Activities of Malte GALLÉE 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 (230)
Amendment 40 #
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, goods throughout their life cycle and services, and those of their subsidiaries and value chains.
Amendment 44 #
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, produced goods and services throughout their life cycle, and those of their subsidiaries, as well as their established direct and indirect business relationships throughout their value chains and therefore beyond the first tier of the value chain, 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. The action should be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. Account should be taken of the specificities of the company’s value chain, sector or geographical area in which its value chain partners operate, the company’s power to influence its direct and indirect business relationships, and whether the company could increase its power of influence.
Amendment 55 #
Proposal for a directive
Recital 18
Recital 18
(18) The value chain should cover all activities related to the production and use of a good or provision of services by a company, its subsidiaries or companies in which it holds minority shareholding, including the development of the product or the service and the use, waste management and disposal of the product as well as the related activities of established business relationships of the company and its subsidiaries. It should encompass upstream established direct and indirect business relationships that design, extract, manufacture, transport, store and supply of primary and secondary raw materials, 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 59 #
Proposal for a directive
Recital 20
Recital 20
Amendment 64 #
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,the exception of micro- undertakings as defined by Article 3(1) of Directive 2013/34/EU should be required to comply with due diligence. companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. Temporary agency workers, including those posted under Article 1(3), point (c), of Directive 96/71/EC, as amended by Directive 2018/957/EU of the European Parliament and of the Council103 , should be included in the calculation of the number of employees in the user company. Posted workers under Article 1(3), points (a) and (b), of Directive 96/71/EC, as amended by Directive 2018/957/EU, should only be included in the calculation of the number of employees of the sending company. _________________ 103 Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (OJ L 173, 9.7.2018, p. 16).
Amendment 68 #
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 selectionis Directive should provide a list of high- impact sectors for the purposes of this Directive should be basedbased among others, on existing sectoral OECD due diligence guidance. The following sectors that should be regarded as high-impact for the purposes of this Directive include: the energy sector including gas, nuclear, steam, electricity and other sources throughout their life cycle, from extraction, refining, production, combustion of fuels, transportation, storage and waste management including radioactive waste; the chemicals sector; : the manufacture of textiles, apparel, fur, leather and related products (including footwear), and the wholesale trade and retail of textiles, clothing and footwear; plastic production, waste shipment and management; agriculture, forestry, fisheries (including aquaculture), the management of land and resources (including in relation to nature conservation or other related activities),the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, animal products, wood, food, and beverages; construction sector and infrastructure building; transportation sector, logistics and storage; the extraction and refining of mineral resources regardless of where they are extracted from (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products). As regards the financial sector, due to its specificities, in particular as regards the value 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 covehousehold services; hospitality; financial and insurance activities, technology, digital activities and online platforms; manufacture and tragde of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings, even ifweapons and ammunition, including dual-use items, manufacture and trade of military fighting vehicles; private security activities and security systems service activities, including they do not have a legal form with limited liability. evelopment and operation of biometrics and surveillance technologies
Amendment 82 #
Proposal for a directive
Recital 29
Recital 29
(29) To comply with due diligence obligations, companies need to take appropriate measures with respect to identification, prevention and bringing to an end adverse impacts. An ‘appropriate measures’ should mean a set of measures that is capable of achieving the objectives of due diligence, commensurate with the degree of severity and the likelihood of the adverse impact, and reasonably available to the company, taking into account the circumstances of the specific case, including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof, and the need to ensure prioritisation of action. In this context, in line with international frameworks, the company’s influence over a business relationship should include, on the one hand its ability to persuade the business relationship to take action to bring to an end or prevent adverse impacts (for example through ownership or factual control, market power, pre-qualification requirements, linking business incentives to human rights and environmental performance, etc.) and, on the other hand, the degree of influence or leverage that the company could reasonably exercise, for example through cooperation with the business partner in question or engagement with another company which is the direct business partner of the business relationship associated with adverse impactsuch as the characteristics of the economic sector and the size of the company.
Amendment 85 #
Proposal for a directive
Recital 30
Recital 30
(30) Under the due diligence obligations set out by this Directive, a company should identify actual or potential adverse human rights and environmental impacts. I 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 circumstancesdevelop and implement a prioritisation strategy in consultation with stakeholders, which shall take into account the level of severity, likelihood, the duration, the spread and reversibility of the different potential adverse impacts on human rights, the environment and the climate.
Amendment 87 #
Proposal for a directive
Recital 31
Recital 31
(31) In order to avoid undue burden on the smaller companies operating in high- impact sectors which are covered by this Directive, those companies should only be obliged to identify those actual or potential severe adverse impacts that are relevSMEs covered by this Directive, those companies should be supported with adequate and targeted measures antd to the respective sectorols.
Amendment 92 #
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 and other 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 reasonable, non-discriminatory and accompanied by appropriate measures to verify compliance. To ensure comprehensive prevention of actual and potential adverse impacts, companies should also make investments which aim to prevent adverse impacts, provide targeted and proportionate support for an SME with which they have an established business relationship such as financingSMEs in their value chain, for example, through direct financing, low- interest loans, guarantees of continued sourcing, and assistance in securing financing, to help implement the code of conduct or prevention action plan, or technical guidance such as in the form of capacity- building via activities such as training, management systems upgrading, and collaborate with other companies to develop guidance and sectoral supporting materials, with a particular focus on SMEs .
Amendment 103 #
Proposal for a directive
Recital 37
Recital 37
(37) As regards direct and indirect business relationships, industry cooperation, industry schemes and multi- stakeholder initiatives can help create additional leverage to identify, mitigate, and prevent adverse impacts. Therefore it should be possible for companies to rely on such initiatives to support the implementation of their due diligence obligations laid down in this Directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. Companies could assess, at their own initiative, the alignment of these schemes and initiatives with the obligations under this Directive. In order to ensure full information on such initiatives, the Directive should also refer to the possibility for the Commission and the Member States to facilitate the dissemination of information on such schemes or initiatives and their outcomes. The Commission, in collaboration with Member States, mayshould issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives.
Amendment 105 #
Proposal for a directive
Recital 38
Recital 38
(38) Under the due diligence obligations set out by this Directive, if a company identifies actual human rights or environmental adverse impacts, it should take appropriate measures to bring those to an end. It can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. However, it should be clarified that, as regards established business relationships, where adverse impacts cannot be brought to an end, companies should minimise the extent of such impacts. Minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. To provide companies with legal clarity and certainty, this Directive should define which actions companies should be required to take for bringing actual human rights and environmental adverse impacts to an end and minimisation of their extent, where relevant depending on the circumstances.
Amendment 116 #
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 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 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 118 #
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, in consultation with stakeholders, carry out periodic assessments of their own operations, those of their subsidiaries and, where related to the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, minimisation, bringing to an end and mitigation of human rights and environmental adverse impacts. Such assessments should verify that adverse impacts are properly identified, due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. In order to ensure that such assessments are up-to- date, they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.
Amendment 124 #
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, 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. This reporting should be accessible, comparable, and sufficiently detailed to demonstrate the adequacy of a company’s due diligence process.
Amendment 125 #
Proposal for a directive
Recital 44 a (new)
Recital 44 a (new)
(44 a) Companies should provide stakeholders adequate, comprehensive meaningful information about actual and potential adverse human rights, environmental and climate impacts and the actions taken to respect their due diligence. Stakeholders should also be able to request additional information from a company regarding the actions taken to comply with the obligations set in this Directive. The confidentiality of commercial and industrial information shall not serve as a bar for access to information that relates to the implementation, by a company, of the provisions of national law transposing this Directive.
Amendment 131 #
Proposal for a directive
Recital 46 a (new)
Recital 46 a (new)
(46 a) Stakeholders 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 a gender and culturally responsive approach at all times. Companies should provide meaningful information to stakeholders about actual and potential adverse 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 133 #
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 nevertheless to mitigate financial or administrative burden on SMEs, many of which are already struggling in the context of the global economic and sanitary crisisThe aim is to mitigate financial or administrative burden on SMEs, while conducting due diligence pursuant to this Directive. 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 139 #
Proposal for a directive
Recital 54 a (new)
Recital 54 a (new)
(54 a) Under Article 18(2) of Directive 2014/24/EU, Article 36(2) of Directive 2014/25/EU and Article 30(3) of Directive 2014/23/EU, Member States are required to take appropriate measures to ensure compliance with obligations under Union law. Therefore this Directive should lay down further requirements to specify the measures Member States can adopt to ensure compliance with the obligations under this Directive throughout procurement processes, from selection to performance of the contract. Necessary measures should include but should not be limited to the requirement for companies to prove compliance with the obligations laid down under this Directive by submitting evidence and supporting documents.
Amendment 158 #
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 160 #
Proposal for a directive
Recital 1
Recital 1
(1) The Union is founded on the respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights as enshrined in the EU Charter of Fundamental Rights. Article 191 of the Treaty on the Functioning of the European Union (TFEU) states that Union policy shall contribute to preserving, protecting and improving the quality of the environment, protecting human health, prudent and rational utilisation of natural resources and promoting measures at international level to deal with regional or worldwide environmental problems, and in particular combating climate change. Those core values that have inspired the Union’s own creation, as well as the universality and indivisibility of human rights, and respect for the principles of the United Nations Charter and international law, should guide the Union’s action on the international scene. Such action includes fostering the sustainable economic, social and environmental development of developing countries.
Amendment 162 #
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
(2a) To achieve these objectives, a systemic change to the Union economy is needed to ensure that the green transition is achieved in a just and inclusive way, within planetary boundaries. Achievement of the SDGs by the Union and its support for third countries to do the same will be essential if the Union is to demonstrate global leadership in achieving sustainability transitions[1]. [1] See how to refer to it: General Union Environment Action Programme to 2030, A9-0203/127;
Amendment 162 #
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 ands well as environmental and climate adverse impacts, with respect to their own operations, the operationproducts and services, the operations products and services of their subsidiaries, and the value chain operations carried out by entities with whom the company has an established business relationship and
Amendment 167 #
Proposal for a directive
Recital 10 a (new)
Recital 10 a (new)
(10a) Due diligence practices under this Directive should contribute to preserving and restoring marine and terrestrial biodiversity by, inter alia, halting, mitigating and reversing biodiversity loss and improving the state of ecosystems and their functions and the services they provide, and by improving the state of the environment, in particular air, water and soil, as part of the main objectives of protecting the health and well-being of people, animals and ecosystems from environment-related risks, in line with Agenda 2030.
Amendment 168 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point b
Article 1 – paragraph 1 – subparagraph 1 – point b
(b) on liability for violations of the obligations mentioned above., and
Amendment 170 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
(b a) on access to justice for victims of the obligations mentioned above
Amendment 175 #
Proposal for a directive
Recital 16 a (new)
Recital 16 a (new)
(16a) Companies should develop and adapt the due diligence measures in light of the political context in which companies, their subsidiaries and their business relationships operate throughout their value chains. In conflict-affected and high-risk areas, companies run additional risk to be involved in severe human rights abuses. In these areas, companies should therefore undertake heightened, conflict-sensitive due diligence, in order to address these heightened risks and to ensure that they do not facilitate, finance, exacerbate or otherwise negatively impact the conflict or contribute to violations of international human rights law or international humanitarian law in conflict-affected or high-risk areas.
Amendment 178 #
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 with the exceptione of the following conditionsmicro-enterprises as defined by article 3(1) of Directive 2013/34/EU.:
Amendment 180 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
Amendment 182 #
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, cthe exception of micro- enterprises as defined by Article 3(1) of Directive 2013/34/EU should be required to comply with due diligence. Companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. Temporary agency workers, including those posted under Article 1(3), point (c), of Directive 96/71/EC, as amended by Directive 2018/957/EU of the European Parliament and of the Council103 [1], 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[1] 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 184 #
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 basedand climate issues, this Directive should provide a list of high-impact sectors based¸ among others, on existing sectoral OECD due diligence guidance. The following sectors that should be regarded as high-impact for the purposes of this Directive: include: the energy sector including gas, nuclear, steam, electricity and other sources throughout their life cycle, from extraction, refining, production, combustion of fuels, in transportation, storage and waste management including radioactive waste; the chemicals sector; the manufacture of textiles, apparel, fur, leather and related products (including footwear), and the wholesale trade and retail of textiles, clothing and footwear; plastic production, waste shipment and management; agriculture, forestry, fisheries (including aquaculture), the management of land and resources (including in relation to nature conservation or other related activities), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, animal products, wood, food, and beverages; construction sector and infrastructure building; transportation sector, logistics and storage; the extraction and refining of mineral resources regardless of where they are extracted from (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non- metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products). As regards the financial sector, due to its specificities, in particular as regards the value cha the 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 covehousehold services; hospitality; financial and insurance activities; technology, digital activities and online platforms; manufacture and tragde of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings, even ifweapons and ammunition, including dual-use items, manufacture and trade of military fighting vehicles; private security activities and security systems service activities, including they do not have a legal form with limited liability. evelopment and operation of biometrics and surveillance technologies.
Amendment 184 #
Proposal for a directive
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
Amendment 191 #
Proposal for a directive
Recital 25
Recital 25
(25) In order to achieve a meaningful contribution to the sustainability transition, due diligence under this Directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the Annex to this Directive. In order to ensure a comprehensive coverage of human rights, a violation of a prohibition or right not specifically listed in that Annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this Directive, provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this Directive, taking into account all relevant circumstances of their operations, such as the sector and operational context. Due diligence should further encompass adverse environmental impacts resulting from the violation of one of the prohibitions and ob. Due diligence should further encompass adverse environmental and climate impacts resulting from the violation of one of the prohibitions and obligations established under EU and international environmental law, including, but not limited to the international environmental conventions listed in the Annex to this Directive, in particular adverse impacts on air quality, air pollution and atmosphere, water pollution, water contamination, access to water and depletion of freshwater, soil, such as soil pollution, soil contamination, soil erosion, and land degradation, biodiversity, including damage to wildlife, seabed and marine environment, flora, fauna, natural habitats and ecosystems, human health in accordance with the 'One Health' approach, cligmations pursuant to the international environmental conventions listed in the Annex to this Directivee, including through greenhouse gas emissions and the destruction or degradation of sinks.
Amendment 193 #
Proposal for a directive
Article 2 – paragraph 2 – introductory part
Article 2 – paragraph 2 – introductory part
2. This Directive shall also apply to large as well as listed small and medium- sized companies which are formed in accordance with the legislation of a third country, and fulfil one of the following conditions:operating in the Union and have generated a net turnover of more than EUR 8 million in the financial year preceding the last financial year
Amendment 195 #
Proposal for a directive
Recital 27
Recital 27
(27) In order to conduct appropriate human rights, climate and environmental due diligence with respect to their operations, produced goods and services throughout their life-cycle, and those their subsidiaries, and their value chains, companies covered by this Directive should, after meaningful consultation with stakeholders, integrate due diligence into corporate policies with short-, medium- and long-term measures, identify, prevent and mitigate as well as bring to an end and minimise the extent of potential and actual adverse human rights and, environmental and climate impacts, establish and maintain a complaints procedure, monitor and assess 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 and of bringing to an end, or when this is not possible, minimising actual adverse impacts should be clearly distinguished in this Directive.
Amendment 198 #
Proposal for a directive
Recital 28
Recital 28
(28) In order to ensure that due diligence forms part of companies’ corporate policies, and in line with the relevant international framework, companies should integrate due diligence into all their corporate policies and have in place a due diligence policy. The due diligence policy should contain a description of the company’s approach, including in the long term, to due diligence, a code of conduct describing the rules and principles to be followed by the company’s employees and subsidiaries; a description of the processes put in place to implement due diligence, including the measures taken to verify compliance with the code of conduct and to extend its application to established business relationships. The code of conduct should apply in all relevant corporate functions and operations, including procurement and purchasing decisions. Companies must put in place adequate policies to avoid passing on the costs of the due diligence process to business partners in a weaker position. The due diligence policy should notably include a strategy of co-investment to build the capacity of weaker business partners to carry out due diligence. Companies should also update their due diligence policy annually.
Amendment 200 #
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
Amendment 202 #
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 and climate 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 circumstancesdevelop and implement a prioritisation strategy in consultation with stakeholders, which shall take into account the level of severity, likelihood, the duration, the spread and reversibility of the different potential adverse impacts on human rights, the environment and the climate.
Amendment 202 #
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
Amendment 206 #
Proposal for a directive
Recital 31
Recital 31
(31) In order to avoid undue burden on the smaller companies operating in high- impact sectors which are covered by this Directive, those companies should only be obliged to identify those actual or potential severe adverse impacts that are relevSMEs covered by this Directive, those companies should be supported with adequate and targeted measures antd to the respective sectorols.
Amendment 207 #
Proposal for a directive
Recital 32
Recital 32
(32) In line with international standards, prevention and mitigation and remediation as well as bringing to an end and minimisation of adverse impacts should fully take into account the interests of those adversely impacted. In order to enable continuous engagement with the value chain business partner instead of termination of business relations (disengagement) and possibly exacerbating adverse impacts, this Directive should ensure that disengagement is a last-resort action, in line with the Union`s policy of ze and should be designed and determined on the basis of meaningful engagement with them. Companies should engage in a timely manner, efficiently and meaningfully with stakeholders impacted by the decision to suspend or terminate the adverse impacts before reaching that decision, and shall address the adverse impacts derived fro-m tolerance on child labour. Terminating a business relationship in whichhose actions. In particular, contributions to ending the child labour was fshounld could expose the child to even more severe adverse human rights impacts. This should therefore be taken into account when deciding on the appropriate action to takeinclude adjusting pricing practices to ensure a decent living of families and farmers, supporting children’s access to education and require the supplier to avoid child labour.
Amendment 210 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point i
Article 3 – paragraph 1 – point a – point i
(i) a legal person constituted as one of the legal forms listed in Annex I and II to Directive 2013/34/EU of the European Parliament and of the Council110 ; _________________ 110 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings (OJ L 182, 29.6.2013, p. 19).
Amendment 211 #
Proposal for a directive
Recital 36
Recital 36
(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 relationship, 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 effortsand remediation efforts where appropriate, if there is reasonable expectation that these efforts are to succeed in the short-termaccordance with a joint time-bound plan; or to terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe. Companies shall engage meaningfully with stakeholders impacted by the decision to disengage before reaching this decision, and shall address the adverse impacts related to the decision to disengage and pursue remediation of past adverse impacts where appropriate. 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 211 #
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 market operator as defined in article 4(1) (18) of Directive 2014/65/EU
Amendment 214 #
Proposal for a directive
Recital 38
Recital 38
(38) Under the due diligence obligations set out by this Directive, if a company identifies actual human rights or, environmental, climate, rule of law and good governance adverse impacts, it should take appropriate measures to bring those to an end. It can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries and to require partners to do so. However, it should be clarified that, as regards established business relationships, where adverse impacts cannot be brought to an end, companies should minimise the extent of such impactssuch impacts, to the greatest extent possible. Minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. To provide companies with legal clarity and certainty, this Directive should define which actions companies should be required to take for bringing actual adverse human rights and environmental, climate, rule of law and good governance adverse impacts to an end and minimisation of their extent, where relevant depending on the circumstances.
Amendment 215 #
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 217 #
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 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 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 218 #
Proposal for a directive
Article 3 – paragraph 1 – point e a (new)
Article 3 – paragraph 1 – point e a (new)
(e a) ‘high-impact sector’ means any of the following: (i) the energy sector, including gas, nuclear, steam, electricity and other sources throughout their life cycle, from extraction, refining, production, combustion of fuels, transportation, storage and waste management including radioactive waste; (ii) the production, use and disposal of organic and inorganic chemicals, including pharmaceuticals, plant protection products and fertilisers; (iii) the manufacture of textiles, apparel, leather, fur and related products (including footwear), and the wholesale trade and retail of textiles, clothing and footwear; (iv) plastic production, waste shipment and management; (v) agriculture, water supply, forestry, fisheries (including aquaculture), the management of land and resources (including in relation to nature conservation or other related activities), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, animal products, wood, food, beverages; (vi) construction sector and building infrastructures; (vii) transportation sector, logistics and storage; (viii) the extraction and refining of mineral resources, transport and handling, regardless from where they are extracted (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non- metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products, and the wholesale trade of mineral resources, basic and intermediate mineral products (including metal sand metal ores, construction materials, fuels, chemicals and other intermediate products); (ix) the production, use and waste management of electronic products; (x) waste management sector; (xi) employment activities; (xii) health care, social care and elder care; (xiii) cleaning and household services; (xiv) hospitality; (xv) financial and insurance activities; (xvi) technology, digital activities and online platforms; (xvii) Manufacture of weapons and ammunition, including dual-use items, manufacture of military fighting vehicles; (xviii) Private security activities and security systems service activities, including the development and operation of biometrics and surveillance technologies;
Amendment 219 #
Proposal for a directive
Recital 43
Recital 43
(43) Companies should monitor the implementation and effectiveness of their due diligence measures. They should, in consultation with stakeholders, carry out periodic assessments of their own operations, those of their subsidiaries and, where related to the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, minimisation, bringing to an end and mitigation of human rights and, environmental and climate 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 221 #
Proposal for a directive
Recital 44 a (new)
Recital 44 a (new)
(44a) Companies should provide stakeholders adequate, comprehensive meaningful information about actual and potential adverse human rights, environmental and climate impacts and the actions taken to respect their due diligence. Stakeholders should also be able to request additional information from a company regarding the actions taken to comply with the obligations set in this Directive. The confidentiality of commercial and industrial information shall not serve as a bar for access to information that relates to the implementation, by a company, of the provisions of national law transposing this Directive.
Amendment 221 #
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
Amendment 224 #
Proposal for a directive
Recital 46 a (new)
Recital 46 a (new)
Amendment 226 #
Proposal for a directive
Recital 49
Recital 49
(49) The Commission and Member States should continue to work in partnership with third countries to support upstream economic operators build the capacity to effectively prevent and mitigate adverse human rights and, environmental, climate, rule of law and good governance impacts of their operations and business relationships, paying specific attention to the challenges faced by smallholders. They, who are some of the most marginalised actors in the global value chains. If smallholders do not meet their needs, then they cannot afford the social (e.g. no child labour) and environmental improvements (e.g. no deforestation or sustainable diversification) that they buyers, governments and consumers expect from them. Henceforth, the Commission and Member States should use their neighbourhood, development and international cooperation instruments to support third country governments and upstream economic operators in third countries addressing adverse human rights and, environmental, climate, rule of law and good governance impacts of their operations and upstream business relationships. This could include working with partner country governments, the local private sector and stakeholders on addressing the root causes of adverse human rights and environmental impacts, climate, rule of law and good governance impacts. In the same line, the Commission and Member States should provide targeted support to stakeholders in developing countries, in order to ensure their meaningful engagement in all due diligence processes. In particular, support should be provided to national and local civil society organisations to monitor corporate practices and hold companies accountable and dedicated measures and funds should ease access to justice.
Amendment 227 #
Proposal for a directive
Recital 50
Recital 50
(50) In order to ensure that this Directive effectively contributes to combating climate change, companies should, in consultation with stakeholders, adopt a plan to ensure that the business model and strategy of the company are compatiblealigned with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. In case climate is or should have been identified as a principal risk for or a principal impact of the company’s operations and with the objective of achieving climate neutrality by 2050 at the latest as established in Regulation EU 2021/1119 (European Climate Law), pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change. Accordingly, the company should include emissions reduction objectives in its plan.
Amendment 228 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production of goods or the provision of services by a the company, its subsidiaries or companies in which it holds a minority shareholding, including the development of the product or the service and the use, waste management and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. As regards companies within the meaning of point (a)(iv), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities; or its subsidiaries.
Amendment 230 #
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 233 #
Proposal for a directive
Article 3 – paragraph 1 – point g a (new)
Article 3 – paragraph 1 – point g a (new)
(g a) product means any item, interconnected or not to other items, throughout its lifecycle, produced, used, supplied or made available, whether for consideration or not, in the course of a commercial activity
Amendment 234 #
Proposal for a directive
Article 3 – paragraph 1 – point g b (new)
Article 3 – paragraph 1 – point g b (new)
(gb) ‘services’ means services within the meaning of article 57 TFEU;
Amendment 235 #
Proposal for a directive
Recital 59 a (new)
Recital 59 a (new)
(59a) The right to an effective remedy is an internationally recognised human right, enshrined in Article 8 of the Universal Declaration of Human Rights, and Article 2(3) of the International Covenant on Civil and Political Rights, and is also a fundamental right of the Union within the meaning of Article 47 of the Charter. Member States should thus ensure that victims have access to an effective remedy and that the costs and the length of the proceedings do not prevent claimants from access to courts. These measures may, for example, take the form of public funding, including structural support for victims of actual and potential adverse impacts, limitation of applicable court or administrative fees, or access to legal aid.
Amendment 235 #
Proposal for a directive
Article 3 – paragraph 1 – point h
Article 3 – paragraph 1 – point h
(h) ‘independent third-party verification’ means verification of the compliance by a company, or parts of its value chain, with human rights, good governance, and environmental and climate requirements resulting from the provisions of this Directive through an assessment of conformity in accordance with Decision No 768/2008/EC of the European Parliament and of the Council and accredited in accordance with Regulation (EC) No 765/2008 by an auditor which is independent from the company, free from any conflicts of interests, has experience, expertise and competence in environmental and, climate human rights matters and good governance, is accredited in accordance with Regulation (EC) No 765/2008, has a European registered office and is accountable for the quality and reliability of the audit;
Amendment 236 #
Proposal for a directive
Recital 59 b (new)
Recital 59 b (new)
(59b) The most significant barriers to access to justice for victims of adverse impacts is the difficulty in proving the company's failure to meet its obligations. In case of a civil liability claim for damages and when prima facie elements are provided by the claimants, the causal link between the damage and the company’s failure to comply should be presumed and the respondent should have to prove it has complied with its obligations and that appropriate measures were taken.
Amendment 237 #
Proposal for a directive
Recital 59 c (new)
Recital 59 c (new)
(59c) 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 potential adverse impacts, and that these entities have the rights and obligations of a claimant party in the proceedings.
Amendment 239 #
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, in accordance with Decision No 768/2008/EC of the European Parliament and of the Council and accredited in accordance with Regulation (EC) No 765/2008, including independent third- party verifications, developed and overseen by governments, industry associations or groupings of interested organisations; and overseen by an auditor with a European registered office accredited in accordance with Regulation (EC) No 765/2008;
Amendment 242 #
(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. _________________ 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 243 #
Proposal for a directive
Recital 65 a (new)
Recital 65 a (new)
(65a) Human rights and environmental rights defenders are on the front line of the consequences of adverse environmental, climate and human rights impacts worldwide and in the EU, and may be directly threatened, intimidated, persecuted, harassed or even murdered, and as such should also benefit from balanced and effective protection. Companies should measure the actual and potential risks of their activities, as well as contextual risks to human rights and environmental rights defenders, engage with them and publish a policy on defenders that includes a zero-tolerance stance on threats or violence against them. Company policies must explicitly include in their due diligence protocols for safeguarding the rights of land and environmental rights defenders.
Amendment 243 #
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,workers, the workers of its subsidiaries, its small shareholders and other individuals, groups, communities or entities or civil society organisations, whose rights or interests are or could be affected by the products, services and operationspotential or actual adverse human rights impacts and adverse environmental impacts arising from the products, services and operations or by the potential or actual adverse impacts on human rights, climate or environment of that company, its subsidiaries and its business relationships across the entire value chain;
Amendment 245 #
Proposal for a directive
Recital 70
Recital 70
(70) The Commission should assess and report on a regular basis whether new sectors should be added to the list of high- impact sectors covered by this Directive, in order to align it to guidance from the Organisation for Economic Cooperation and Development or in light of clear evidence on labour exploitation, human rights violations or newly emerging environmental threats, whether the list of relevant international conventions referred to in this Directive should be amended, in particular in the light of international developments, or whether the provisions on due diligence under this Directive should be extended to adverse climate impacts.
Amendment 246 #
Proposal for a directive
Article 3 – paragraph 1 – point n – point i (new)
Article 3 – paragraph 1 – point n – point i (new)
i) the company’s workers, the workers of its subsidiaries, its small shareholders and other individuals, groups, communities, entities or civil society organisations, 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, climate or environment of that company, its subsidiaries and its business relationships across the entire value chain;
Amendment 247 #
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 and climate adverse impacts 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 249 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point a
Article 1 – paragraph 1 – subparagraph 1 – point a
(a) on obligations for companies regarding actual and potential human rights adverse impacts and, environmental adverse impacts, with respect to their own operations, the operationand climate adverse impacts and rule of law and good governance adverse impacts, with respect to their own operations, products and services, the operations products and services of their subsidiaries, and the value chain operations carried out by entities with whom the company has an established business relationship and;
Amendment 249 #
Proposal for a directive
Article 3 – paragraph 1 – point n – point ii (new)
Article 3 – paragraph 1 – point n – point ii (new)
ii) organisations representing the individuals, groups, communities or entities included in (i);
Amendment 250 #
iii) organisations who have as a statutory purpose the defence of human rights, good governance, the environment or climate; and
Amendment 251 #
Proposal for a directive
Article 3 – paragraph 1 – point n – point iv (new)
Article 3 – paragraph 1 – point n – point iv (new)
iv) other legal or natural persons engaged in the defence of human rights, good governance, the environment or climate.
Amendment 257 #
Proposal for a directive
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
1a. This Directive aims to ensure that companies respect human rights, good governance and protect the environment and the climate within their own operations, products and services, and those of their subsidiaries, and value chains.
Amendment 262 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. This Directive shall apply to companies and other legal persons (including with a non-profit purpose) undertaking activities of commercial nature, 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 Directive 2013/34/EU.
Amendment 262 #
Proposal for a directive
Article 3 – paragraph 1 – point q
Article 3 – paragraph 1 – point q
(q) ‘appropriate measures’ means a set of measures that is capable of achieving the objectives of due diligence and effectively addressing the adverse impact, commensurate with the degree of severity, and the likelihood of the adverse impact, and reasonably available to the company, taking into account the circumstances of the specific case, including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof, and the need to ensure prioritisation of action.
Amendment 265 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
Amendment 267 #
Proposal for a directive
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Member States shall ensure that companies respect human rights, the environment and climate by obliging them to conduct human rights and environmental and climate due diligence as laid down in Articles 5 to 11 (‘due diligence’) by carrying out the following actions:
Amendment 268 #
Proposal for a directive
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
Amendment 270 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point ii
Article 2 – paragraph 1 – point b – point ii
(ii) agriculture, forestry, fisheries (including aquaculture), management of land and resources (including in relation to nature conservation or other related activities), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages; and sale to consumers;
Amendment 273 #
Proposal for a directive
Article 4 – paragraph 1 – point d a (new)
Article 4 – paragraph 1 – point d a (new)
(d a) engaging with stakeholders in a meaningful way, in accordance with article 9a.
Amendment 275 #
Proposal for a directive
Article 2 – paragraph 2 – introductory part
Article 2 – paragraph 2 – introductory part
2. This Directive shall also apply to large as well as listed small and medium- sized 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 278 #
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
Amendment 280 #
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
Amendment 280 #
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 stakeholders and shall contain all of the following:
Amendment 284 #
Proposal for a directive
Article 3 – paragraph 1 – point a a (new)
Article 3 – paragraph 1 – point a a (new)
(aa) a legal person which undertakes activities of commercial nature, independently of its legal form, its sector of activity or its purpose (profit or non- profit).
Amendment 285 #
Proposal for a directive
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) ‘adverse environmental and climate impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant: (i) contributing to the exceeding of planetary boundaries; (ii) an adverse impact on the following elements or functions of ecosystems and the interrelations between them; (a) climate, including but not limited to greenhouse gas emissions and the destruction or degradation of sinks; (b) air and the atmosphere, including but not limited to air pollution; (c) water and access to water, including but not limited to, water use, water pollution, water quantities and depletion of freshwater; (d) soil, including but not limited to, soil pollution, soil erosion, land use and land degradation, soil contamination from waste disposal and treatment; (e) biodiversity, including but not limited to, damage to wildlife, flora, seabed and marine environment, natural habitats and ecosystems; (f) hazardous substances; (g) energy use; (h) the transition to a circular economy; (i) human health in accordance with the ‘One Health’ approach and the right to a healthy environment. (iii) an adverse impact on the environment or climate resulting from the violation of one of the prohibitions and obligations established under international environmental and climate legislation including but not limited to the international environmental and climate conventions listed in the Annex, Part II; ;
Amendment 285 #
Proposal for a directive
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) a description of the company’s approach to due diligence, including in the short, medium and long term, to due diligence and covering all their operations, products and services;
Amendment 288 #
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 289 #
Proposal for a directive
Article 3 – paragraph 1 – point c a (new)
Article 3 – paragraph 1 – point c a (new)
Amendment 290 #
Proposal for a directive
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) a description of the processes and concrete measures put in place to implement due diligence across the value chain, including the measures taken to verify compliance with the code of conduct and to extend its application to established business relationships.
Amendment 293 #
Proposal for a directive
Article 3 – paragraph 1 – point c b (new)
Article 3 – paragraph 1 – point c b (new)
Amendment 295 #
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States shall ensure that the companies updatereview, update and publish their due diligence policy annually at least every 12 months and whenever needed, in particular when there are reasonable grounds to believe that new risks of the occurrence of adverse impacts have arisen or may arise.
Amendment 298 #
Proposal for a directive
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
Amendment 299 #
Proposal for a directive
Article 6 – title
Article 6 – title
Identifying and assessing actual and potential adverse impacts
Amendment 301 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to identify and assess, actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations, products and services, or those of their subsidiaries and, wherthose related to their value chains, from their established business relationships, in accordance with paragraph 2, 3 and 4. These measures shall also include the assessment of the impact of policies and strategies regarding business relationships, including trading, procurement and pricing practices.
Amendment 308 #
Proposal for a directive
Article 3 – paragraph 1 – point l
Article 3 – paragraph 1 – point l
(l) ‘severe adverse impact’ means an adverse environmental and climate impact or an adverse human rights impact that is especially significant by its nature, or affects a large number of persons or a large area of the environment, or which is irreversible, or is particularly difficult to remedy as a result of the measures necessary to restore the situation prevailing prior to the impact;
Amendment 309 #
Proposal for a directive
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
1a. Member States shall ensure that in particular for companies operating in one of the sectors referred to in Article 3 point (ea), appropriate measures shall also target the risks that are specific to that sector.
Amendment 310 #
Proposal for a directive
Article 3 – paragraph 1 – point n
Article 3 – paragraph 1 – point n
(n) ‘stakeholders’ means (i) the company’s employees workers, the employees workers of its subsidiaries, its small shareholders and other individuals, groups, communities, or entities or civil society organisations, whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships; r by the potential or actual adverse impacts on human rights, climate or environment of that company, its subsidiaries and its business relationships across the entire value chain; (ii) organisations representing the individuals, groups, communities or entities included in (i); (iii) organisations who have as a statutory purpose the defence of human rights, good governance, the environment or climate; and (iv) other legal or natural persons engaged in the defence of human rights, good governance, the environment or climate.
Amendment 310 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
Amendment 312 #
Proposal for a directive
Article 3 – paragraph 1 – point n a (new)
Article 3 – paragraph 1 – point n a (new)
(na) ‘meaningful engagement with stakeholders’ means an interactive, responsive, ongoing and gender-inclusive process of engagement with potentially affected stakeholders and their representative organisations, especially vulnerable stakeholders, such as workers, trade unions, smallholders, indigenous peoples and local communities, at each phase of the due diligence process. Companies shall engage with the genuine intention to understand how relevant stakeholder interests are affected by its activities, and shall engage with stakeholders prior to taking decisions that may impact them and take into consideration their interests. It involves the timely provision of all information needed by the potentially impacted stakeholders to make an informed judgment on how the decision could affect them. It should ensure a proper follow-up of the implementation of agreed commitments, ensuring that adverse impacts to impacted and potentially impacted stakeholders are addressed.
Amendment 315 #
Proposal for a directive
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
2 a. Member States shall ensure that companies map their value chain and publicly disclose relevant information including names, locations, types of operations, products and services supplied, as well as other relevant information concerning subsidiaries, branches and business relationships.
Amendment 316 #
Proposal for a directive
Article 3 – paragraph 1 – point q
Article 3 – paragraph 1 – point q
(q) ‘appropriate measures’ means a set of measures that is capable of achieving the objectives of due diligence and effectively addressing the adverse impact, commensurate with the degree of severity and the likelihood of the adverse impact, and reasonably available to the company, taking into account the circumstances of the specific case, including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof, and the need to ensure prioritisation of action.
Amendment 318 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
Amendment 322 #
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 relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.
Amendment 323 #
Proposal for a directive
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Member States shall ensure that companies respect human rights, the environment and climate by obliging them to conduct human rights and, environmental and climate due diligence as laid down in Articles 5 to 11 (‘due diligence’) by carrying out the following actions:
Amendment 327 #
Proposal for a directive
Article 4 – paragraph 1 – point f a (new)
Article 4 – paragraph 1 – point f a (new)
(fa) engaging with stakeholders in a meaningful way. In particular, (i) Member States shall ensure that companies carry out in good faith effective, meaningful and informed engagement with relevant stakeholders when implementing the due diligence process. Member States shall guarantee, in particular, the right for trade unions and for workers and smallholders’ representatives to be involved in implementation of the due diligence process in good faith with the companies. (ii) Companies may prioritise engagement with the most impacted stakeholders such as trade unions, workers and smallholders’ representatives, indigenous peoples and local communities, and engage in a manner that is appropriate to their size and to the nature and context of their operations. (iii) In situations where direct engagement is not possible, Member States shall ensure that companies consider other reasonable alternatives such as independent experts, human rights and environment defenders and civil society organizations representing stakeholders’ interests.
Amendment 327 #
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 and adverse impacts that have been, or should have been, identified pursuant to Article 6, in accordance with paragraphs 2, 3, 4 and 5 of this Article.
Amendment 329 #
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 333 #
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 337 #
Proposal for a directive
Article 7 – paragraph 2 – point b
Article 7 – paragraph 2 – point b
(b) seekensure contractual assurances from a business partner with whom it has a directnd other assurances regarding its business relationship that it will ensures of 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 applyIn case the business partner belongs to one of the sectors referred to in Article 3 (ea), the assurances shall include details on ensuring compliance with regards to the risks that are specific to that sector;
Amendment 342 #
Proposal for a directive
Article 7 – paragraph 2 – point c a (new)
Article 7 – paragraph 2 – point c a (new)
(c a) adapt business models and strategies, including trading, procurement and pricing practices, in order to prevent potential adverse impacts;
Amendment 344 #
Proposal for a directive
Article 5 – paragraph 1 – point c a (new)
Article 5 – paragraph 1 – point c a (new)
(ca) capacity of weaker business partners to carry out due diligence, taking into account the leverage of the company to ensure that the costs of the due diligence process are not passed on to business partners in a weaker position.
Amendment 346 #
Proposal for a directive
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1a. For undertakings operating in one of the 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.
Amendment 346 #
Proposal for a directive
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
(d) provide targeted and proportionate support for an SME with which the company has an established business relationship,he necessary support such as loans or financing for business partners, in particular SMEs where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the SMEbusiness partner;
Amendment 351 #
Proposal for a directive
Article 7 – paragraph 2 a (new)
Article 7 – paragraph 2 a (new)
2 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 352 #
Proposal for a directive
Article 6 – title
Article 6 – title
Identifying and assessing actual and potential adverse impacts
Amendment 352 #
Proposal for a directive
Article 7 – paragraph 2 b (new)
Article 7 – paragraph 2 b (new)
2 b. 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 353 #
1. Member States shall ensure that companies take appropriate measures to identify and assess actual and potential adverse human rights impacts and adverse environmentalas well as environmental and climate adverse impacts arising from their own operations, products and services, or those of their subsidiaries and, wher those related to their value chains, from their established business relationships, in accordance with paragraph 2, 3 and 4. These measures shall also include the assessment of the impact of policies and strategies regarding business relationships, including trading, procurement and pricing practices.
Amendment 354 #
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
Amendment 357 #
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 361 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – introductory part
Article 7 – paragraph 5 – subparagraph 1 – introductory part
As regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2, 3 and 4, because mitigation is not possible or acceptable, or there is no reasonable prospect of change, the company shall be required to refrain from entering into new or extending existing relations with the partner in connection with or in the value chain of which the impact has arisen and shall, where the law governing their relations so entitles them to, take the followingin such cases, the company shall, in consultation with stakeholders, identify and remedy the risks and impacts of their actions:.
Amendment 366 #
Proposal for a directive
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
Amendment 368 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point b
Article 7 – paragraph 5 – subparagraph 1 – point b
(b) terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe as well as if the conditions for temporary suspension under point (a) are not met.
Amendment 371 #
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 relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on also carry out meaningful, gender inclusive engagement with potentially affected stakeholders and their representative organisations, especially vulnerable stakeholders, such as workers, trade unions, smallholders, indigenous peoples and local communities, to gather information on as well as to identify and assess actual or potential adverse impacts.
Amendment 376 #
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 377 #
Proposal for a directive
Article 6 – paragraph 4 a (new)
Article 6 – paragraph 4 a (new)
4a. When carrying out consultations with stakeholders as provided for by this Directive under articles 6, 7 and 8, companies shall ensure that where the stakeholders are Indigenous Peoples, such consultations are conducted in accordance with international human rights standards, such as those developed in the United Nations Declaration on the Rights of Indigenous Peoples, including by respecting Indigenous Peoples’ rights to free, prior and informed consent and to self-determination.
Amendment 378 #
Proposal for a directive
Article 6 – paragraph 4 b (new)
Article 6 – paragraph 4 b (new)
4b. Member States shall ensure that in the context of conflict-affected and high- risk areas, companies engage in heightened due diligence and augment their due diligence framework with tools from atrocity prevention and conflict prevention.
Amendment 381 #
Proposal for a directive
Article 8 – paragraph 2
Article 8 – paragraph 2
2. Where the adverse impact cannot immediately be brought to an end, Member States shall ensure that companies minimise the extent of such an impact, while continuing to pursue all efforts to bring the adverse impact to an end.
Amendment 382 #
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 environmentalas well as environmental and climate adverse impacts that have been, or should have been, identified pursuant to Article 6, in accordance with paragraphs 2, 3, 4 and 5 of this Article.
Amendment 384 #
3. Companies shall be required to takeIn order to comply with paragraphs 1 and 2 of this article, companies shall be required to take appropriate measures, including but not limited to the following actions, where relevant:
Amendment 387 #
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 consultation with affected stakeholdersaccordance with Article 4(2) point (a) on meaningful stakeholder engagement. When necessary, this plan should also include a prioritisation strategy on the basis of severity and irremediability of actual or potential harm;
Amendment 390 #
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. 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 391 #
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 and measures with reasonable and clearly defined timelines for action, tools and qualitative and quantitative indicators for measuring improvement. Where relevant, tThe action plan 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. This is without prejudice to the possibility for Member States to uphold or introduce joint and several liability for different companies with a shared responsibility for an adverse impact. The corrective action plan shall be developed in consultation with stakeholders and shall be publicly available;
Amendment 394 #
Proposal for a directive
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) make necessary investments, such as into management or production processes, capacity building, joint prevention and mitigation measures with value chain partners, pricing mechanisms that contribute to living wages and incomes for their suppliers and infrastructures, to comply with paragraph 1;
Amendment 396 #
Proposal for a directive
Article 8 – paragraph 3 – point c
Article 8 – paragraph 3 – point c
(c) seekensure contractual assurances from a direct partner with whom it has an establishednd other assurances regarding its business relationship that it will ensures of compliance with the code of conduct and, as necessary, a corrective action plan, including by seeking corresponding contractual assurances from its partners, to the extent that they are part of the value chain (contractual cascading). When such contractual assurances are obtained, paragraph 5 shall apply.. With regards to contractual assurances the terms shall be reasonable and non- discriminatory. In case the business relationship is active in one of the sectors referred to in article 3 point (ca), the assurances shall also include details on ensuring compliance with regards to the risks that are specific to that sector;
Amendment 401 #
Proposal for a directive
Article 7 – paragraph 2 – point e a (new)
Article 7 – paragraph 2 – point e a (new)
(ea) adjust their business models and strategies, including trading, procurement and pricing practices, to prevent potential adverse impacts they may contribute to.
Amendment 401 #
Proposal for a directive
Article 8 – paragraph 3 – point d a (new)
Article 8 – paragraph 3 – point d a (new)
(d a) adapt business models and strategies, including trading, procurement and pricing practices, in order to bring to an end or minimise actual adverse impacts
Amendment 424 #
(aa) In the case of Indigenous Peoples, remediation actions should follow international standards including the United Nations Declaration on the Rights of Indigenous Peoples and may include actions to seek the restitution of the lands, territories and resources which they have traditionally owned or otherwise occupied or used.
Amendment 426 #
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 and measures with reasonable and clearly defined timelines for action, tools and qualitative and quantitative indicators for measuring improvement. Where relevant, the corrective action plan shall be developed in consultation with stakeholdersThe 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. This is without prejudice to the possibility for Member States to uphold or introduce joint and several liability for different companies with a shared responsible for an adverse impact. The corrective action plan shall be developed with the meaningful engagement of stakeholders including trade unions and workers’ representatives, and shall be made publicly available, and shall be publicly available;
Amendment 428 #
Proposal for a directive
Article 9 – title
Article 9 – title
Amendment 430 #
Proposal for a directive
Article 8 – paragraph 3 – point b a (new)
Article 8 – paragraph 3 – point b a (new)
(ba) where the stakeholders are Indigenous Peoples, the corrective action plan shall be developed in consultation with them and companies must obtain their free, prior and informed consent.
Amendment 430 #
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 persons and organisations listed in paragraph 2 to submit complaints to themraise grievances and request remedy where they have legitimatreasonable concerns regarding actual or potential adverse human rights impacts and adverse, good governance and environmental and climate impacts with respect to their own operations, the operation products and services, the operations, products and services of their subsidiaries and their value chains.
Amendment 434 #
Proposal for a directive
Article 8 – paragraph 3 – point d
Article 8 – paragraph 3 – point d
(d) make necessary investments, such as into management or production processes, capacity building, joint remediation and mitigation plans with value chain partners, pricing mechanisms that contribute to living wages and incomes for their suppliers and infrastructures to comply with paragraphs 1, 2 and 3;
Amendment 435 #
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.1b. 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 437 #
Proposal for a directive
Article 9 – paragraph 1 b (new)
Article 9 – paragraph 1 b (new)
1 b. 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 and in the provision of remedy.
Amendment 438 #
Proposal for a directive
Article 9 – paragraph 1 c (new)
Article 9 – paragraph 1 c (new)
1 c. 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 439 #
Proposal for a directive
Article 9 – paragraph 1 d (new)
Article 9 – paragraph 1 d (new)
1 d. 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.
Amendment 440 #
Proposal for a directive
Article 8 – paragraph 3 – point f a (new)
Article 8 – paragraph 3 – point f a (new)
(fa) adjust their business models and strategies, including trading, procurement and pricing practices, to bring to an end the adverse impacts they contribute to.
Amendment 440 #
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:grievances may be submitted by all persons, groups, communities, entities and civil society organisations covered by Article 3 points (n), (ha) and (hb) as well as the natural and legal persons representing them, including in particular trade unions and other workers’ representatives.
Amendment 442 #
Proposal for a directive
Article 9 – paragraph 2 – point a
Article 9 – paragraph 2 – point a
Amendment 445 #
Proposal for a directive
Article 9 – paragraph 2 – point b
Article 9 – paragraph 2 – point b
Amendment 448 #
Proposal for a directive
Article 8 – paragraph 7 a (new)
Article 8 – paragraph 7 a (new)
7a. Companies shall fully remediate or contribute to the full remediation of actual adverse impacts taking into account that the adverse impacts can affect different groups of stakeholders. The action remedy shall be proportionate to the significance and scale of the adverse impact. Remedy may include apologies, restitution, rehabilitation, financial or non-financial compensation, restoration of the environment to its previous state and punitive sanctions (whether criminal or administrative, such as fines), as well as the prevention of harm through, for example, injunctions or guarantees of non-repetition.
Amendment 450 #
Proposal for a directive
Article 8 a (new)
Article 8 a (new)
Article 8a Responsible Disengagement 1. Member States shall ensure that companies disengage responsibly, and only as a last resort, when responding to situations where potential and adverse impacts within the meaning of Articles 7.1 and 8.1 cannot be prevented, brought to an end, or otherwise effectively mitigated or meaningfully minimized according to the views of affected stakeholders, in particular workers, or other stakeholders with a legitimate interest. To this end, companies shall meaningfully engage with stakeholders in accordance with article 9a, before taking a decision. 2. Companies shall disclose as part of their reporting obligation as referred to in Article 11, the number of instances where they have decided to disengage; the reason for this disengagement and the location of the concerned business relationships without disclosing their identity.
Amendment 450 #
Proposal for a directive
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
Amendment 453 #
Proposal for a directive
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
1a. Member States shall ensure that companies put in place complaints mechanisms that are locally accessible, context appropriate and transparent, which take particular care in protecting against retaliation, in ensuring that Indigenous Peoples can understand and be understood in these proceedings and in ensuring that these mechanisms have been developed in conjunction with the communities concerned.
Amendment 456 #
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
3. Member States shall ensure that the companies establishgrievance mechanisms include a procedure for dealing with complaintgrievances referred to in paragraph 1, including a procedure when the company or its internal grievance mechanism considers the complaintgrievance to be unfounded, and inform the relevant stakeholders, including workers and trade unions, of those procedures. Member States shall ensure that where the complaintgrievance is well-founded, the adverse impact that is the subject matter of the complainit is deemed to be identified within the meaning of Article 6.
Amendment 459 #
Proposal for a directive
Article 9 – paragraph 4 – point a a (new)
Article 9 – paragraph 4 – point a a (new)
(a a) to receive guarantees of non- retaliation, confidentiality and anonymity for all actual and potentially affected stakeholders
Amendment 460 #
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 462 #
Proposal for a directive
Article 9 – paragraph 4 – point b a (new)
Article 9 – paragraph 4 – point b a (new)
(b a) Member States must ensure that recourse 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 464 #
Proposal for a directive
Article 9 – paragraph 2 – point c a (new)
Article 9 – paragraph 2 – point c a (new)
(ca) business partners that are unable to fulfil the requirements of contractual assurances as referred to in Article 7.2(b) and 8.3(c) due to unfair purchasing practices of their buyers.
Amendment 464 #
Proposal for a directive
Article 9 – paragraph 4 – point b b (new)
Article 9 – paragraph 4 – point b b (new)
(b b) to request that companies fully remediate or contribute to the full remediation of actual adverse impacts. The remedy shall be proportionate to the significance and scale of the adverse impact.
Amendment 467 #
Proposal for a directive
Article 9 – paragraph 4 a (new)
Article 9 – paragraph 4 a (new)
4 a. to receive timely and effective information on the steps and actions taken in the context of a specific grievance filed to the independent grievance mechanism
Amendment 468 #
Proposal for a directive
Article 9 – paragraph 4 b (new)
Article 9 – paragraph 4 b (new)
4 b. Member States must 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 469 #
Proposal for a directive
Article 9 a (new)
Article 9 a (new)
Article 9 a Stakeholder engagement Member States shall ensure that companies effectively and meaningfully engage stakeholders, including human rights and environmental human rights defenders, in fulfilling their obligations pursuant to Articles 4-11. Companies shall be required to ensure: (a) stakeholder engagement covers information, consultation and participation and takes places on a structural and regular basis throughout the entire due diligence process; (b) comprehensive and meaningful information is provided to stakeholders in accordance with article 11; (c) 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. (d) ad-hoc and pro-active engagement with stakeholders is initiated in case of significant changes in operations, activities or operating context; and (e) a gender- and culturally responsive approach is ensured at all times. 2. 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. 3. The engagement of workers and workers’ representatives shall be without prejudice to Directives 2002/14/EC and 2009/38/EC of the European Parliament and of the Council and Council Directive 2001/86/EC.
Amendment 470 #
Proposal for a directive
Article 10 – title
Article 10 – title
Tracking and Monitoring
Amendment 472 #
Proposal for a directive
Article 10 – paragraph 1
Article 10 – paragraph 1
Member States shall ensure that companies carry out periodic assessments of their own operations and measures, those of their subsidiaries and, where related to the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, mitigation, bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. The due diligence policyto track the implementation and monitor the effectiveness of the actions taken in accordance with article 4. Such assessments shall be carried out in consultation with stakeholders, based on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. For companies operating in one of the sectors referred to in article 3 point (ca), the assessments shall also provide detail with regards to the risks that are specific to that sector. The due diligence policy, the prevention action plan and the corrective action plan shall be updated in accordance with the outcome of those assessments.
Amendment 476 #
Proposal for a directive
Article 11 – title
Article 11 – title
Communication and Access to Informationg
Amendment 478 #
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 report on the matters covered by this Directive by publishing on their website an annual statement that meets those requirements in a language customary in the sphere of international business. This reporting should be accessible, comparable and sufficiently detailed to demonstrate the adequacy of a company’s due diligence process as per this Directive. For undertakings, and in particular small undertakings, that do not have a website, Member States shall dedicate a publicly accessible website where the annual statement of the companies concerned shall be published. The statement shall be published by 30 April each year, covering the previous calendar year.
Amendment 479 #
Proposal for a directive
Article 11 – paragraph 1 – subparagraph 1 (new)
Article 11 – paragraph 1 – subparagraph 1 (new)
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 in written and in a timely, accessible and gender and culturally responsive manner, taking into account specifics of the stakeholder group. 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 to be 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 483 #
Proposal for a directive
Article 11 a (new)
Article 11 a (new)
Article 11 a European Single Access Point 1. Member States shall ensure that annual statements prepared by undertakings pursuant to Article 11 are submitted to the collection body referred to in ESAP Regulation in order to make that information accessible on the European Single Access Point (ESAP). That information shall comply with all of the following requirements: (a) the information shall be prepared in a data extractable format as defined in Article 2, point (3), of ESAP Regulation or, where required under Union law, in a machine-readable format, as defined in Article 2, point (13), of Directive (EU) 2019/1024 of the European Parliament and of the Council; (b) the information shall be accompanied by all the following metadata: (i) all the names of the undertaking to which the information relates; (ii) the legal entity identifier of the undertaking, as specified pursuant to Article 7(4) of Regulation [insert ESAP Regulation]; (iii) the size of the undertaking by category, as specified pursuant to Article 7(4) of Regulation [insert ESAP Regulation]; (iv) the type of information, as classified pursuant to Article 7(4) of ESAP Regulation; (v) the specific period for which the information is to be made publicly available on ESAP, where relevant.
Amendment 485 #
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., including:
Amendment 486 #
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 impactshall issue general as well as sector-specific and impact-specific guidelines particular , in particular for the sectors referred to in article 3 point (ca). These guidelines shall be ready before the entry into force of this Directive an regularly reviewed and updated. 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) contexts, such as situations of conflict or occupation; (b) responsible purchasing practices; (c) gender-responsive and culturally responsive due diligence; (d) resource and information sharing among companies and other legal entities for the purposes of preventing, mitigating and remediating adverse impacts in compliance with competition law; (e) measures that companies should take to address the challenges faced by smallholders, including access to a living income; (f) responsible disengagement; (g) heightened, conflict-sensitive due diligence in conflict-affected areas. (h) the development and implementation of prioritisation strategies, in particular for SMEs.
Amendment 488 #
Proposal for a directive
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
measures companies have implemented to take into account stakeholders' views and interests throughout the due diligence process;
Amendment 489 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shall, in orderBefore the entry into force of this Directive, Member States shall develop and implement measures and toolboxes to provide information, advice and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this Directive,. To this end, Member States shall set up and operate individually or jointly dedicated interactive websites, platforms or portals. Specific consideration shall be given, in that respect, to the SMEs that are present in the value chains of companiesuch information, advice and support shall be practical and tailored to the specific needs of SMEs in particular, and shall be accompanied by the appointment or establishment of an SME contact point.
Amendment 491 #
measures companies have implemented as part of their strategies of co-investment to build the capacity of weaker business partners to carry out due diligence;
Amendment 492 #
Proposal for a directive
Article 11 – paragraph 2 c (new)
Article 11 – paragraph 2 c (new)
information on the number of instances where companies have decided to disengage, the reason for this disengagement and the location of the concerned suppliers without disclosing their identity, except where companies deem it acceptable to do so in accordance with applicable laws.
Amendment 496 #
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. the European Union Agency for Criminal Justice Cooperation (Eurojust), the European Union Agency for Law Enforcement Cooperation (Europol), the European Public Prosecutor’s Office, the European Anti-Fraud Office (OLAF) and where appropriate with international bodies having expertise in due diligence, may issue guidelines, concerning: - specific sectors or and in particular high-risk sectors of economic activity leading to severe adverse impacts; - impacts on the rule of law and good governance systems; - gender-responsive and culturally responsive due diligence; - specific adverse impactsimplementation of enhanced due diligence in conflict- affected areas; - safe, effective and meaningful engagement with stakeholders in all due diligence processes; - mapping of companies value chains and efficient process to monitor business partners’ behaviours throughout the value chains; - specific corporate policies such as trading, procurement, purchasing and pricing; - measures that companies should take to address the challenges faced by smallholders, including access to a living income; - facilitating access to justice for victims and persons, groups of persons and organisations with legitimate interests; - prevention and mitigation of retaliation risks faced by stakeholders including human rights, environmental, rule of law and good governance defenders for their involvement in due diligence processes; - responsible disengagement from a harmful business relationships or from a specific area or economic sector; - and cooperation with partner countries’ authorities in order to carry out investigations.
Amendment 497 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Commission mayshall, including in view of ensuring consistency, 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 498 #
Proposal for a directive
Article 14 – paragraph 3 a (new)
Article 14 – paragraph 3 a (new)
3 a. 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 9a.
Amendment 499 #
Proposal for a directive
Article 14 – paragraph 3 b (new)
Article 14 – paragraph 3 b (new)
3 b. The Commission shall develop and implement measures to support safe participatory collection of independent data on human rights violations, good governance and environmental and climate damages and to undertake necessary actions for the data to be considered.
Amendment 501 #
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 mayshall facilitate the dissemination of information on such schemes or initiatives and their outcome. The Commission, in collaboration with Member States, mayshall issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives. The criteria for assessing the fitness of an industry scheme shall include the inclusion of the perspectives of civil society in audits and the steering of the standards and grievance mechanisms. Reliance on industry schemes and multi-stakeholder initiatives shall not absolve the company of its individual responsibility and obligations to perform due diligence and prevent it from being held liable under article 22 of this Directive.
Amendment 505 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Commission may complementand Member States’ support measures building on existing Union action to support due diligence in the Unhall develop cooperation and partnership mechanisms with third countries to address the root causes of human rights violations and in third countries and mayenvironmental harms, devise new measures, including facilitation of joint stakeholder initiatives, to build the capacity of upstream economic actors to help companies fulfil their obligations.
Amendment 514 #
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 and, when applicable, the respective competences of those 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 515 #
Proposal for a directive
Article 17 – paragraph 7 a (new)
Article 17 – paragraph 7 a (new)
7 a. Member States shall ensure that supervisory authorities have the appropriate qualification, experience and skills in relation to human rights, environment and climate to perform their duties and exercise it's powers.
Amendment 516 #
Proposal for a directive
Article 17 – paragraph 8 a (new)
Article 17 – paragraph 8 a (new)
8 a. Member States shall ensure that supervisory authorities publish and make available an annual report detailing their past activities, future work plan and priorities. This includes reporting on closed investigations and their results, potential sanctions or other decisions on investigations.
Amendment 518 #
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 to carry out the tasks assigned to them under this Directive, including the power to request information and carry out investigaire undertakings to provide all necessary information and carry out investigations, which can include where appropriate on site inspections related to compliance with the obligations set out in this Directive.
Amendment 523 #
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 2
Article 18 – paragraph 4 – subparagraph 2
Taking remedial action does not preclude the imposition of administrative sanctions or the triggering of civil liability including in case of damages, orin accordance with Articles 20 and 22, respectively.
Amendment 524 #
Proposal for a directive
Article 18 – paragraph 5 – point c
Article 18 – paragraph 5 – point c
(c) to adopt interim measures to avoid the risk of severe andor irreparable harm.
Amendment 526 #
Proposal for a directive
Article 18 – paragraph 7 a (new)
Article 18 – paragraph 7 a (new)
7 a. Member States shall ensure that decisions of supervisory authorities regarding a company’s compliance with the Directive shall be without prejudice to the company’s civil liability under Article 22.
Amendment 528 #
Proposal for a directive
Article 19 – paragraph 1 a (new)
Article 19 – paragraph 1 a (new)
1 a. Member States shall ensure that, where the natural and legal persons submitting substantiated concerns so requests, the supervisory authority shall take the necessary measures for the appropriate protection of the identity of that person and for the appropriate protection of any other information in respect of which that person considers that the disclosure of such information would be harmful.
Amendment 529 #
Proposal for a directive
Article 19 – paragraph 1 b (new)
Article 19 – paragraph 1 b (new)
1 b. Member States shall ensure that the supervisory authority inform the person referred to in paragraph 1 how it intends to follow up on the submission of the substantiated concern. Such information shall be provided within a reasonable period of time after its supervisory authority considers that there are insufficient grounds for acting on a substantiated concern, it shall inform the person of make available to the person all information regarding the measures taken, documentation or other evidence put forward by the company to the supervisory authority in response of the initial substantiated concern. Supervisory authorities shall also ensure that the person which had submitted the initial concern can provide additional information in response to the company's evidence.
Amendment 530 #
Proposal for a directive
Article 19 – paragraph 1 c (new)
Article 19 – paragraph 1 c (new)
1 c. Member States shall ensure that, where an supervisory authority considers that there are sufficient grounds for acting on a substantiated concern, it shall initiate, conduct and conclude an investigation of the concern within a reasonable period of time.
Amendment 531 #
Proposal for a directive
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Where the substantiated concern falls under the competence of another supervisory authority, the authority receiving the concern shall transmit it to that authority and inform the person referred to in paragraph 1.
Amendment 533 #
Proposal for a directive
Article 19 – paragraph 3
Article 19 – paragraph 3
3. Member States shall ensure that supervisory authoritiese independence and impartiality of supervisory authorities and that they thoroughly assess the substantiated concerns and, where appropriate, exercise their powers as referred to in Article 18.
Amendment 534 #
Proposal for a directive
Article 19 – paragraph 4
Article 19 – paragraph 4
4. The supervisory authority shall, as soon as possible and in accordance with the relevant provisions of national law and in compliance with Union law, inform the person referred to in paragraph 1 of the result of the assessment of their substantiated concern and shall provide the reasoning for itof its decisions to accede to or refuse the request for action, and shall provide the reasoning for it and the results of any investigative steps subsequently taken.
Amendment 536 #
(1) Member States shall ensure that Supervisory Authorities establish easily accessible channels for receiving substantiated concerns. Such systems should be made available in relevant languages and at no cost.
Amendment 538 #
Proposal for a directive
Article 19 – paragraph 5 a (new)
Article 19 – paragraph 5 a (new)
Amendment 544 #
Proposal for a directive
Article 20 – paragraph 2 a (new)
Article 20 – paragraph 2 a (new)
2 a. Sanctions shall include pecuniary sanctions, the temporary or indefinite exclusion from on-going or future procurement procedures or from the receipt of State aid, and the seizure of commodities, public support schemes including schemes relying on export credit agencies and loans, and permits under export control schemes. Any sanction adopted shall be made public.
Amendment 553 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1
Article 21 – paragraph 1 – subparagraph 1
The Commission shall set up a European Network of Supervisory Authorities, composed of representatives of the supervisory authorities. The Network shall facilitate the cooperation of the supervisory authorities and the coordination and alignment of regulatory, investigative, sanctioning and supervisory practices of the supervisory authorities and, as appropriate, sharing of information among them.as well as ensuring the regular public disclosure of the activities of the Network.
Amendment 579 #
Proposal for a directive
Article 23 – paragraph 1 a (new)
Article 23 – paragraph 1 a (new)
Member States shall take the necessary measures to ensure that all stakeholder engagement procedures, and in particular those set in place to raise complaints or concerns, shall allow the confidentiality of those concerns, as well as the anonymity and safety and physical and legal integrity of all stakeholders and complainants, including human rights and environmental defenders. In the event that such procedures concern whistleblowers, those procedures should be in line with Directive (EU) 2019/1937 of the European Parliament and of the Council.
Amendment 587 #
Proposal for a directive
Article 24 – title
Article 24 – title
24 Public support and public procurement
Amendment 588 #
Proposal for a directive
Article 24 – paragraph 1 a (new)
Article 24 – paragraph 1 a (new)
In accordance with Article 18(2) of Directive 2014/24/EU, Article 36(2) of Directive 2014/25/EU and Article 30(3) of Directive 2014/23/EU, Member States shall take the necessary measures to ensure that throughout all stages of applying for public procurement or concessions as well as in the performance of public procurement or concession contracts companies comply with the obligations laid down in national provisions adopted pursuant to this Directive. Necessary measures shall include but shall not be limited to the requirement for companies to prove compliance with the obligations laid down under this Directive by submitting evidence and supporting documents.
Amendment 594 #
Proposal for a directive
Annex I – Part I – point 2
Annex I – Part I – point 2
2. Violation of the right to life and securityself- determination in accordance with common Article 31 of the Universal Declaration on Human rInternational Covenant on Civil and Political Rights and of the International Covenant on Economic, Social and Cultural Rights;
Amendment 595 #
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 and Article 23.3 and 25.1. of the Universal Declaration of Human Rights;
Amendment 596 #
Proposal for a directive
Annex I – Part I – point 7 a (new)
Annex I – Part I – point 7 a (new)
Amendment 596 #
Proposal for a directive
Article 26 – title
Article 26 – title
26 Setting up and overseeing due diligence obligations and plans
Amendment 597 #
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 and implementing actions under Article 15, with due consideration for relevant input from stakeholders and civil society organisations. The directors shall regularly report to the board of directors in that respeand discuss progress in mitigating adverse human rights, environmental and climate adverse impact.s
Amendment 598 #
Proposal for a directive
Annex I – Part I – point 17
Annex I – Part I – point 17
17. Violation of the prohibition of withholding an adequate living wage in accordance with Article 7 of the International Covenant on Economic, Social and Cultural Rights; and to obstruct the ability of persons to earn a living income in accordance with Article 11 of the International Covenant on Economic, Social and Cultural Rights and Article 25 of the Universal Declaration of Human Rights.
Amendment 598 #
Proposal for a directive
Article 26 – paragraph 2
Article 26 – paragraph 2
2. Member States shall ensure that directors take steps to adapt the corporate strategy and their business model to take into account the actual and potential adverse impacts identified pursuant to Article 6 and any measures taken pursuant to Articles 7 to 9 and Article 15.
Amendment 599 #
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 environment;
Amendment 599 #
Proposal for a directive
Article 29 – title
Article 29 – title
Review and report
Amendment 600 #
Proposal for a directive
Article 29 – paragraph 1 – introductory part
Article 29 – paragraph 1 – introductory part
No later than … [OP please insert the date = 75 years after the date of entry into force of this Directive] and every 3 years thereafter, the Commission shall submit a report to the European Parliament and to the Council on the implementation of this Directive. This report shall be accompanied, if appropriate, by legislative proposals. The report shall evaluate the effectiveness of this Directive in reaching its objectives and assess the following issues:
Amendment 601 #
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 169 on Indigenous and Tribal Peoples;
Amendment 601 #
Proposal for a directive
Article 29 – paragraph 1 – point a
Article 29 – paragraph 1 – point a
(a) whether the thresholds regarding the number of employees and net turnover laid down in Article 2(1) need to be lowered; the impact of this Directive on SMEs, accompanied by an account and assessment of the effectiveness of the different measures and tools for support provided to SMEs by the Commission and Member States
Amendment 602 #
Proposal for a directive
Article 29 – paragraph 1 – point b
Article 29 – paragraph 1 – point b
(b) whether the list of sectors in Article 2(1)3, point (bca), needs to be chexpangded, including in order to align it to guidance from the Organisation for Economic Cooperation and Development;
Amendment 603 #
Proposal for a directive
Annex I – Part I – point 21 a (new)
Annex I – Part I – point 21 a (new)
21 a. In conflict affected areas, violations of international humanitarian law as laid out notably in the Geneva Conventions and the additional protocols.
Amendment 603 #
Proposal for a directive
Article 29 – paragraph 1 – point b a (new)
Article 29 – paragraph 1 – point b a (new)
(b a) the effectiveness of the enforcement mechanisms put in place at national level and of the sanctions and procedures for civil liability in particular;
Amendment 604 #
Proposal for a directive
Article 29 – paragraph 1 – point b b (new)
Article 29 – paragraph 1 – point b b (new)
Amendment 605 #
Proposal for a directive
Article 29 – paragraph 1 – point b c (new)
Article 29 – paragraph 1 – point b c (new)
(b c) the involvement of stakeholders throughout all due diligence processes;
Amendment 606 #
Proposal for a directive
Article 29 – paragraph 1 – point b d (new)
Article 29 – paragraph 1 – point b d (new)
(b d) the convergence and divergence between Member States in national legislation following the implementation of this Directive;
Amendment 607 #
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 607 #
Proposal for a directive
Article 29 – paragraph 1 – point c
Article 29 – paragraph 1 – point c
(c) whether the Annex needs to be modifiexpanded or updated, including in light of international developments
Amendment 608 #
Proposal for a directive
Article 29 – paragraph 1 – point d
Article 29 – paragraph 1 – point d
(d) whether Articles 4 to 14 should be extended to adverse climatditional adverse impacts.
Amendment 612 #
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) ;
Amendment 617 #
Proposal for a directive
Annex I – Part I – indent 23 a (new)
Annex I – Part I – indent 23 a (new)
- The rights to a clean, healthy and sustainable environment (UN GA A/76/L.75)
Amendment 620 #
Proposal for a directive
Annex I – Part I – indent 23 b (new)
Annex I – Part I – indent 23 b (new)
- The Rome Statute of the International Criminal Court;
Amendment 621 #
Proposal for a directive
Annex I – Part I – indent 23 c (new)
Annex I – Part I – indent 23 c (new)
- The instruments and conventions of international humanitarian law, including the four Geneva Conventions of 1949 and their additional protocols;
Amendment 622 #
Proposal for a directive
Annex I – Part I – indent 23 d (new)
Annex I – Part I – indent 23 d (new)
- The United Nations Convention against Corruption;
Amendment 623 #
Proposal for a directive
Annex I – Part II – subheading 1
Annex I – Part II – subheading 1
violations of EU and internationally recognized objectives and prohibitions included in environmental conventionsand climate conventions and Union legislation