Activities of Caroline ROOSE related to 2021/0104(COD)
Shadow opinions (1)
OPINION on the proposal for a directive of the European Parliament and of the Council amending Directive 2013/34/EU, Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting
Amendments (30)
Amendment 85 #
Proposal for a directive
Recital 4
Recital 4
(4) In its resolution on sustainable finance of 29 May 201843 , the European Parliament called for the further development of non-financial reporting requirements in the framework of Directive 2013/34/EU. In its resolution on sustainable corporate governance of 17 December 202044 , the European Parliament welcomed the Commission’s commitment to review Directive 2013/34/EU and expressed the need to set up a comprehensive Union framework on non-financial reporting that contains mandatory Union non-financial reporting standards. The European Parliament called for the expansion of the scope of the reporting requirements to additional categories of undertakings for the identification of high-risk sectors of economic activity with a significant impact on sustainability matters that could justify the inclusion of small and medium sized enterprises (SMEs), and for the introduction of an audit requirement. _________________ 43 2018/2007(INI). 44 A9-0240/2020 (INI).
Amendment 86 #
Proposal for a directive
Recital 4 a (new)
Recital 4 a (new)
(4 a) The list of high risk sector included in Annex IIa of Directive 2013/34/EU is based on and inspired by the NACE Codes and build on four types of sources and evidence, namely: (1) existing Union legislation, (2) scientific evidence and data about sectors that can create particularly high levels of environmental or social harm, (3) sectors that are already considered“high-risk” under international standards and (4) sectors that are already considered “high- risk” under market or business initiatives.
Amendment 89 #
Proposal for a directive
Recital 8
Recital 8
(8) The ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. Savers who want to invest sustainably will have the opportunity to do so, while all citizens should benefit from a stable, sustainable and inclusive economic system. To realise these benefits, the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). The first group of users consists of investors, including asset managers, who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. The second group of users consists of organisationcivil society actors, including non- governmental organisations and, social partners, indigenous people and local communities that wish to better hold undertakings to account for their impacts on people and the environment. Other stakeholders may also make use of sustainability information disclosed in annual reports to foster the comparability across market sectors on the basis of environmental merits, corporate entities should disclose the degree to which they contribute to economic activities that qualify as environmentally sustainable pursuant to Article 3 of Regulation (EU) 2020/852 on Sustainable Finance Taxonomy and fully respect the ‘do no significant harm principle pursuant to Article 17 of Regulation (EU) 2020/852. The business partners of undertakings, including customers, may rely on this information to understand, and where necessary report on, the sustainability risks and impacts through their own supply and value chains. PExperts, policy makers and environmental agencies may use such information, in particular on an aggregate basis, to monitor, verify and compare environmental, climate and social data and trends, to contribute to environmental accounts, and to inform public policy. Few individual citizens and consumers directly consult undertaking’s reports, but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. Many investors and asset managers purchase sustainability information from third party data providers, who collect information from various sources, including public corporate reports.
Amendment 92 #
Proposal for a directive
Recital 9
Recital 9
(9) There has been a very significant increase in demand for corporate sustainability information in recent years, especially on the part of the investment community and civil society. That increase in demand is driven by the changing nature of risks to undertakings and growing investor awareness of the financial implications of these risks. That is especially the case for climate-related financial risks. Awareness of the risks to undertakings and to investments resulting from other environmental issues, in particular related to climate and biodiversity, and from social issues, including health issues, is also growing. The increase in demand for sustainability information is also driven by the growth in investment products that explicitly seek to meet certain sustainability standards or achieve certain sustainability objectives, in line with international Union commitments, notably regarding the Paris Agreement on climate change and the Convention on Biological Diversity. Part of that increase is the logical consequence of previously adopted Union legislation, notably Regulation (EU) 2019/2088 and Regulation (EU) 2020/852. Some of the increase would have happened in any case, due to fast-changing citizen awareness, consumer preferences and market practices. The COVID-19 pandemic will further accelerate the increase in users’ information needs, in particular as it has exposed the vulnerabilities of workers and of undertaking’s due diligence along the whole supply and value chains. Information on environmental impacts is also relevant in the context of mitigating future pandemics with human disturbance of ecosystems increasingly linked to the occurrence and spread of diseases.
Amendment 95 #
(11) The report on the review clause of the Non-Financial Reporting Directive (Directive 2014/95/EU), and its accompanying fitness check on corporate reporting, identified problems as to the effectiveness of that Directive48 . There is significant evidence that many undertakings do not disclose material information on all major sustainability- related topics, in particular regarding most exposed sectors to environmental criminality, such as timber, fishing and mining, including in their activities in third countries. The report also identified as significant problems the limited comparability and reliability of sustainability information. Additionally, many undertakings from which users need sustainability information are not obliged to report such information, which underlines the need for a robust and affordable monitoring, reporting and verification framework and effective auditing within corporate sustainability reporting to ensure the reliability of data and avoid off-setting, greenwashing and/or double accounting. _________________ 48 Publication office: please insert reference to Report from the Commission to the European Parliament, the Council and the European Economic and Social Committee on the review clauses in Directives 2013/34/EU, 2014/95/EU, and 2013/50/EU, and accompanying SWD- Fitness Check.
Amendment 97 #
Proposal for a directive
Recital 12
Recital 12
(12) In the absence of policy action, the gap between users’ information needs and the sustainability information reported by undertakings is expected to grow. This gap has significant negative consequences. Investors are unable to take sufficient account of sustainability-related risks and opportunities in their investment decisions. The aggregation of multiple investment decisions that do not take adequate account of sustainability-related risks has the potential to create systemic risks that threaten financial stability. The European Central Bank and international organisations such as the Financial Stability Board have drawn attention to those systemic risks, in particular in the case of climate. Investors are also less able to channel financial resources to undertakings and economic activities that address and do not exacerbate social and environmental problems, which undermines the objectives of the European Green Deal and, the Action Plan on Financing Sustainable Growth, the objectives of the Paris Agreement on climate change and the Convention on Biological Diversity. Non- governmental organisations, social partners, communities affected by undertakings’ activities, and other stakeholders are less able to hold undertakings accountable for their impacts on people and the environment, including in their activities in third countries. This creates an accountability deficit, and may contribute to lower levels of citizen trust in businesses, which in turn may have negative impacts on the efficient functioning of the social market economy. The lack of generally accepted metrics and methods for measuring, valuing, and managing sustainability-related risks is also an obstacle to the efforts of undertakings to ensure that their business models and activities are sustainable. The lack of sustainability information also limits the ability of stakeholders, including civil society actors, trade unions, indigenous people and local communities, to enter into dialogue with undertakings on sustainability matters.
Amendment 130 #
Proposal for a directive
Recital 26
Recital 26
(26) Articles 19a(1) and 29a(1) of Directive 2013/34/EU require undertakings to disclose information about five reporting areas: business model, policies (including due diligence processes implemented), the outcome of those policies, risks and risk management, and key performance indicators relevant to the business. Article 19a(1) of Directive 2013/34/EU does not contain explicit references to other reporting areas that users of information consider relevant, some of which align with disclosures included in international frameworks, including the recommendations of the Task Force on Climate-related Financial Disclosures. Disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. In addition to the reporting areas identified in Articles 19a(1) and 29a(1) of Directive 2013/34/EU, undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters, any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate- neutral economy; whether and how their business model and strategy take account of the interests of stakeholders and the preservation of biodiversity, in particular by delivering information in sectors causing most environmental impact, such as agriculture, fishing, logging, mining and large-scale infrastructure; whether and how their business model and strategy respect and safeguard the rights and the interests of stakeholders, including workers, indigenous people and local communities and the principle of prior and informed consent; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect, or are affected by sustainability matters; any sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. Once the disclosure of elements such as targets and the progress towards achieving them is required, the separate requirement to disclose the outcomes of policies is no longer necessary.
Amendment 134 #
Proposal for a directive
Recital 27
Recital 27
(27) To ensure consistency with international instruments such as the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct, the ILO Tripartite Declaration of Principles concerning Multinational enterprises and Social Policy (ILO Tripartite Declaration), the UN Declaration on the Rights of Indigenous Peoples (UNDRIP) and its principle of Free, Prior and Informed Consent, the due diligence disclosure requirements should be specified in greater detail than is the case in Article 19a(1), point (b), and Article 29a(1), point (b) of Directive 2013/34/EU. Due diligence is the process that undertakings carry out to identify, prevent, mitigate and remediate the principal actual and potential adverse impacts connected with their activities and identifies how they address those adverse impacts. Impacts connected with an undertaking’s activities include impacts directly caused by the undertaking, impacts to which the undertaking contributes, and impacts which are otherwise linked to the undertaking’s value chain. The due diligence process concerns the whole value chain of the undertaking including its own operations, its products and services, its business relationships and its supply chains. In alignment with the UN Guiding Principles on Business and Human Rights, an actual or potential adverse impact is to be considered principal where it measures among the greatest impacts connected with the undertaking’s activities based on: the gravity of the impact on people or the environment; the number of individuals that are or could be affected, or the scale of damage to the environment; and the ease with which the harm could be remediated, restoring the environment or affected people to their prior state.
Amendment 147 #
Proposal for a directive
Recital 36
Recital 36
(36) Sustainability reporting standards should take account of the Commission guidelines on non-financial reporting60 and the Commission guidelines on reporting climate-related information61 . They should also take account of other reporting requirements in Directive 2013/34/EU, including reporting on payments to governments by undertakings active i.e. in the extractive and logging industries, agriculture and fisheries, as well as other reporting requirements not directly related to sustainability, with the aim of providing the users of the reported information with a better understanding of the development, performance, position and environmental and social impact of the undertaking, by maximising the links between the sustainability information and other information reported in accordance with Directive 2013/34/EU. _________________ 60 2017/C 215/01. 61 2019/C 209/01.
Amendment 153 #
Proposal for a directive
Recital 39
Recital 39
(39) Sustainability reporting standards should also take account of internationally recognised principles and frameworks on responsible business conduct, corporate social responsibility, and sustainable development, including the UN Sustainable Development Goals, the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, the OECD Due Diligence Guidance for Responsible Business Conduct and related sectoral guidelines, the UN Global Compact, the Tripartite Declaration of Principles of the International Labour Organisation concerning Multinational Enterprises and Social Policy, the ISO 26000 standard on social responsibility, and the UN Principles for Responsible Investment. Other frameworks such as the UN Declaration on the Rights of Indigenous Peoples (UNDRIP) and its principle of Free, Prior and Informed Consent should equally be taken into account.
Amendment 161 #
Proposal for a directive
Recital 44
Recital 44
(44) Users need information about governance factors, including information on the role of an undertaking’s administrative, management and supervisory bodies, including with regard to sustainability matters, the composition of such bodies, and an undertaking’s internal control and risk management systems, including in relation to the reporting process. Users also need information about undertakings’ corporate culture and approach to business ethics, including anti-corruption and anti-bribery, and about their political engagements, including lobbying activities. The disclosure of these data aims at enabling investors to make better-informed decisions, improving corporate governance and accountability and contributing to containing tax evasion. Information about the management of the undertaking and the quality of relationships with business partners, including payment practices relating to the date or period for payment, the rate of interest for late payment or the compensation for recovery costs referred to in Directive 2011/7/EU of the European Parliament and of the Council62 on late payment in commercial transactions, helps users to understand an undertaking’s risks as well as its impacts on sustainability matters. Every year, thousands of businesses, especially SMEs, suffer administrative and financial burdens because they are paid late, or not at all. Ultimately, late payments lead to insolvency and bankruptcy, with destructive effects on entire value chains. Increasing information about payment practices should empower other undertakings to identify prompt and reliable payers, detect unfair payment practices, access information about the businesses they trade with, and negotiate fairer payment terms. _________________ 62Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions (OJ L 48, 23.2.2011, p. 1).
Amendment 163 #
Proposal for a directive
Recital 46
Recital 46
(46) Undertakings in the same sector are often exposed to similar sustainability- related risks, and they often have similar impacts on society and the environment. Comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. Sustainability reporting standards adopted by the Commission should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. Standards applicable to undertakings active, e.g. in the extractive industry and the logging of forests, should be consistent with reporting requirements of Chapter 10 of Directive 2013/34/EU and require sustainability disclosures to be made at project-level. Project-level disclosures are crucial for investors who need consistent and detailed information on projects to fully understand the impact of climate-related financial risk in the fossil fuels sector and regarding the supply of critical transition minerals. Project-level disclosure is equally crucial for communities affected by the extractive and logging industries and civil society organisations of resource-rich countries, to understand and scrutinize the benefits of the oil, gas, mining and logging industries and their environmental, social and governance impacts. Standards should also take account of the difficulties that undertakings may encounter in gathering information from actors throughout their value chain, especially from SME suppliers and from suppliers in emerging markets and economies.
Amendment 168 #
Proposal for a directive
Recital 47
Recital 47
(47) To meet the information needs from users in a timely manner, and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to Article 4, paragraphs 6 and 7 of Regulation (EU) 2019/2088, the Commission should adopt a first set of reporting standards by 31 October 2022. That set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters, and that financial market participants need to comply with the disclosure obligations laid down in Regulation (EU) 2019/2088. The Commission should adopt a second set of reporting standards at the latest by 31 October 2023, specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary, and information that is specific to the sector in which an undertaking operates. Standards for high-impact undertakings active in sectors where sustainability risks are the most severe should be developed as a priority, in particular undertakings active in the extractive industry, the manufacture of wearing apparel, large- scale crop, animal production and seafood industry. The Commission should review the standards every 3 years to take account of relevant developments, including the development of international standards.
Amendment 171 #
Proposal for a directive
Recital 47 a (new)
Recital 47 a (new)
(47 a) Undertakings in high-carbon sectors such as extractive and fossil fuel industry, should take into account the relevant sectoral guidance from the IPCC and the International Energy Agency. Undertakings active in the extractive industry as defined in Article 41(1) of Directive 2013/34/EU should thus be subject to additional sustainability disclosure requirements. Those undertakings have high market capitalization, drive economic growth across the world and are an important source of government revenues in many countries. They also have a huge ecological footprint in terms of greenhouse gas emissions, pollution, biodiversity loss and human health. Extractive activities can also fuel corruption, conflict and threaten human rights when safeguards are not met or if projects are poorly managed. While the fossil fuel industry is a major cause of climate change, the energy transition brings new environmental challenges in a global context of growing demand for raw materials due to population growth, industrialisation, decarbonisation of transport, energy systems and other industrial sectors, increasing demand from developing countries and new technological applications. Without addressing the resource implications of low-carbon technologies, there is a risk that shifting the burden of curbing emissions to other parts of the economic chain may simply cause new environmental and social problems, such as heavy metal pollution, habitat destruction, or resource depletion in third countries. European capital markets are particularly exposed to these climate- related risks, which will significantly impact upon extractive industry stakeholders in producing countries. While Union's future demand of primary critical raw materials will continue to be largely met by imports also in the medium to long term, the Union has a responsability to promote responsible and sustainable mining practices.
Amendment 173 #
Proposal for a directive
Recital 47 b (new)
Recital 47 b (new)
(47 b) Undertakings active in the extractive industry should be required to publish the contracts and other documents upon which these projects are based. Given the changes that will be brought by the energy transition, availability of the terms governing resource extraction will be key to understanding how risks and benefits will be shared between companies, communities and governments. According to the International Monetary Fund, contract transparency in the extractive industries has become a global norm, and the practice was made a requirement under the 2019 Extractive Industries Transparency Initiative standard—the main global standard for transparency in the extractive industries. There are already over 49 countries around the world that have disclosed contracts and at least 30 with laws requiring them to do so. Contract disclosure is supported by leading extractives industry companies and has been endorsed by private sector forums including the International Council on Mining and Metals. Leading development finance institutions including the World Bank’s IFC and MIGA already require private sector clients developing extractive resources to publish contracts. The EBRD has the same requirements for hydrocarbons development. The IMF, the UN, the International Bar Association and the OECD have endorsed the practice.
Amendment 184 #
Proposal for a directive
Recital 70 a (new)
Recital 70 a (new)
(70 a) Undertakings should be required to consistently report on projects which are based on ‘substantially interconnected’ legal agreements to address weaknesses, including identification of governments, project definition and joint ventures, identified by the Commission in its report on the review clause in Article 48 of Directive 2013/34/EU[1]. Reporting on each project varies across companies, making it difficult to have a complete and consistent overview of projects involving several companies. Investors managing risk and citizens holding governments to account require consistency in the identification of projects involving substantially interconnected legal agreements in order to progress sustainability objectives. Improved reporting on joint ventures is needed given the prevalence of such structures in the oil, gas and mining industry. Without improved joint venture reporting, major payments to governments risk being hidden from view. Payments to governments for the purchase of oil, gas and minerals by undertakings active in physical trading are now a commonly recognized payment stream within the EITI framework and should be added as a payment category. [1] REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE on the review clauses in Directives 2013/34/EU, 2014/95/EU, and 2013/50/EU, COM/2021/199 final, 21 April 2021.
Amendment 192 #
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2013/34/EU
Article 1 – paragraph 3 (a) – new
Article 1 – paragraph 3 (a) – new
3 a. A list of high-risk sectors is included in Annex IIa which shall be reviewed and modified by the Commission, as appropriate, through a delegated act every three years. This review shall take into account existing Union sector-specific legislation and sector-specific disclosures in recognised international reporting frameworks.
Amendment 197 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 2 – point 20a (new)
Article 2 – point 20a (new)
(20 a) ‘high risk sectors’ are those sectors of economic activity likely to have severe impacts on the environment, human rights and the rule of law and good governance systems of countries, regions and territories where the undertaking or its supply chains operate and is listed in Annex IIa;
Amendment 199 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 2 – point 20 b (new)
Article 2 – point 20 b (new)
(20 b) 'high-risk undertaking' means an undertaking active in one or more of the high-impact sectors listed in Annex IIa;
Amendment 203 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/34/EU
Article 2 – point 20 c (new)
Article 2 – point 20 c (new)
(20 b) (20 c) 'severe impacts' are adverse impacts on people, their fundamental human rights and the environment connected to the undertaking's value chain by its own operations, its products and services, its business relationships, its subsidiaries, and its supply chain, based on the gravity of the impact on the sustainability matter, the number of individuals that are or could be affected, or the scale of the damage to the environment; the ease with which the harm could be remediated, restoring the environment or affected people to their prior state; and which cause the greatest harm relative to other impacts the undertaking has identified.
Amendment 223 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19(a) – paragraph 2 – point b
Article 19(a) – paragraph 2 – point b
(b) a description of the time-bound, short, medium and long-term targets related to sustainability matters set by the undertaking and of the progress the undertaking has made towards achieving those targets; with respect to the undertaking’s principle risks and opportunities, whether such targets are science-based alongside corresponding evidence, and of the progress the undertaking has made towards achieving those targets including: (i) a clearly defined path to reach the targets and corresponding timeframes; (ii) the methods, main data and rationale used in setting these targets which must uphold the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation(EU) 2020/852; (iii) targets to be reviewed by independent scientific reviewers, and made available to the general public including information on how and to what extent the undertaking is aligned with the broader strategy that qualify as 'environmentally sustainable' pursuant to Regulation (EU) 2020/852; (iv) the reasons explaining the impossibility or failure to reach intermediary and final targets;
Amendment 227 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19(a) – paragraph 2 – point c
Article 19(a) – paragraph 2 – point c
(c) a description of the role of the administrative, management and supervisory bodies with regard to sustainability matters;sustainability matters, including: (i) the extent to which these bodies shall take into consideration sustainability matters and, where appropriate, the resources at their disposal in order to do so; (ii) the consistency of the remuneration schemes of their members with the company's sustainability strategy; (iii) discussions on the results of the due diligence process implemented with regard to sustainability matters and on adverse effects, as well as involvement and exchanges with the different stakeholders affected by the identified impacts; (iv) discussions on the principal risks to the undertaking and opportunities for the undertaking with regard to sustainability matters; (v) the process set up to oversee the implementation of the undertaking’s strategy related to sustainability matters; (vi) expertise on sustainability matters of the members of the administrative, management and supervisory bodies; (vi) the matters addressed by these bodies during the reporting period
Amendment 236 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 2 – point e – sub–point ii
Article 19a – paragraph 2 – point e – sub–point ii
(ii) the principal actual or potential adverse impacts connected with the undertaking’s supply and value chain, in particular as identified through the due diligence process, including its own operations, its products and services, its business relationships and its supply chain, including with regard to: - all people affected by those impacts with particular attention to persons who frequently face discrimination or are in a vulnerable situation, such as women, children, minorities, indigenous people, persons experiencing poverty or social exclusion, LGBTIQ persons, persons with disabilities ; - the effect of the undertaking’s business policies, practices and decisions on the identified issues, including of the undertaking’s purchasing policies and practices ;
Amendment 249 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19(a) – point 3
Article 19(a) – point 3
Amendment 295 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19b – paragraph 2
Article 19b – paragraph 2
(iii) waterthe sustainable use and protection of water, soil and marine resources;
Amendment 310 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
Article 19 b – point 2
Article 19 b – point 2
(iii) respect for the human rights, fundamental freedoms, democratic principles and standards established in the International Bill of Human Rights and other core UN human rights conventions, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the ILO fundamental conventions and the Charter of Fundamental Rights of the European Union, the UN Guiding Principles on Business and Human Rights, the European Convention on Human Rights and its additional protocols, the UNECE Convention on Access to Information, Public Participation in Decision Making and Access to Justice in Environmental Matters (Aarhus Convention) the UN Declaration on the Rights of Indigenous People (UNRIP ) and its principle of Free, Prior and Informed Consent, the ILO Indigenous and Tribal People Convention, 1989, and Resolution 48/13 adopted by the Human Rights Council on the 8 October 2021 on the human right to a clean, healthy environment.
Amendment 361 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
(i) the due diligence process implemented with regard to sustainability matters including with regard to: - identification, assessment and prioritisation of actual and potential adverse impacts; - policies and measures for the prevention, cessation, mitigation or remediation of actual or potential adverse impacts; - tracking of the implementation of the process and its results; - identification and involvement of all adversely affected people; - alert mechanisms as well as complaints and grievances, including how they are received and used by different stakeholders and affected people; - the different actors involved in the development, implementation, monitoring and evaluation of the process at different stages, and the human, informational and financial resources available to them; - how the due diligence process complies with international standards and duty of care of the company concerning all matter related to sustainability;
Amendment 365 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29(a) – point 2
Article 29(a) – point 2
(ii) the principal actual or potential adverse impacts connected with the group’s value chain, including its own operations, its products and services, its business relationships and its supply chain; including with regard to: - all people affected by those impacts with particular attention to persons who frequently face discrimination or are in a vulnerable situation, such as women, children, minorities, indigenous people, persons experiencing poverty or social exclusion, LGBTIQ persons or persons with disabilities; - the effect of the undertaking’s business policies, practices and decisions on the identified issues, including of the undertaking’s purchasing policies and practices;
Amendment 390 #
Proposal for a directive
Article 1 – paragraph 1 – point 10 b (new) Directive 2013/34/EU
Article 1 – paragraph 1 – point 10 b (new) Directive 2013/34/EU
(10 b) Article 41 is amended as follows: (a) point (1) is replaced by the following: (1) ‘undertaking active in the extractive industry’ means an undertaking with any activity involving the exploration, prospection,discovery, development, extraction, or the physical trading of minerals, oil, natural gas, or other materials, within the economic activities listed in Section B, Divisions 05 to 08 and Section G, Divisions46.71 and 46.72 of Annex I to Regulation (EC)No 1893/2006 of the European Parliament and of the Council of 20 December 2006establishing the statistical classification of economic activities NACE Revision 2.
Amendment 412 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 a (new) Directive 2013/34/EU
Article 1 – paragraph 1 – point 12 a (new) Directive 2013/34/EU
(12 a) the following Annex is inserted: Annex II a: LIST OF SECTORS REFERRED TO IN POINT (21) OF ARTICLE 2 A- Agriculture B- Fishing C- Forestry D- Food E- Construction F- Mining and Quarrying G- Manufacturing and industrial production H- Logistics, Transportation and Storing I- Electricity, Gas, Steam, and Air Conditioning Supply J- Water supply, Sewerage and Waste Management K- Employment Activities L- Garment and Retail M- Health Care, Social Care and Elder Care N- Cleaning and Household Services 0-Hospitality P- Financial and Insurance Activities Q- Technology, Digital Activities and Online Platforms