member States shall ensure that companies provide information to stakeholders, including in particular actual and potentially affected rights holders, on such grievance mechanisms, including on how to access them, on decisions and remedies relating to a company and on how the company is implementing them. All information shall be published in a manner that does not endanger the stakeholders’ safety, including by not disclosing their identity.
Amendment 285 #
Proposal for a directive
Article 9 – paragraph 1 d (new)
Article 9 – paragraph 1 d (new)
1 d. Member States shall ensure that stakeholders, including in particular actual and potentially affected rights holders, play a central role in the design and evaluation of such independent grievance mechanisms andin the provision of remedy.
Amendment 286 #
Proposal for a directive
Article 9 – paragraph 1 e (new)
Article 9 – paragraph 1 e (new)
1 e. Member States shall ensure that companies are enabled to provide a grievance mechanism through collaborative arrangements with other companies or organisations, by participating in multi-stakeholder grievance mechanisms or joining a Global Framework Agreement.
Amendment 287 #
Proposal for a directive
Article 9 – paragraph 1 f (new)
Article 9 – paragraph 1 f (new)
1 f. The body or person applying the grievance mechanism shall be entitled to make proposals to the companies on how potential or actual adverse impacts may be addressed and on how to improve the grievance mechanism.
Amendment 288 #
Proposal for a directive
Article 9 – paragraph 2 – introductory part
Article 9 – paragraph 2 – introductory part
2. Member States shall ensure that the complaints may be submitted by all persons, groups, communities, entities and civil society organisations covered by Article 3 points (n), and in particular by:
Amendment 297 #
Proposal for a directive
Article 9 – paragraph 2 – point b
Article 9 – paragraph 2 – point b
(b) trade unions and other workers’ representatives representing individuals working in the value chain concerned,
Amendment 309 #
Proposal for a directive
Article 9 – paragraph 4 – introductory part
Article 9 – paragraph 4 – introductory part
4. Member States shall ensure that complainants and their representatives are entitled
Amendment 317 #
Proposal for a directive
Article 9 – paragraph 4 – point b
Article 9 – paragraph 4 – point b
(b) to meetengage with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint.
Amendment 320 #
Proposal for a directive
Article 9 – paragraph 4 – point b a (new)
Article 9 – paragraph 4 – point b a (new)
(b a) to receive guarantees of non- retaliation, confidentiality and anonymity for all actual and potentially affected stakeholders.
Amendment 323 #
Proposal for a directive
Article 9 – paragraph 4 – point b b (new)
Article 9 – paragraph 4 – point b b (new)
Amendment 324 #
Proposal for a directive
Article 9 – paragraph 4 – point b c (new)
Article 9 – paragraph 4 – point b c (new)
(b c) to obtain fully remediation or contribution to the full remediation of actual adverse impacts. The remedy shall be proportionate to the significance and scale of the adverse impact.
Amendment 325 #
Proposal for a directive
Article 9 – paragraph 4 – point b d (new)
Article 9 – paragraph 4 – point b d (new)
(b d) Member States shall ensure that recourses to a grievance mechanism shall not preclude the claimants from having access to the substantiated concerns procedure as described in article 19, to the civil liability as described in article 22, nor to any other judicial mechanisms or other non- judicial grievance mechanism.
Amendment 326 #
Proposal for a directive
Article 9 – paragraph 4 – point b e (new)
Article 9 – paragraph 4 – point b e (new)
(b e) Member States shall ensure that any non-judicial remediation efforts must be in parallel to encouraging collective bargaining and recognition of trade unions and should by no means undermine the role of legitimate trade unions in addressing labour-related disputes.
Amendment 328 #
Proposal for a directive
Article 11 – title
Article 11 – title
Communicating on and Access to Information
Amendment 329 #
Proposal for a directive
Article 11 – paragraph 2
Article 11 – paragraph 2
The Commission shall adopt delegated acts in accordance with Article 28 concerning the content and criteria for such reporting under paragraph 1, specifying information on the description of due diligence, potential and actual adverse impacts and actions taken on those. Member States shall ensure that companies provide, adequate, comprehensive and meaningful information to stakeholders about actual and potential adverse human rights, environmental and climate impacts and about the actions taken in accordance with this Directive with regards to particular operations, projects and investments.This information shall be provided inwritten and in a timely, accessible and gender and culturally responsive manner, taking into account the specifics of the stakeholder. In cases of significant changes in operations, activities or operating context, Member States shall ensure that companies proactively communicate to stakeholders and provide complementary and intermediary information. Member States shall ensure that stakeholders have the right to request additional information from a company regarding the actions taken in accordance with this Directive, without an interest having tobe stated nor proven.Member States shall ensure that the company provides information within a reasonable time, and at the latest within one month after the request has been submitted.A stakeholder whose request for information is denied shall be given a detailed and written justification within a reasonable time.In the event the company does not provide sufficient justification, ignores the request, refuses to disclose the requested information, whether in part or in full, or answers inadequately to the request, Member States shall ensure that' supervisory or judicial authorities are entitled to order the disclosure of the information.This process should be just, equitable, timely and not prohibitively expensive.Decisions, whether from supervisory or judicial authorities, shall be publicly accessible. Member States shall ensure that the confidentiality of commercial and industrial information, as established under national legislation, shall not serve as a barrier for access to information that relates to the application of this Directive. Grounds for refusal of disclosure shall be interpreted in a restrictive way, taking into account the public interest served by disclosure and the objectives of this Directive.
Amendment 331 #
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, including the European cross-industry and sectoral social partners, the European Union Agency for Fundamental Rights, the European Labour Authority, the European Environment Agency, and where appropriate with international bodies having expertise in due diligence, such as the UN, ILO and Council of Europe, may issue guidelines, including for specific sectors or specific adverse impacts. and guidance on identifying high-impact sectors and areas. The issues to be addressed by the guidelines shall include the specific obligations under article 5 to 11 of this Directive as well as:(a) gender-responsive and culturally responsive due diligence; (b) measures that companies should take to address the challenges faced by smallholders, including access to a living income; (c) responsible disengagement;
Amendment 339 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Commission may 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. 3a.Member States shall provide financial and other support for stakeholders, including for their capacity development.Member States shall also provide relevant and necessary information and instruments to support stakeholders‘ participation in due diligence and judicial processes, in accordance with article 4 3b. The Commission shall develop and implement measures to support safe participatory collection of independent data on human rights violations and undertake necessary actions for the data to be considered.
Amendment 347 #
Proposal for a directive
Article 22 – paragraph 1 – point a
Article 22 – paragraph 1 – point a
(a) they failed to comply with the obligations laid down in Articles 7 and 8this Directive and;
Amendment 349 #
Proposal for a directive
Article 22 – paragraph 1 – point b
Article 22 – paragraph 1 – point b
(b) 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 laid down in Articles 7 and 8this Directive occurred and led to damage.
Amendment 350 #
Proposal for a directive
Article 22 – paragraph 1 a (new)
Article 22 – paragraph 1 a (new)
1 a. Member States shall ensure that companies are liable for damages that result from adverse human rights, environmental and climate impacts arising as a result of the activities of a subsidiary and, that should have been identified, prevented, mitigated, brought to an end or their extent minimised by their subsidiaries under this Directive.
Amendment 352 #
Proposal for a directive
Article 22 – paragraph 2 – subparagraph 1
Article 22 – paragraph 2 – subparagraph 1
Notwithstanding paragraph 1, Member States shall ensure that where a company shas taken the actions referred to in Article 7(2), point (b) and Article 7(4), or Article 8(3), point (c), and Article 8(5), it shall not be liable for damages caused by an adverse impact arising as a result of the activitill be liable for damages that result from an adverse impact arising as a result of the activities of an indirect partner with whom it has a business relationship, unless they can prove they took appropriate measures capable of preventing, mitigating or bringing to an end or minimise the extent of the adverse impact. In the assessment of the existence and extent of liability under this paragraph, due account shall betaken of the company’s efforts, insofar as they relate directly to the damage in question, to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles of7 an indirect partner with whom it has an established business relationship, unless it was unreasonable, in the circumstances of the case, to expect that the acd 8, as well as any collaboration with other entities to address adverse impacts in its value chains. Where there is a civil liability claim for damages in accordance with Article 22 paragraph 1 and 2, and the claimant provides prima facie elements substantiating the likelihood of the respondent's liability under the Directive, Member States shall take such measures as are necessary to ensure that the causal link between the damage and the company’s failure to comply is presumed, and that it shall be for the respondent to prove it has complied with its obligations actually taken, including as regards verifying compliance, would be adequate to prevent, mitigate, bring to an end or minimise the extent of the adverse impact. s laid down in the Directive and that the measures it took were appropriate. Where claimants have provided reasonably available evidence sufficient to support their action in accordance to paragraph 1, Member States shall ensure that courts are enabled to order the defendant and third parties to disclose any evidence in their control, including evidence related to the nature of business relationships or the structure of the company, if requested by the claimant and in accordance with national procedural law, subject to the applicable Union and national rules on confidentiality and proportionality.
Amendment 354 #
Proposal for a directive
Article 22 – paragraph 5
Article 22 – paragraph 5
5. Member States shall ensure that the liability provided for in provisions of national law transposing this Article is of overriding mandatory application in cases where the law applicable to claims to that effect is not the law of a Member State. Member States shall ensure that trade unions and civil society organisations or other relevant actors acting in the public interest can bring representative actions before court on behalf and for the protection of the collective interests of victims of actual and potential adverse impacts, and that these entities have the rights and obligations of a claimant party in the proceedings. Member States shall ensure that victims of actual and potentialadverse impacts and any stakeholder with a legitimate interest are entitled to seek injunctive measures before Union courts. These shall be available in the form of a provisional or a definitive measure to cease a practice that may constitute a breach of this Directive, or in the form of a provisional or a definitive measure to take effective actions to comply with this Directive.
Amendment 359 #
Proposal for a directive
Article 29 – paragraph 1 – point b a (new)
Article 29 – paragraph 1 – point b a (new)
(b a) the involvement of stakeholders throughout all due diligence processes;
Amendment 363 #
Proposal for a directive
Annex I – Part I – point 7
Annex I – Part I – point 7
7. Violation of the right to enjoy just and favourable conditions of work including a fair wage, a decent living, safe and healthy working conditions and reasonable limitation of working hours in accordance with Article 7 of the International Covenant on Economic, Social and Cultural Rights; Violation of the right to an adequate standard of living for oneself and her/his family, including adequate food, clothing and housing, and to the continuous improvement of living conditions in accordance with Article11.1 of the International Covenant on Economic, Social and Cultural Rights and Article 25.1 of the Universal Declaration of Human Rights
Amendment 365 #
Proposal for a directive
Annex I – Part I – point 18 – introductory part
Annex I – Part I – point 18 – introductory part
18. Violation of the prohibition of causing any measurable environmental degradationquantitative and qualitative environmental degradation and contributing to climate change, such as harmful soil change, water or air pollution, harmful emissions, including GHG emissions, or excessive water consumption or other impact on natural resources, that
Amendment 366 #
Proposal for a directive
Annex I – Part I – point 18 – point e
Annex I – Part I – point 18 – point e
(e) affects ecological integrity, such as deforestation and the intrinsic value of ecosystems as well as the interrelations between them,
Amendment 367 #
Proposal for a directive
Annex I – Part I – point 18 – paragraph 1
Annex I – Part I – point 18 – paragraph 1
in accordance with Article 3 of the Universal Declaration of Human Rights, Article 5 of the International Covenant on Civil and Political Rights and Article 12 of the International Covenant on Economic, Social and Cultural Rights; and the right to a clean, healthy and sustainable environment;
Amendment 370 #
Proposal for a directive
Annex I – Part I – point 20 a (new)
Annex I – Part I – point 20 a (new)
20 a. Violation of the indigenous peoples’ right to give, modify, withhold or withdraw their free, prior, and informed consent to interventions, decisions and activities that may affect their lands, territories, resources and rights, in accordance with Article 10, 11(2), 19, 28, 29(2), 32(2) of the United Nations Declaration on the Rights of Indigenous Peoples and Article 6 and 16 (2) of ILO Convention 169on Indigenous and Tribal Peoples;
Amendment 377 #
Proposal for a directive
Annex I – Part I – indent 3 a (new)
Annex I – Part I – indent 3 a (new)
- The International Convention on the Protection of the Rights of all Migrant Workers and Members of their Families;
Amendment 379 #
Proposal for a directive
Annex I – Part I – indent 9 a (new)
Annex I – Part I – indent 9 a (new)
- The United Nations Declaration on Human Rights Defenders;
Amendment 380 #
Proposal for a directive
Annex I – Part I – indent 10 a (new)
Annex I – Part I – indent 10 a (new)
- The United Nations Declaration on the Rights of Peasants and Other People Working in Rural Areas;
Amendment 384 #
Proposal for a directive
Annex I – Part I – indent 14 a (new)
Annex I – Part I – indent 14 a (new)
- The International Labor Organisation’s Convention on Indigenous and Tribal Peoples (no. 169) The International Labour Organization’s Violence and Harassment Convention, 2019 (No. 190)
Amendment 385 #
Proposal for a directive
Annex I – Part I – indent 15
Annex I – Part I – indent 15
— The International Labour Organization’s core/fundamental conventions:
Amendment 402 #
Proposal for a directive
Annex I – Part I – indent 23 a (new)
Annex I – Part I – indent 23 a (new)
- Occupational Safety and Health Convention, 1981 (No. 155)· Promotional Framework for Occupational Safety and Health Convention, 2006 (No. 187) The European Convention on Human Rights The European Social Charter The Charter of Fundamental Rights of the European Union Convention on preventing and combating violence against women and domestic violence (‘IstanbulConvention’)