2020/2137(INI) Sustainable corporate governance
Next event: Commission response to text adopted in plenary 2021/06/18 more...
Lead committee dossier:
Next event: Commission response to text adopted in plenary 2021/06/18 more...
- Results of vote in Parliament 2020/12/17
- Decision by Parliament 2020/12/17
- Debate in Parliament 2020/12/14
- Committee report tabled for plenary, single reading 2020/12/03
- Committee report tabled for plenary 2020/12/03
Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | JURI |
DURAND Pascal ( Renew)
|
RADEV Emil ( EPP),
WOLTERS Lara ( S&D),
TOUSSAINT Marie ( Verts/ALE),
LEBRETON Gilles ( ID),
STANCANELLI Raffaele ( ECR),
AUBRY Manon ( GUE/NGL)
|
| Committee Opinion | ENVI |
CANFIN Pascal ( Renew)
|
|
| Committee Opinion | EMPL | ||
| Committee Opinion | INTA |
HAUTALA Heidi ( Verts/ALE)
|
Agnes JONGERIUS ( S&D),
Clare DALY ( GUE/NGL),
Angelika WINZIG ( PPE),
Barry ANDREWS ( RE),
Dominik TARCZYŃSKI ( ECR)
|
| Committee Opinion | ECON |
Lead committee dossier:
Legal Basis:
RoP 54
Legal Basis:
RoP 54Subjects
Events
2021/06/18
EC - Commission response to text adopted in plenary
Documents
2020/12/17
EP - Results of vote in Parliament
Documents
2020/12/17
EP - Decision by Parliament
Details
The European Parliament approved by 347 votes to 307, with 42 abstentions, a resolution on sustainable corporate governance.
In a corporate context, a sustainability approach implies that companies take due consideration of general societal and environmental concerns, such as the rights of their employees and respect for planetary boundaries, to address the most pressing risks posed to these by their activities.
Members stressed the importance of strengthening the role of directors in pursuing the long-term interests of companies in future action at EU level and of engendering a culture within companies’ governing bodies that takes into account and implements sustainable corporate governance, including both human rights and environmental protection. They found that companies with better defined environmental, social and governance practices and risk mitigation processes were better able to withstand the COVID-19 crisis. The EU and its Member States have also taken steps to ensure that the EU's environmental, social and governance policies and practices are consistent with those of the EU.
Non-financial reporting obligations
According to the European Green Deal, companies and financial institutions must disclose more climate and environmental data so that investors are fully informed about the sustainability of their investments.
Parliament welcomed the Commission's commitment to review the non-financial reporting Directive to this end. It reiterated its call for an enlargement of the scope of the Directive to cover all listed and non-listed large undertakings established in the EU. Non-financial reporting obligations should also apply to all third country companies operating in the internal market.
Investments and sectors often linked to illegal business activities, such as environmental crimes, illegal wildlife trade, corruption or financial crime, should be specifically targeted.
According to Members, the concept of the concept of environmental issues in the directive should be interpreted in line with the regulation establishing a taxonomy and cover all forms of pollution. Workers' issues could include the disclosure of companies' pay policies, including revealing the gender pay gap.
The EU legislative framework should ensure that the disclosures are clear, balanced, understandable, comparable among companies within a sector, verifiable and objective, and include time-bound sustainability targets. This framework should also include mandatory standards, both general and sector-specific.
Members considered that non-financial statements should be set out in the annual management report to avoid additional burdens for companies. Moreover, non-financial statements should be subject to a mandatory audit, depending on the size and field of activity of the company concerned. This would be an opportunity to address the quasi-monopoly of the ‘Big Four’ accountancy companies, which typically audit the largest listed companies.
Directors’ duty of care and additional measures
Parliament stressed that in order to make corporate governance in the EU more sustainable, transparent and accountable, the Commission should, in addition to the proposals to review the non-financial reporting Directive, introduce new legislation on due diligence and directors’ duties. If due diligence obligations and directors’ duties are to be covered by a single legislative instrument, they should be clearly separated in two different parts.
Members called on the Council to adopt its general approach as soon as possible to start negotiations with Parliament on the Women on Boards Proposal. They called on the Commission to examine the possibility of revising the European Works Council Directive and establishing a new framework on employees’ information, consultation and involvement in European companies.
The Shareholders’ Rights Directive should also be amended to incentivise ‘patient’ shareholder behaviour, in particular by rewarding long-term shareholding through voting rights and tax advantages.
Parliament stressed that in the process of defining and monitoring their sustainability strategies, companies should have the duty to inform and consult relevant stakeholders. ; believes that the concept of a stakeholder should be interpreted broadly and include all persons whose rights and interests may be affected by the decisions of the company, such as employees, trade unions, local communities, indigenous peoples, citizens’ associations, shareholders, civil society and environmental organisations.
Documents
2020/12/14
EP - Debate in Parliament
Documents
2020/12/03
EP - Committee report tabled for plenary, single reading
Documents
2020/12/03
EP - Committee report tabled for plenary
Documents
2020/11/16
EP - Vote in committee
2020/10/29
EP - Committee opinion
Documents
2020/10/28
EP - Committee opinion
Documents
2020/10/07
EP - Amendments tabled in committee
Documents
2020/09/17
EP - Committee referral announced in Parliament
2020/09/03
EP - Committee draft report
Documents
2020/06/15
EP - DURAND Pascal (Renew) appointed as rapporteur in JURI
2020/06/11
EP - HAUTALA Heidi (Verts/ALE) appointed as rapporteur in INTA
2020/06/10
EP - CANFIN Pascal (Renew) appointed as rapporteur in ENVI
Documents
- Commission response to text adopted in plenary: SP(2021)190
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T9-0372/2020
- Debate in Parliament: Debate in Parliament
- Committee report tabled for plenary, single reading: A9-0240/2020
- Committee report tabled for plenary: A9-0240/2020
- Committee opinion: PE658.727
- Committee opinion: PE655.716
- Amendments tabled in committee: PE658.892
- Committee draft report: PE655.848
- Committee draft report: PE655.848
- Amendments tabled in committee: PE658.892
- Committee opinion: PE655.716
- Committee opinion: PE658.727
- Committee report tabled for plenary, single reading: A9-0240/2020
- Commission response to text adopted in plenary: SP(2021)190
Activities
- Pascal DURAND
Plenary Speeches (0)
- Emil RADEV
Plenary Speeches (0)
- Pedro SILVA PEREIRA
Plenary Speeches (0)
| Amendments | Dossier |
| 331 |
2020/2137(INI)
2020/09/24
INTA
75 amendments...
Amendment 1 #
Draft opinion Paragraph -1 (new) -1. stresses that it is the sole responsibility of states and governments to safeguard human rights, their society, nature and environment in their countries and that this responsibility shall not be transferred to private actors.
Amendment 10 #
Draft opinion Paragraph 1 1. Reiterates that global
Amendment 11 #
Draft opinion Paragraph 1 – subparagraph 1 (new) 1.a Recalls that the European economy is facing the most severe recession in its post-war history; emphasizes that no additional bureaucratic burdens should be based on companies;
Amendment 12 #
Draft opinion Paragraph 1 a (new) Amendment 13 #
Draft opinion Paragraph 2 a (new) 2 a. Acknowledges the recent European Commission study on directors’ duties and sustainable corporate governance that current corporate decision-makers focus on short-term shareholder value maximisation rather than on the long-term interests of the company, and its stakeholders, who aim for long-term environmental and social sustainability of European businesses1a; _________________ 1ahttps://op.europa.eu/fr/publication- detail/-/publication/e47928a2-d20b-11ea- adf7-01aa75ed71a1
Amendment 14 #
Draft opinion Paragraph 2 b (new) 2 b. Underlines that the impact of corporate short termism on EU business trading practices in third countries is unsustainable; notes the importance of promoting social sustainability in third countries; stresses that promoting sustainable corporate governance in trade policy has a positive impact on the supply chain, and towards achieving the Sustainable Development Goals, and the Paris agreement targets;
Amendment 15 #
Draft opinion Paragraph 2 2. Emphasises that sustainable corporate governance can help the EU
Amendment 16 #
Draft opinion Paragraph 2 2. Emphasises that sustainable corporate governance can help the EU to build a more resilient and sustainable economy, improve the level playing field
Amendment 17 #
Draft opinion Paragraph 2 2. Emphasises that sustainable corporate governance can help the EU to build a more resilient and sustainable economy, improve the level playing field and protect EU
Amendment 18 #
2. Emphasises that sustainable corporate governance can help the EU to build a more resilient and sustainable economy, improve the level playing field and protect EU businesses and citizens
Amendment 19 #
Draft opinion Paragraph 2 2. Emphasises that sustainable corporate governance c
Amendment 2 #
Draft opinion Paragraph -1 a (new) -1 a. recalls that the EU economy is facing the biggest global economic crisis since the Great Depression with companies all over Europe hit especially hard; stresses that especially at this time no legislative initiatives of economically inhibiting or damaging nature, such as those imposing higher administrative burdens or causing legal uncertainty, shall be taken.
Amendment 20 #
Draft opinion Paragraph 2 2. Emphasises that sustainable corporate governance can help the EU to build a more resilient and sustainable
Amendment 21 #
Draft opinion Paragraph 2 2. Emphasises that sustainable corporate governance can help the EU to build a more resilient and sustainable economy, improve the level playing field and protect EU businesses and citizens, and is therefore hugely beneficial to EU trade and investment policy;
Amendment 22 #
Draft opinion Paragraph 2 2. Emphasises that sustainable corporate governance
Amendment 23 #
Draft opinion Paragraph 2 2. Emphasises that sustainable corporate governance can help the EU to build a more resilient and sustainable economy, improve the level playing field and protect EU businesses and
Amendment 24 #
Draft opinion Paragraph 2 2. Emphasises that promoting sustainable corporate governance on a global level can help the EU to build a more resilient and sustainable economy, improve the level playing field
Amendment 25 #
Draft opinion Paragraph 2 a (new) Amendment 26 #
Draft opinion Paragraph 2 c (new) 2 c. Stresses the importance of coherence between corporate governance structures of EU businesses and EU efforts in dialogue with third countries on responsible business conduct through Trade and Sustainable Development chapters in Free Trade Agreements; notes that a sustainable long-term holistic approach is needed
Amendment 27 #
Draft opinion Paragraph 2 d (new) 2 d. Notes that a balanced composition of the Domestic Advisory Groups (DAGs) as well as lessons learnt from their experience as an inclusive structured dialogue could be used as a model for EU corporate structures that takes civil society on board;
Amendment 28 #
Draft opinion Paragraph 3 3. Notes that the COVID-19 crisis has exposed the vulnerabilities of unregulated global supply chains, and that businesses with better environmental, social and governance practices and risk mitigation processes weather the crisis better; recognises that the OECD has stated that companies taking proactive steps to address the risks related to the COVID-19 crisis in a way that mitigates adverse impacts on workers and supply chains are likely to build more long-term value and resilience, improving their viability in the short term and their prospects for recovery in the medium to long term. 2a _________________ 2ahttp://www.oecd.org/coronavirus/policy- responses/covid-19-and-responsible- business-conduct- 02150b06/#:~:text=A%20responsible%20 business%20conduct%20(RBC,both%20g overnment%20and%20business%20respo nses.
Amendment 29 #
3. Notes that the COVID-19
Amendment 3 #
Draft opinion Paragraph -1 b (new) -1 b. requires that, before any initiative is proposed, an impact assessment is carried out focusing on: a) the administrative burden on business b) value added by EU companies c) employment by EU companies d) engagement of EU companies in international markets
Amendment 30 #
Draft opinion Paragraph 3 3. Notes that the COVID-19 crisis has exposed the vulnerabilities
Amendment 31 #
Draft opinion Paragraph 3 3. Notes that the COVID-19 crisis has exposed the vulnerabilities of
Amendment 32 #
Draft opinion Paragraph 3 3. Notes that the crisis caused by the COVID-19
Amendment 33 #
Draft opinion Paragraph 3 3. Notes that the COVID-19 crisis has exposed the vulnerabilities of unregulated global supply chains, and that businesses with better environmental, social and governance practices and risk mitigation processes have weathered the crisis better;
Amendment 34 #
Draft opinion Paragraph 4 Amendment 35 #
Draft opinion Paragraph 4 Amendment 36 #
Draft opinion Paragraph 4 Amendment 37 #
Draft opinion Paragraph 4 4. Notes with concern that over three- in-four of companies do not provide information about their supply chain transparency, with less than 1 % of companies publicly list their suppliers3a, even in high- risk sectors
Amendment 38 #
Draft opinion Paragraph 4 4. Notes with concern that less than 1 % of companies publicly list their suppliers, even in high-risk sectors; notes that publicly listed companies, unlisted public companies and private companies registered in the EU may have different obligations under national law in regards to sustainable corporate governance; recalls the importance of levelling the playing field vis-a-vis companies registered outside of the EU;
Amendment 39 #
Draft opinion Paragraph 4 4. Notes with concern that less than 1 % of companies publicly list their suppliers, even in high-risk sectors; emphasizes the importance of more transparency in the supply chain to oversee binding environmental, social, and human rights standards; stresses the need for the review of the non-financial reporting directive (NFRD) to greatly increase corporate transparency in the supply chain;
Amendment 4 #
Draft opinion Paragraph -1 c (new) -1 c. recalls the importance of transitional periods in order to create legal certainty and good legislation ; stresses in this context the need for a transitional period of at least 7 years in order to allow companies to implement any new measures.
Amendment 40 #
Draft opinion Paragraph 4 4. Notes with concern that less than 1 % of companies publicly list their suppliers, even in high-risk sectors; stresses the importance of reviewing the Non-Financial Reporting Directive (NFRD) for a higher transparency;
Amendment 41 #
Draft opinion Paragraph 4 4. Notes with concern that less than 1
Amendment 42 #
Draft opinion Paragraph 4 4. Notes with concern that less than 1 % of companies publicly list their suppliers, even in high-risk sectors and considers that this shows the necessity and urgency for authorities to act;
Amendment 43 #
Draft opinion Paragraph 4 a (new) 4 a. Stresses that, in order to provide a level playing field, sustainable corporate governance requirements including non- financial reporting should apply to all, both EU and non-EU, companies operating in the EU area.
Amendment 44 #
Draft opinion Paragraph 5 Amendment 45 #
Draft opinion Paragraph 5 Amendment 46 #
Draft opinion Paragraph 5 Amendment 47 #
Draft opinion Paragraph 5 Amendment 48 #
Draft opinion Paragraph 5 5. Stresses that directors’ duties should encompass an obligation to develop, disclose and implement a long- term corporate sustainability strategy for all aspects of the company’s operations, including its
Amendment 49 #
Draft opinion Paragraph 5 5. Stresses that directors’ duties should encompass an obligation to develop, disclose and implement a corporate sustainability strategy
Amendment 5 #
Draft opinion Paragraph 1 1. Reiterates that global value chains are the key feature of the global economy but their complex nature, lack of transparency and dilution of liabilities may lead to a higher risk of human and labour rights violations, factual impunity for environmental crimes and that trade policy must contribute to a transparent production process throughout
Amendment 50 #
Draft opinion Paragraph 5 5. Stresses that directors’ duties should encompass an obligation to develop, disclose and implement a corporate sustainability strategy for all aspects of the company’s operations, including its supply chains; based on international social, environmental and human rights standards; underlines that consultation with local communities is important;
Amendment 51 #
Draft opinion Paragraph 5 5. Stresses that directors’ duties should encompass an obligation to develop, disclose and implement a corporate sustainability strategy for all aspects of the company’s operations, including its supply chains
Amendment 52 #
Draft opinion Paragraph 5 5. Stresses that directors’ duties should encompass an obligation to develop, disclose and implement a corporate sustainability strategy for all aspects of the company’s operations, including its supply chains with a sanctions based mechanism;
Amendment 53 #
Draft opinion Paragraph 5 5. Stresses that directors
Amendment 54 #
Draft opinion Paragraph 5 a (new) 5 a. Calls for three distinct, yet mutually reinforcing legislative proposals on Directors’ duties and Sustainable Corporate Governance, on Corporate Human Rights and environmental due diligence and on the reform of the Non- Financial Reporting Directive.
Amendment 55 #
Draft opinion Paragraph 5 a (new) 5 a. Calls upon the Commission to review the impact of sustainable corporate governance obligations on financial institutions providing trade finance;
Amendment 56 #
Draft opinion Paragraph 6 Amendment 57 #
Draft opinion Paragraph 6 6. Stresses that the requirement to disclose information on how sustainability issues including environmental, social and employee matters, respect for human rights, and bribery and corruption affect the company and how the company affects the society and the environment -so called ‘double materiality standard’- should include the sharing of all relevant information on all actors throughout the entire
Amendment 58 #
Draft opinion Paragraph 6 6. Stresses that
Amendment 59 #
Draft opinion Paragraph 6 6. Stresses that the requirement to disclose information on how sustainability issues affect the company and how the company affects society and the environment should include the sharing of all relevant information on all actors throughout the entire supply chain; notes that sharing this information is based on the reporting system Non-Financial Reporting Directive (‘NFRD’)
Amendment 6 #
Draft opinion Paragraph 1 1. Reiterates that global value chains are the key feature of the global economy and that trade policy must contribute to a transparent production process throughout the value chain
Amendment 60 #
Draft opinion Paragraph 6 6. Stresses th
Amendment 61 #
Draft opinion Paragraph 6 6. Stresses that the requirement to disclose information on how sustainability issues affect the company and how the company affects society and the environment should include the sharing of all
Amendment 62 #
Draft opinion Paragraph 6 6. Stresses that
Amendment 63 #
Draft opinion Paragraph 6 6. Stresses that
Amendment 64 #
Draft opinion Paragraph 6 a (new) 6 a. Notes that as part of the revision of the reporting system Non-Financial Reporting Directive (‘NFRD’) the behaviour of a company in the supply chain has an impact; by extending the scope of the NFRD to the supply chain the impact of sustainable corporate governance will be bigger;
Amendment 65 #
Draft opinion Paragraph 6 b (new) 6 b. Underlines the importance of the new taxonomy regulation also in regard to the supply chain; stresses that tackling tax avoidance is a fundamental part of sustainable corporate governance;
Amendment 66 #
Draft opinion Paragraph 7 Amendment 67 #
Draft opinion Paragraph 7 7. Notes that sustainable corporate governance cannot reach its full potential without due diligence legislation that requires companies to identify, prevent, mitigate and account for human rights abuses and environmental damage in their global value chains
Amendment 68 #
Draft opinion Paragraph 7 7. Notes that sustainable corporate governance cannot reach its full potential without due diligence legislation that requires companies to identify, prevent, mitigate and account for human rights abuses and environmental damage in their global value chains; underlines that sustainable corporate governance should not be limited by the present or lack of proper due diligence legislation; asks the Commission to add the sustainable corporate governance and corporate due diligence into the ongoing Trade Policy review.
Amendment 69 #
Draft opinion Paragraph 7 7. Notes that sustainable corporate governance cannot reach its full potential without due diligence legislation that requires companies to identify, prevent, mitigate and account for human rights abuses and environmental damage in their global value chains
Amendment 7 #
Draft opinion Paragraph 1 1. Reiterates that global value chains are the key feature of the global economy and that trade policy must contribute to a transparent production process throughout the value chain, including subcontracting chains, and demonstrate compliance with environmental, human rights, social and
Amendment 70 #
Draft opinion Paragraph 7 7. Notes th
Amendment 71 #
Draft opinion Paragraph 7 7. Notes that sustainable corporate governance cannot reach its full potential without due diligence legislation that
Amendment 72 #
7.
Amendment 73 #
Draft opinion Paragraph 7 7. Notes that sustainable corporate governance cannot
Amendment 74 #
Draft opinion Paragraph 7 a (new) Amendment 75 #
Draft opinion Paragraph 7 a (new) 7a. Stresses that sustainable corporate governance must enable the presence and participation of at least one third of salaried directors who, with their knowledge of the business, will help improve the effectiveness of the sustainable measures introduced;
Amendment 8 #
Draft opinion Paragraph 1 1. Reiterates that global value chains are the key feature of the global economy and that trade policy
Amendment 9 #
Draft opinion Paragraph 1 1. Reiterates that global value chains are the key feature of the global economy and that trade policy must contribute to a transparent production process th
source: 657.472
2020/10/07
JURI
184 amendments...
Amendment 1 #
Motion for a resolution Citation 6 a (new) - having regard to the 2018 IPCC Special report on 1.5 degrees1a __________________ 1a https://www.ipcc.ch/2018/10/08/summary- for-policymakers-of-ipcc-special-report- on-global-warming-of-1-5c-approved-by- governments/
Amendment 10 #
Motion for a resolution Citation 21 c (new) - having regard to the OECD 'Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector'3a, __________________ 3a https://mneguidelines.oecd.org/OECD- Due-Diligence-Guidance-Garment- Footwear.pdf
Amendment 100 #
Motion for a resolution Paragraph 5 e (new) 5e. Considers in this regard that the NFR legislation should address at minimum the following reporting requirements regarding human rights matters, with a reporting criteria that should enable effective monitoring of observance of the corporate responsibility to respect human rights outlined in the United Nations Guiding Principles on Business and Human Rights, and facilitate future EU legislation on mandatory and environmental human rights due diligence: - information on implementation of human rights due diligence process, - salient human rights issues identified, either caused or contributed by the company, or directly linked to its operations, products or services by a business relationship and outcomes of those actions, - objectives in terms of prevention or mitigation of the identified adverse impacts, - actions taken, - outcomes measured against the objectives, - the results of company’s grievance mechanisms, and - additional material information on: free, prior and informed consent of indigenous people; land rights and access to water by people, and protection of human rights defenders.
Amendment 101 #
Motion for a resolution Paragraph 5 f (new) 5f. Considers in this regard that the NFR legislation should address, at minimum, the following reporting requirements regarding transparency of supply chains in the sectors exposed to high risks of human rights abuses due to the reliance on sourcing from high-risks regions: - disclosure of Tier 1 suppliers, - purchasing practices, - percentage of products manufactured under guaranteed living wage, - collective bargaining conditions and absence of recruitment fees (high-risk sectors, including in particular the garment and footwear sector), - information on beneficial ownership and on comprehensive corporate structure beyond entities consolidated for the purpose of preparing financial statements (all companies).
Amendment 102 #
Motion for a resolution Paragraph 6 Amendment 103 #
Motion for a resolution Paragraph 6 6. Considers that the location of the non-financial statement should be harmonised; calls on the Commission to establish a publicly accessible EU-wide digital platform that is free of charge, on which companies should publish their non- financial information, building notably on the related recommendations of the High- Level Forum on the Capital Markets Union; considers that in each country where the company operates, non- financial information should be available in local official languages;
Amendment 104 #
Motion for a resolution Paragraph 6 6. Considers that the location of the non-financial statement should be harmonised;
Amendment 105 #
Motion for a resolution Paragraph 6 6. Considers that the location of the non-financial statement should be harmonised; calls on the Commission to
Amendment 106 #
Motion for a resolution Paragraph 6 6. Considers that the location of the
Amendment 107 #
Motion for a resolution Paragraph 6 6. Considers that the location of the non-financial statement should be harmonised; calls on the Commission to establish, alongside national digital platforms, a publicly accessible EU-wide digital platform that is free of charge, on which companies should publish their non- financial information;
Amendment 108 #
Motion for a resolution Paragraph 6 6. Considers that the location of the non-financial statement should be harmonised; calls on the Commission to establish a publicly accessible EU-wide digital platform that is free of charge, on which companies
Amendment 109 #
Motion for a resolution Paragraph 6 a (new) 6a. Considers that the platform shall allow users to compare online the data disclosed by companies, to proceed to multifactor analysis, including at minimum by themes, sectors, countries, turnover, and number of employees;
Amendment 11 #
Motion for a resolution Citation 21 d (new) - having regard to the OECD 'Due Diligence Guidance for Responsible Supply Chains of Minerals for Conflict- Affected and High-Risk Areas'4a, __________________ 4a https://www.oecd.org/daf/inv/mne/OECD- Due-Diligence-Guidance-Minerals- Edition3.pdf
Amendment 110 #
Motion for a resolution Paragraph 6 a (new) 6a. Stresses the need to remove the exemption in NFRD that allows the non- financial statement to be reported outside the management report, so that information is presented in a single integrated annual management report;
Amendment 111 #
Motion for a resolution Paragraph 6 b (new) 6b. Considers that the revision of the NFRD should ensure that worker representatives have a role in the definition of the process for reporting non-financial information and in verifying information, in particular regarding the workforce, production- and work-related sustainability goals and issues related to the supply/production chain, including outsourcing and subcontracting;
Amendment 112 #
Motion for a resolution Paragraph 6 c (new) 6c. Considers that non-financial and financial information should be provided in a single integrated annual management report;
Amendment 113 #
Motion for a resolution Paragraph 7 Amendment 114 #
Motion for a resolution Paragraph 7 7. Notes that the NFRD excludes non- financial statements from the requirement of content assurance to which financial statements of companies are otherwise subject; considers that non-financial statements should be subject to a mandatory audit, depending on the size and field of activity of the company concerned; considers that the assurance service provider, subject to requirements of objectivity and independence, should conduct their audit in accordance with the future EU framework; stresses in this light the need to address the inherent wrong incentives in statutory auditing via a review of the Statutory Audit Directive; upholds that this is also an opportunity to address the quasi monopoly of the ‘Big Four’ accountancy companies that audit the largest listed companies;
Amendment 115 #
Motion for a resolution Paragraph 7 a (new) 7a. Highlights that workers' representatives should be involved in defining the process for reporting non- financial information and in verifying information, in particular regarding social sustainability goals and issues related to the supply production chain, including outsourcing and subcontracting.
Amendment 116 #
Motion for a resolution Paragraph 8 Amendment 117 #
Motion for a resolution Paragraph 8 8. Highlights the importance of introducing an obligation requiring certain EU companies to produce, on an annual basis, a country-by-country report for each tax jurisdiction in which they operate, including tax jurisdictions outside the Union, containing, amongst other, information on profits made, taxes paid on profits and public subsidies received, number of employees and subsidiaries; urges the Council to urgently resume negotiations with Parliament on the Commission’s proposal for a directive amending Directive 2013/34/EC as regards disclosure of income tax information by certain undertakings and branches (COM(2016)0198)19 ; __________________ 19
Amendment 118 #
Motion for a resolution Paragraph 8 a (new) 8a. Believes that the Union should make every effort when negotiating free trade agreements to ensure that they include clauses requiring the partner states to lay down comparable obligations for their companies, with a view to avoiding any new means of distorting competition;
Amendment 119 #
Motion for a resolution Paragraph 9 Amendment 12 #
Motion for a resolution Citation 21 e (new) - having regard to the OECD-FAO 'Guidance for Responsible Agricultural Supply Chains'5a, __________________ 5a https://www.oecd- ilibrary.org/docserver/9789264251052- en.pdf?expires=1601993537&id=id&accn ame=ocid194994&checksum=CD32B295 64443161A6A610A750A0A357
Amendment 120 #
Motion for a resolution Paragraph 9 Amendment 121 #
Motion for a resolution Paragraph 9 Amendment 122 #
Motion for a resolution Paragraph 9 9. Urges the Council to initiate without delay negotiations with Parliament on the proposal for a Directive on improving the gender balance among non- executive directors of companies listed on stock exchanges and related measures (COM(2012)0614) (‘the Women on Boards Proposal’) , which sets out to put an end to the pervasive imbalance between
Amendment 123 #
Motion for a resolution Paragraph 9 9.
Amendment 124 #
Motion for a resolution Paragraph 9 a (new) 9a. Recommends the Commission to significantly increases employees’ representation in the board of directors; highlights that workers’ involvement in company decision-making processes is necessary to ensure that decisions are based on long-term assessments and objectives and contribute to positive social and environmental impacts; calls for a new framework on workers’ information, consultation and board-level representation to be established for European company forms and companies making use of EU instruments for company mobility and for a reform of the EWC Directive, in order to ensure a level- playing field and to improve workers’ information, consultation and participation;
Amendment 125 #
Motion for a resolution Paragraph 10 10.
Amendment 126 #
Motion for a resolution Paragraph 10 10. Notes that companies are not abstract entities disconnected of today’s environmental and social challenges; considers that companies should more actively contribute to sustainability as their long-term performance, resilience and even survival may depend on their adequate response to environmental and social matters; stresses, in this regard, that the directors’ duty of care towards the company should be defined not only in relation to short-term profit maximisation of shares, but also in relation to sustainability concerns; notes the major role of executive directors in defining a company’s strategy and overseeing its operations; considers that executive directors should have a duty to integrate long-term interests and sustainability risks, impacts, opportunities and dependencies in the overall strategy of the company;
Amendment 127 #
Motion for a resolution Paragraph 10 10. Notes the major role of directors in defining a company’s strategy and overseeing its operations;
Amendment 128 #
Motion for a resolution Paragraph 10 10. Notes the major role of directors in defining a company
Amendment 129 #
Motion for a resolution Paragraph 10 10. Notes the major role of directors in defining a company’s strategy and overseeing its operations; considers that directors should
Amendment 13 #
Motion for a resolution Citation 21 f (new) - having regard to the OECD 'Due Diligence Guidance for Responsible business conduct for institutional investors'6a, __________________ 6ahttps://mneguidelines.oecd.org/RBC- for-Institutional-Investors.pdf
Amendment 130 #
Motion for a resolution Paragraph 10 a (new) 10a. Underlines the need for more workers’ involvement in company decision-making processes to better integrate the long-term objectives and social and environmental impacts of a company; highlights the need to strengthen the involvement of employees, including in takeover bids, and, in line with their industrial relations traditions and employee practices, in electing board representatives;
Amendment 131 #
Motion for a resolution Paragraph 10 a (new) 10a. Stresses the need, in line with the recommendations of a recent Commission study, to regulate the composition of management boards in order to significantly increase workers’ representation, as well as gender balance and the interests of those affected by company activities, including local communities, consumers, workers in the company’s value chain and society at large;
Amendment 132 #
Motion for a resolution Paragraph 10 b (new) 10b. Calls for a new framework on workers’ information, consultation and board-level representation to be established for European company forms and companies making use of EU instruments for company mobility and for a reform of the EWC Directive, in order to ensure a level-playing field and to improve workers’ information, consultation and participation
Amendment 133 #
Motion for a resolution Paragraph 11 Amendment 134 #
Motion for a resolution Paragraph 11 11. Calls on the Commission to present a legislative proposal ensuring that members of the administrative, management and supervisory bodies of limited liability companies, acting within the competences assigned to them by national law, have the collective
Amendment 135 #
Motion for a resolution Paragraph 11 11. Calls on the Commission to present a legislative proposal to ensure that directors have a duty to act in the interest of the company’s sustainability in the long-term as well as in the interest of workers, other stakeholders and society, and not only nor primarily in the interest of shareholders, ensuring that members of the administrative, management and supervisory bodies of limited liability companies, acting within the competences assigned to them by national law, have collective responsibility for defining, disclosing and monitoring a corporate sustainability strategy; and ensuring that sufficient reserves through adequate retained earnings are made available for the implementation of such strategy;
Amendment 136 #
Motion for a resolution Paragraph 11 11. Calls on the Commission to present
Amendment 137 #
Motion for a resolution Paragraph 11 11. Calls on the Commission to present a legislative proposal ensuring that members of the administrative, management and supervisory bodies of limited liability companies, acting within the competences assigned to them by national law, have
Amendment 138 #
Motion for a resolution Paragraph 11 a (new) 11 a. Stresses that, having regard to the ongoing revision of the Environmental Liability Directive, companies should have financial securities for environmental liability for environmental harm inflicted on individuals and ecosystems;
Amendment 139 #
Motion for a resolution Paragraph 12 12.
Amendment 14 #
Motion for a resolution Citation 21 g (new) Amendment 140 #
Motion for a resolution Paragraph 12 12. Considers that the sustainability strategy should identify and address, in line with companies’ due diligence obligations, the significant impacts that the company might have on environmental, climate, social and employee matters, respect for human rights and anti-corruption and bribery matters connected to the company’s business model, operations and supply chains, including outside the European Union; considers that the duty of care that directors owe to the company requires also
Amendment 141 #
Motion for a resolution Paragraph 12 12. Considers that the sustainability strategy should identify and address, in line with companies’ due diligence obligations, the significant impacts that the company might have on environmental, climate,
Amendment 142 #
Motion for a resolution Paragraph 12 12. Considers that the sustainability strategy should identify and address, in line with companies’ due diligence obligations, the significant impacts that the company might have on employment, environmental, climate, social and employee matters, respect for human rights and anti-corruption and bribery matters connected to the company’s business model, operations and supply chains, including outside the European Union; considers that the duty of care that directors owe to the company requires also taking into consideration the interest of stakeholders who may be adversely impacted by the company’s activities;
Amendment 143 #
Motion for a resolution Paragraph 12 12. Considers that the sustainability strategy should identify and address, in line with companies’ due diligence obligations, the significant impacts that the company might have on environmental, climate, social and
Amendment 144 #
Motion for a resolution Paragraph 12 12. Considers that the sustainability strategy should identify and address, in line with companies’ due diligence obligations, the significant impacts that the company might have on environmental, climate, social and employee matters, respect for human rights and anti-corruption and bribery matters connected to the company’s business model, operations and supply chains
Amendment 145 #
Motion for a resolution Paragraph 12 12. Considers that the sustainability strategy should identify and address, in line with companies’ due diligence obligations, the significant impacts that the company might have on environmental,
Amendment 146 #
Motion for a resolution Paragraph 12 a (new) 12 a. Insists that if due diligence obligations and director’s duties are to be proposed in a single legislative instrument, they should be clearly separated in two different parts; considers that those obligations and duties are complementary but that they are not interchangeable, nor is one subordinated to the other.
Amendment 147 #
Motion for a resolution Paragraph 13 Amendment 148 #
Motion for a resolution Paragraph 13 13. Further considers that the
Amendment 149 #
Motion for a resolution Paragraph 13 13. Further considers that the sustainability strategy should include measurable, specific, time-bound and science-based targets and transition plans aligned with the Union’s commitments at international level
Amendment 15 #
Motion for a resolution Citation 21 h (new) - having regard to the UN booklet 'Gender Dimensions of the Guiding Principles on Business and Human Rights'8a, __________________ 8a https://www.undp.org/content/undp/en/ho me/librarypage/democratic- governance/gender-dimensions-guiding- principles-on-business-n-human- rights.html
Amendment 150 #
Motion for a resolution Paragraph 13 13. Further considers that after an impact assessment the sustainability strategy should include measurable, specific, time-bound and science-based targets aligned with the Union’s commitments at international level on the environment, climate change, particularly the Paris Agreement, biodiversity, and deforestation; stresses that it should also include policies on gender equality, the better integration of employee’s rights in the business activities and a definition of a fair salary policy, and sector-specific and/or geographical matters;
Amendment 151 #
Motion for a resolution Paragraph 13 13. Further considers that the sustainability strategy should include measurable, specific, time-bound and science-based targets aligned with the Union’s commitments at international level on the environment, climate change, particularly the Paris Agreement, biodiversity, and deforestation; stresses that it should also include policies on combating unemployment and promoting European production, gender equality, the better integration of employee’s rights in the business activities and a definition of a fair salary policy, and sector-specific and/or geographical matters; believes that the variable part of the remuneration of directors should be linked to the achievement of the measurable targets set in the company’s sustainability strategy;
Amendment 152 #
Motion for a resolution Paragraph 13 13. Further considers that the sustainability strategy should include measurable, specific, time-bound and
Amendment 153 #
Motion for a resolution Paragraph 13 13. Further considers that the sustainability strategy should include measurable, specific, time-bound and science-based targets aligned with the Union’s commitments at international level on the environment,
Amendment 154 #
Motion for a resolution Paragraph 13 13. Further considers that the sustainability strategy should include measurable, specific, time-bound and science-based targets aligned with the Union’s commitments at international level on the environment, climate change, particularly the Paris Agreement, biodiversity, and deforestation; stresses that it should also include policies on gender equality, the better integration of employee’s rights in the business activities and a definition of a fair salary policy, and sector-specific and/or geographical matters; believes that the variable part of the remuneration of executive directors should be linked to the achievement of the measurable targets set in the company’s sustainability strategy;
Amendment 155 #
Motion for a resolution Paragraph 13 a (new) 13a. Highlights that the obligations of the Paris Agreement to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1,5°C above pre-industrial levels imply for all sectors of the EU economy to become greenhouse gas neutral by 2050 at the latest, proposes therefore an obligation for all businesses, including financial institutions, to establish remaining greenhouse gas budgets, measure their greenhouse gas footprint, set targets towards aligning their operation with a 1,5°C compatible emissions pathway and be completely greenhouse gas neutral by 2050 at the latest, while publicly communicating on their effective steering progress towards meeting these targets
Amendment 156 #
Motion for a resolution Paragraph 13 a (new) 13a. Considers that the Shareholder Rights Directive II should also be amended in order to incentivise ‘patient’ shareholder behaviour, in particular by rewarding long-term shareholding through voting rights and tax advantages;
Amendment 157 #
Motion for a resolution Paragraph 13 a (new) 13a. Calls for measures to promote the long-term engagement by investors in companies through the introduction of loyalty shares; highlights that retained earnings can contribute to building adequate reserves;
Amendment 158 #
Motion for a resolution Paragraph 13 b (new) 13b. Asks for the introduction of a maximum management-to-worker pay ratio, which would reduce wage inequality from both ends of the pay spectrum by raising wages at the bottom while at the same time preventing excessive wages at the top; asks that this ratio is also reported on regularly by the board;
Amendment 159 #
Motion for a resolution Paragraph 13 b (new) 13b. Considers that binding limits on wage differentials between employees and directors should be set; further believes that stock-based remuneration for directors and other incentives for boards to focus on maximising short-term share price, such as share buybacks, should be regulated;
Amendment 16 #
Motion for a resolution Citation 21 i (new) - having regard to the Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict affected and high-risk areas (‘The Conflict Minerals Regulation')9a, __________________ 9ahttps://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=OJ:L:2017: 130:FULL&from=EN
Amendment 160 #
Motion for a resolution Paragraph 14 14. Considers that, in the process of defining and monitoring their sustainability strategy, companies should engage with all relevant
Amendment 161 #
Motion for a resolution Paragraph 14 14. Considers that, in the process of defining and monitoring their sustainability
Amendment 162 #
Motion for a resolution Paragraph 14 14. Considers that, in the process of defining and monitoring their sustainability strategy, companies should ensure that their governance comprises at least one third of salaried directors in order to benefit from their knowledge of the company; considers, too, that companies should engage with all relevant stakeholders, including shareholders, employees’ representatives or spokespersons, and stakeholders external to them but who are affected by their activities and supply chains;
Amendment 163 #
Motion for a resolution Paragraph 14 14. Considers that, in the process of defining and monitoring their sustainability strategy, companies should have the legal duty to engage with all relevant stakeholders, including shareholders, employees’ representatives or spokespersons, and stakeholders external to them but who are affected by their activities and supply chains, such as non- profit organisations representing the environment;
Amendment 164 #
Motion for a resolution Paragraph 14 14. Considers that, in the process of defining and monitoring their sustainability strategy, companies should engage with all relevant stakeholders
Amendment 165 #
Motion for a resolution Paragraph 14 14. Considers that, in the process of defining and monitoring their sustainability strategy, companies should engage with
Amendment 166 #
Motion for a resolution Paragraph 14 a (new) 14a. Considers that ecosystems should be granted a legal status, which would enable representatives to initiate legal actions on its behalf;
Amendment 167 #
Motion for a resolution Paragraph 15 15. Considers that this engagement should take place, depending on the size and field of activity of the company concerned, by means of
Amendment 168 #
Motion for a resolution Paragraph 15 15. Considers that this engagement should take place, depending on the size and field of activity of the company concerned, by means of advisory committees, in which workers’ representatives and trade unions, as well as other stakeholders’ representatives or spokespersons would participate, and that will be tasked with advising on the content and the implementation of the sustainability strategy; considers that civil society organizations, particularly associations dedicated to the protection of consumers and of the environment should participate in the work of the advisory committees; believes that such committees should have the right to request and carry out, if approved by a large majority, an internal inquiry if reasonable concerns on the correct implementation of the sustainability strategy are raised.
Amendment 169 #
Motion for a resolution Paragraph 15 15. Considers that this engagement should take place, depending on the size and field of activity of the company concerned, by means of
Amendment 17 #
Motion for a resolution Citation 21 j (new) - having regard to Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market (‘the Timber Regulation’)10a, __________________ 10ahttps://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32 010R0995&from=EN
Amendment 170 #
Motion for a resolution Paragraph 15 15. Considers that this engagement should take place, depending on the size and field of activity of the company concerned, by means of advisory committees, in which
Amendment 171 #
Motion for a resolution Paragraph 15 a (new) 15a. Considers that this non-executive committee, should include independent experts and be chaired by a designated non-executive director, tasked with monitoring and reviewing the content, financing and implementation of the sustainability strategy; considers that non-executive directors should have a duty of care to monitor the implementation and that sufficient funds are allocated to support financing of the strategy; considers that a failure to implement the corporate sustainability strategy should be considered a breach of executive directors’ duty of good faith (where deliberate) or duty of care (where accidental), and could be enforced by the shareholders by derivative action where the failure causes long-term harm to the company.
Amendment 172 #
Motion for a resolution Paragraph 15 a (new) 15a. Notes that some Members States have introduced the concept of “loyalty shares” in their legislation to encourage shareholders to engage more actively in sustainable returns and long-term performance of companies; calls on the Commission to assess the effectiveness of that mechanism and the possibility of establishing it at European level.
Amendment 173 #
Motion for a resolution Paragraph 15 b (new) 15b. Recommends the establishment of an obligation for the board to discuss and sign off on an annual progress report, accompanied by a statement by worker representatives, which should be included in the company’s non-financial statement pursuant to the requirements of the EU Non-Financial Reporting Directive;
Amendment 174 #
Motion for a resolution Paragraph 15 c (new) 15c. Considers that Member States should empower a national regulatory body to bring proceedings against the executive directors where non- implementation has caused serious harm to third parties or unlawful harm to the environment;
Amendment 175 #
Motion for a resolution Paragraph 15 d (new) 15d. Considers that state aid, public support schemes (including support from Export Credit Agencies, government- backed loans) and public procurement should be granted to companies that have taken strong, measurable, specific, time- bound and science-based commitments with regards to social and environmental sustainability; recalls that public support to companies, whether in normal or critical situations, should be granted with due consideration to the achievement of the wider social and environmental ambitions of the EU; calls on the Commission and Member States to set mandatory social and environmental sustainability criteria when providing public support to companies, including through the Recovery and Resilience Facility; considers that those criteria can include concrete commitments to take all reasonable measures to protect jobs, to strive for a fair distribution of profits within the company, to reduce their environmental and carbon footprints, and to align their activity to the Paris Agreement;
Amendment 176 #
Motion for a resolution Paragraph 15 e (new) 15e. Considers that poor sustainability performances, including the failure to adequately define and implement a sustainability strategy, environmental damage, serious adverse impacts on the legitimate interests of stakeholders including workers, local communities, consumers and society as a whole, as well as illegal or harmful business practices including tax evasion, money laundering or bribery, should constitute grounds for banning companies from benefiting from state aid, public support schemes (including support from Export Credit Agencies, government-backed loans) and public procurement.;
Amendment 177 #
Motion for a resolution Paragraph 15 f (new) 15f. Calls for specific mechanisms to be introduced for workers and stakeholders to bring forward actions against the board in case of decisions which go against the long-term interests of society, the environment, workers, stakeholders and companies themselves;
Amendment 178 #
Motion for a resolution Paragraph 15 g (new) 15g. Notes that some remuneration schemes of directors create incentives to focus on short-term strategies to maximise share value; calls on the Commission to regulate the remuneration schemes of executive directors to prevent those schemes from aligning directors’ interests mostly with shareholders’ interests; considers that this regulation should tackle the determination of the variable part of directors’ remuneration and the remuneration of directors via shares;
Amendment 179 #
Motion for a resolution Paragraph 15 h (new) 15h. Stresses that in order to overcome the excessive short-term pressures from capital markets which contribute to failure of public companies to consider environmental, social and economic sustainability, a significant percentage of the Key Performance Indicators and variable parts of the remuneration of directors should be linked to the achievement of the measurable targets set in the company’s sustainability strategy;
Amendment 18 #
Motion for a resolution Citation 21 k (new) Amendment 180 #
Motion for a resolution Paragraph 15 i (new) 15i. Underlines that inequalities of remuneration within companies have soared to absurd levels that are not legitimately founded on differences in competences, nor on differences in the strenuousness, risks or social value of the tasks performed; stresses that those largely unfounded inequalities undermine the fair distribution of resources in society and represent a grave social injustice; calls on the Commission to examine the possibility of establishing a maximum ratio between directors and workers’ remuneration, and a maximum ratio for remuneration within a company;
Amendment 181 #
Motion for a resolution Paragraph 15 j (new) 15j. Notes that excessive payouts to shareholders undermine companies’ production, innovation, resilience capacities and has depressed wages both within firms but also within suppliers and subcontractors; underlines that excessive shareholders’ payouts undermine companies’ ability to invest in the reduction of their environmental and carbon footprints; calls on the Commission to analyse and propose solutions to the excess of shareholders’ payouts and calls in particular for the constitution of sufficient reserves through adequate retained earnings to match future investments needs for the climate transition and employee or supply chain related matters;
Amendment 182 #
Motion for a resolution Paragraph 15 k (new) 15k. Notes that some companies carry out share buy-backs and distribute dividends in a way that is not compatible with sustainable business conduct nor with a fair and reasonable distribution of wealth; Stresses in particular that some companies suffering losses or carrying out redundancy plans chose to favour shareholders’ revenues via share buy- backs and the distribution of dividends, rather that reinvesting, protecting jobs and the long term interests of the company; calls on the Commission and the Member States to examine the possibility of regulating share buy-backs and the distribution of dividends for companies that are suffering losses or carried out redundancy plans;
Amendment 183 #
Motion for a resolution Paragraph 15 l (new) 15l. Urges the Commission to amend the Shareholder Rights Directive II and introduce binding rules requiring Member States to incentivize long-term shareholding by setting voting rights in proportion to the time of presence in a firm’s capital and providing the rewards of shares (e.g. dividends) on the basis of the time that the shares have been held; as well as decreasing or exempting capital gains tax on the basis of long-term shareholdings;
Amendment 184 #
Motion for a resolution Paragraph 15 m (new) 15m. Urges the Commission to examine the possibility of setting a minimum time for the detention of shares;
Amendment 19 #
Motion for a resolution Citation 21 l (new) - having regard to the Dutch law on the introduction of a duty of care to prevent the supply of goods and services produced using child labour12a, __________________ 12a https://www.eerstekamer.nl/behandeling/2 0191113/publicatie_wet_4/document3/f=/v l3jh4kl10yx.pdf
Amendment 2 #
Motion for a resolution Citation 6 b (new) - having regard to the Proposal for a regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (‘The European Climate Law’)1b __________________ 1b COM(2020)0080
Amendment 20 #
Motion for a resolution Citation 21 m (new) Amendment 21 #
Motion for a resolution Citation 21 n (new) - having regard to the study of February 2019 prepared for the European Commission on ‘Due Diligence requirements through the supply chain’14a, __________________ 14ahttps://op.europa.eu/en/publication- detail/-/publication/8ba0a8fd-4c83-11ea- b8b7-01aa75ed71a1/language-en
Amendment 22 #
Motion for a resolution Citation 21 o (new) Amendment 23 #
Motion for a resolution Citation 21 p (new) - having regard to the study of May 2020 prepared for the European Commission on ‘Improving financial security in the context of the Environmental Liability Directive’16a, __________________ 16a https://ec.europa.eu/environment/legal/lia bility/pdf/Final_report.pdf
Amendment 24 #
Motion for a resolution Citation 21 q (new) - having regard to the Oslo Principles on Global Obligations to Reduce Climate Change17a, __________________ 17a https://climateprinciplesforenterprises.file s.wordpress.com/2017/12/osloprincipleswe bpdf.pdf
Amendment 25 #
Motion for a resolution Recital A A. whereas in a corporate context, a sustainability approach implies that the interest of different stakeholders in the company, including trade unions and workers representatives are duly taken into consideration, as well as the risks a company is exposed to, including general societal and environmental concerns
Amendment 26 #
Motion for a resolution Recital А А. whereas in
Amendment 27 #
Motion for a resolution Recital A A. whereas in a corporate context, a sustainability approach implies that the interest of different stakeholders in the company, including
Amendment 28 #
Motion for a resolution Recital A A. whereas in a corporate context, a sustainability approach implies that
Amendment 29 #
Motion for a resolution Recital A A. whereas in a corporate context, a sustainability approach implies that the interest of
Amendment 3 #
Motion for a resolution Citation 6 c (new) - having regard to Regulation (EU) No 517/2014 of the European Parliament and of the Council of 16 April 2014 on fluorinated greenhouse gases and repealing Regulation (EC)No 842/2006,
Amendment 30 #
Motion for a resolution Recital A a (new) Aa. whereas the sustainability of companies can be pursued only if, at the same time, the principle of reciprocity can be guaranteed, according to which EU companies cannot be required to comply with social and environmental standards that are not required of non-EU companies exporting into the single market;
Amendment 31 #
Motion for a resolution Recital B B. whereas the multiple international initiatives promoting sustainable corporate governance remain soft law
Amendment 32 #
Motion for a resolution Recital B B. whereas the multiple international initiatives promoting sustainable corporate governance remain soft law only; whereas the study commissioned by the Commission on director’s duties and sustainable corporate governance highlights the problems associated with short-termism as well as the fact that the EU is not on track to meet its own sustainability commitments if companies do not incorporate long-term interests; underlines that the study clearly points towards the need for EU legislation in this regard.
Amendment 33 #
Motion for a resolution Recital B B. whereas the multiple international initiatives promoting sustainable corporate governance are voluntary, remain soft law only and do not have any concrete impact;
Amendment 34 #
Motion for a resolution Recital B a (new) Ba. whereas global value chains are the key feature of the global economy but their complex nature, lack of transparency and dilution of liabilities may lead to a higher risk of human and labour rights violations, factual impunity for environmental crimes; whereas trade policy must contribute to a transparent production process throughout the value chain and demonstrate compliance with environmental, social and safety standards;
Amendment 35 #
Motion for a resolution Recital C C. whereas during the last legislative term, the European Union undertook a number of initiatives in an effort to foster transparency and long-termism in financial and economic activities, such as the Shareholders’ Rights Directive, the Action Plan for Financing Sustainable Growth, the Disclosure Regulation and the Taxonomy Regulation; whereas the continued accommodative interest policies of the euro area directly oppose long-termism, which leads to asset bubbles such as in the housing market, which is detrimental to environmental sustainability;
Amendment 36 #
Motion for a resolution Recital C C. whereas during the last legislative term, the European Union undertook a number of initiatives in an effort to foster transparency
Amendment 37 #
Motion for a resolution Recital C a (new) Ca. Whereas this trend had started, inter alia, with the adoption of the Non- Financial Reporting Directive (‘NFRD’); whereas disclosure of non-financial information is necessary to measure, monitor and manage undertakings' performance and their long-term impact on society and the environment;
Amendment 38 #
Motion for a resolution Recital D Amendment 39 #
Motion for a resolution Recital D D. whereas the Non-Financial Reporting Directive (‘NFRD’)
Amendment 4 #
Motion for a resolution Citation 8 Amendment 40 #
Motion for a resolution Recital D D. whereas the Non-Financial Reporting Directive (‘NFRD’)
Amendment 41 #
Motion for a resolution Recital E E. whereas according to the Commission European Green Deal, companies and financial institutions need to increase their disclosure on climate and environmental data so that investors are fully informed about the sustainability of their investments; whereas to this end the Commission committed to reviewing the Non-Financial Reporting Directive; whereas according to its adjusted Work Programme for 2020, the Commission intends to put forward a proposal reviewing the NFRD in the first trimester of 2021;
Amendment 42 #
Motion for a resolution Recital F F. whereas stakeholders and studies have often expressed that the non-financial information provided by companies pursuant to the NFRD is insufficient, unreliable and not comparable; ; whereas preparers have expressed confusion with the multiplicity of voluntary reporting frameworks and called for legal clarification and standardization; whereas disclosure of more complete and reliable information is necessary so that companies can be held accountable for their potential adverse impacts on the environment and society;
Amendment 43 #
Motion for a resolution Recital F F. whereas stakeholders
Amendment 44 #
Motion for a resolution Recital F F. whereas stakeholders have often expressed that the non-financial information provided by companies pursuant to the NFRD is insufficient, unreliable and not comparable; whereas disclosure of more complete and reliable information is necessary so that companies can be held accountable for their potential adverse impacts on the environment and society; whereas improvements in non- financial reporting could increase companies’ accountability and enhance trust in companies;
Amendment 45 #
Motion for a resolution Recital F F. whereas stakeholders have often expressed that the non-financial
Amendment 46 #
Motion for a resolution Recital F F. whereas stakeholders have often expressed that the non-financial information provided by companies pursuant to the NFRD is insufficient, unreliable and not comparable; whereas a series of concrete guidelines on the disclosure of more complete and reliable information
Amendment 47 #
Motion for a resolution Recital F F. whereas stakeholders have often expressed that the non-financial information provided by companies pursuant to the NFRD is insufficient, unreliable and not comparable; whereas
Amendment 48 #
Motion for a resolution Recital F a (new) Fa. whereas the study commissioned by the Commission pursuant to the Sustainable Finance Action Plan published in July 2020 demonstrates the increasing tendency of publicly listed companies listed within the EU to focus on the short-term interests of their shareholders; whereas this study, based on the available financial information from 1992 to 2018 of 4,719 listed companies in the 16 countries highlights the multiplication by four of total pay-outs to shareholders as percentage of company revenues during this period; whereas it proposes several legislative options at EU level that would significantly improve corporate sustainability, and underlines the positive impacts of clarifying directors’ obligations vis-a-vis sustainability and long-term considerations;
Amendment 49 #
Motion for a resolution Recital F a (new) Fa. whereas it is essential to adopt a framework of concrete guidelines that comply fully with the principle of proportionality and avoid any additional administrative burden for these European businesses; whereas this framework must comply with and enhance legal certainty within the internal market while preventing any threats to its competitiveness;
Amendment 5 #
Motion for a resolution Citation 18 a (new) - having regard to the Study for the European Commission on Director’s duties and sustainable corporate governance of July 2020,
Amendment 50 #
Motion for a resolution Recital F a (new) Fa. whereas sustainable corporate governance, including a requirement to disclose information related to environmental, social and employee issues, human rights, bribery and corruption, form a part of the “corporate responsibility to respect” as defined in the UN Guiding Principles of Business and Human Rights,
Amendment 51 #
Motion for a resolution Recital F b (new) Fb. whereas a sustainability approach in corporate governance comprises both human rights and environmental protection, as John Knox, former UN Special Rapporteur on human rights and the environment, stressed that ‘a healthy environment is necessary for the full enjoyment of human rights and, conversely, the exercise of rights (including rights to information, participation and remedy) is critical to environmental protection’1a; __________________ 1a KNOX, J., The Human Right to a Healthy Environment, Cambridge University Press, 2018.
Amendment 52 #
Motion for a resolution Recital G G. whereas companies’ directors have the legal and statutory duty to act in the interest of the
Amendment 53 #
Motion for a resolution Recital G G. whereas companies’ directors have the legal and statutory duty to act in the interest of the company and the duty to respect to human rights, social rights, workers’ and trade unions’ rights and the environment; whereas, however, the interpretation and implementation of this duty is hampered by the shareholder primacy norms and the undue short-term market pressures; whereas an excessive focus on short-term profit maximisation has an adverse impact on companies’ long- term performances and on the sustainability
Amendment 54 #
Motion for a resolution Recital G G. whereas companies’ directors have the legal and statutory duty to act in the interest of the company;
Amendment 55 #
Motion for a resolution Recital G G. whereas companies’ directors have the legal and statutory duty to act in the interest of the company; whereas companies’ interest has been traditionally equated with the interest of its shareholders; whereas an excessive focus on short-term profit maximisation has an adverse impact on companies’ long-term performances and on sustainability, and therefore may be to the detriment of shareholders’ interest;
Amendment 56 #
Motion for a resolution Recital G G. whereas companies’ directors have the legal and statutory duty to act in the interest of the company; whereas an excessive focus on short-term profit maximisation, partly spurred by the continued accommodative policies of the ECB, has an adverse impact on companies’ long-term performances and on sustainability, and therefore may be to the detriment of shareholders’ interest;
Amendment 57 #
Motion for a resolution Recital G a (new) Ga. whereas in recent occasions however, shareholders have proposed environmental resolutions which have not been backed by companies, including the notable example of BlackRock which supported just 6 per cent of environmental proposals filed by shareholders despite strong public commitments to sustainability;
Amendment 58 #
Motion for a resolution Recital H H. whereas the consistency of EU legislation on sustainable corporate governance should be achieved through
Amendment 59 #
Motion for a resolution Recital H H. whereas the consistency of EU legislation on sustainable corporate governance should be achieved through the establishment of concrete obligations to
Amendment 6 #
Motion for a resolution Citation 19 Amendment 60 #
Motion for a resolution Recital H H. whereas the consistency of EU legislation on sustainable corporate governance should be achieved through the establishment of concrete
Amendment 61 #
Motion for a resolution Recital H H. whereas the consistency of EU legislation on sustainable corporate governance should be achieved through the establishment of concrete obligations to
Amendment 62 #
Motion for a resolution Recital H a (new) Ha. whereas in order to make corporate governance in the Union more sustainable, transparent and accountable, the Commission should come forward with proposals to review the non-financial reporting directive and should introduce separate new legislation on due diligence and director’s duties.
Amendment 63 #
Motion for a resolution Recital H a (new) Ha. Whereas in order to achieve a robust and functional approach to corporate accountability, different EU legislation should cover the key aspects of reporting, due diligence and director’s duties;
Amendment 64 #
Motion for a resolution Paragraph -1 (new) -1. Calls on the Commission to come forward with distinct proposals to review the non-financial reporting directive, to introduce legislation on mandatory corporate due diligence, and to introduce legislation on directors duties and sustainable corporate governance;
Amendment 65 #
Motion for a resolution Paragraph 1 1. Welcomes the Commission’s commitment to reviewing the NFRD; highlights that such revision should be fully consistent with the requirements imposed by the Disclosure Regulation and the Taxonomy Regulation and with the principles of human rights and environmental due diligence outlined in the United Nations Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises; calls on the Commission to take into account the recommendations included in this resolution;
Amendment 66 #
Motion for a resolution Paragraph 1 a (new) 1a. Calls on the Commission, in future EU measures on company law and corporate governance, to strive to achieve a balance between, on the one hand, the need to ease the short-term pressure on company directors and encourage the integration of sustainability in corporate decision-making and, on the other hand, the need for sufficient flexibility to take into account the various national regulatory frameworks;
Amendment 67 #
Motion for a resolution Paragraph 1 a (new) 1a. Calls for three distinct, yet mutually reinforcing legislative proposals on Directors’ duties and Sustainable Corporate Governance, on Corporate Human Rights and environmental due diligence and on the reform of the Non Financial Reporting Directive;
Amendment 68 #
Motion for a resolution Paragraph 1 b (new) 1b. Stresses that, in order to provide a level playing field, sustainable corporate governance requirements including non- financial reporting should apply to all, both EU and non-EU, companies operating in the EU area;
Amendment 69 #
Motion for a resolution Paragraph 1 b (new) 1b. Stresses the importance of strengthening the role of directors in the pursuit of companies’ long-term interests in future measures at EU level;
Amendment 7 #
Motion for a resolution Citation 19 a (new) - having regard to the Study on directors’ duties and sustainable corporate governance prepared by Ernst & Young for the Commission Directorate- General Justice and Consumers and published in July 2020;
Amendment 70 #
Motion for a resolution Paragraph 1 c (new) 1c. Stresses the importance of developing a specific culture among the governing bodies of companies that takes into account and implements sustainable corporate governance;
Amendment 71 #
Motion for a resolution Paragraph 2 2. Reiterates its call for an enlargement of the scope of the N
Amendment 72 #
Motion for a resolution Paragraph 2 2. Reiterates its call for an enlargement of the scope of the N
Amendment 73 #
Motion for a resolution Paragraph 2 2. Reiterates its call for an enlargement of the scope of the NFRD to cover all listed and non-listed large undertakings established in the Union territory, as defined in Article 3(4) of the Accounting Directive;
Amendment 74 #
Motion for a resolution Paragraph 2 2. Reiterates its call for an
Amendment 75 #
Motion for a resolution Paragraph 2 2. Reiterates its call for an enlargement of the scope of the N
Amendment 76 #
Motion for a resolution Paragraph 2 2. Reiterates its call for an enlargement of the scope of the N
Amendment 77 #
Motion for a resolution Paragraph 2 2. Reiterates its call for an enlargement of the scope of the N
Amendment 78 #
Motion for a resolution Paragraph 2 2.
Amendment 79 #
Motion for a resolution Paragraph 2 a (new) Amendment 8 #
Motion for a resolution Citation 21 a (new) - having regard to the 'Study on directors’ duties and sustainable corporate governance' prepared by EY for the Commission Directorate-General Justice and Consumers1a, __________________ 1ahttps://op.europa.eu/en/publication- detail/-/publication/e47928a2-d20b-11ea- adf7-01aa75ed71a1/language-en
Amendment 80 #
Motion for a resolution Paragraph 2 a (new) 2a. Invites the Commission to consider recognising certificates issued by industrial due diligence schemes; stresses that, to this end, any future regulation could also include provisions on certification, based on a streamlined mechanism rooted in transparent criteria and related provisions;
Amendment 81 #
Motion for a resolution Paragraph 2 b (new) 2b. Calls on the Commission to draw up non-binding guidelines in the form of a handbook for economic operators, in order to ensure clarity and consistency in the practices of economic operators and SMEs in particular;
Amendment 82 #
Motion for a resolution Paragraph 3 3.
Amendment 83 #
Motion for a resolution Paragraph 3 3. Considers that the concept of environmental matters in the NFRD should be interpreted in line with the Taxonomy Regulation; considers it equally important to define with precision the other sustainability matters to which the Directive refers, such as the concepts of social and employee matters, respect for human rights and anti-corruption and bribery; calls in this regard for more transparency in the publication of supplier lists, which are published by just 1% of companies at present;
Amendment 84 #
Motion for a resolution Paragraph 3 3. Considers that the concept of environmental matters in the NFRD should be interpreted in line with the Taxonomy Regulation; considers it equally important to define with precision the other sustainability matters to which the Directive refers, such as the concepts of social and employee matters, respect for human rights
Amendment 85 #
Motion for a resolution Paragraph 3 3. Considers that the concept of environmental matters in the NFRD should be interpreted in line with the Taxonomy Regulation; stresses that the recommendations of the Task Force on Climate-related Financial Disclosures should be applied; considers it equally important to define with precision the other sustainability matters to which the Directive refers, such as the concepts of social and employee matters, respect for human rights and anti-corruption and bribery;
Amendment 86 #
Motion for a resolution Paragraph 4 4. Considers that the definition of materiality should
Amendment 87 #
Motion for a resolution Paragraph 4 4. Considers that the definition of materiality should include the issues that affect long-term value creation and matters beyond the purely financial performance of companies; further considers that disclosures should provide reliable information both on the risks and impact of business activities on society and the environment — within and outside the EU, and taking into account all actors throughout the entire value chains and business relationships —, and on the management of risks affecting companies from sustainability-related matters; stresses that relevant stakeholders, such as employees’ representatives or spokespersons and organisations protecting the environment, ought to be included in the determination process of materiality;
Amendment 88 #
Motion for a resolution Paragraph 4 4. Considers that the definition of materiality should
Amendment 89 #
Motion for a resolution Paragraph 4 a (new) 4 a. Stresses that the revised NFRD regime should make clear that mandatory reporting obligations also cover the companies’ activities responsible for diffuse forms of pollution, such as the production or use of toxic chemicals, nanoplastics, pesticides, CO2 and other GES emissions;
Amendment 9 #
Motion for a resolution Citation 21 b (new) - having regard to the 2008 United Nations 'Protect, Respect and Remedy' Framework for Business and Human Rights2a, __________________ 2a http://www.undocs.org/A/HRC/8/5
Amendment 90 #
Motion for a resolution Paragraph 4 b (new) 4 b. Calls on the Commission to also foster the development of innovative accounting techniques which would take into account the need to preserve and restore ecosystems;
Amendment 91 #
Motion for a resolution Paragraph 5 5. Observes that the NFRD gives companies within its scope significant flexibility to disclose relevant information in the way they consider most useful; notes that companies may currently rely, at their discretion, on a number of different frameworks; considers it necessary to set up a comprehensive EU framework covering the full set of sustainability issues relevant for a comprehensive non-financial reporting; highlights, in this regard, that the EU framework should ensure that the disclosures are clear, balanced, understandable, comparable among companies within a sector, verifiable and objective; stresses that th
Amendment 92 #
Motion for a resolution Paragraph 5 5. Observes that the NFRD gives companies within its scope significant flexibility to disclose relevant information in the way they consider most useful; points out that disclosure must be appropriate for the nature, size and location of the companies, taking into account the costs, business confidentiality and other elements that could affect their competitiveness; notes that companies may currently rely, at their discretion, on a number of different frameworks; considers it necessary to set up a comprehensive EU framework covering the full set of sustainability issues relevant for a comprehensive non-financial reporting; highlights, in this regard, that the EU framework should ensure that the disclosures are clear, balanced, understandable, comparable among companies within a sector, verifiable and objective; stresses that this framework should include, where relevant, mandatory sector-specific standards; welcomes, in this regard, the Commission’s commitment to supporting a process to develop EU non- financial reporting standards18; __________________ 18 Remarks by Executive Vice-President Dombrovskis at the Conference on implementing the European Green Deal: Financing the Transition, 28 January 2020 (https://ec.europa.eu/commission/presscorn er/detail/en/speech_20_139).
Amendment 93 #
Motion for a resolution Paragraph 5 5. Observes that the NFRD gives companies within its scope significant flexibility to disclose relevant information in the way they consider most useful; notes that companies may currently rely, at their discretion, on a number of different frameworks; considers it necessary to set up a comprehensive EU legislative framework covering the full set of sustainability issues relevant for a comprehensive non-financial reporting; highlights, in this regard, that the EU legislative framework should ensure that the disclosures are clear, balanced, understandable, comparable among companies within a sector, verifiable and objective; stresses that th
Amendment 94 #
Motion for a resolution Paragraph 5 5. Observes that the NFRD gives companies within its scope significant flexibility to disclose relevant information in the way they consider most useful; notes that companies may currently rely, at their discretion, on a number of different frameworks; considers it necessary to set up a comprehensive EU framework based on the principle of proportionality and covering the full set of sustainability issues relevant for a comprehensive non-financial reporting; highlights, in this regard, that the EU framework should ensure that the disclosures are clear, balanced, understandable, comparable among companies within a sector, verifiable and objective; stresses that this framework should include, where relevant, mandatory sector-specific standards, without introducing an additional administrative burden and creating imbalances in terms of competitiveness; welcomes, in this regard, the Commission’s commitment to supporting a process to develop EU non- financial reporting standards18; __________________ 18 Remarks by Executive Vice-President Dombrovskis at the Conference on implementing the European Green Deal: Financing the Transition, 28 January 2020 (https://ec.europa.eu/commission/presscorn er/detail/en/speech_20_139).
Amendment 95 #
Motion for a resolution Paragraph 5 5. Observes that the NFRD gives companies within its scope significant flexibility to disclose relevant information in the way they consider most useful; notes that companies may currently rely, at their discretion, on a number of different frameworks; observes that companies are still uncertain about how to comply best with their disclosure obligations; considers it necessary to set up a comprehensive EU framework covering the full set of sustainability issues relevant for a comprehensive non-financial reporting; highlights, in this regard, that the EU framework should ensure that the disclosures are clear, balanced, understandable, comparable among companies within a sector, verifiable and objective; stresses that this framework should include, where relevant, mandatory sector-specific standards; welcomes, in this regard, the Commission’s commitment to supporting a process to develop EU non- financial reporting standards18 ; __________________ 18 Remarks by Executive Vice-President Dombrovskis at the Conference on implementing the European Green Deal: Financing the Transition, 28 January2020 (https://ec.europa.eu/commission/presscorn er/detail/en/speech_20_139)
Amendment 96 #
Motion for a resolution Paragraph 5 a (new) 5a. Recommends the Commission to include general reporting obligations in the reform of the NFR legislation (Level 1), specify the requirement to disclose clear time-bound sustainability targets concerning the reduction of company’s most significant impacts, and define high- risk sectors and key sustainability issues;
Amendment 97 #
Motion for a resolution Paragraph 5 b (new) 5b. Stresses that the EU non-financial reporting standards should provide further sector-specific details on how companies have to implement these obligations;
Amendment 98 #
Motion for a resolution Paragraph 5 c (new) Amendment 99 #
Motion for a resolution Paragraph 5 d (new) 5d. Considers in this regard that the NFR legislation should address at minimum the following reporting requirements regarding employee matters, both at overall company level and by country of operation, and highlighting gender gaps for each category of information: - workforce composition, - directors’ wages, - employees wages by decile, - living wage, - collective bargaining coverage, - workers’ participation in Occupational Health and Safety systems (specified high- risk industries).
source: 658.892
2020/10/12
ENVI
72 amendments...
Amendment 1 #
Draft opinion Recital A (new) A. Whereas global heating is now irreversible and it is now urgent to initiate a bifurcation of our production, consumption and trade patterns, in order to avoid useless consumption of goods and energy, and avoid haulage when some goods can be produced in the EU;
Amendment 10 #
Draft opinion Recital F (new) F. Whereas climate change has serious risks for food security: food availability, food accessibility, food utilisation and food systems stability; whereas women farmers currently account for 45-80% of all food production in developing countries are disproportionately affected by climate change and environmental degradation;
Amendment 11 #
Draft opinion Recital G (new) G. Whereas sustainable development governance needs a global authority on the environment to operate a global framework that change investment dynamics, environmental regulations including multilateral environmental agreements that need much stronger redress and sanction mechanisms;
Amendment 12 #
Draft opinion Recital H (new) H. Whereas deforestation is responsible for an average of 20% of human-induced carbon dioxide emissions; Whereas deforestation in Brazil and the over exploitation of the high seas are two powerful reminders that we urgently need a better sustainable governance of the environment globally;
Amendment 13 #
Draft opinion Recital I (new) I. Whereas more and more countries and public authorities grant a legal status to the ecosystems, whereas Ecuador enshrined the Rights of Nature in its Constitution, recognising the inalienable rights of ecosystems to exist and flourish, and empowers persons, communities, peoples and nations the right to enforce the Rights of Nature and apply preventative and restrictive measures on activities that might lead to the extinction of species, the destruction of ecosystems or the permanent alteration of natural cycles;
Amendment 14 #
Draft opinion Recital J (new) J. Whereas the Aarhus Convention establishes a number of rights of the public and their associations with regard to the environment including the right of access to environmental information, the right to participate in environmental decision making and access to justice;
Amendment 15 #
Draft opinion Recital K (new) K. Whereas in 2017, The UN Aarhus Convention Compliance Committee found the EU in violation of the Aarhus Convention for not allowing members of the public to challenge decisions of the EU institutions before the EU courts;
Amendment 16 #
Draft opinion Recital L (new) L. Whereas the European Commission for the period 2019-2024 raised ambitions by setting out an agenda for a European Green Deal, stating that, 'Europe must lead the transition to a healthy planet';
Amendment 17 #
Draft opinion Paragraph 1 1. Considers that sustainable corporate governance is key to the long-term direction of undertakings and to aligning their activities to the achievement of the Union’s overall environmental objectives as laid down in the European Green Deal, as well as the Union’s 2050 climate neutrality objective, namely that all sectors (even with different timeframes, keeping in mind the peculiarities of the different sectors and the size of the companies) should contribute to reaching that target;
Amendment 18 #
Draft opinion Paragraph 1 1. Considers that sustainable corporate
Amendment 19 #
Draft opinion Paragraph 1 1. Considers that sustainable corporate governance is key to the long-term direction of undertakings and to aligning their activities to the achievement of the Union’s overall environmental objectives as laid down in the European Green Deal, as well as the Union’s 2030 emissions reduction and energy targets and 2050 climate neutrality objectives, namely that all sectors should contribute to reaching that target;
Amendment 2 #
Draft opinion Recital B (new) B. Whereas the Paris Agreement aims to contain the rise in the average temperature of the planet well below 2°C above preindustrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels;
Amendment 20 #
Draft opinion Paragraph 1 1. Considers that sustainable corporate governance is key to the long-term direction of undertakings and to aligning their activities to the achievement of the Union’s overall environmental objectives as
Amendment 21 #
Draft opinion Paragraph 1 a (new) 1 a. Regrets the human rights violations of local communities stemming from land grabbing fuelled inter alia by speculative interests, including by EU based companies; calls for the Commission to strengthen the Union's corporate governance framework during the NFRD review and to support at the next UN General Assembly, the global recognition of the right to a healthy environment and to recognise significant environmental harm and ecocide in law; calls in that regard for the appropriate revision of European legislation and international frameworks to recognise ecocide as a criminal act;
Amendment 22 #
Draft opinion Paragraph 1 a (new) 1 a. Recalls that full and productive employment and decent work for all is the 8th Sustainable Development Goal; considers that companies ought to contribute to the realisation of this goal by adopting a governance framework that ensures the continued improvement of the living and working conditions of the labour force and creates the conditions for all workers, through the intermediary of their representatives, to participate in the collective determination of their conditions of work and in the management of the work place;
Amendment 23 #
Draft opinion Paragraph 1 b (new) 1 b. Considers that occupational medicine and labour inspections are necessary components of any sustainable corporate governance and preconditions for the achievement of 8th Sustainable Development Goal; calls for a focus on preventative occupational medicine; considers that the means and prerogatives of occupational medicine must be extended in the same way as those of the labour inspectorate; calls on the Member States to guarantee by their legislation the independence of occupational medicine and labour inspection from employers and administrative authorities in order to ensure effective compliance with labour law;
Amendment 24 #
Draft opinion Paragraph 1 b (new) 1 b. Expresses concern that certain international investment agreements such as the Energy Charter Treaty place the financial interests of multinational corporations above environmental and climate priorities; urges the Commission to rapidly ensure the full consistency of existing and future trade investment agreements are fully aligned with EU environmental and climate objectives and come forward with proposals to counteract corporate land grabbing and deforestation in the upcoming NFRD review;
Amendment 25 #
Draft opinion Paragraph 1 c (new) 1 c. Underlines the importance of trade unions for workers to defend their rights and interests and therefore contribution to the realisation of the 8th sustainable development goal; considers that any sustainable corporate governance must fully associate trade unions; urges the Union and its Member States to guarantee the effective rights of association, negotiate and conclude collective agreements and resort to collective action in the event of a conflict of interests, including the right to strike;
Amendment 26 #
Draft opinion Paragraph 1 d (new) 1 d. Stresses that the ecological transition and increasing digitalisation will have profound repercussion on the labour force; considers therefore that any sustainable corporate governance should recognize and effectively guarantee the right of employees to continuing vocational training and lifelong education during their working hours;
Amendment 27 #
Draft opinion Paragraph 1 e (new) 1 e. Stresses that the reduction of working time can create millions of jobs in Europe; recalls that the increase in hourly productivity is directly linked to the reduction in working time, in particular through its beneficial effects on the well- being and physical and mental health of workers; stresses that many scientific studies have shown a strong correlation between working time and environmental impact, and that countries which have reduced their working time have seen a clear improvement in their environmental indicators; considers therefore that a negotiated reduction of working hours should be a part of a sustainable corporate governance;
Amendment 28 #
Draft opinion Paragraph 1 f (new) 1 f. Strongly denounces the fact that the primacy given to the financial profitability of companies, mainly for the purpose of ensuring the payment of dividends to shareholders, and resulting new management practices are made at the expense of the effective respect of companies’ social and environmental obligations; recalls that the resulting strain at work prevents workers to properly carry out their activities and therefore put them and others at risk; stresses that these create circumstances for dangerous and unsustainable situations;
Amendment 29 #
Draft opinion Paragraph 1 g (new) 1 g. Calls for a modulation of corporate tax which takes into account their difference in size and encourage companies to develop more democratic governance, lower the gap between the highest and lowest wages, increase wages and productive investments, whilst penalizing companies that do not guarantee pay equality, relocate, develop their financial investments or increase the dividend share;
Amendment 3 #
Draft opinion Recital C (new) C. Whereas 100 companies are responsible for more than 70 % of global GHG emissions;
Amendment 30 #
Draft opinion Paragraph 1 h (new) 1 h. Denounces the increasing gap between the lowest and highest wages within companies; recalls that the stagnation of the lowest wages has detrimental effect on the health and living conditions of workers and their families; stresses that the highest incomes have a higher ecological footprint than the lowest; considers therefore that a limitation on the higher wages is both a social and ecological measure necessary for ensuring sustainable development; demands the introduction of a salary framing with a maximum ratio of 1 to 20 between the lowest and highest salaries within a company;
Amendment 31 #
Draft opinion Paragraph 1 i (new) 1 i. Calls for a new definition of companies as collective democratic undertakings which object is the production of a good or a service meeting the needs of present and future generations within the respect of planetary boundaries;
Amendment 32 #
Draft opinion Paragraph 1 j (new) 1 j. Demands a significant increase of the elected employees directors share within boards of directors; calls for the reinforcement of employees' powers of intervention on the company's tax practices with a decision-making power; demands the establishment of a right of veto in favour of employee representatives on decisions or projects of the employer that could lead to environmental damage or a risk of loss of productive capacities;
Amendment 33 #
Draft opinion Paragraph 2 2. Considers
Amendment 34 #
Draft opinion Paragraph 2 2.
Amendment 35 #
Draft opinion Paragraph 2 a (new) 2 a. Calls on the Commission and the Member States to respect and promote the United Nations Guiding Principles on Business and Human rights, and the OECD due diligence guidance for responsible business conduct to prevent, reduce and remedy harm to the environment and biodiversity, taking into account obligations and commitments to ensure a safe clean healthy and sustainable environment;
Amendment 36 #
Draft opinion Paragraph 2 a (new) 2 a. Calls on the Commission to introduce a legislative proposal establishing a binding duty of due diligence for all companies operating in the EU to ensure that their activities throughout their value chain are carried out in accordance with environmental and social standards equivalent to those prevailing in the Union;
Amendment 37 #
Draft opinion Paragraph 3 3. C
Amendment 38 #
Draft opinion Paragraph 3 3. Calls in this regard for the adoption of European standards with well-defined requirements in terms of the content and accessibility of non-financial information that should apply to at least all listed and non-listed large undertakings operating in the EU; points out that new European standards need to be based on an impact assessment and be adapted to the capabilities of SME;
Amendment 39 #
Draft opinion Paragraph 3 3. Calls, in this regard, for the adoption of European standards with well- defined requirements in terms of
Amendment 4 #
Draft opinion Recital D (new) D. Whereas the Covid-19 has illustrated the profound imbrication of human health, animal health, and environmental health; whereas sustainable development should not be limited only to environmental and climate protection but the highest level of protection and development of people, living being and ecosystems; whereas the United Nations Sustainable Development Goals address multiple cross-cutting issues, including full and productive employment and decent work for all; whereas sustainable corporate governance has a strong potential to ensure that companies contribute to the realisation of all of these goals;
Amendment 40 #
Draft opinion Paragraph 3 3. Calls in this regard for the adoption of European standards with well-defined requirements in terms of the content and accessibility of non-financial information that should apply to at least all listed and non-listed large undertakings operating in the EU, taking into consideration their size and operational capacities, as well as geo-economic specificities;
Amendment 41 #
Draft opinion Paragraph 3 a (new) 3 a. Recalls that the logistics and transport sector have previously been linked to environmental crimes and the illlegal trade in wildlife; calls, in this regard on the Commission to consider the inclusion of small and medium enterprises (SMEs) within the scope of the NFRD and to identify high risk sectors of economic activity that have a significant impact on environmental sustainability matters;
Amendment 42 #
Draft opinion Paragraph 3 a (new) 3 a. Calls, therefore, on the Commission to establish minimum criteria for certification schemes and certify certification schemes; considers that operators should be allowed to use EU certified certification schemes as an industry standard to establish a corporate sustainability strategy;
Amendment 43 #
Draft opinion Paragraph 4 4.
Amendment 44 #
Draft opinion Paragraph 4 4. Calls on the Commission to commit to developing such standards during the upcoming review of the Non-Financial Reporting Directive; underlines that employees should be fully involved in these reports, given that they know better than anybody the sanitary and environmental risks, as they are exposed to them every day;
Amendment 45 #
Draft opinion Paragraph 4 4. Calls
Amendment 46 #
Draft opinion Paragraph 4 4. Calls on the Commission to commit to developing such standards during the upcoming review of the Non-Financial Reporting Directive; considers that these standards should not pose undue burden on small and medium-sized enterprises;
Amendment 47 #
Draft opinion Paragraph 4 4. Calls on the Commission to commit to developing such standards during the upcoming review of the Non-Financial Reporting Directive, in close cooperation with the Member States;
Amendment 48 #
Draft opinion Paragraph 4 a (new) 4 a. Calls on the Commission to include standards related to climate vigilance such as direct, non-direct and embedded GHG emissions, contribution to deforestation as well as standards related to biodiversity loss;
Amendment 49 #
Draft opinion Paragraph 4 a (new) 4 a. Considers that the EU framework should help and assist, in particular SMEs, that the disclosures are clear, balanced, understandable and comparable among companies within a sector;
Amendment 5 #
Draft opinion Recital A (new) A. Whereas the Union is founded on the values stated in Article 2 of the Treaty on European Union and on compliance with the precautionary principle stated in Article 191(2) of the Treaty on the functioning of the European Union;
Amendment 50 #
Draft opinion Paragraph 4 b (new) 4 b. Stresses the need to reframe the notion of profitability; considers that corporate profits ought to reflect the profits actually available after the renewal of all the financial, natural and human capital degraded by corporate activities; stresses no capital should be considerable substitutable for another, considering the finiteness of resources and the irreversibility of the destruction of some of their components; calls for the generalised extension of traditional financial capital accounting standards to natural and human capital in order to account for and integrate the annual deterioration of the latter in the financial accounts of companies;
Amendment 51 #
Draft opinion Paragraph 5 5. Further considers that consistency of EU legislation on sustainable corporate governance should be achieved through the introduction of concrete obligations to
Amendment 52 #
Draft opinion Paragraph 5 5. Further considers that
Amendment 53 #
Draft opinion Paragraph 5 5. Further considers that consistency of EU legislation on sustainable corporate governance should not only be achieved through the introduction of concrete obligations to be carried out
Amendment 54 #
Draft opinion Paragraph 5 5. Further considers that consistency of EU legislation on sustainable corporate governance should be achieved through the introduction of concrete obligations and quantified objectives to be carried out and not only the obligation to report information;
Amendment 55 #
Draft opinion Paragraph 5 5. Further considers that consistency of EU legislation on sustainable corporate governance should be achieved through the introduction of
Amendment 56 #
Draft opinion Paragraph 5 a (new) 5 a. Calls on the Commission to introduce a legislative proposal requiring companies domiciled or operating in the Union to draw up and implement effectively a public climate and environmental duty of care plan; considers these plans should establish, in accordance with a reliable and scientifically-sound methodology, the direct and indirect Scope 1, Scope 2 and Scope 3 greenhouse gas emissions emitted due to their activities, and determine a trajectory for reducing these emissions which is compatible with pursuit of the long-term temperature goal set out in Article 2 of the Paris Agreement, and shall set out the appropriate means by which the company plans to achieve this;
Amendment 57 #
Draft opinion Paragraph 5 a (new) 5 a. Stresses the need for comprehensive corporate sustainability strategies to cover all aspects of the company’s operations including its global supply chains; considers that companies should have the legal duty to engage with all relevant stakeholders including shareholders, employees, and parties who are affected by their activities and supply chains;
Amendment 58 #
Draft opinion Paragraph 5 b (new) 5 b. Demands for this legislative proposal should provide the public, as defined in Article 2(4) of the Aarhus Convention, with an effective legal remedy to use against the companies concerned in the event of failure to comply with their obligations to produce and effectively implement their climate and environmental duty of care plans; considers that this legislative proposal should also enable the courts to impose fines on companies that cannot prove that they have complied with their obligations to produce and effectively implement their climate and environmental duty of care plans, such fines being based on the annual turnover or the dividends of the companies concerned;
Amendment 59 #
Draft opinion Paragraph 5 b (new) 5 b. Considers that corporate sustainability strategies should prioritise long-term interests, to facilitate a mandatory shift from unsustainable investments and corporate practices and move towards more sustainable operations that promote environmental and climate objectives such as, renewable energy production, the reduction of waste and the promotion of a truly circular economy;
Amendment 6 #
Draft opinion Recital B (new) B. Whereas the rapidly changing global economy calls for a corporate governance model that would address the most pressing challenges ranging from climate change, environmental degradation, natural disasters to growing global inequalities; whereas the European Union and humanity as a whole currently exceed four out of the nine planetary boundaries;
Amendment 60 #
Draft opinion Paragraph 5 c (new) 5 c. Deplores the fact that legislation on social, environmental protection and on the control of major-accident hazards involving dangerous substances is not being effectively applied due to failures in site inspection and assessment; considers that in these circumstances there cannot be an effective sustainable governance; recalls that these failures, tragically illustrated by the Lubrizol accident in France, are due to the decline in inspections and visits to installations as a result of a constant reduction in staff numbers; stresses that these staff cuts are the consequence of the obligations to reduce public expenditure recommended in the framework of the European Semester;
Amendment 61 #
Draft opinion Paragraph 5 d (new) 5 d. Stresses that workers within a company are in the best situation to witness and report any violation by a company of its environmental and social obligations; demands that workers be granted a right to give an early alert to denounce to public authorities and inspection services such violations; urges the Union and Member States to ensure that workers acting as whistle blowers benefit from full legal protection against any act of intimidation or retaliation on the part of their employers or their affiliates;
Amendment 62 #
Draft opinion Paragraph 5 e (new) 5 e. Denounces the growing and massive recourse to subcontracting; stresses that the subcontracting strategy aims to outsource industrial, commercial, health, safety, salary and social risks by transferring the responsibilities of the order givers to subcontractors or even to employees; recalls that the salaries and status of subcontractors are generally lower than those of organic employees; stresses that the practice of subcontracting puts downward pressure on salaries and generates job instability and insecurity; recalls that the working conditions of subcontractors are particularly poor and that the right to health and safety of these employees is often not respected; demands, as a key element of sustainable corporate governance, principals, that companies using service providers and subcontractors be held socially and legally responsible for the obligations arising from this relationship in terms of working conditions and safety, equal treatment, employment, training and the organisation of working time;
Amendment 63 #
Draft opinion Paragraph 5 f (new) 5 f. Expresses its deep worry over the attempts in the previous decade to reduce, directly or indirectly, the scope and competences, or even the suppression, of existing instance within companies which should be a basis for sustainable corporate governance, such as the CHSCT in France; denounces the attacks by public authorities and some companies to intimidate or undermine the work of occupational medicine, labour inspectorate and trade unionists; reiterates that there cannot be any viable sustainable corporate governance without these counterweights to the power of employers and ensure the effective respect of their obligations; underlines all State aid, public funding, lending by public institutions, to any company, regardless of size, sector, operational context, ownership and structure, should be conditioned to the effective prohibition of redundancy plans and stock market layoffs, maintenance of employment, limitation of wage differentials within the company in a ratio of 1 to 20, employee training, application of equal pay and the establishment of public and biding plan to reduce their Scope 1, Scope 2 and Scope 3 greenhouse gas emissions; calls for a reinforcement of the control of public funds granted to companies as well as sanctions in the event of non-compliance with social, environmental and tax- exemplary criteria; calls for the systematic inclusion of employee representatives in monitoring the use of public aid of all kinds granted to companies by the Union, State and local authorities;
Amendment 64 #
Draft opinion Paragraph 5 g (new) 5 g. Recalls that the sustainable character of companies is conditioned by the full respect of their environmental and social obligations by their directions; stresses that strong and independent inspection services are necessary to ensure the full respect of these obligations;
Amendment 65 #
Draft opinion Paragraph 6 6.
Amendment 66 #
Draft opinion Paragraph 6 6. Calls in this regard for the adoption of a European legislative framework requiring undertakings to establish, implement, regularly assess and update a corporate sustainability strategy in consultation with all relevant stakeholders
Amendment 67 #
Draft opinion Paragraph 6 6. Calls in this regard for the adoption of a European legislative framework requiring undertakings to establish,
Amendment 68 #
Draft opinion Paragraph 6 a (new) 6 a. Underlines that to avoid any market failure, which could endanger the achievement of sustainable development goals and the irreversible, predictable and swift reduction of the Union carbon footprint, sustainable governance frameworks alone within each company is not sufficient; stresses the need for a rational allocation of resources over time and compatible with planetary boundaries; calls therefore for the introduction of democratic, ecological and social planning of our economic development;
Amendment 69 #
Draft opinion Paragraph 6 a (new) 6 a. Calls on the Commission for a revision of the Aarhus Regulation in order to promote better access to justice for violations of NFRD provisions and for breaches in the social and environmental duties of EU companies; calls for a legal status to be granted to ecosystems in order to allow persons to defend the interests of the ecosystems in front of the Courts;
Amendment 7 #
Draft opinion Recital C (new) C. Whereas the increasing global competition for access to natural resources often results an unsustainable corporate exploitation of the natural and human environment;
Amendment 70 #
Draft opinion Paragraph 6 a (new) 6 a. Suggests that, apart from linking the variable part of the remuneration of directors to the achievement of the measurable targets set in the company’s sustainability strategy, the non- compliance with these targets should also have financial effects for shareholders.
Amendment 71 #
Draft opinion Paragraph 6 b (new) 6 b. Calls on the Commission and the Member States, as a way to build a more sustainable society and as levy to a more sustainable corporate governance, to adopt all necessary legislative measures to encourage the takeover of industrial sites threatened with closure by employees in the form of cooperative societies involving, as far as possible, the beneficiaries of production, as well as the public authorities; demands the recognition of a right of pre-emption for the company employees;
Amendment 72 #
Draft opinion Paragraph 6 b (new) 6 b. Recognises that women are not only vulnerable to the effects of climate change but are also effective agents of change in relation to mitigation and adaption; calls on the Commission and the Member States to include gender mainstreaming in their environmental analysis, policy making, action plans and any other measures applicable to sustainable development and climate change to support increased attention to gender perspectives.
Amendment 8 #
Draft opinion Recital D (new) D. Whereas corporate governance has a key role to play in delivering the EU’s commitments to implement UN Sustainable Development Goals and the Paris Agreement on climate change;
Amendment 9 #
Draft opinion Recital E (new) E. Whereas board members have a duty to act in the interests of the company as a whole and corporate governance structures seem to have led to interpreting corporate interest as the short term interest of shareholders;
source: 658.927
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https://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE655.716New
https://www.europarl.europa.eu/doceo/document/INTA-AD-655716_EN.html |
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96711
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| forecasts |
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Awaiting Parliament's voteNew
Procedure completed |
2020-12-09Show (8) Changes | Timetravel
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2054
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| committees/4/rapporteur/0/mepref |
96711
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| docs/2/docs/0/url |
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| procedure/stage_reached |
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Awaiting committee decisionNew
Awaiting Parliament's vote |
2020-11-30Show (1) Changes | Timetravel
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https://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE655.716New
https://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE655.716&secondRef=03 |
2020-11-26Show (2) Changes | Timetravel
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2020-11-17Show (1) Changes | Timetravel
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2020-11-11Show (1) Changes | Timetravel
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2020-11-10Show (1) Changes | Timetravel
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2020-11-05Show (1) Changes | Timetravel
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2020-11-03Show (1) Changes | Timetravel
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2020-10-20Show (3) Changes | Timetravel
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2020-10-08Show (1) Changes
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