51 Amendments of Tomáš ZDECHOVSKÝ related to 2022/0051(COD)
Amendment 27 #
Proposal for a directive
Recital 3
Recital 3
(3) In its Communication on a Strong Social Europe for Just Transition75 , the Commission committed to upgrading Europe’s social market economy to achieve a just transition to sustainability. This Directive will also contribute to the European Pillar of Social Rights, which promotes rights ensuring decent living and fair working conditions with the special focus on the most vulnerable groups. It forms part of the EU policies and strategies relating to the promotion of decent work worldwide, including in global supply and where relevant value chains, as referred to in the Commission Communication on fair and decent work worldwide76 . _________________ 75 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – A Strong Social Europe for Just Transitions (COM/2020/14 final). 76 Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on decent work worldwide for a global just transition and a sustainable recovery, COM(2022) 66 final.
Amendment 31 #
Proposal for a directive
Recital 4
Recital 4
(4) The behaviour of companies across all sectors of the economy is key to success in the Union’s sustainability objectives as Union companies, especially large ones, rely on global supply and value chains. It is alsoAlthough combatting human rights violations worldwide ins the interest of companiesprime responsibility of states and governments, companies should follow the principles and standards as set out by international law to protect human rights and the environment, in particular given the rising concern of consumers and investors regarding these topics. Several initiatives fostering enterprises which support value- oriented transformation already exist on Union77 , as well as national78 level. _________________ 77 ‘Enterprise Models and the EU agenda’, CEPS Policy Insights, No PI2021-02/ January 2021. 78 E.g. https://www.economie.gouv.fr/entreprises/ societe-mission
Amendment 40 #
Proposal for a directive
Recital 14
Recital 14
(14) This Directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification, prevention and mitigation, bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations, subsidiaries and upstream supply chain as well as relevant value chains.
Amendment 45 #
Proposal for a directive
Recital 18
Recital 18
(18) The valuesupply chain should cover activities related to the production of a good or provision of services by a company, including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. It should encompass upstream established direct and indirect business relationships that design, extract, manufacture, transport, store and supply raw material, products, parts of products, or provide services to the company that are necessary to carry out the company’s activities, and also downstream relationships, including established direct and indirect business relationships, that use or receive products, parts of products or services from the company up to the end of life of the product, including inter alia the distribution of the product to retailers, the transport and storage of the product, dismantling of the product, its recycling, composting or landfilling.
Amendment 48 #
Proposal for a directive
Recital 20
Recital 20
(20) In order to allow companies to properly identify the adverse impacts in their supply and where relevant value chain and to make it possible for them to exercise appropriate leverage, the due diligence obligations should be limited in this Directive to established business relationships. For the purpose of this Directive, established business relationships should mean such direct and indirect business relationships which are, or which are expected to be lasting, in view of their intensity and duration and which do not represent a negligible or ancillary part of the valuesupply chain. The nature of business relationships as “established” should be reassessed periodically, and at least every 12 months. If the direct business relationship of a company is established, then all linked indirect business relationships should also be considered as established regarding that company.
Amendment 51 #
Proposal for a directive
Recital 21
Recital 21
(21) Under this Directive, EU companies with more than 500 employees on average and a worldwide net turnover exceeding EUR 150 million in the financial year preceding the last financial year should be required to comply with due diligence. As regards companies which do not fulfil those criteria, but which had more than 250 employees on average and more than EUR 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors or one or more high-risk geographical areas, due diligence should apply 2 years after the end of the transposition period of this directive, in order to provide for a longer adaptation period. In order to ensure a proportionate burden, companies operating in such high- impact sectors or high-risk geographical areas should be required to comply with more targeted due diligence focusing on severe adverse impacts. Temporary agency workers, including those posted under Article 1(3), point (c), of Directive 96/71/EC, as amended by Directive 2018/957/EU of the European Parliament and of the Council103 , should be included in the calculation of the number of employees in the user company. Posted workers under Article 1(3), points (a) and (b), of Directive 96/71/EC, as amended by Directive 2018/957/EU, should only be included in the calculation of the number of employees of the sending company. _________________ 103 Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (OJ L 173, 9.7.2018, p. 16).
Amendment 55 #
Proposal for a directive
Recital 22 a (new)
Recital 22 a (new)
(22 a) In order to reflect the priority areas of international action aimed at tackling human rights, the selection of high-risk geographical areas for the purposes of this Directive should be based on the European External Action Service (EEAS) EU Annual Reports on Human Rights and Democracy and annually reassessed.
Amendment 59 #
Proposal for a directive
Recital 26 a (new)
Recital 26 a (new)
(26 a) In order to achieve an efficient implementation of this Directive, the Commission should introduce a toolbox to provide practical help to companies to comply with due diligence requirements, i.e. through contact points, sharing of best practices or standardized set of principles as a basis for a Code of Conduct.
Amendment 69 #
Proposal for a directive
Recital 32
Recital 32
(32) In line with international standards, prevention and mitigation as well as bringing to an end and minimisation of adverse impacts should take into account the interests of those adversely impacted. In order to enable continuous engagement with the upstream supply and where relevant value chain business partner instead of termination of business relations (disengagement) and possibly exacerbating adverse impacts, this Directive should ensure that disengagement is a proportionate last-resort action, in line with the Union`s policy of zero-tolerance on child labour. Terminating a business relationship in which child labour was found could expose the child to even more severe adverse human rights impacts. This should therefore be taken into account when deciding on the appropriate action to take.
Amendment 78 #
Proposal for a directive
Recital 42
Recital 42
(42) Companies should provide the possibility for relevant persons and organisations to submit complaintaffected by the companies´ actions to submit notifications directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. Organisations who could submit such complaintnotifications should include trade unions and other workers’ representatives representing individuals working in the valueupstream supply chain concerned and civil society organisations activewith a legitimate interest in the areas related to the valuesupply chain concerned where they have knowledge about a potential or actual adverse impact. Companies should establish a procedure for dealing with those complaintnotifications and inform workers, trade unions and other workers’ representatives, where relevant, about such processes. Recourse to the complaintnotifications and remediation mechanism should not prevent the complaininformant from having recourse to judicial remedies. In accordance with international standards, complaiinformants should be entitled to request from the company appropriate follow-up on the complaint andnotification and where relevant, to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaintnotification. This access should not lead to unreasonable and repeated solicitations of companies.
Amendment 85 #
Proposal for a directive
Recital 46
Recital 46
(46) In order to provide support and practical tools to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, using relevant international guidelines and standards as a reference, and in consultation with Member States and relevant stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, and where appropriate with international bodies having expertise in due diligence, should have the possibility to issue guidelines, including for specific sectors, specific high-risk geographical areas or specific adverse impacts.
Amendment 92 #
Proposal for a directive
Recital 50
Recital 50
Amendment 94 #
Proposal for a directive
Recital 51
Recital 51
Amendment 95 #
Proposal for a directive
Recital 53
Recital 53
(53) In order to ensure the monitoring of the correct implementation of companies’ due diligence obligations and ensure the proper enforcement of this Directive, Member States should designate one or more national supervisory authorities. These supervisory authorities should be of a public nature, independent from the companies falling within the scope of this Directive or other market interests, and free of conflicts of interest. In accordance with national law, Member States should ensure appropriate financing of the competent authority. They should be entitled to carry out investigations, on their own initiative or based on complaintnotifications or substantiated concerns raised under this Directive and limited to the obligations under this Directive. Where competent authorities under sectoral legislation exist, Member States could identify those as responsible for the application of this Directive in their areas of competence. They could designate authorities for the supervision of regulated financial undertaking also as supervisory authorities for the purposes of this Directive.
Amendment 101 #
Proposal for a directive
Recital 59
Recital 59
(59) As regards civil liability rules, the civil liability of a company for damages arising due to its failure to carry out adequate due diligencfulfil concrete obligations under this Directive should be without prejudice to civil liability of its subsidiaries or the respective civil liability of direct and indirect business partners in the valuesupply chain. Also, the civil liability rules under this Directive should be without prejudice to Union or national rules on civil liability related to adverse human rights impacts or to adverse environmental impacts that provide for liability in situations not covered by or providing for stricter liability than this Directive.
Amendment 112 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point a
Article 1 – paragraph 1 – subparagraph 1 – point a
(a) on obligations for companies regarding actual and potential human rights adverse impacts and environmental adverse impacts, with respect to their own operations, the operations of their subsidiaries, and the valuesupply chain operations carried out by entities with whom the company has an established business relationship and
Amendment 143 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii
Article 2 – paragraph 1 – point b – point iii
(iii) the extraction of mineral resources regardless from where they are extracted (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), rare earth elements, the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products).
Amendment 145 #
Proposal for a directive
Article 2 – paragraph 1 – point b a (new)
Article 2 – paragraph 1 – point b a (new)
(b a) the company did not reach the thresholds under point (a), but had more than 250 employees on average and had a net worldwide turnover of more than EUR 40 million in the last financial year for which annual financial statements have been prepared, provided that at least 50% of this net turnover was generated in one or more of the high-risk geographical areas based on the European External Action Service (EEAS) EU Annual Report on Human Rights and Democracy.
Amendment 167 #
(b) ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant tothe principles set out in the OECD Due Diligence Guidance for Responsible Business Conduct, the OECD Guidelines for Multinational Enterprises as well as the principles set out in the international environmental conventions listed in the Annex, Part II;
Amendment 169 #
Proposal for a directive
Article 3 – paragraph 1 – point c
Article 3 – paragraph 1 – point c
(c) ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of the principles set out in the OECD Due Diligence Guidance for Responsible Business Conduct, the OECD Guidelines for Multinational Enterprises as well as one of the rights or prohibitions listed in the Annex, Part I Section 1, as enshrined in the international conventions listed in the Annex, Part I Section 2;
Amendment 175 #
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
(f) ‘established business relationship’ means a direct business relationship, whether direct or indirect, which is, or which is expected to be lasting, in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the valuesupply chain;
Amendment 177 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘valuesupply chain’ means activities related to the production of goods or the provision of services by a company, including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. As regards companies within the meaning of point (a)(iv), ‘valuesupply chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The valuesupply chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
Amendment 185 #
Proposal for a directive
Article 3 – paragraph 1 – point n
Article 3 – paragraph 1 – point n
(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries, and other individuals, groups, communities or entities whoseindividuals, groups, communities or entities who have specific attributes peculiar to them or are by reason of circumstances that differentiate them from all other persons and who have specific and actual rights or interests that are or could be affected by the products, services and operations of that company, its subsidiaries and its direct business relationships;
Amendment 193 #
Proposal for a directive
Article 4 – paragraph 1 – point d
Article 4 – paragraph 1 – point d
(d) establishing and maintaining a complaintsnotification procedure in accordance with Article 9;
Amendment 203 #
Proposal for a directive
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) a code of conduct based on a standardized European set of principles describing rules and principles to be followed by the company’s employees and subsidiaries;
Amendment 212 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and, where related to their valuesupply chains, from their established business relationships, in accordance with paragraph 2, 3 and 4.
Amendment 215 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
2. By way of derogation from paragraph 1, companies referred to in Article 2(1), point (b), and Article 2(2), point (b), shall only be required to identify actual and potential severe adverse impacts relevant to the respective sector mentioned in Article 2(1), point (b) or the respective high-risk geographical area as defined in Article 2 (1), point (ba).
Amendment 218 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying the adverse impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the complaintsnotification procedure provided for in Article 9. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and their representatives as well as other relevant stakeholders to gather information on actual or potential adverse impacts. In order to effectively conduct stakeholders consultations, companies should be entitled to prioritize the stakeholder categories to engage with according to the level of relevance of different groups of stakeholders for a particular type of a business or the level these groups will be affected by potential adverse impacts in question with a special focus on high-risk sectors or high-risk geographical areas.
Amendment 225 #
Proposal for a directive
Article 7 – paragraph 2 – introductory part
Article 7 – paragraph 2 – introductory part
2. Companies shall be required to take the following actions, where relevant with respect to the size, resources and capacity of the company in question:
Amendment 233 #
Proposal for a directive
Article 7 – paragraph 2 – point a
Article 7 – paragraph 2 – point a
(a) where necessary due to the nature or complexity of the measures required for prevention, develop and implement a prevention action plan, with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. The prevention action plan shall be developed in consultation with affectedrelevant stakeholders;
Amendment 236 #
Proposal for a directive
Article 7 – paragraph 2 – point b
Article 7 – paragraph 2 – point b
(b) seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s valuesupply chain (contractual cascading). When such contractual assurances are obtained, paragraph 4 shall apply;
Amendment 241 #
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
3. As regards potential adverse impacts that could not be prevented or adequately mitigated by the measures in paragraph 2, the company may seek to conclude a contract with a partner with whom it has an indirect relationship, with a view to achieving compliance with the company’s code of conduct or a prevention action plan. When such a contract is concluded, paragraph 4article 8 shall apply.
Amendment 242 #
Proposal for a directive
Article 7 – paragraph 4
Article 7 – paragraph 4
Amendment 245 #
Proposal for a directive
Article 7 – paragraph 5
Article 7 – paragraph 5
Amendment 248 #
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 250 #
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Member States shall ensure that companies take appropriate measures with respect to the size, resources and capacity of the company in question in order to bring actual adverse impacts that have been, or should have been, identified pursuant to Article 6 to an end, in accordance with paragraphs 2 to 6 of this Article.
Amendment 251 #
Proposal for a directive
Article 8 – paragraph 3 – introductory part
Article 8 – paragraph 3 – introductory part
3. Companies shall be required to take the following actions, where relevant and with respect to the size, resources and capacity of the company in question:
Amendment 263 #
Proposal for a directive
Article 8 – paragraph 3 – point b
Article 8 – paragraph 3 – point b
(b) where necessary due to the fact that the adverse impact cannot be immediately brought to an end, develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. Where relevant, the corrective action plan shall be developed in consultation with relevant stakeholders;
Amendment 268 #
Proposal for a directive
Article 8 – paragraph 3 – point c
Article 8 – paragraph 3 – point c
(c) seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and, as necessary, a corrective action plan, including by seeking corresponding contractual assurances from its partners, to the extent that they are part of the valuesupply chain (contractual cascading). When such contractual assurances are obtained, paragraph 5 shall apply.
Amendment 275 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point b
Article 8 – paragraph 6 – subparagraph 1 – point b
(b) terminate the business relationship with respect to the activities concerned, if the adverse impact is considered severe while paying a special attention to the possible aggravation of the human rights or humanitarian impact caused by this termination.
Amendment 277 #
Proposal for a directive
Article 9 – title
Article 9 – title
Amendment 281 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that companies provide the possibility for persons and organisations listed in paragraph 2 to submit complaintnotifications to them where they have legitimate concerns regarding actual or potential adverse human rights impacts and adverse environmental impacts with respect to their own operations, the operations of their subsidiaries and their valuesupply chains.
Amendment 289 #
Proposal for a directive
Article 9 – paragraph 2 – introductory part
Article 9 – paragraph 2 – introductory part
2. Member States shall ensure that the complaintnotifications may be submitted by:
Amendment 293 #
Proposal for a directive
Article 9 – paragraph 2 – point a
Article 9 – paragraph 2 – point a
(a) persons who are directly affected or have reasonable grounds to believe that they might be directly affected by an adverse impact,
Amendment 298 #
Proposal for a directive
Article 9 – paragraph 2 – point b
Article 9 – paragraph 2 – point b
(b) trade unions and other workers’' representatives, including trade unions, representing individuals working in the valuesupply chain concerned,
Amendment 303 #
Proposal for a directive
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) civil society organisationstakeholders active in the areas related to the valuesupply chain concerned.
Amendment 306 #
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
3. Member States shall ensure that the companies establish a procedure for dealing with complaintnotifications referred to in paragraph 1, including a procedure when the company considers the complaintnotification to be unfounded, and inform the relevant workers and trade unions of those procedures. Member States shall ensure that where the complaintnotification is well-founded, the adverse impact that is the subject matter of the complaintnotification is deemed to be identified within the meaning of Article 6.
Amendment 310 #
Proposal for a directive
Article 9 – paragraph 4 – introductory part
Article 9 – paragraph 4 – introductory part
4. Member States shall ensure that complaininformants are entitled
Amendment 318 #
Proposal for a directive
Article 9 – paragraph 4 – point b
Article 9 – paragraph 4 – point b
(b) to meet with thea company’s representatives at an where appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint.
Amendment 336 #
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
In order to provide support to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, in consultation with Member States and relevant stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, European External Action Service and where appropriate with international bodies having expertise in due diligence, mayshould issue guidelines, including for specific sectors, specific high-risk geographical areas or specific adverse impacts.
Amendment 341 #
Proposal for a directive
Article 15
Article 15