728 Amendments of Manon AUBRY related to 2022/0051(COD)
Amendment 248 #
Proposal for a directive
Article 1 – paragraph -1 (new)
Article 1 – paragraph -1 (new)
-1. This Directive aims to ensure that companies respect human rights, good governance and protect the environment within their own operations, the operations of their subsidiaries and their value chains.
Amendment 251 #
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 operationproducts and services, the operations, products and services of their subsidiaries, and the value chain operations carried out by entities with whom the company has an established business relationship and
Amendment 253 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
(ba) on access to justice and legal remedies to victims in relations to these violations
Amendment 256 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 2
Article 1 – paragraph 1 – subparagraph 2
Amendment 259 #
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
2. This Directive shall not constitute grounds for reducing the level of protection of human rights or of protection of the environment or the protection of the climate provided for by the law of Member States at the time of any other adoption of this Directivepplicable law.
Amendment 260 #
Proposal for a directive
Article 1 – paragraph 2 – subparagraph 1 (new)
Article 1 – paragraph 2 – subparagraph 1 (new)
This Directive shall not constitute grounds for reducing access to justice and legal remedies provided for by any other applicable law.
Amendment 263 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. This Directive shall apply to companies which are formed in accordance with the legislation of a Member State and which fulfil one of the following conditall undertakings operating in the European Unions:.
Amendment 274 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph -1 (new)
Article 1 – paragraph 1 – subparagraph -1 (new)
This Directive aims to ensure that companies respect human rights, the environment and good governance with regards to their own operations, products and services, those of their subsidiaries and those their business relationships.
Amendment 274 #
Proposal for a directive
Article 2 – paragraph 1 a (new)
Article 2 – paragraph 1 a (new)
1a. This Directive shall apply to groups of undertakings operating in the European Union.
Amendment 278 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point a
Article 1 – paragraph 1 – subparagraph 1 – point a
(a) on obligations for companieundertakings 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 value chain operations carried out by entities with whom the company has an established business relationshipin their value chain and
Amendment 281 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
3. For the purposes of paragraph 1, the number of part-time employees shall be calculated on a full-time equivalent basis. Tthis Directive, part-time employees and temporary agency workers shall be included in the calculation of the number of employees in the same way as if they were workers employed directly for the same period of time by the companyundertaking.
Amendment 282 #
Proposal for a directive
Article 2 – paragraph 3 – subparagraph 1 (new)
Article 2 – paragraph 3 – subparagraph 1 (new)
For the purposes of this Directive, employees, part-time employees, and temporary agency workers of an undertaking's subsidiaries shall be included in the calculation of the number of employees of an undertaking in the same way as if they were workers employed directly for the same period of time by the undertaking.
Amendment 283 #
Proposal for a directive
Article 3 – paragraph 1 – point a
Article 3 – paragraph 1 – point a
Amendment 285 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
(b a) on access to justice and legal remedies to victims for damages suffered in relations to these violations
Amendment 286 #
Proposal for a directive
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) ‘adverse environmental impact’ means an: (i) any adverse impact on one of the following environmental categories: (a) air and atmosphere, including but not limited to, air pollution (b) water, including but not limited to, water pollution, water contamination and depletion of freshwater; (c) soil, including but not limited to, soil pollution, soil contamination, soil erosion, land use and land degradation; (d) biodiversity, including but not limited to, damage to wildlife, seabed and marine environment, flora, natural habitats and ecosystems; (e) climate, including greenhouse gas emissions; (f) transition to circular economy, including but not limited to, impairment to reusability and recyclability such as contamination of waste streams with hazardous substance; (ii) any adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the Annex, Part II;
Amendment 287 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 2
Article 1 – paragraph 1 – subparagraph 2
Amendment 288 #
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 ofan individual or a group reducing their ability to enjoy 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, and established through the relevant case law and the work of competent committees;
Amendment 292 #
Proposal for a directive
Article 3 – paragraph 1 – point c a (new)
Article 3 – paragraph 1 – point c a (new)
(ca) ‘adverse impact on good governance’ means an adverse impact on the good governance of a country, region or territory as defined and protected by relevant international instruments;
Amendment 294 #
Proposal for a directive
Article 1 – paragraph 2 a (new)
Article 1 – paragraph 2 a (new)
2a. This Directive shall not constitute grounds for reducing access to justice and legal remedies for victims of adverse impacts on human rights, the environment and good governance.
Amendment 294 #
Proposal for a directive
Article 3 – paragraph 1 – point d
Article 3 – paragraph 1 – point d
(d) ‘subsidiary’ means a legal person througho which the activity of a ‘controlled undertaking’ as defined in Article 2(1), point (f), of Directive 2004/109/EC of the European Parliament and of the Council128 is exercised; _________________ 128 Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC (OJ L 390, 31.12.2004, p. 38).undertaking is a shareholder;
Amendment 295 #
Proposal for a directive
Article 3 – paragraph 1 – point d a (new)
Article 3 – paragraph 1 – point d a (new)
(da) “products and services” means the products and services produced, sold and used by the company, potentially generating adverse impacts throughout their life-cycle.
Amendment 296 #
Proposal for a directive
Article 3 – paragraph 1 – point e – introductory part
Article 3 – paragraph 1 – point e – introductory part
(e) ‘business relationship’ means a relationship with a subsidiary, contractor, subcontractor or any other legal entities (‘partner’) that performs business operations related to the products or services of the undertaking for or on behalf of the undertaking, including financing, insurance or reinsurance
Amendment 299 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. This Directive shall apply to companies which are formed in accordance with the legislation of a Member State and which fulfil one of the following conditall undertakings operating in the territory of the Unions:.
Amendment 300 #
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
Amendment 301 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production of goods or the provision of services by a 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), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
Amendment 303 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
Amendment 306 #
Proposal for a directive
Article 3 – paragraph 1 – point l
Article 3 – paragraph 1 – point l
Amendment 308 #
Proposal for a directive
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
Amendment 309 #
Proposal for a directive
Article 3 – paragraph 1 – point m – introductory part
Article 3 – paragraph 1 – point m – introductory part
(m) ‘net turnover’ means the combined aggregate worldwide turnover of an undertaking or a group of undertakings as defined in Council Regulation (EC) No 139/2004;
Amendment 311 #
Proposal for a directive
Article 3 – paragraph 1 – point n
Article 3 – paragraph 1 – point n
(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries, workers in its value chain, and other individuals, groups, communities or entities whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships;
Amendment 318 #
Proposal for a directive
Article 2 – paragraph 2
Article 2 – paragraph 2
Amendment 318 #
Proposal for a directive
Article 3 – paragraph 1 – point q
Article 3 – paragraph 1 – point q
(q) ‘appropriate measure’s‘ means a measures that isare capable of achieving the objectives of due diligence and effectively addressing the potential or actual adverse impact, commensurate with the degree of severity and the likelihood of the adverse impact, and reasonably available to the company, taking into account the circumstances of the specific case, including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof, and the need to ensure prioritisation of actioncompany’s ability to increase its influence thereof.
Amendment 319 #
(qa) ‘high risk sectors’ means sectors of activity that are associated with a higher likelihood or severity of adverse impacts on human rights, the environment or good governance. These sectors include: (i) the manufacture of textiles, wearing apparel, articles of fur, leather and related products (including footwear), and the wholesale trade and retail of textiles, wearing apparel, articles of fur, leather and related products (including clothing and footwear); (ii) agriculture, forestry and fishing; (iii) fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages; (iv) all mining and quarrying activities, mining support service activities, 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). (v) the manufacture and wholesale trade of coke and refined petroleum products; (vi) the manufacture and wholesale trade of chemicals and chemical products; (vii) the manufacture and wholesale trade of rubber and plastic products; (viii) the manufacture and wholesale trade of weapons and ammunition, including dual-use items, manufacture of military fighting vehicles; (ix) the manufacture and wholesale trade of computer, electronic and optical products; (x) electric power generation, transmission and distribution; (xi) the manufacture and wholesale trade of gas and distribution of gas through mains; (xii) water collection, treatment and supply; (xiii) waste collection, treatment and disposal activities; (xiv) land, water and air transport (except passenger rail transport, interurban, other passenger land transport) and transport via pipelines; (xv) cargo handling, warehousing and storage; (xvi) hotels, holiday, short-stay and other similar accommodations; (xvii) the construction of residential and non-residential buildings, civil engineering; (xviii) the building, repair and maintenance of ships and boats; (xix) private security activities and security systems service activities, including the development and operation of biometrics and surveillance technologies; (xx) financial and insurance activities;
Amendment 321 #
Proposal for a directive
Article 4 – paragraph -1 (new)
Article 4 – paragraph -1 (new)
-1. Member States shall ensure that undertakings respect human rights, the environment and good governance and do not cause or contribute to adverse impacts on human rights, the environment and good governance directly or indirectly through their operations, their subsidiaries, their products and services and their value chain.
Amendment 322 #
Proposal for a directive
Article 4 – paragraph -1 a (new)
Article 4 – paragraph -1 a (new)
-1a. Member States shall ensure that undertakings identify, prevent, mitigate and account for how they address the impacts on human rights, the environment and good governance occurring in their operations, the operations of their subsidiaries, and in their value chains.
Amendment 325 #
(c) preventing and mitigating potential adverse impacts, and bringmitigating actual adverse impacts, bringing them to an end, and minimising their extentremediating them in accordance with Articles 7 and 8[…];
Amendment 326 #
Proposal for a directive
Article 4 – paragraph 1 – point c a (new)
Article 4 – paragraph 1 – point c a (new)
(ca) where necessary, disengaging responsibly in accordance with Article […];
Amendment 328 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 1 (new)
Article 4 – paragraph 1 – subparagraph 1 (new)
Member States shall ensure that undertakings conduct human rights and environmental due diligence as laid down in Articles 5 to 11 (‘due diligence’) in close and fair collaboration with trade unions and workers representatives, and in consultation with stakeholders in accordance with Article […].
Amendment 330 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
3. For the purposes of paragraph 1, the number of part-time employees shall be calculated on a full-time equivalent basis. Tthis Directive, part-time employees and temporary agency workers shall be included in the calculation of the number of employees of an undertaking in the same way as if they were workers employed directly for the same period of time by the companyundertaking.
Amendment 330 #
Proposal for a directive
Article 4 – paragraph 1 a (new)
Article 4 – paragraph 1 a (new)
1a. Member States shall ensure that, when necessary, undertakings engage in a proactive and timely manner with their business relationships to effectively conduct human rights and environmental due diligence as laid down in Articles 5 to 11 (‘due diligence’).
Amendment 331 #
Proposal for a directive
Article 2 – paragraph 3 a (new)
Article 2 – paragraph 3 a (new)
3a. For the purposes of this Directive, employees, part-time employees, and temporary agency workers of an undertaking's directly or indirectly owned subsidiaries and branches shall be included in the calculation of the number of employees of an undertaking in the same way as if they were workers employed directly for the same period of time by the undertaking.
Amendment 332 #
Proposal for a directive
Article 5 – paragraph -1 (new)
Article 5 – paragraph -1 (new)
-1. Member States shall ensure that none of the corporate practices of the undertaking causes or contributes to adverse impacts on human rights, the environment or good governance.
Amendment 333 #
Proposal for a directive
Article 3 – paragraph 1 – point a
Article 3 – paragraph 1 – point a
Amendment 333 #
Proposal for a directive
Article 5 – paragraph -1 a (new)
Article 5 – paragraph -1 a (new)
-1a. Member States shall ensure that undertakings exercise due diligence with regards to their business models and strategies, including trading, employment, procurement and pricing practices.
Amendment 334 #
Proposal for a directive
Article 5 – paragraph -1 b (new)
Article 5 – paragraph -1 b (new)
-1b. Undertakings that are shareholders shall furthermore exercise due diligence with regards to their voting practices.
Amendment 337 #
Proposal for a directive
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. Member States shall ensure that companies integrate due diligence into all their corporate policies and have in place. Undertakings shall adopt, publish and implement a due diligence policy. The due diligence policy shall contain all of the following:
Amendment 338 #
Proposal for a directive
Article 5 – paragraph 1 – point -a (new)
Article 5 – paragraph 1 – point -a (new)
(-a) a description of the potential or actual adverse impacts identified by the undertaking;
Amendment 339 #
Proposal for a directive
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) a description of the company’s approach, including in the long term, to due diligenceundertaking’s due diligence strategy, including in the short, medium and long term;
Amendment 341 #
Proposal for a directive
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) a code of conduct describfining rules and principles to be followed by the company’s employees and subsidiariesboard of directors, directors and subsidiaries. The code of conduct shall be designed to ensure the respect of human rights, the environment and good governance by the undertaking;
Amendment 343 #
Proposal for a directive
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) a description of the processes put in place to implement due diligence across the value chain, including the measures taken to verify compliance with the code of conduct and to extend its application to established business relationshipsis Directive.
Amendment 345 #
Proposal for a directive
Article 5 – paragraph 1 – point c a (new)
Article 5 – paragraph 1 – point c a (new)
(ca) a description of the adequate measures put in place to address potential or actual adverse impacts identified;
Amendment 347 #
Proposal for a directive
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1a. Member States shall ensure that undertakings do not engage in business models and strategies, including trading, procurement and pricing practices, that cause or contribute to adverse impacts on human rights, the environment and good governance.
Amendment 348 #
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States shall ensure that the companies updatereview, update and publish their due diligence policy annuallyt least annually. Member States shall ensure that undertakings update their due diligence policy when substantial changes in their value chains have occurred. Undertakings’ due diligence policies should be publicly accessible through the European Single Access Point for at least 30 years.
Amendment 351 #
Proposal for a directive
Article 6 – title
Article 6 – title
Identifying and assessing actual and potential adverse impacts
Amendment 354 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to identify and assess actual and potential adverse human rights impacts and adverseand environmental impacts arising from their own operations or those of their subsidiaries and, where related to their value chains, from their established business relationships, in accordance with paragraph 2, 3 and 4 business relationships.
Amendment 357 #
Proposal for a directive
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) ‘adverse environmental impact’ means an: (i) any adverse impact on one of the following environmental categories: (a) air, including but not limited to, air pollution; (b) water, including but not limited to, water pollution, water contamination and depletion of freshwater; (c) soil, including but not limited to, soil pollution, soil contamination, soil erosion, land use and land degradation; (d) biodiversity, including but not limited to, damage to wildlife, seabed and marine environment, flora, natural habitats and ecosystems; (e) climate, including greenhouse gas emissions; (f) transition to circular economy, including but not limited to, impairment to reusability and recyclability such as contamination of waste streams with hazardous substance; (ii) any adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the Annex, Part II;
Amendment 361 #
Proposal for a directive
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
1a. Member States shall ensure that companies map their value chain and publicly disclose relevant information including names, locations, types of products and services supplied, and other relevant information concerning subsidiaries, and business relationships.
Amendment 362 #
Proposal for a directive
Article 6 – paragraph 1 b (new)
Article 6 – paragraph 1 b (new)
1b. When identifying adverse impacts, companies should also identify and assess the impact of a business relationship’s business model and strategies, including trading, employment, procurement and pricing practices.
Amendment 363 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
Amendment 364 #
Proposal for a directive
Article 3 – paragraph 1 – point c
Article 3 – paragraph 1 – point c
(c) ‘adverse human rights impact’ means an adversy negative impact on protected persons resulting from the violationan individual or a group affecting the enjoyment of one of the rights or prohibitions listed in the Annex, Part I Section 1, as enshrined in the international conventions, including conventions listed in the Annex, Part I Section 2, and established through the relevant case law and the work of competent committees;
Amendment 368 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
Amendment 373 #
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. Undertakings shall make use of appropriate resources, including independent reportspublicly accessible information and reports, information communicated to them and information gathered through the complaints procedure provided for in Article 9. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.
Amendment 374 #
Proposal for a directive
Article 3 – paragraph 1 – point e – point ii a (new)
Article 3 – paragraph 1 – point e – point ii a (new)
(ii a) that is directly linked to the business operations, products or services;
Amendment 374 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying the adverse impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the complaints procedure provided for in Article 9. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevtrade unions, workers’ representatives antd stakeholders to gather information on actual or potential adverse impacts.
Amendment 375 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying and assessing the adverse impacts referred to in paragraph 1 based on, where appropriate, undertakings collect and analyse relevant, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the complaints procedure provided for in Article 9disaggregated data. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.
Amendment 377 #
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
Amendment 383 #
Proposal for a directive
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Member States shall ensure that companies take all appropriate measures to prevent, or where prevention is not possible or not immediately possible, potential adverse impacts, and adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been, or should have been, identified pursuarising from their operations, products and services, those of their subsidiaries, antd to Article 6, in accordance with paragraphs 2, 3, 4 and 5 of this Articlehose occurring in their own activities and in their value chains.
Amendment 384 #
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:
Amendment 385 #
Proposal for a directive
Article 7 – paragraph 2 – point -a (new)
Article 7 – paragraph 2 – point -a (new)
(-a) refrain from entering into business relations with potential business partners that cannot reasonably be expected to respect human rights, the environment or good governance in the course of its activities;
Amendment 389 #
Proposal for a directive
Article 7 – paragraph 2 – point a
Article 7 – paragraph 2 – point a
(a) where necessary due to the nature or complexity of the measures required for prevention, develop and implement a prevention action plan, with reasonable and clearly defined timelines for actionppropriate measures and qualitative and quantitative indicators for measuring improvement. The prevention action plan shall be developed with trade unions and workers’ representatives, in consultation with affected stakeholders;
Amendment 390 #
Proposal for a directive
Article 7 – paragraph 2 – point a a (new)
Article 7 – paragraph 2 – point a a (new)
(aa) The appropriate measures should apply, where applicable, to a company’s own operations, subsidiaries as well as direct and indirect business relationships. Undertakings shall, where appropriate:
Amendment 391 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production of goods or the provision of services by a 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), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
Amendment 391 #
Proposal for a directive
Article 7 – paragraph 2 – point a b (new)
Article 7 – paragraph 2 – point a b (new)
(ab) adapt processes, operations and projects;
Amendment 392 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production of goods or the provision of services by a 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), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
Amendment 392 #
Proposal for a directive
Article 7 – paragraph 2 – point a c (new)
Article 7 – paragraph 2 – point a c (new)
(ac) if necessary, cease processes, operations and projects;
Amendment 393 #
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 conductrespect human rights, the environment and good governance and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s value chain (contractual cascading). When such contractual assurances are obtainedsought, paragraph 4 shall apply;
Amendment 396 #
Proposal for a directive
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) make necessary investments, such as into management or production processes and infrastructures, to comply with paragraph 1prevent potential adverse human rights impacts and adverse environmental impacts from occurring in their value chains;
Amendment 397 #
Proposal for a directive
Article 7 – paragraph 2 – point c a (new)
Article 7 – paragraph 2 – point c a (new)
(ca) adapt business models and strategies, including trading, employment, procurement and pricing practices, in order to prevent potential adverse impacts ;
Amendment 399 #
Proposal for a directive
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
(d) provide targeted and proportionate support for an SMEwhen necessary, to provide support for business relationships with which the company has an established business relationship, where to compliancey with the code of conduct or the prevention action plan would jeopardise the viability of the SMEprevention action plan and adequately address potential or actual adverse impacts;
Amendment 400 #
Proposal for a directive
Article 7 – paragraph 2 – point e
Article 7 – paragraph 2 – point e
(e) in compliance with Union law including competition law, collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective.
Amendment 401 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production of goods or the provision of services by a company, its subsidiaries and companies in which it holds a minority shareholding, 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), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
Amendment 402 #
Proposal for a directive
Article 7 – paragraph 2 – point e a (new)
Article 7 – paragraph 2 – point e a (new)
(ea) Undertakings that detain shares shall exercise their voting rights with a view to prevent adverse impacts on human rights, the environment and good governance
Amendment 407 #
Proposal for a directive
Article 3 – paragraph 1 – point g a (new)
Article 3 – paragraph 1 – point g a (new)
(g a) “products and services” means the products and services produced, sold and used by the company, potentially generating adverse impacts throughout their life-cycle.
Amendment 407 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 2
Article 7 – paragraph 4 – subparagraph 2
When contractual assurances are obtained fromsought, or a contract is entered into, with an SME, the terms used shall be fair, reasonable and non-discriminatory. Where measures to verify compliancetrack effectiveness are carried out in relation to SMEs, the company shall bear the cost of the independent third- party verificationassociated costs.
Amendment 408 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – introductory part
Article 7 – paragraph 5 – subparagraph 1 – introductory part
As regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2, 3 and 4rticle 7a Responsible engagement and disengagement Member States shall ensure that, when potential adverse impacts cannot be prevented or when actual adverse impact cannot be effectively mitigated or brought to an end, the company shall be required to refrain from entering into new or extending existingbusiness relations with the partner in connection with or in the value chain of which the impact has arisen and shall, where the law governing their relations so entitles them to,. When, in the course of a business relation, potential adverse impacts cannot be prevented or actual adverse impact cannot be prevented or effectively mitigated or brought to an end, the undertaking shall take the following actions:
Amendment 409 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point a
Article 7 – paragraph 5 – subparagraph 1 – point a
(a) temporarily suspend commercial relations with the partner in question, while pursuing prevention and minimisation effortsadopting appropriate measures to mitigate and bring adverse impacts to an end, if there is reasonable expectation that these efforts will succeedappropriate measures will be effective in the short- term;
Amendment 410 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point b
Article 7 – paragraph 5 – subparagraph 1 – point b
(b) terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe.re is no reasonable expectation that these measures will be effective in the short-term
Amendment 411 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 a (new)
Article 7 – paragraph 5 – subparagraph 1 a (new)
Member States shall ensure that undertaking assesses if potential adverse impacts can be prevented or if actual adverse impact can effectively be mitigated and brought to an end with trade union and workers’ representatives, and in consultation with affected stakeholders and stakeholders with a legitimate interest.
Amendment 412 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 b (new)
Article 7 – paragraph 5 – subparagraph 1 b (new)
Undertakings shall take appropriate measures to prevent, mitigate and bring to an end adverse impacts deriving from the suspension or cessation of the business relationship.
Amendment 413 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 c (new)
Article 7 – paragraph 5 – subparagraph 1 c (new)
Amendment 414 #
Proposal for a directive
Article 3 – paragraph 1 – point l
Article 3 – paragraph 1 – point l
Amendment 415 #
Proposal for a directive
Article 3 – paragraph 1 – point m – introductory part
Article 3 – paragraph 1 – point m – introductory part
(m) ‘net turnover’ means the combined aggregate worldwide turnover of an undertaking or a group of undertakings as defined in Council Regulation (EC) No 139/2004;
Amendment 415 #
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 416 #
Proposal for a directive
Article 3 – paragraph 1 – point m – point i
Article 3 – paragraph 1 – point m – point i
Amendment 417 #
Proposal for a directive
Article 3 – paragraph 1 – point m – point ii
Article 3 – paragraph 1 – point m – point ii
Amendment 417 #
Proposal for a directive
Article 8 – title
Article 8 – title
Amendment 419 #
Proposal for a directive
Article 3 – paragraph 1 – point n
Article 3 – paragraph 1 – point n
(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries, workers in its value chain, and other individuals, groups, communities or entities whose rights or interests are or could be affected by the products, services and operations of that companyotential or actual adverse impacts on human rights, climate and the environment posed by an undertaking, its subsidiaries andor its business relationships;.
Amendment 420 #
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to mitigate and bring actual adverse impacts that have been, or should have been, identified pursuant to Article 6 to an eoccurring in their own activities and, in accordance with paragraphs 2 to 6 of this Articletheir value chain.
Amendment 421 #
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 whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships, other legal or natural persons defending human rights and environment, and organisations whose statutory purpose is the defence of human rights, climate and the environment and good governance;
Amendment 421 #
Proposal for a directive
Article 8 – paragraph 2
Article 8 – paragraph 2
2. Where the adverse impact cannot immediately be brought to an end, Member States shall ensure that companies first minimise the extent of such an impact to the best of the greatest extent possible, while continuing efforts to bring the adverse impact to an end.
Amendment 422 #
Proposal for a directive
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
(a) neutralise the adverse impact or minimise its extent, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The action shall be proportionate to the signitake all appropriate measures to fully remediate or contribute to the full remediation of actual adverse impacts taking into account that the adverse impacts can affect different groups of stakeholders. The remedy shall be proportionate to the significance and scale of the adverse impact. The nature of the remedy shall de adequate and defined with affected stakeholders. Remediation may take a range of substantive forms the aim of which will be to counteract or make good any human rights harms or environmental damages. It concerns any harms and damages a company have caused or contributed to by acts or omissions. Remedy may include apologies, restitution, rehabilitation, financial or non-ficnance and scale of the adverse impact and to ial compensation, restoration of the environment to its previous state and punitive sanctions (whether contribution of the company’s conduct to the adverse impact; riminal or administrative, such as fines), as well as the prevention of harm through, for example, injunctions or guarantees of non-repetition.
Amendment 424 #
Proposal for a directive
Article 3 – paragraph 1 – point n a (new)
Article 3 – paragraph 1 – point n a (new)
(n a) ‘Human Rights and environmental Defenders’ means those individuals, groups and organs of society that promote and protect universally recognised human rights, fundamental freedoms, workers rights, social rights, and the environment including, among others, water, air, land, flora and fauna, or human rights related to the environment.
Amendment 425 #
Proposal for a directive
Article 8 – paragraph 3 – point a a (new)
Article 8 – paragraph 3 – point a a (new)
(aa) In the case of Indigenous Peoples, remediation actions should follow international standards including the United Nations Declaration on the Rights of Indigenous Peoples and may include actions to seek the restitution of the lands, territories and resources which they have traditionally owned or otherwise occupied or used.
Amendment 428 #
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 actionthe implementation of appropriate measures and qualitative and quantitative indicators for measuring improvement. Where relevant, tThe corrective action plan shall be developed with trade unions and workers’ representatives, in consultation with stakeholders;.
Amendment 429 #
Proposal for a directive
Article 8 – paragraph 3 – point b a (new)
Article 8 – paragraph 3 – point b a (new)
(ba) the appropriate measures should apply, where applicable, to a company’s own operations, subsidiaries as well as direct and indirect business relationships. Undertakings shall, where appropriate:
Amendment 430 #
Proposal for a directive
Article 3 – paragraph 1 – point o – point i
Article 3 – paragraph 1 – point o – point i
(i) any member of the administrative, management or supervisory bodies of a company that holds decision making power over company policies;
Amendment 431 #
Proposal for a directive
Article 3 – paragraph 1 – point o – point ii
Article 3 – paragraph 1 – point o – point ii
(ii) where they are not members of the administrative, management or supervisory bodies of a company, the chief executive officer and, if such function exists in a company, the deputy chief executive officer that holds decision making power over company policies;
Amendment 431 #
Proposal for a directive
Article 8 – paragraph 3 – point b b (new)
Article 8 – paragraph 3 – point b b (new)
(bb) adapt processes, operations and projects;
Amendment 432 #
Proposal for a directive
Article 3 – paragraph 1 – point o – point iii
Article 3 – paragraph 1 – point o – point iii
(iii) other persons who perform functions similar to those performed under point (i) or (ii)that hold decision making power over company policies;
Amendment 432 #
Proposal for a directive
Article 8 – paragraph 3 – point b c (new)
Article 8 – paragraph 3 – point b c (new)
(bc) if necessary, cease processes, operations and projects;
Amendment 433 #
Proposal for a directive
Article 8 – paragraph 3 – point c
Article 8 – paragraph 3 – point c
(c) seek contractual assurances from a directbusiness partner with whom it has an established direct business relationship that it will ensure compliance with the code of conductrespect human rights, the environment and good governance and, as necessary, a correctiveprevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that theyir activities are part of the company’s value chain (contractual cascading). When such contractual assurances are obtainedsought, paragraph 54 shall apply.;
Amendment 435 #
Proposal for a directive
Article 8 – paragraph 3 – point d
Article 8 – paragraph 3 – point d
(d) make necessary investments, such as into management or production processes and infrastructures to comply with paragraphs 1, 2 and 3;mitigate adverse impacts
Amendment 436 #
Proposal for a directive
Article 8 – paragraph 3 – point d a (new)
Article 8 – paragraph 3 – point d a (new)
(da) adapt business models and strategies, including trading, employment, procurement and pricing practices, in order to prevent potential adverse impacts;
Amendment 437 #
Proposal for a directive
Article 8 – paragraph 3 – point e
Article 8 – paragraph 3 – point e
(e) where necessary, provide targeted and proportionate support for an SME with which the company has an established business relationship, wheres to compliancey with the code of conduct or the corrective action plan would jeopardise the viability of the SMErrective action plan and adequately address potential or actual adverse impacts;
Amendment 438 #
Proposal for a directive
Article 8 – paragraph 3 – point f
Article 8 – paragraph 3 – point f
(f) in compliance with Union law including competition law, collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective.
Amendment 439 #
Proposal for a directive
Article 3 – paragraph 1 – point q
Article 3 – paragraph 1 – point q
(q) ‘appropriate measures’ means a measures that isare capable of achieving the objectives of due diligence, commensurate with the degree of severity and the likelihood of the adverse impact, and reasonably available to the company, taking into account the circumstances of the specific case, including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof, the company’s ability to increase its influence thereof, and the need to ensure prioritisation of action.
Amendment 439 #
Proposal for a directive
Article 8 – paragraph 3 – point f a (new)
Article 8 – paragraph 3 – point f a (new)
(fa) Undertakings that detain shares shall exercise their voting rights with a view to prevent adverse impacts on human rights, the environment and good governance;
Amendment 440 #
Proposal for a directive
Article 3 – paragraph 1 – point q a (new)
Article 3 – paragraph 1 – point q a (new)
Amendment 441 #
Proposal for a directive
Article 3 – paragraph 1 – point q b (new)
Article 3 – paragraph 1 – point q b (new)
Amendment 442 #
Proposal for a directive
Article 4 – paragraph -1 (new)
Article 4 – paragraph -1 (new)
-1. Member States shall ensure that undertakings respect human rights, the environment and good governance and refrain from causing or contributing to adverse impacts on human rights, the environment and good governance directly or indirectly through their value chain.
Amendment 443 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph -1 (new)
Article 4 – paragraph 1 – subparagraph -1 (new)
-1. Member States shall ensure undertakings identify, prevent, mitigate and account for how they address the impacts on human rights, the environment and good governance occurring in their value chains.
Amendment 443 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 2
Article 8 – paragraph 5 – subparagraph 2
When contractual assurances are obtained fromsought, or a contract is entered into, with an SME, the terms used shall be fair, reasonable and non-discriminatory. Where measures to verify compliancetrack effectiveness are carried out in relation to SMEs, the company shall bear the cost of the independent third- party verificationassociated costs.
Amendment 444 #
Proposal for a directive
Article 8 – paragraph 6
Article 8 – paragraph 6
Amendment 445 #
Proposal for a directive
Article 8 – paragraph 7
Article 8 – paragraph 7
Amendment 446 #
Proposal for a directive
Article 4 – paragraph 1 – point a a (new)
Article 4 – paragraph 1 – point a a (new)
(a a) engaging with stakeholders in accordance with Article [...];
Amendment 448 #
Proposal for a directive
Article 4 – paragraph 1 – point c
Article 4 – paragraph 1 – point c
(c) preventing and mitigating potential adverse impacts, and bringing actual adverse impacts to an end and minimising their extent in accordance with Articles 7 and 8;
Amendment 449 #
Proposal for a directive
Article 8 a (new)
Article 8 a (new)
Amendment 451 #
Proposal for a directive
Article 4 – paragraph 1 – point c a (new)
Article 4 – paragraph 1 – point c a (new)
(c a) addressing actual adverse impacts by mitigating and bringing them to an end in accordance with Article 8;
Amendment 451 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that companies provide the possibility forestablish or participate in effective grievance mechanisms at operational level, both as an early- warning risk-awareness and as a remediation system, that can be used by persons and organisations listed in paragraph 2 to submit complaints to themraise grievances and request remedy where they have 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 value chains.
Amendment 452 #
Proposal for a directive
Article 4 – paragraph 1 – point c b (new)
Article 4 – paragraph 1 – point c b (new)
(c b) where necessary, disengaging responsibly in accordance with Article […];
Amendment 454 #
Proposal for a directive
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
1a. Member States shall ensure that companies are enabled to provide such a mechanism through collaborative arrangements with other companies or organisations, by participating in multi- stakeholder grievance mechanisms or joining a Global Framework Agreement.
Amendment 455 #
Proposal for a directive
Article 4 – paragraph 1 a (new)
Article 4 – paragraph 1 a (new)
1 a. Member States shall ensure that undertakings conduct human rights and environmental due diligence as laid down in Articles 5 to 11 (‘due diligence’) in close and fair collaboration with trade unions and workers representatives, and in consultation with stakeholders in accordance with Article […].
Amendment 455 #
Proposal for a directive
Article 9 – paragraph 1 b (new)
Article 9 – paragraph 1 b (new)
1b. Member States shall ensure that grievance mechanisms, as referred to in paragraph 1, shall be legitimate, accessible, predictable, safe, equitable, transparent, rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in Principle 31 of the United Nations Guiding Principles on Business and Human Rights and the United Nations Committee on the Rights of the Child General Comment No 16. Such mechanisms shall provide for the possibility to raise concerns either anonymously or confidentially, as appropriate in accordance with national law.
Amendment 456 #
Proposal for a directive
Article 9 – paragraph 1 c (new)
Article 9 – paragraph 1 c (new)
1c. Member States shall ensure that trade unions, workers’ representatives and relevant stakeholders play a central role in the design and evaluation of such independent grievance mechanisms.
Amendment 457 #
Proposal for a directive
Article 4 – paragraph 1 b (new)
Article 4 – paragraph 1 b (new)
1 b. Member States shall ensure that, when necessary, undertakings engage in a proactive and timely manner with their business relationships to effectively conduct human rights and environmental due diligence as laid down in Articles 5 to 11 (‘due diligence’).
Amendment 457 #
Proposal for a directive
Article 9 – paragraph 1 d (new)
Article 9 – paragraph 1 d (new)
1d. Member States shall ensure that undertakings provide information to actual and potentially affected rights holders and other stakeholders on such grievance mechanisms, including on how to access them, decisions and remedies relating to a company and how the company is implementing them.
Amendment 458 #
Proposal for a directive
Article 4 – paragraph 1 c (new)
Article 4 – paragraph 1 c (new)
1 c. Member States shall ensure that when conducting due diligence, if necessary, undertakings prioritise the adoption of appropriate measures based on the level of severity, likelihood and urgency of the different potential or actual adverse impacts on human rights. To this end, Member States shall ensure that undertakings take into consideration the environment or good governance, the nature and context of their operations, including geographic, the scope of the potential or actual adverse impacts, their scale and how irremediable they might be.
Amendment 458 #
Proposal for a directive
Article 9 – paragraph 1 e (new)
Article 9 – paragraph 1 e (new)
1e. All information shall be published in a manner that does not endanger the stakeholders’ safety, including by not disclosing their identity.
Amendment 461 #
Proposal for a directive
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. Member States shall ensure that companies integrate due diligence into all their corporate policies and thave int none of the corporate plrace a due diligence policy. Thetices of the undertaking causes or contributes to adverse impacts on human rights, the environment or good governance. Undertakings shall adopt, publish and implement a due diligence policy that shall contain all of the following:
Amendment 462 #
Proposal for a directive
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) civil society organisations active in the areas related to the value chain concerned.
Amendment 463 #
Proposal for a directive
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) a description of the company’s approach, including in the long term, to due diligenceundertaking’s due diligence strategy, including in the short, medium and long term;
Amendment 465 #
Proposal for a directive
Article 5 – paragraph 1 – point a a (new)
Article 5 – paragraph 1 – point a a (new)
(a a) a description of the potential or actual adverse impacts identified by the undertaking;
Amendment 466 #
Proposal for a directive
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) a code of conduct describtablishing rules and principles to be followed by the company’s employees and subsidiariesboard of directors, directors and subsidiaries. The code of conduct shall be designed to ensure the respect of human rights, the environment and good governance by the undertaking;
Amendment 466 #
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 complaints referred to in paragraph 1, including a procedure when the company considers the complaint to be unfounded, and inform the relevant workers and, trade unions and relevant stakeholders of those procedures. Member States shall ensure that where the complaint is well-founded, the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of Article 6.
Amendment 467 #
Proposal for a directive
Article 9 – paragraph 4 – introductory part
Article 9 – paragraph 4 – introductory part
4. Member States shall ensure that complainants and their representatives are entitled
Amendment 468 #
Proposal for a directive
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) a description of the processes put in place to implement due diligence across the value chain, including the measures taken to verify compliance with the code of conduct and to extend its application to established business relationshipsis Directive.
Amendment 468 #
Proposal for a directive
Article 9 – paragraph 4 – point a
Article 9 – paragraph 4 – point a
(a) to requestceive timely, effective and appropriate follow-up on the complaint from the companyin writing from the grievance mechanism , with which they have filed a complaint pursuant to paragraph 1, providing substantiated reasoning as to whether a claim has been considered unfounded or founded and
Amendment 471 #
Proposal for a directive
Article 9 – paragraph 4 – point b
Article 9 – paragraph 4 – point b
(b) to engage with the grievance mechanism directly and meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint.
Amendment 473 #
Proposal for a directive
Article 5 – paragraph 1 – point c a (new)
Article 5 – paragraph 1 – point c a (new)
(c a) a description of the adequate measures put in place to address potential or actual adverse impacts identified;
Amendment 473 #
Proposal for a directive
Article 9 – paragraph 4 – point b a (new)
Article 9 – paragraph 4 – point b a (new)
(b a) to request that companies fully remediate or contribute to the full remediation of actual adverse impacts. The remedy shall be proportionate to the significance and scale of the adverse impact.
Amendment 474 #
Proposal for a directive
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1 a. Member States shall ensure that undertakings exercise due diligence with regards to their business models and strategies, trading, employment, procurement and pricing practices.
Amendment 474 #
Proposal for a directive
Article 9 – paragraph 4 – point b b (new)
Article 9 – paragraph 4 – point b b (new)
(b b) to receive in writing a timely and substantiated answer from the undertaking to a request for remediation.
Amendment 475 #
Proposal for a directive
Article 5 – paragraph 1 b (new)
Article 5 – paragraph 1 b (new)
1 b. Member States shall ensure that shareholders undertakings exercise due diligence with regards to their voting policy.
Amendment 475 #
Proposal for a directive
Article 9 – paragraph 4 a (new)
Article 9 – paragraph 4 a (new)
4 a. to guarantees of non-retaliation, confidentiality and anonymity for all actual and potentially affected stakeholders
Amendment 476 #
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States shall ensure that the companies updatereview, update and publish their due diligence policy annuallyt least annually. Member States shall ensure that undertakings update their due diligence policy when substantial changes in their value chains have occurred. Undertakings’ due diligence policies should be publicly accessible through the European Single Access Point for at least 30 years.
Amendment 476 #
Proposal for a directive
Article 9 – paragraph 4 b (new)
Article 9 – paragraph 4 b (new)
Amendment 478 #
Proposal for a directive
Article 10 – paragraph 1
Article 10 – paragraph 1
Member States shall ensure that companies carry out periodic assessments of their own operations and measures, those of their subsidiaries and, where related to the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, mitigation, bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. Such assessments shall be based, where appropriate,undertaken with trade union, workers’ representatives and in consultation with stakeholders. They shall be based on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. The due diligence policy shall be updated in accordance with the outcome of those assessments.
Amendment 481 #
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
Member States shall ensure that companies that are not subject to reporting requirements under Articles 19a and 29a of Directive 2013/34/EU report on the matters covered by this Directive by publishing on their website an annual statement that meets those requirements in a language customary in the sphere of international business. The statement shall be published by 30 April each year, covering the previous calendar year.
Amendment 484 #
Proposal for a directive
Article 11 – paragraph 2
Article 11 – paragraph 2
The Commission shall adopt delegated acts in accordance with Article 28 concerning the content and criteria for such reporting under paragraph 1, specifying information on the description of due diligence, its design, methodology, potential and actual adverse impacts and actions taken on those.
Amendment 487 #
Proposal for a directive
Article 6 – title
Article 6 – title
Identifying and assessing actual and potential adverse impacts
Amendment 487 #
Proposal for a directive
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
Amendment 489 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to identify and assess actual and potential adverse human rights impacts and adverseand environmental impacts arising from their own operations or, products and services, those of their subsidiaries and, where related to their value chains, from their established business relationships, in accordance with paragraph 2, 3 and 4 those occurring in their value chains.
Amendment 490 #
Proposal for a directive
Article 11 – paragraph 2 b (new)
Article 11 – paragraph 2 b (new)
Member States shall ensure that companies provide meaningful information to stakeholders about actual and potential adverse human rights and environmental impacts and the actions taken in accordance with Article 4 of particular operations, projects and investments, in a timely and culturally sensitive and accessible manner taking into account specifics of the stakeholder group including gender.
Amendment 493 #
Proposal for a directive
Article 11 – paragraph 2 c (new)
Article 11 – paragraph 2 c (new)
In cases of significant changes in operations, activities or operating context, companies shall proactively communicate to stakeholders and provide complementary and intermediary information.
Amendment 494 #
Proposal for a directive
Article 11 – paragraph 2 d (new)
Article 11 – paragraph 2 d (new)
Member States shall ensure that stakeholders have the right to obtain additional information from a company regarding the actions taken in accordance with article 4. The information shall be provided in a timely manner, in writing and shall be adequate and comprehensible.
Amendment 495 #
Proposal for a directive
Article 12
Article 12
Amendment 498 #
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
In order to provide support to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, in consultation with Member States and stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, and where appropriate with international bodies having expertise in due diligence, mayshall issue guidelines, including for specific sectors, specific contexts and areas, or specific adverse impacts.
Amendment 500 #
Proposal for a directive
Article 14 – paragraph -1 (new)
Article 14 – paragraph -1 (new)
-1. Member States shall provide information and effective support to potentially affected and affected stakeholders, including dedicated websites, platforms or portals, legal counsel and administrative support to claim rights provided to them by this Directive.
Amendment 500 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph -1 (new)
Article 1 – paragraph 1 – subparagraph -1 (new)
-1 This Directive aims to ensure that undertakings operating in the European Union respect human rights, good governance and the environment, including through their value chains, and that those affected by a failure to respect this duty have access to justice.
Amendment 502 #
Proposal for a directive
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
1 a. When identifying adverse impacts, companies should also identify and assess the impact of a business relationship’s business model and strategies, including trading, procurement and pricing practices.
Amendment 502 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shall, in order to provide information and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this Directive, set up and operate individually or jointly dedicated websites, platforms or portals. Specific consideration shall be given, in that respect, to the SMEs that are present in the value chains of companies.
Amendment 503 #
Proposal for a directive
Article 6 – paragraph 1 b (new)
Article 6 – paragraph 1 b (new)
1 b. Member States shall ensure that companies map their value chain and publicly disclose relevant information including names, locations, types of products and services supplied, and other relevant information concerning subsidiaries, and business relationships.
Amendment 503 #
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Without prejudice to applicable State aid rules, Member States may financially support SMEs for the purpose of compliance with this Directive. Member States may provide financial support to stakeholders for the purpose of raising their awareness and facilitating access to the rights provided to them by this Directive.
Amendment 505 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point a
Article 1 – paragraph 1 – subparagraph 1 – point a
(a) on obligations for companieundertakings regarding actual and potential human rights adverse impacts and environmental adverse impacts, with respect to their own operations, the operationsproducts and services, those of their subsidiaries, and the value chain operations carried out by entities with whom the company has an established business relationship andin their value chain
Amendment 506 #
Proposal for a directive
Article 14 – paragraph 3 a (new)
Article 14 – paragraph 3 a (new)
3 a. The Commission may provide capacity-building, legal counsel, financial and administrative support for potentially affected and affected stakeholders to claim rights provided to them by this Directive, facilitating stakeholder engagement.
Amendment 507 #
Proposal for a directive
Article 14 – paragraph 3 b (new)
Article 14 – paragraph 3 b (new)
3 b. Member States and the Commission shall provide support and protection for workers rights defenders, human rights and environmental defenders in relation to potential or actual adverse impacts related to business operations.
Amendment 509 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
Amendment 509 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Member States shall ensure that companies referred to in Article 2(1), point (a), and Article 2(2), point (a), shall adopt a plandevelop, adopt and effectively implement a plan, in consultation with trade unions, workers’ representatives and stakeholders, to ensure that the business model and strategy of the company are compatiblealigned with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. This plan shall, in particular, identify, on the basis of information reasonably available to the company, the extent to which climate change is a risk for, or an impact of, the company’s operations. and the objective of achieving climate neutrality by 2050 as established in Regulation (EU) 2021/1119 (European Climate Law). This plan shall:
Amendment 510 #
Proposal for a directive
Article 15 – paragraph 1 a (new)
Article 15 – paragraph 1 a (new)
1 a. (x) be evidence based and regularly updated in line with the best available science; (x) take into account the entire value chain and address scope 1, 2 and 3 emissions; (x) define short term and medium term absolute reduction targets for 2025 and 2030, reviewed every five years up to 2050, explaining their alignment with a 1.5°C climate scenario with no or limited overshoot and whether such targets are based on science, pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change; (x) define implementing actions for each scope and target, associated with an explanation of decarbonisation levers identified; (x) define and commit to the financial and investments plans designed to reach the targets;
Amendment 511 #
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
Amendment 513 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
(ba) on access to justice and legal remedies to victims in relations to these violations
Amendment 514 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
Amendment 514 #
Proposal for a directive
Article 15 – paragraph 3
Article 15 – paragraph 3
3. Member States shall ensure that companies duly take into account the fulfilment of the obligations referred to in paragraphs 1 and 2 when setting variable remuneration, if variable remuneration is linked to the contribution of a director to the company’s business strategy and long- term interests and sustainabilityundertakings link half of directors’ variable remuneration with the fulfilment of the obligations referred to in paragraphs 1 and 2.
Amendment 516 #
Proposal for a directive
Article 15 – paragraph 3 a (new)
Article 15 – paragraph 3 a (new)
3 a. Member States shall ensure that directors are directly and personally responsible for overseeing the obligations set out in paragraphs 1 and 2.
Amendment 517 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 2
Article 1 – paragraph 1 – subparagraph 2
Amendment 518 #
Proposal for a directive
Article 17 – paragraph 7
Article 17 – paragraph 7
7. The Commission shall make publicly available, including on its website, a list of the supervisory authorities, and, when applicable, the respective competences of those authorities. The Commission shall regularly update the list on the basis of the information received from the Member States.
Amendment 519 #
7 a. Member States shall ensure that supervisory authorities have the appropriate qualification, experience and skills in relation to human rights and environment to perform its duties and exercise its powers.
Amendment 520 #
Proposal for a directive
Article 17 – paragraph 8 a (new)
Article 17 – paragraph 8 a (new)
8 a. Member States shall ensure that supervisory authorities publish and make available an annual report detailing their past activities, future work plan and priorities. This includes reporting on closed investigations and their results, potential sanctions or other decisions on investigations.
Amendment 523 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying theand assessing adverse impacts referred to in paragraph 1 ba, undertakings shall make used on, wheref appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports resources, including publicly accessible information and reports, information communicated to them and information gathered through the complaints procedure provided for in Article 9[…]. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevtrade unions, workers’ representatives antd stakeholders to gather information on actual or potential adverse impacts.
Amendment 523 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to request information and carry out investigationire undertakings to provide all necessary information and carry out investigations, which can include where appropriate field visits related to compliance with the obligations set out in this Directive.
Amendment 523 #
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
2. This Directive shall not constitute grounds for reducing the level of protection of human rights or of protection of the environment or the protection of the climate provided for by the law of Member States at the time of any other adoption of this Directivepplicable law.
Amendment 524 #
Proposal for a directive
Article 18 – paragraph 2
Article 18 – paragraph 2
2. A supervisory authority may initiate an investigation on its own motion or as a result of substantiated concerns communicated to it pursuant to Article 19, where it considers that it has sufficient information indicating a possible breach by a company of the obligations provided for in the national provisions adopted pursuant to this Directive.
Amendment 526 #
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 2
Article 18 – paragraph 4 – subparagraph 2
Taking remedial action does not preclude the imposition of administrative sanctions or the triggering of civil liability including in case of damages, or in accordance with Articles 20 and 22, respectively.
Amendment 529 #
Proposal for a directive
Article 18 – paragraph 5 – point c
Article 18 – paragraph 5 – point c
(c) to adopt interim measures to avoid the risk of severe and irreparable harm.
Amendment 529 #
Proposal for a directive
Article 1 – paragraph 2 a (new)
Article 1 – paragraph 2 a (new)
2a. This Directive shall not constitute grounds for reducing access to justice and legal remedies provided for by any other applicable law.
Amendment 531 #
Proposal for a directive
Article 18 – paragraph 7 a (new)
Article 18 – paragraph 7 a (new)
7 a. Member States shall ensure that decisions of supervisory authorities regarding a company’s compliance with the Directive shall be without prejudice to the company’s civil liability under Article 22.
Amendment 532 #
Proposal for a directive
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to prevent, or where prevention is not possible or not immediately possible, adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been, or should have been, identified pursuant to Article 6, in accordance with paragraphs 2, 3, 4 and 5 of this Article potential adverse human rights impacts and adverse environmental impacts arising from their operations, products and services, those of their subsidiaries, and those occurring in their own activities and in their value chains.
Amendment 532 #
Proposal for a directive
Article 19 – paragraph 1 a (new)
Article 19 – paragraph 1 a (new)
1 a. Member States shall ensure that the identity of the natural or legal person submitting substantiated concerns is protected upon request of the person or on the own accord of the supervisory authority.
Amendment 533 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. This Directive shall apply to companies which are formed in accordance with the legislation of a Member State and which fulfil one of the following conditall undertakings operating, placing products and services in the European Unions:.
Amendment 534 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
2. In deciding whether to impose sanctions and, if so, in determining their nature and appropriate level, due account shall be taken of: (a) the company’s efforts to comply with any remedial action required of them by a supervisory authority, (b) any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as(c) collaboration with other entities to address adverse impacts in its value chains, as the case may be. (d) the severity and duration of the company’s infringement, or the severity of the impacts that have occurrd. (e) any previous infringements by the company (f) the financial benefits gained or losses avoided by the company due to the infringement, if the relevant data are available (g) penalties imposed in respect of the same infringement in other Member States (h) the degree to which the company has dealt with complaints or proposals raised by relevant stakeholders, including through grievance mechanisms pursuant to Art 9 (i) any other aggravating or mitigating factors applicable to the circumstances of the case
Amendment 535 #
Proposal for a directive
Article 20 – paragraph 2 a (new)
Article 20 – paragraph 2 a (new)
2 a. Sanctions can be pecuniary, or may further include but not be limited to specific performances, exclusion from public procurement, state aid, tax credits, export credits, trade missions and advisory bodies to governments.
Amendment 536 #
Proposal for a directive
Article 20 – paragraph 2 b (new)
Article 20 – paragraph 2 b (new)
2 b. Member States shall provide for maximum fines of no less than 10 % of the combined aggregate worldwide turnover of the undertaking or group of undertakings
Amendment 537 #
Proposal for a directive
Article 20 – paragraph 2 c (new)
Article 20 – paragraph 2 c (new)
2 c. Member States shall ensure that any decision of the supervisory authorities containing sanctions related to the breach of the provisions of this directive is published and publicly available no later than a month after the sanction is imposed. This should include the methodology and criteria adopted for applying sanctions.
Amendment 539 #
Proposal for a directive
Article 20 – paragraph 4
Article 20 – paragraph 4
4. Member States shall ensure that any decision of the supervisory authorities containing sanctions related to the breach of the provisions of this directive is published and publicly available no later than a month after the sanction is imposed. This should include the methodology and criteria adopted for applying sanctions.
Amendment 540 #
Proposal for a directive
Article 7 – paragraph 2 – point a
Article 7 – paragraph 2 – point a
(a) where necessary due to the nature or complexity of the measures required for prevention, develop and implement a prevention action plan, with reasonable and clearly defined timelines for actionppropriate measures and qualitative and quantitative indicators for measuring improvement. The prevention action plan shall be developed in consultation with affected stakeholders;with trade unions and workers’ representatives, in consultation with stakeholders. The appropriate measures should apply, where applicable, to a company’s own operations, products and services, those of their subsidiaries as well as direct and indirect business relationships. Undertakings shall, where appropriate:
Amendment 540 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 2 a (new)
Article 21 – paragraph 1 – subparagraph 2 a (new)
The Network shall set up a public database listing all undertakings subject to this Directive.Member States should cooperate with the Authority in order to identify all non-European undertakings covered by this Directive. The list of undertakings shall link each undertaking’s name to the statement published pursuant to Article 11 or otherwise display that the undertaking has not published a statement. The Network shall set up a public database of high risk areas, as defined in Article 3. Each high risk area should be associated with a description of the specific risks it is subject to and relevant documentation on such risks.
Amendment 544 #
Proposal for a directive
Article 22 – paragraph 1 – point a
Article 22 – paragraph 1 – point a
(a) they failed to comply with the obligations laid down in Articles 7 and 8this Directive and;
Amendment 545 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) the company had more than 2500 employees on average and had a net worldwide turnover of more than EUR 1540 million in the last financial year for which annual financial statements have been prepared;
Amendment 546 #
Proposal for a directive
Article 22 – paragraph 1 – point b
Article 22 – paragraph 1 – point b
(b) as a result of this failure an adverse impact that should have been identified, prevented, mitigated, brought to an end or its extent minimised through the appropriate measures laid down in Articles 7 and 8this Directive occurred and led to damage.
Amendment 547 #
Proposal for a directive
Article 22 – paragraph 1 a (new)
Article 22 – paragraph 1 a (new)
1 a. Member States shall ensure that companies are liable for damages that result from adverse human rights or environmental impacts that should have been identified, prevented, mitigated, brought to an end or their extent minimised by their subsidiaries under this Directive.
Amendment 548 #
Proposal for a directive
Article 7 – paragraph 2 – point a a (new)
Article 7 – paragraph 2 – point a a (new)
(a a) refrain from entering into business relations with potential business partners that cannot reasonably be expected to respect human rights, the environment or good governance in the course of its activities;
Amendment 548 #
Proposal for a directive
Article 22 – paragraph 1 b (new)
Article 22 – paragraph 1 b (new)
1 b. Notwithstanding the above, in the event the damage results from adverse impacts caused by business relationships within a company’s value chain, Member States shall ensure that the company is held liable, unless it can prove that it acted with due care and implemented all appropriate measures to ensure that the damage would not occur.
Amendment 549 #
Proposal for a directive
Article 22 – paragraph 1 c (new)
Article 22 – paragraph 1 c (new)
1 c. Where there is a civil liability claim for damages in accordance with art 22 paragraph 1 and 2, and that the claimant provides prima facie elements substantiating the likelihood of the respondent's liability under the directive, Member States shall take such measures as are necessary to ensure that it shall be for the respondent to prove it has complied with its obligations as laid down in the directive and that the measures it took were appropriate.
Amendment 550 #
Proposal for a directive
Article 7 – paragraph 2 – point a b (new)
Article 7 – paragraph 2 – point a b (new)
(a b) adapt processes, operations and projects;
Amendment 550 #
Proposal for a directive
Article 22 – paragraph 1 d (new)
Article 22 – paragraph 1 d (new)
1 d. Where claimants have provided reasonably available evidence sufficient to support their action in accordance to paragraph 1, Member States shall ensure that courts are enabled to order the defendant and third parties to disclose any evidence in their control, including evidence related to the nature of business relationships or the structure of the society, if requested by the claimant and in accordance with national procedural law, subject to the applicable Union and national rules on confidentiality and proportionality.
Amendment 551 #
Proposal for a directive
Article 7 – paragraph 2 – point a c (new)
Article 7 – paragraph 2 – point a c (new)
(a c) if necessary, cease processes, operations and projects;
Amendment 552 #
Proposal for a directive
Article 7 – paragraph 2 – point a d (new)
Article 7 – paragraph 2 – point a d (new)
(a d) adapt business models and strategies, including trading, employment, procurement and pricing practices, in order to prevent potential adverse impacts;
Amendment 552 #
Proposal for a directive
Article 22 – paragraph 2 – subparagraph 1
Article 22 – paragraph 2 – subparagraph 1
Amendment 554 #
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 value chain (contractual cascading)respect human rights, the environment and good governance and, as necessary, implement the prevention action plan. When such contractual assurances are obtainedsought, paragraph 4 shall apply;
Amendment 555 #
Proposal for a directive
Article 2 – paragraph 1 – point b – introductory part
Article 2 – paragraph 1 – point b – introductory part
(b) 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 408 million in the last financial year for which annual financial statements have been prepared, provided that at least 50% of this net turnover was genand operateds in one or more of the following high risk sectors:
Amendment 557 #
Proposal for a directive
Article 2 – paragraph 1 – point b – introductory part
Article 2 – paragraph 1 – point b – introductory part
(b) 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 and operates significantly in one or more of the following high risk sectors:
Amendment 558 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point i
Article 2 – paragraph 1 – point b – point i
(i) the manufacture of textiles, wearing apparel, articles of fur, leather and related products (including footwear), and the wholesale trade and retail of textiles, clothing andwearing apparel, articles of fur, leather and related products (including footwear);
Amendment 559 #
Proposal for a directive
Article 22 – paragraph 2 – subparagraph 2
Article 22 – paragraph 2 – subparagraph 2
Amendment 560 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point ii
Article 2 – paragraph 1 – point b – point ii
(ii) agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade and retail of agricultural raw materials, live animals, wood, food, and beverages;
Amendment 561 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point ii
Article 2 – paragraph 1 – point b – point ii
(ii) agriculture, forestry, fisheries (includinging and aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages;
Amendment 562 #
Proposal for a directive
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) make necessary investments, such as into management or production processes and infrastructures, to comply with paragraph 1prevent potential adverse human rights impacts and adverse environmental impacts from occurring in their value chains;
Amendment 562 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point ii a (new)
Article 2 – paragraph 1 – point b – point ii a (new)
(iia) the manufacture and wholesale of tobacco products;
Amendment 563 #
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)mining and quarrying, 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 564 #
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), 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 (includingof solid, liquid and gaseous fuels and related products, the wholesale of metals and metal ores, the wholesale of construction materials, fuels,and the wholesale of chemicals and other intermediate products).
Amendment 565 #
Proposal for a directive
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
(d) provide targeted and proportionate support for an SME with which the company has an establishedwhen necessary, provide support for business relationship, wheres to compliancey with the code of conduct or the prevention action plan would jeopardise the viability of the SMEprevention action plan and adequately prevent and assess potential adverse impacts;
Amendment 567 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii a (new)
Article 2 – paragraph 1 – point b – point iii a (new)
(iiia) the manufacture of computer, electronic and optical products, the wholesale and retail sale of information and communication equipment;
Amendment 568 #
Proposal for a directive
Article 7 – paragraph 2 – point d a (new)
Article 7 – paragraph 2 – point d a (new)
(d a) as regards undertakings that detain shares, exercise their voting rights with a view to prevent adverse impacts on human rights, the environment and good governance
Amendment 568 #
Proposal for a directive
Article 22 – paragraph 4
Article 22 – paragraph 4
4. The civil liability rules under this Directive shall 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 Directiveneither exclude nor limit companies' liability under Union or national legal systems regarding civil liability.
Amendment 569 #
Proposal for a directive
Article 7 – paragraph 2 – point e
Article 7 – paragraph 2 – point e
(e) in compliance with Union law including competition law, collaborate with other entities, including, where relevantappropriate, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective.
Amendment 570 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii b (new)
Article 2 – paragraph 1 – point b – point iii b (new)
(iiib) the manufacture of coke and refined petroleum products;
Amendment 571 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii c (new)
Article 2 – paragraph 1 – point b – point iii c (new)
(iiic) the manufacture and wholesale of chemicals and chemical products;
Amendment 572 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii d (new)
Article 2 – paragraph 1 – point b – point iii d (new)
(iiid) the manufacture of basic pharmaceutical products and pharmaceutical preparations, the wholesale of pharmaceutical goods;
Amendment 573 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii e (new)
Article 2 – paragraph 1 – point b – point iii e (new)
(iiie) the manufacture, wholesale and retail of electrical equipment, including batteries and accumulators;
Amendment 574 #
Proposal for a directive
Article 22 – paragraph 5 a (new)
Article 22 – paragraph 5 a (new)
5 a. Member States shall ensure that a limitation period is suspended or, depending on national law, interrupted, if a supervisory authority takes action according to Article 18 of this Directive. The suspension shall end at the earliest one year after the decision of the supervisory authority.
Amendment 574 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii f (new)
Article 2 – paragraph 1 – point b – point iii f (new)
(iiif) the construction of residential and non-residential buildings, civil engineering;
Amendment 575 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii g (new)
Article 2 – paragraph 1 – point b – point iii g (new)
(iiig) the manufacture of rubber and plastic products;
Amendment 576 #
Proposal for a directive
Article 22 – paragraph 5 b (new)
Article 22 – paragraph 5 b (new)
5 b. Member States shall ensure that rightsholders, groups of rightsholders or any (moral or physical) person with a legitimate interest are entitled to seek injunctive measures before Union courts, including through summary proceedings. These shall be available in the form of a provisional or a definitive measure to cease a practice where that practice may constitute a breach of this directive, or the form of a provisional or a definitive measure to take action to comply with this directive.
Amendment 576 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii h (new)
Article 2 – paragraph 1 – point b – point iii h (new)
(iiih) the manufacture of weapons and ammunition, including dual-use items, manufacture of military fighting vehicles;
Amendment 577 #
Proposal for a directive
Article 22 – paragraph 5 c (new)
Article 22 – paragraph 5 c (new)
5 c. Member States shall take measures aiming to ensure that the costs of the proceedings based on provisions of national law transposing this directive do not prevent claimants from access to courts. These measures may, for example, take the form of public funding, including structural support for victims of actual and potential adverse impacts, limitation of applicable court or administrative fees, or access to legal aid.
Amendment 577 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii i (new)
Article 2 – paragraph 1 – point b – point iii i (new)
(iii i) electric power generation, transmission and distribution;
Amendment 578 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 2
Article 7 – paragraph 4 – subparagraph 2
When contractual assurances are obtained from, or a contract is entered into, with an SME, the terms used shall be fair, reasonable and non- discriminatory. Where measures to verify compliancetrack effectiveness are carried out in relation to SMEs, the company shall bear the cost of the independent third- party verificationassociated costs.
Amendment 578 #
Proposal for a directive
Article 22 – paragraph 5 d (new)
Article 22 – paragraph 5 d (new)
5 d. Member States shall ensure that trade union organisations and civil society organisations acting in the public interest can bring representative actions before their courts on behalf and for the protection of the collective interests of victims of actual and potential adverse impacts, and that these entities have the rights and obligations of a claimant party in the proceedings.
Amendment 578 #
(iiij) the manufacture of gas and distribution of gas through mains;
Amendment 579 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii k (new)
Article 2 – paragraph 1 – point b – point iii k (new)
(iiik) water collection, treatment and supply;
Amendment 580 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii l (new)
Article 2 – paragraph 1 – point b – point iii l (new)
(iiil) waste collection, treatment and disposal activities;
Amendment 581 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1
Article 7 – paragraph 5 – subparagraph 1
Amendment 581 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii m (new)
Article 2 – paragraph 1 – point b – point iii m (new)
(iiim) land, water and air transport (except passenger rail transport, interurban, other passenger land transport) and transport via pipelines;
Amendment 582 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii n (new)
Article 2 – paragraph 1 – point b – point iii n (new)
(iiin) cargo handling, warehousing and storage;
Amendment 583 #
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Member States shall ensure that, when fulfilling their duty to act in the best interest of the company, directors of companies referred to in Article 2(1) take into accountare accountable for the consequences of their decisions for sustainability matters, including, where applicable, human rights, climate change and environmental consequences, including in the short, medium and long term.
Amendment 583 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii o (new)
Article 2 – paragraph 1 – point b – point iii o (new)
(iiio) hotels, holiday, short-stay and other similar accommodations;
Amendment 584 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii p (new)
Article 2 – paragraph 1 – point b – point iii p (new)
(iiip) the building, repair and maintenance of ships and boats;
Amendment 585 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii q (new)
Article 2 – paragraph 1 – point b – point iii q (new)
(iiiq) private security activities and security systems service activities, including the development and operation of biometrics and surveillance technologies;
Amendment 586 #
Proposal for a directive
Article 26 – paragraph 1
Article 26 – paragraph 1
1. Member States shall ensure that directors of companies referred to in Article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in Article 4 and in particular the due diligence policy referred to in Article 5 and the implementation of the plan referred to in Article 15, with due consideration for relevant input from stakeholders and civil society organisations. The directors shall regularly report to the board of directors in that respect who shall discuss progress and challenges in addressing salient human rights and environmental impacts, and review the company’s business model and any proposed changes to it.
Amendment 586 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii r (new)
Article 2 – paragraph 1 – point b – point iii r (new)
(iiir) Residential care activities, including for the elderly and disabled;
Amendment 587 #
Proposal for a directive
Article 26 – paragraph 2
Article 26 – paragraph 2
2. Member States shall ensure that directors take steps to adapt the corporate strategy tobusiness model and strategy to address sustainability risks and take into account the actual and potential adverse impacts identified pursuant to Article 6 and any measures taken pursuant to Articles 7 to 9.this Directive
Amendment 587 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii s (new)
Article 2 – paragraph 1 – point b – point iii s (new)
(iiis) the retail sale of automotive fuel in specialised stores;
Amendment 588 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii t (new)
Article 2 – paragraph 1 – point b – point iii t (new)
(iiit) financial and insurance activities;
Amendment 589 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii u (new)
Article 2 – paragraph 1 – point b – point iii u (new)
(iiiu) Accounting, bookkeeping and auditing activities; tax consultancy;
Amendment 590 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – introductory part
Article 30 – paragraph 1 – subparagraph 2 – introductory part
They shall apply those provisions as follows:from… [OJ to insert: 2 years from the entry into force of this Directive]
Amendment 590 #
Proposal for a directive
Article 2 – paragraph 1 – point b a (new)
Article 2 – paragraph 1 – point b a (new)
(ba) the undertaking did not reach the thresholds under point (a), but is publicly listed on the stock exchange, and had more than 50 employees on average and a net worldwide turnover of more than EUR 8 million in the last financial year for which annual financial statements have been prepared;
Amendment 591 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 2
Article 7 – paragraph 5 – subparagraph 2
Amendment 591 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – point a
Article 30 – paragraph 1 – subparagraph 2 – point a
Amendment 592 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – point b
Article 30 – paragraph 1 – subparagraph 2 – point b
Amendment 594 #
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 597 #
Proposal for a directive
Annex I – Part I – point 7 a (new)
Annex I – Part I – point 7 a (new)
7 a. the right to an adequate standard of living for himself and his family, including adequate food, water, clothing and housing, and to continuous improvement of living conditions in accordance with Article 11 of the International Covenant on Economic, Social and Cultural Rights;
Amendment 600 #
Proposal for a directive
Annex I – Part I – point 20
Annex I – Part I – point 20
20. Violation of the indigenous peoples’ right to the lands, territories and resources which they have traditionally owned, occupied or otherwise used or acquired in accordance with Article 25, 26 (1) and (2), 27, and 29 (2) of the United Nations Declaration on the Rights of Indigenous Peoples;
Amendment 602 #
Proposal for a directive
Annex I – Part I – point 20 a (new)
Annex I – Part I – point 20 a (new)
20 a. The indigenous peoples’ right to self-determination in accordance with Article 3 and their right to be consulted in order to obtain their free and informed consent prior to the approval of any project affecting their lands or territories and other resources, in accordance with Article 32 of the United Nations Declaration on the Rights of Indigenous Peoples;
Amendment 603 #
Proposal for a directive
Article 8 – title
Article 8 – title
Amendment 604 #
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Member States shall ensure that companies take appropriate measures 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 Articlemitigate and bring to an end actual adverse impacts related to their own activities, products and services, those of their subsidiaries and those occurring in their value chain.
Amendment 604 #
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
(a) generated a netthe company had more than 250 employees on average and had a net worldwide turnover of more than EUR 1540 million in the Union in thelast financial year preceding the last financial yearfor which annual financial statements have been prepared;
Amendment 605 #
Proposal for a directive
Annex I – Part I – indent 6 a (new)
Annex I – Part I – indent 6 a (new)
- The International Convention for the Protection of All Persons from Enforced Disappearance;
Amendment 606 #
Proposal for a directive
Annex I – Part I – indent 7 a (new)
Annex I – Part I – indent 7 a (new)
- The United Nations Declaration of the Elimination of Violence against Women;
Amendment 609 #
Proposal for a directive
Article 8 – paragraph 2
Article 8 – paragraph 2
2. Where the adverse impact cannot immediately be brought to an end, Member States shall ensure that companies first minimise the extent of such an impact to the best of the greatest extent possible, while continuing efforts to bring the adverse impact to an end.
Amendment 609 #
Proposal for a directive
Annex I – Part I – indent 10 a (new)
Annex I – Part I – indent 10 a (new)
- The United Nations Declaration on Human Rights Defenders;
Amendment 610 #
Proposal for a directive
Annex I – Part I – indent 10 b (new)
Annex I – Part I – indent 10 b (new)
- The International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families;
Amendment 611 #
Proposal for a directive
Annex I – Part I – indent 14 a (new)
Annex I – Part I – indent 14 a (new)
- The International Labour Organization’s Indigenous and Tribal Peoples Convention, 1989 (No. 169)
Amendment 613 #
Proposal for a directive
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
Amendment 613 #
Proposal for a directive
Annex I – Part I – indent 14 b (new)
Annex I – Part I – indent 14 b (new)
- The International Labour Organization’s Domestic Workers Convention, 2011 (No. 189);
Amendment 613 #
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
(b) generated a net turnover of more than EUR 40 million but notthe company did not reach the thresholds under point (a), but had more than 50 employees on average and had a net worldwide turnover of more than EUR 1508 million in the Union in thelast financial year preceding the last financial yearfor which annual financial statements have been prepared, provided that at least 530% of ithis net worldwide turnover was generated in one or more of the sectors listed in paragraph 1, point (b).
Amendment 614 #
Proposal for a directive
Annex I – Part I – indent 14 c (new)
Annex I – Part I – indent 14 c (new)
- The International Labour Organization’s Violence and Harassment Convention, 2019 (No. 190);
Amendment 616 #
Proposal for a directive
Annex I – Part I – indent 23 a (new)
Annex I – Part I – indent 23 a (new)
- The International humanitarian law instruments: Four Geneva Conventions of 1949: Convention (I) for the Amelioration of the Condition of the Wounded and Sick in Armed Forces in the Field Convention (II) for the Amelioration of the Condition of Wounded, Sick and Shipwrecked Members of Armed Forces at Sea Convention (III) relative to the Treatment of Prisoners of War Convention (IV) relative to the Protection of Civilian Persons in Time of War Additional protocols to the Geneva Conventions
Amendment 616 #
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
(b) generated a net turnover of more than EUR 40 million but not more than EUR 150 million in the Union in the financial year preceding the last financial year, provided that at least 50% of its net worldwide turnover was generatedin operates significantly in one or more of the sectors listed in paragraph 1, point (b).
Amendment 618 #
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,Undertakings shall develop and implement a corrective action plan with reasonable and clearly defined timelines for actionthe implementation of appropriate measures and qualitative and quantitative indicators for measuring improvement. Where relevant, tThe corrective action plan shall be developed in consultation with stakeholders;with trade unions and workers’ representatives, in consultation with stakeholders. The appropriate measures should apply, where applicable, to a company’s own operations, subsidiaries as well as direct and indirect business relationships.
Amendment 620 #
Proposal for a directive
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. This Directive shall apply to large groups of undertakings operating in the Union.
Amendment 624 #
Proposal for a directive
Article 8 – paragraph 3 – point b a (new)
Article 8 – paragraph 3 – point b a (new)
(b a) adapt processes, operations and projects;
Amendment 624 #
Proposal for a directive
Annex I – Part II – subheading 1 a (new)
Annex I – Part II – subheading 1 a (new)
The Charter of Fundamental Rights of the European Union
Amendment 624 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
3. For the purposes of paragraph 1, the number of part-time employees shall be calculated on a full-time equivalent basis. Tthis Directive, part-time employees and temporary agency workers shall be included in the calculation of the number of employees in the same way as if they were workers employed directly for the same period of time by the companyundertaking.
Amendment 625 #
Proposal for a directive
Article 8 – paragraph 3 – point b b (new)
Article 8 – paragraph 3 – point b b (new)
(b b) if necessary, cease processes, operations and projects;
Amendment 627 #
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 establishedassurances, contractual or otherwise, from business relationships that ithey will ensure compliance with the code of conduct and, as necessary, a corrective action plan, including by seeking corresponding contractual assurances from its partners, to the extent that they are part of the value chain (contractual cascading). When such contractual assurances are obtained, paragraph 5 shall apply.mitigate actual adverse impacts on human rights, the environment and good governance and implement the corrective action plan, including by seeking corresponding contractual assurances from its partners,
Amendment 628 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
3. For the purposes of paragraph 1, the number of part-time employees shall be calculated on a full-time equivalent basis. Temporary agency workers shall be included in the calculation of the number of employees in the same way as if they were workers employed directly for the same period of time by the company. Employees in third party undertakings with whom the company has entered into a vertical agreement in return for payment of royalties shall also be included in the calculation of the number of employees.
Amendment 629 #
Proposal for a directive
Article 2 – paragraph 3 a (new)
Article 2 – paragraph 3 a (new)
3a. For the purposes of this Directive, employees, part-time employees, and temporary agency workers of an undertaking's subsidiaries and branches shall be included in the calculation of the number of employees of an undertaking in the same way as if they were workers employed directly for the same period of time by the undertaking.
Amendment 636 #
Proposal for a directive
Article 8 – paragraph 3 – point d
Article 8 – paragraph 3 – point d
(d) make necessary investments, such as into management or production processes and infrastructures to comply with paragraphs 1, 2 and 3mitigate adverse impacts;
Amendment 638 #
Proposal for a directive
Article 8 – paragraph 3 – point d a (new)
Article 8 – paragraph 3 – point d a (new)
(d a) adapt business models and strategies, including trading, employment, procurement and pricing practices, in order to mitigate and bring to an end adverse impacts;
Amendment 640 #
Proposal for a directive
Article 8 – paragraph 3 – point e
Article 8 – paragraph 3 – point e
(e) provide targeted and proportionate support for an SME with which the company has an establishedwhen necessary, provide support for business relationship, where to compliancey with the code of conduct or the corrective action plan would jeopardise the viability of the SMErrective action plan and adequately mitigate and bring to an end potential or actual adverse impacts;
Amendment 642 #
Proposal for a directive
Article 3 – paragraph 1 – point a – introductory part
Article 3 – paragraph 1 – point a – introductory part
(a) ‘companyundertaking’ means any of the following:entity engaged in an economic activity, regardless of its legal status and the way in which it is financed;
Amendment 644 #
Proposal for a directive
Article 8 – paragraph 3 – point f
Article 8 – paragraph 3 – point f
(f) in compliance with Union law including competition law, collaborate with other entities, including, where relevantappropriate, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective.
Amendment 645 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point i
Article 3 – paragraph 1 – point a – point i
(i) a legal person constituted as one of the legal forms listed in Annex I and II to Directive 2013/34/EU of the European Parliament and of the Council110 ; _________________ 110 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings (OJ L 182, 29.6.2013, p. 19).
Amendment 646 #
Proposal for a directive
Article 8 – paragraph 3 – point f a (new)
Article 8 – paragraph 3 – point f a (new)
(f a) Undertakings that detain shares shall exercise their voting rights with a view to mitigate and bring to an end adverse impacts on human rights, the environment and good governance.
Amendment 647 #
Proposal for a directive
Article 8 – paragraph 3 a (new)
Article 8 – paragraph 3 a (new)
3 a. Undertakings shall take appropriate measures to remediate or contribute to the remediation of actual adverse impacts, taking into account that the adverse impacts can affect different groups of stakeholders. The remedy shall be proportionate to the significance and scale of the adverse impact.
Amendment 654 #
Proposal for a directive
Article 8 – paragraph 4
Article 8 – paragraph 4
4. As regards actual adverse impacts that could not be brought to an end or adequately mitigated by the measures in paragraph 3, the company may seek to conclude a contract with a partner with whom it has an indirect relationship, with a view to achieving compliance with the company’s code of conductis Directive or a corrective action plan. When such a contract is concluded, paragraph 5 shall apply.
Amendment 655 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – indent 8
Article 3 – paragraph 1 – point a – point iv – indent 8
Amendment 657 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – indent 19 a (new)
Article 3 – paragraph 1 – point a – point iv – indent 19 a (new)
— a market operator as defined in Article 4(1) (18) of Directive 2014/65/EU of the European Parliament and of the Council;
Amendment 658 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – introductory part
Article 8 – paragraph 6 – subparagraph 1 – introductory part
Amendment 660 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – indent 19 b (new)
Article 3 – paragraph 1 – point a – point iv – indent 19 b (new)
— a credit rating agency as defined in point (b) of Article 3 of Regulation (EC) 1060/2009 of the European Parliament and of the Council on credit rating agencies;
Amendment 662 #
Proposal for a directive
Article 3 – paragraph 1 – point a – point iv – indent 19 c (new)
Article 3 – paragraph 1 – point a – point iv – indent 19 c (new)
— an administrator as defined in point 6 of Article3 (1) of Regulation (EU) 2016/1011 of the European Parliament and of the Council;
Amendment 664 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point a
Article 8 – paragraph 6 – subparagraph 1 – point a
Amendment 664 #
Proposal for a directive
Article 3 – paragraph 1 – point a a (new)
Article 3 – paragraph 1 – point a a (new)
(aa) 'large groups' means large groups of undertakings as defined in Article 3(7) of Directive 2013/34/EU of the European Parliament and of the Council;
Amendment 666 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point b
Article 8 – paragraph 6 – subparagraph 1 – point b
Amendment 666 #
Proposal for a directive
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) ‘adverse environmental impact’ means: (i) any adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the Annex, Part II; one of the following environmental categories: (a) air and atmosphere, including but not limited to air pollution; (b) water and access to water, including but not limited to water pollution, water contamination and depletion of freshwater; (c) soil, including but not limited to soil pollution, soil contamination including from waste disposal and treatment, soil erosion, land use and land degradation; (d) biodiversity and animal welfare, including but not limited to adverse impacts to the welfare of sentient beings, wildlife, seabed and marine environment, flora, natural habitats and ecosystems; (e) climate and climate change mitigation and adaptation, including greenhouse gas emissions; (f) climate and climate change mitigation and adaptation, including greenhouse gas emissions; (g) the transition to a circular economy, including impairment of reusability and recyclability; (h) noise and vibration (ii) an adverse impact resulting from the failure to comply with the obligations interpreted in line with the relevant provisions of the international instruments listed in the Annex, Part II (iii) any adverse impact resulting from an offence set out in Directive 2008/99/EC of the European Parliament and of the Council
Amendment 670 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 2
Article 8 – paragraph 6 – subparagraph 2
Amendment 674 #
Proposal for a directive
Article 8 – paragraph 7
Article 8 – paragraph 7
Amendment 675 #
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 protecteda person’s resulting from the violation of 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;or a group’s full enjoyment of and protection by internationally recognised human rights and humanitarian law, customary law, case law and the work of relevant human right treaty bodies.
Amendment 679 #
Proposal for a directive
Article 3 – paragraph 1 – point c a (new)
Article 3 – paragraph 1 – point c a (new)
(ca) ‘adverse good governance impact’ means any adverse impact on good governance resulting from the violation of one of the prohibitions enshrined in the international conventions listed in the Annex, Part IIa or failure to comply with obligations under those conventions, and any adverse impact on the proper functioning of public administration and services, the rule of law, democratic electoral systems, and freedom of expression, including bribery, corruption, blackmail, tax evasion and avoidance, illegal political funding or exercise of influence, and other business practices detrimental to good governance;
Amendment 682 #
Proposal for a directive
Article 8 a (new)
Article 8 a (new)
Amendment 684 #
Proposal for a directive
Article 8 b (new)
Article 8 b (new)
Article 8b Stakeholder engagement 1. Member States shall ensure that undertakings conduct due diligence pursuant to this Directive with the participation of trade unions and workers, and effectively and meaningfully engage stakeholders, and human rights and environmental defenders. Undertakings shall be required to ensure: (a) that stakeholder engagement is carried out regularly and throughout the entire due diligence process; (b) effective and appropriate modalities of engagement, including but not limited to appropriate timelines for stakeholder engagement activities, identifying and addressing potential barriers to participation, adequate protection of stakeholders from the risk of reprisals, proactively seeking the engagement of marginalised or vulnerable stakeholders, and ensuring a gender-responsive approach; (c) that they regularly provide meaningful information to stakeholders about actual and potential adverse human rights and environmental impacts of particular operations, projects and investments, in a timely and culturally sensitive and accessible manner taking into account specifics of the stakeholder group including gender; (d) in case of significant changes in operations, activities or operating context, companies shall pro-actively communicate and provide complementary and intermediary reporting. Member States shall ensure that, when stakeholders request to participate in the engagement outlined in paragraph 1, companies assess and respond to these requests. Companies must respect the rights of Indigenous Peoples, as laid out in the United Nations Declaration on the Rights of Indigenous Peoples1, including free, prior and informed consent and indigenous peoples’ right to self- determination. Workers’ representatives shall be informed by the company on its due diligence strategy and on its implementation, to which they shall be able to contribute, in accordance with Directives 2002/14/EC and 2009/38/EC of the European Parliament and of the Council and Council Directive 2001/86/EC. Companies should pay special attention to overlapping vulnerabilities and intersecting factors in stakeholder engagement, including by adopting a gender-responsive approach. Stakeholders not covered by point 4 shall also be informed by the company on its due diligence strategy and on its implementation, to which they shall be able to contribute.
Amendment 688 #
Proposal for a directive
Article 9 – title
Article 9 – title
Amendment 688 #
Proposal for a directive
Article 3 – paragraph 1 – point d
Article 3 – paragraph 1 – point d
(d) ‘subsidiary’ means a legal person through which the activity of a ‘controlledin which an undertaking’ has defined in Article 2(1), point (f), of Directive 2004/109/EC of the European Parliament and of the Council128 is exercised; _________________ 128 Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amendinga participating interest as defined in Article 2(2) of Directive 20013/34/EC (OJ L 390, 31.12.2004, p. 38).U;
Amendment 691 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that companies provide the possibility forestablish or participate in effective grievance mechanisms at operational level, both as an early- warning risk-awareness and as a remediation system, that can be used by persons and organisations listed in paragraph 2 to submit complaints to themraise grievances and request remedy where they have 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 value chains.
Amendment 695 #
Proposal for a directive
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
1a. Member States shall ensure that companies are enabled to provide such a mechanism through collaborative arrangements with other companies or organisations, by participating in multi- stakeholder grievance mechanisms or joining a Global Framework Agreement.
Amendment 696 #
Proposal for a directive
Article 9 – paragraph 1 b (new)
Article 9 – paragraph 1 b (new)
1b. Member States shall ensure that grievance mechanisms, as referred to in paragraph 1, shall be legitimate, accessible, predictable, safe, equitable, transparent, rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in Principle 31 of the United Nations Guiding Principles on Business and Human Rights and the United Nations Committee on the Rights of the Child General Comment No 16. Such mechanisms shall provide for the possibility to raise concerns either anonymously or confidentially, as appropriate in accordance with national law.
Amendment 696 #
Proposal for a directive
Article 3 – paragraph 1 – point e – introductory part
Article 3 – paragraph 1 – point e – introductory part
(e) ‘business relationship’ means a relationshipdirect or indirect relationship of the undertaking and its subsidiaries with another undertaking through the ownership of shares, or with a contractor, a subcontractor, a franchisee or any other legal entities (‘partner’) in their value chain;
Amendment 697 #
Proposal for a directive
Article 9 – paragraph 1 c (new)
Article 9 – paragraph 1 c (new)
1c. Member States shall ensure that trade unions, workers’ representatives and relevant stakeholders play a central role in the design and evaluation of such independent grievance mechanisms.
Amendment 698 #
Proposal for a directive
Article 9 – paragraph 1 d (new)
Article 9 – paragraph 1 d (new)
1d. Member States shall ensure that undertakings provide information to actual and potentially affected rightsholders and other stakeholders on such grievance mechanisms, including on how to access them, decisions and remedies relating to a company and how the company is implementing them.
Amendment 699 #
Proposal for a directive
Article 9 – paragraph 1 e (new)
Article 9 – paragraph 1 e (new)
1e. Member States shall ensure that all information is published in a manner that does not endanger the stakeholders’ safety, including by not disclosing their identity.
Amendment 702 #
Proposal for a directive
Article 3 – paragraph 1 – point e – point ii
Article 3 – paragraph 1 – point e – point ii
(ii) that performs business operations related to the products or services of the company for or on behalf of the company;
Amendment 704 #
Proposal for a directive
Article 3 – paragraph 1 – point e – point ii a (new)
Article 3 – paragraph 1 – point e – point ii a (new)
(iia) that is directly linked to the business operations, products or services
Amendment 707 #
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
Amendment 709 #
Proposal for a directive
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) civil society organisations active in withe areas related to the value chain concerned. legitimate interest
Amendment 713 #
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 complaints referred to in paragraph 1, including a procedure when the company considers the complaint to be unfounded, and inform the relevant workers and, trade unions and relevant stakeholders of those procedures. Member States shall ensure that where the complaint is well-founded, the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of Article 6.
Amendment 716 #
Proposal for a directive
Article 9 – paragraph 4 – point a
Article 9 – paragraph 4 – point a
(a) to requestceive timely, effective and appropriate follow-up on the complaint from the companyin writing from the grievance mechanism, with which they have filed a complaint pursuant to paragraph 1, providing substantiated reasoning as to whether a claim has been considered unfounded or founded and
Amendment 717 #
Proposal for a directive
Article 9 – paragraph 4 – point a a (new)
Article 9 – paragraph 4 – point a a (new)
(aa) to receive timely and effective information on the steps and actions taken in the context of a specific grievance filed to the independent grievance mechanism
Amendment 718 #
Proposal for a directive
Article 9 – paragraph 4 – point a b (new)
Article 9 – paragraph 4 – point a b (new)
(ab) to guarantees of non-retaliation, confidentiality and anonymity for all actual and potentially affected stakeholders.
Amendment 721 #
Proposal for a directive
Article 9 – paragraph 4 – point b
Article 9 – paragraph 4 – point b
(b) to engage with the grievance mechanism directly and meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint.
Amendment 722 #
Proposal for a directive
Article 9 – paragraph 4 – point b a (new)
Article 9 – paragraph 4 – point b a (new)
(ba) to request that companies fully remediate or contribute to the full remediation of actual adverse impacts. The remedy shall be proportionate to the significance and scale of the adverse impact ;
Amendment 723 #
Proposal for a directive
Article 9 – paragraph 4 – point b b (new)
Article 9 – paragraph 4 – point b b (new)
(bb) to receive in writing a timely and substantiated answer from the undertaking to a request for remediation.
Amendment 725 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production of goods or the provision of services by a 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), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
Amendment 726 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production of goods or the provision of services by a 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), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services andll upstream and downstream activities, operations, including marketing and advertising related to, and entities involved in, the production and supply of goods or the provision of services by a undertaking, including the development of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities; product or the service and the use and disposal of the product.
Amendment 730 #
Proposal for a directive
Article 10 – paragraph 1
Article 10 – paragraph 1
Member States shall ensure that companies carry out periodic assessments of their own operations and measures, those of their subsidiaries and, where related to the value chains of the company, those of their established their business relationships, to monitor the effectiveness of the identification, prevention, mitigation, bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. Such assessments shall be based, where appropriate,undertaken with trade union, workers’ representatives and in consultation with stakeholders. They shall be based on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. The due diligence policy shall be updated in accordance with the outcome of those assessments.
Amendment 735 #
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
Member States shall ensure that companies that are not subject to reporting requirements under Articles 19a and 29a of Directive 2013/34/EU report on the matters covered by this Directive by publishing on their website an annual statement that meets those requirements in a language customary in the sphere of international business. The statement shall be published by 30 April each year, covering the previous calendar year.
Amendment 738 #
Proposal for a directive
Article 11 – paragraph 2
Article 11 – paragraph 2
The Commission shall adopt delegated acts in accordance with Article 28 concerning the content and criteria for such reporting under paragraph 1, specifying information on the description of due diligence, its design, methodology, potential and actual adverse impacts and actions taken on those.
Amendment 742 #
Proposal for a directive
Article 3 – paragraph 1 – point h
Article 3 – paragraph 1 – point h
(h) ‘independent third-party verification’ means verification of the compliance by a company, or parts of its value chain,its subsidiary or business relationship with human rights and environmental due diligence requirements resulting from the provisions of this Directive by an auditor third party expert which is legally independent from the company, free from any conflicts of interests, has experiencdemonstrated experience, expertise and competence in evaluating environmental and human rights mattersdue diligence and is accountable for the quality and reliability of the audissessment;
Amendment 743 #
Proposal for a directive
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
This reporting should be accessible and sufficiently detailed to demonstrate the adequacy of an undertaking’s due diligence process as per article 4.
Amendment 744 #
Proposal for a directive
Article 11 – paragraph 2 b (new)
Article 11 – paragraph 2 b (new)
Member States shall ensure that companies provide meaningful information to stakeholders about actual and potential adverse human rights and environmental impacts and the actions taken in accordance with Article 4 of particular operations, projects and investments, in a timely and culturally sensitive and accessible manner taking into account specifics of the stakeholder group including gender.
Amendment 745 #
Proposal for a directive
Article 11 – paragraph 2 c (new)
Article 11 – paragraph 2 c (new)
In cases of significant changes in operations, activities or operating context, companies shall proactively communicate to stakeholders and provide complementary and intermediary information.
Amendment 745 #
Proposal for a directive
Article 3 – paragraph 1 – point h
Article 3 – paragraph 1 – point h
(h) ‘independent third-party verification’ means verification of the compliance by a company, or parts of its value chain, with human rights and environmental requirements resulting from the provisions of this Directive by an auditorentity which is independent from the company, free from any conflicts of interests, has experience and competence in environmental and human rights matters and is accountable for the quality and reliability of the audit;
Amendment 746 #
Proposal for a directive
Article 11 – paragraph 2 d (new)
Article 11 – paragraph 2 d (new)
Member States shall ensure that stakeholders have the right to obtain additional information from a company regarding the actions taken in accordance with Article 4. The information shall be provided in a timely manner, in writing and shall be adequate and comprehensible.
Amendment 747 #
Proposal for a directive
Article 3 – paragraph 1 – point j
Article 3 – paragraph 1 – point j
Amendment 748 #
Proposal for a directive
Article 12 – paragraph 1
Article 12 – paragraph 1
Amendment 749 #
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
In order to provide support to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, in consultation with Member States and stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, and where appropriate with international bodies having expertise in due diligence, mayshall issue guidelines, including for specific sectors, specific contexts and areas, or specific adverse impacts.
Amendment 751 #
Proposal for a directive
Article 3 – paragraph 1 – point j
Article 3 – paragraph 1 – point j
(j) ‘industry initiative’ means a combination of voluntary value chain due diligence procedures, tools and mechanisms, including independent third- party verificationmulti- stakeholder, government or industry initiative that supports or monitors, developed and overseen by governments, industry associations or groupings of interested organisationsaluates or verifies the due diligence of individual companies, their subsidiaries or business partners resulting from the provisions of this Directive;
Amendment 755 #
Proposal for a directive
Article 3 – paragraph 1 – point l
Article 3 – paragraph 1 – point l
Amendment 756 #
Proposal for a directive
Article 14 – paragraph -1 (new)
Article 14 – paragraph -1 (new)
-1. Member States shall provide information and effective support to potentially affected and affected stakeholders, including dedicated websites, platforms or portals, legal counsel and administrative support to claim rights provided to them by this Directive.
Amendment 759 #
Proposal for a directive
Article 3 – paragraph 1 – point m – introductory part
Article 3 – paragraph 1 – point m – introductory part
(m) ‘net turnover’ means the aggregate turnover as defined in Article 5 of Council Regulation (EC) No 139/2004
Amendment 760 #
Proposal for a directive
Article 3 – paragraph 1 – point m – point i
Article 3 – paragraph 1 – point m – point i
(i) the ‘net turnover’ as defined in Article 2, point (5), of Directive 2013/34/EU, including royalties received by themselves or their Union subsidiaries or Union branches through vertical agreements concluded in the Union; or,
Amendment 761 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shall, in order to provide information and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this Directive, set up and operate individually or jointly dedicated websites, platforms or portals. Specific consideration shall be given, in that respect, to the SMEs that are present in the value chains of companies.
Amendment 761 #
Proposal for a directive
Article 3 – paragraph 1 – point m – point ii
Article 3 – paragraph 1 – point m – point ii
(ii) where the company applies international accounting standards adopted on the basis of Regulation (EC) No 1606/2002 of the European Parliament and of the Council129 or is a company within the meaning of point (a)(ii), the revenue as defined by or within the meaning of the financial reporting framework on the basis of which the financial statements of the company are prepared, , including royalties received by themselves or their Union subsidiaries or Union branches through vertical agreements concluded in the Union; _________________ 129 Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards (OJ L 243, 11.9.2002, p.1).
Amendment 763 #
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Without prejudice to applicable State aid rules, Member States may financially support SMEs for the purpose of compliance with this Directive. Member States may provide financial support to stakeholders for the purpose of raising their awareness and facilitating access to the rights provided to them by this Directive.
Amendment 763 #
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 subsidiariesose individuals or groups that have rights or interests that are affected or could be affected by the undertaking’s activities or the activities of entities in its value chain, and other legitimate representatives of such individuals, or groups, communitieincluding: - the undertaking’s wor entities whose rightkers, the workers orf interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationshipts subsidiaries; - legal or natural persons defending human rights, the environment and good governance, including human rights and environmental defenders; - organisations whose statutory purpose is the defence of human rights, climate and the environment and good governance; - trade unions, workers and their representatives; - local communities and their representatives;
Amendment 766 #
Proposal for a directive
Article 14 – paragraph 3 – subparagraph 1 a (new)
Article 14 – paragraph 3 – subparagraph 1 a (new)
The Commission may provide capacity- building, legal counsel, financial and administrative support for potentially affected and affected stakeholders to claim rights provided to them by this Directive, facilitating stakeholder engagement.
Amendment 767 #
Proposal for a directive
Article 14 – paragraph 3 a (new)
Article 14 – paragraph 3 a (new)
3a. Member States and the Commission shall provide support and protection for workers rights defenders, human rights and environmental defenders in relation to potential or actual adverse impacts related to business operations.
Amendment 770 #
Proposal for a directive
Article 14 – paragraph 4
Article 14 – paragraph 4
4. Companies may rely on industry schemes and multi-stakeholder initiatives to support the implementation of their obligations referred to in Articles 5 to 11 of this Directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. The Commission and the Member States may facilitate the dissemination of information on such schemes or initiatives and their outcome. The Commission, in collaboration with Member States, may issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives, in particular with regards to the adequate inclusion of stakeholders.
Amendment 771 #
Proposal for a directive
Article 14 – paragraph 4 – subparagraph 1 (new)
Article 14 – paragraph 4 – subparagraph 1 (new)
Reliance on industry schemes and multi- stakeholder initiatives shall not absolve the company of its individual responsibility to perform due diligence or prevent it from being held liable.
Amendment 771 #
Proposal for a directive
Article 3 – paragraph 1 – point n a (new)
Article 3 – paragraph 1 – point n a (new)
(na) ‘vulnerable stakeholders’ means affected stakeholders that find themselves in marginalised situations and situations of vulnerability, due to specific contexts or intersecting factors, including among others, sex, gender, age, race, ethnicity, class, caste, education, indigenous identity, migration status, disability, as well as social and economic status, and includes stakeholders living in areas affected by conflict and occupation, which are the causes of diverse and often disproportionate adverse impacts, and create discrimination and additional barriers to participation and access to justice;
Amendment 773 #
Proposal for a directive
Article 3 – paragraph 1 – point n b (new)
Article 3 – paragraph 1 – point n b (new)
(nb) ‘meaningful engagement’ means an ongoing process of interaction and dialogue between a undertaking and affected stakeholders that enables affected stakeholders to understand and respond to the undertaking, and enables the undertaking to listen to, understand, take into account and respond to the interests and concerns of affected stakeholders in good faith, including through collaborative approaches and taking into account languages barriers and cultural differences;
Amendment 777 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Member States shall ensure that companies referred to in Article 2(1), point (a), and Article 2(2), point (a), shall adopt a planundertakings shall develop, adopt and effectively implement a plan, in consultation with trade unions, workers’ representatives and stakeholders, to ensure that the business model and strategy of the company are compatiblealigned with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. This plan shall, in particular, identify, on the basis of information reasonably available to the company, the extent to which climate change is a risk for, or an impact of, the company’s operations and the objective of achieving climate neutrality by 2050 as established in Regulation (EU) 2021/1119 (European Climate Law).
Amendment 777 #
Proposal for a directive
Article 3 – paragraph 1 – point o – point i
Article 3 – paragraph 1 – point o – point i
(i) any member of the administrative, management or supervisory bodies of a company that holds decision making power over company policies;
Amendment 778 #
Proposal for a directive
Article 3 – paragraph 1 – point o – point ii
Article 3 – paragraph 1 – point o – point ii
(ii) where they are not members of the administrative, management or supervisory bodies of a company, the chief executive officer and, if such function exists in a company, the deputy chief executive officer that holds decision making power over company policies;
Amendment 780 #
Proposal for a directive
Article 3 – paragraph 1 – point o – point iii
Article 3 – paragraph 1 – point o – point iii
(iii) other persons who perform functions similar to those performed under point (i) or (ii)that holds decision making power over company policies;
Amendment 782 #
Proposal for a directive
Article 15 – paragraph 1 – subparagraph 1 (new)
Article 15 – paragraph 1 – subparagraph 1 (new)
This plan shall: (i) be evidence based and regularly updated in line with the best available science; (ii) take into account the entire value chain and address scope 1, 2 and 3 emissions; (iii) define short term and medium term absolute reduction targets for 2025 and 2030, reviewed every five years up to 2050, explaining their alignment with a 1.5°C climate scenario with no or limited overshoot and whether such targets are based on science, pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change; (iv) define implementing actions for each scope and target, associated with an explanation of decarbonisation levers identified; (v) define and commit to the financial and investments plans designed to reach the targets.
Amendment 784 #
Proposal for a directive
Article 3 – paragraph 1 – point q
Article 3 – paragraph 1 – point q
(q) ‘appropriate measure’ means a measure that is capable of achieving the objectives of due diligence, commensur and effectively addressing the potential or actual adverse impact, proportionate with the degree of severity and the likelihood of the adverse impact, and reasonably available to the company, taking into account the circumstances of the specific case, including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof, and the need to ensure prioritisation of action;
Amendment 788 #
Proposal for a directive
Article 3 – paragraph 1 – point q a (new)
Article 3 – paragraph 1 – point q a (new)
(qa) ‘control’ means the possibility for an undertaking to exercise decisive influence on another undertaking, in particular through ownership or the right to use all or part of the assets of the latter, or through rights or contracts or any other means, having regard to all factual considerations, which confer decisive influence on the composition, voting or decisions of the decision making bodies of an undertaking;
Amendment 789 #
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
Amendment 795 #
Proposal for a directive
Article 15 – paragraph 3
Article 15 – paragraph 3
3. Member States shall ensure that companies duly take into account the fulfilment of the obligations referred to in paragraphs 1 and 2 when setting variable remuneration, if variable remuneration is linked to the contribution of a director to the company’s business strategy and long- term interests and sustainabilityundertakings link half of directors’ variable remuneration to the fulfilment of the obligations referred to in paragraphs 1 and 2.
Amendment 798 #
Proposal for a directive
Article 4 – paragraph -1 (new)
Article 4 – paragraph -1 (new)
-1. Member States shall ensure that undertakings respect human rights, the environment and good governance and that they do not cause, contribute to, nor are directly linked to adverse impacts on human rights, the environment and good governance directly or indirectly through their value chain.
Amendment 799 #
Proposal for a directive
Article 4 – paragraph -1 a (new)
Article 4 – paragraph -1 a (new)
-1a. Member States shall ensure that undertakings identify, prevent, mitigate and account for how they address the impacts on human rights, the environment and good governance occurring in their operations, the operations of their subsidiaries, and in their value chains.
Amendment 800 #
Proposal for a directive
Article 15 – paragraph 3 a (new)
Article 15 – paragraph 3 a (new)
3a. Member States shall ensure that directors are directly and personally responsible for overseeing the obligations set out in this Article.
Amendment 803 #
Proposal for a directive
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Member States shall ensure that companies conduct human rights and environmental due diligence as laid down in Articles 5 to 11[XX] (‘due diligence’) by carrying out the following actions:
Amendment 807 #
Proposal for a directive
Article 17 – paragraph 7
Article 17 – paragraph 7
7. The Commission shall make publicly available, including on its website, a list of the supervisory authorities, and, when applicable, the respective competences of those authorities. The Commission shall regularly update the list on the basis of the information received from the Member States.
Amendment 807 #
Proposal for a directive
Article 4 – paragraph 1 – point c
Article 4 – paragraph 1 – point c
(c) preventing andpotential adverse impacts in accordance with Article 7; mitigating potentiactual adverse impacts, and bringing them to an end, in accordance with Article [...]; remedying actual adverse impacts to an end and minimising their extent, in accordance with Article [...]; where necessary, disengaging responsibly from a business relationship in accordance with Articles 7 and 8; [...]
Amendment 808 #
Proposal for a directive
Article 17 – paragraph 7 a (new)
Article 17 – paragraph 7 a (new)
7a. Member States shall ensure that supervisory authorities have the appropriate qualification, experience and skills in relation to human rights and environment to perform its duties and exercise its powers.
Amendment 810 #
Proposal for a directive
Article 17 – paragraph 8 a (new)
Article 17 – paragraph 8 a (new)
8a. Member States shall ensure that supervisory authorities publish and make available an annual report detailing their past activities, future work plan and priorities. This includes reporting on closed investigations and their results, potential sanctions or other decisions on investigations.
Amendment 811 #
Proposal for a directive
Article 4 – paragraph 1 – point d
Article 4 – paragraph 1 – point d
(d) establishing and maintainor participating ing a complaints procedurenon-judicial grievance mechanism, in accordance with Article 9;
Amendment 812 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to request information and carry out investigationire undertakings to provide all necessary information and carry out investigations, which can include where appropriate field visits related to compliance with the obligations set out in this Directive.
Amendment 813 #
Proposal for a directive
Article 18 – paragraph 2
Article 18 – paragraph 2
2. A supervisory authority may initiate an investigation on its own motion or as a result of substantiated concerns communicated to it pursuant to Article 19, where it considers that it has sufficient information indicating a possible breach by a company of the obligations provided for in the national provisions adopted pursuant to this Directive.
Amendment 815 #
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 2
Article 18 – paragraph 4 – subparagraph 2
Taking remedial action does not preclude the imposition of administrative sanctions or the triggering of civil liability including in case of damages, in accordance with Articles 20 and 22, respectively.
Amendment 815 #
Proposal for a directive
Article 4 – paragraph 1 – point e
Article 4 – paragraph 1 – point e
(e) monitoring and verifying the effectiveness of their due diligence policy and measures in accordance with Article 10;
Amendment 816 #
Proposal for a directive
Article 18 – paragraph 5 – point c
Article 18 – paragraph 5 – point c
(c) to adopt interim measures to avoid the risk of severe and irreparable harm.
Amendment 818 #
Proposal for a directive
Article 4 – paragraph 1 a (new)
Article 4 – paragraph 1 a (new)
1a. Member States shall ensure that, when necessary, undertakings engage in a proactive and timely manner with their business relationships to effectively conduct human rights and environmental due diligence as laid down in Articles 5 to 11 (‘due diligence’).
Amendment 819 #
Proposal for a directive
Article 4 – paragraph 1 b (new)
Article 4 – paragraph 1 b (new)
1b. Member States shall ensure that undertakings conduct human rights and environmental due diligence as laid down in Articles […] to […] (‘due diligence’) in close and fair collaboration with trade unions and workers representatives, and in consultation with stakeholders in accordance with Article […].
Amendment 820 #
Proposal for a directive
Article 18 – paragraph 7 a (new)
Article 18 – paragraph 7 a (new)
7a. Member States shall ensure that decisions of supervisory authorities regarding a company’s compliance with the Directive shall be without prejudice to the company’s civil liability under Article 22.
Amendment 820 #
Proposal for a directive
Article 4 – paragraph 1 c (new)
Article 4 – paragraph 1 c (new)
1c. Member States shall ensure that undertakings that are shareholders have the obligation to exercise due diligence with regards to their voting practices.
Amendment 821 #
Proposal for a directive
Article 4 – paragraph 1 d (new)
Article 4 – paragraph 1 d (new)
1d. Member States shall ensure that undertakings exercise due diligence with regards to their business models and strategies, including trading, employment, procurement and pricing practices.
Amendment 822 #
Proposal for a directive
Article 19 – paragraph 1 a (new)
Article 19 – paragraph 1 a (new)
1a. Member States shall ensure that the identity of the natural or legal person submitting substantiated concerns is protected upon request of the person or on the own accord of the supervisory authority.
Amendment 827 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
2. In deciding whether to impose sanctions and, if so, in determining their nature and appropriate level, due account shall be taken of: (a) the company’s efforts to comply with any remedial action required of them by a supervisory authority,; (b) any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as; (c) collaboration with other entities to address adverse impacts in its value chains, as the case may be. ; (d) the severity and duration of the company’s infringement, or the severity of the impacts that have occurred; (e) any previous infringements by the company; (f) the financial benefits gained or losses avoided by the company due to the infringement, if the relevant data are available; (g) penalties imposed in respect of the same infringement in other Member States; (h) the degree to which the company has dealt with complaints or proposals raised by relevant stakeholders, including through grievance mechanisms pursuant to Article 9; (i) any other aggravating or mitigating factors applicable to the circumstances of the case.
Amendment 831 #
Proposal for a directive
Article 5 – paragraph - 1 a (new)
Article 5 – paragraph - 1 a (new)
(1a) Member States shall ensure that none of the corporate practices of undertakings under their jurisdiction causes or contributes to adverse impacts on human rights, the environment or good governance.
Amendment 832 #
Proposal for a directive
Article 20 – paragraph 2 a (new)
Article 20 – paragraph 2 a (new)
2a. Sanctions can be pecuniary, or may further include but not be limited to specific performances, exclusion from public procurement, state aid, tax credits, export credits, trade missions and advisory bodies to governments.
Amendment 833 #
Proposal for a directive
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. Member States shall ensure that companies integrate due diligence into all their corporate policies and have in place. Member States shall ensure that undertakings adopt and publish a due diligence policy. The due diligence policy shall contain all of the following:
Amendment 836 #
Proposal for a directive
Article 20 – paragraph 3
Article 20 – paragraph 3
3. When pecuniary sanctions are imposed, they shall be basedMember States shall provide for maximum fines of no less than 10 % onf the company’s turnoverbined aggregate worldwide turnover of the undertaking or group of undertakings.
Amendment 836 #
Proposal for a directive
Article 5 – paragraph 1 – point -a (new)
Article 5 – paragraph 1 – point -a (new)
(-a) a commitment to respecting internationally recognised human rights, environmental and good governance standards, such as those listed in the Annex to this Directive;
Amendment 838 #
Proposal for a directive
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) a description of the company’s approach, including in the long term, to due diligenceundertaking’s due diligence strategy, including in the short, medium and long term;
Amendment 839 #
Proposal for a directive
Article 20 – paragraph 4
Article 20 – paragraph 4
4. Member States shall ensure that any decision of the supervisory authorities containing sanctions related to the breach of the provisions of this directive is published and publicly available no later than a month after the sanction is imposed. This should include the methodology and criteria adopted for applying sanctions.
Amendment 840 #
Proposal for a directive
Article 21 – title
Article 21 – title
European Network of SupervisoryDue Diligence Authoritiesy
Amendment 840 #
Proposal for a directive
Article 5 – paragraph 1 – point a a (new)
Article 5 – paragraph 1 – point a a (new)
(aa) a description of the potential or actual adverse impacts identified by the undertaking;
Amendment 841 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1
Article 21 – paragraph 1 – subparagraph 1
The Commission shall set up a European Network of SupervisoryDue Diligence Authoritiesy, composed of representatives of the supervisory authorities. The Network, trade union representatives and legitimate stakeholders. The Authority shall facilitate the cooperation of the supervisory authorities and the coordination and alignment of regulatory, investigative, sanctioning and supervisory practices of the supervisory authorities and, as appropriate, sharing of information among them.
Amendment 841 #
Proposal for a directive
Article 5 – paragraph 1 – point a b (new)
Article 5 – paragraph 1 – point a b (new)
(ab) the relevant information including names, locations, types of products and services supplied, and other relevant information concerning subsidiaries, suppliers, subcontractors and business relationships;
Amendment 842 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 2
Article 21 – paragraph 1 – subparagraph 2
The Commission may invite Union agencies with relevant expertise in the areas covered by this Directive to join the European Network of Supervisorycooperate with the European Due Diligence Authoritiesy.
Amendment 842 #
Proposal for a directive
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) a code of conduct describfining rules and principles to be followed by the company’s employees and subsidiaries, the company’s board of directors, directors, workers and subsidiaries. The code of conduct shall be designed to ensure the respect of human rights, the environment and good governance by the undertaking;
Amendment 843 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 2 a (new)
Article 21 – paragraph 1 – subparagraph 2 a (new)
The Authority shall set up a public database listing all undertakings subject to this Directive. Member States should cooperate with the Authority in order to identify all non-European undertakings covered by this Directive. The list of undertakings shall link each undertaking’s name to the statement published pursuant to Article 11 or otherwise display that the undertaking has not published a statement. The Authority shall set up a public database of high risk areas, as defined in Article 3. Each high risk area should be associated with a description of the specific risks it is subject to and relevant documentation on such risks.
Amendment 844 #
Proposal for a directive
Article 21 – paragraph 2
Article 21 – paragraph 2
2. Supervisory authorities shall provide the Authority and each other with relevant information and mutual assistance in carrying out their duties and shall put in place measures for effective cooperation with each other. Mutual assistance shall include collaboration with a view to the exercise of the powers referred to in Article 18, including in relation to inspections and information requests.
Amendment 845 #
Proposal for a directive
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) a description of the processes put in place to implement due diligence, including the measures taken to verify compliance with the code of conduct and to extend its application to established business relationships across the value chain, incorporate due diligence into its own business models, employment, trading, procurement and purchasing practices and agreements with entities with which a undertaking has a business relationship, and measures taken to monitor and verify compliance with this Directive;
Amendment 850 #
Proposal for a directive
Article 22 – paragraph 1 – point a
Article 22 – paragraph 1 – point a
(a) they failed to comply with the obligations laid down in Articles 7 and 8this Directive and;
Amendment 853 #
Proposal for a directive
Article 5 – paragraph 1 – point c a (new)
Article 5 – paragraph 1 – point c a (new)
(ca) a description of the adequate measures put in place to address potential or actual adverse impacts identified;
Amendment 856 #
Proposal for a directive
Article 22 – paragraph 1 – point b
Article 22 – paragraph 1 – point b
(b) as a result of this failure an adverse impact that should have been identified, prevented, mitigated, brought to an end or its extent minimised through the appropriate measures laid down in Articles 7 and 8this Directive occurred and led to damage.
Amendment 857 #
Proposal for a directive
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1a. Member States shall ensure that undertakings allocate sufficient resources, including financial and human resources, to the implementation of the due diligence policy.
Amendment 860 #
Proposal for a directive
Article 22 – paragraph 1 a (new)
Article 22 – paragraph 1 a (new)
1a. Member States shall ensure that companies are liable for damages that result from adverse human rights or environmental impacts that should have been identified, prevented, mitigated, brought to an end or their extent minimised by their subsidiaries under this Directive.
Amendment 861 #
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States shall ensure that the companies updatereview, update and publish their due diligence policy at least annually.
Amendment 864 #
Proposal for a directive
Article 22 – paragraph 2 – subparagraph 1
Article 22 – paragraph 2 – subparagraph 1
Notwithstanding paragraph 1, Member States shall ensure that where a company has taken the actions referred to in Article 7(2), point (b) and Article 7(4), or Article 8(3), point (c), and Article 8(5), it shall not be liable for damages caused by an adverse impact arising as a result of the activities of an indirect partner with whom it has an established business relationship, unless it was unreasonable, in the circumstances of the case, to expectthe above, in the event the damage results from adverse impacts caused by business relationships within a company’s value chain, Member States shall ensure that the company is held liable, unless it can prove that ithe action actually taken, including as regards verifying compliance, would be adequate to prevent, mitigate, bring to an end or minimise the extent of the adverse impacted with due care and implemented all appropriate measures to ensure that the damage would not occur.
Amendment 868 #
Proposal for a directive
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
2a. Member States shall ensure that undertakings update their due diligence policy when substantial changes in their value chains have occurred.
Amendment 869 #
Proposal for a directive
Article 5 – paragraph 2 b (new)
Article 5 – paragraph 2 b (new)
2b. Undertakings’ due diligence policies should be publicly accessible through the European Single Access Point for at least 30 years.
Amendment 873 #
Proposal for a directive
Article 22 – paragraph 2 – subparagraph 2
Article 22 – paragraph 2 – subparagraph 2
Amendment 873 #
Proposal for a directive
Article 6 – title
Article 6 – title
Identifying and assessing actual and potential adverse impacts
Amendment 877 #
Proposal for a directive
Article 22 – paragraph 2 a (new)
Article 22 – paragraph 2 a (new)
2a. Where there is a civil liability claim for damages in accordance with Article 22 paragraphs 1 and 2, and that the claimant provides prima facie elements substantiating the likelihood of the respondent's liability under the directive, Member States shall take such measures as are necessary to ensure that it shall be for the respondent to prove it has complied with its obligations as laid down in the directive and that the measures it took were appropriate.
Amendment 877 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to identifyincluding carrying out an exhaustive scoping exercise of their operations, subsidiaries and business relationships in order to identify and assess actual and potential adverse human rights impacts and adverse environmental, environmental and good governance impacts arising from their own operations, products and services or those of their subsidiaries and, wher those related to their value chains, from their established business relationships, in accordance with paragraph 2, 3 and 4.
Amendment 878 #
Proposal for a directive
Article 22 – paragraph 2 b (new)
Article 22 – paragraph 2 b (new)
2b. Where claimants have provided reasonably available evidence sufficient to support their action in accordance to paragraph 1, Member States shall ensure that courts are enabled to order the defendant and third parties to disclose any evidence in their control, including evidence related to the nature of business relationships or the structure of the society, if requested by the claimant and in accordance with national procedural law, subject to the applicable Union and national rules on confidentiality and proportionality.
Amendment 887 #
Proposal for a directive
Article 22 – paragraph 4
Article 22 – paragraph 4
4. The civil liability rules under this Directive shall 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 Directiveneither exclude nor limit companies' liability under Union or national legal systems regarding civil liability.
Amendment 887 #
Proposal for a directive
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
1a. In particular, Member States shall ensure that companies map their value chain and document relevant information including names, locations, types of products and services supplied, and other relevant information concerning subsidiaries, suppliers, subcontractors and business relationships.
Amendment 896 #
Proposal for a directive
Article 22 – paragraph 5 a (new)
Article 22 – paragraph 5 a (new)
5a. Member States shall ensure that a limitation period is suspended or, depending on national law, interrupted, if a supervisory authority takes action according to Article 18 of this Directive. The suspension shall end at the earliest one year after the decision of the supervisory authority.
Amendment 896 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
Amendment 897 #
Proposal for a directive
Article 22 – paragraph 5 b (new)
Article 22 – paragraph 5 b (new)
5b. Member States shall ensure that rights holders, groups of rightsholders or any (moral or physical) person with a legitimate interest are entitled to seek injunctive measures before Union courts, including through summary proceedings. These shall be available in the form of a provisional or a definitive measure to cease a practice where that practice may constitute a breach of this directive, or the form of a provisional or a definitive measure to take action to comply with this directive.
Amendment 898 #
Proposal for a directive
Article 22 – paragraph 5 c (new)
Article 22 – paragraph 5 c (new)
5c. Member States shall take measures aiming to ensure that the costs of the proceedings based on provisions of national law transposing this directive do not prevent claimants from access to courts. These measures may, for example, take the form of public funding, including structural support for victims of actual and potential adverse impacts, limitation of applicable court or administrative fees, or access to legal aid.
Amendment 899 #
Proposal for a directive
Article 22 – paragraph 5 d (new)
Article 22 – paragraph 5 d (new)
5d. Member States shall ensure that trade union organisations and civil society organisations acting in the public interest can bring representative actions before their courts on behalf and for the protection of the collective interests of victims of actual and potential adverse impacts, and that these entities have the rights and obligations of a claimant party in the proceedings.
Amendment 901 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
Amendment 908 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying the adverse impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the complaints procedure provided for in Article 9. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevtrade unions, workers’ representatives antd stakeholders to gather information on actual or potential adverse impacts.
Amendment 910 #
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. Undertakings shall make use of appropriate resources, including independent reportspublicly accessible information and reports, information communicated to them and information gathered through the complaints procedure provided for in Article 9. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.
Amendment 911 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying and assessing the adverse impacts referred to in paragraph 1 based on, where appropriate,, undertakings collect and analyse relevant quantitative and qualitative information, cincluding disaggregated data. Companies are entitled to make use of appropriate resources, including independent reports and information gathered through the complaints procedure provided for in Article 9. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.
Amendment 915 #
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Member States shall ensure that, when fulfilling their duty to act in the best interest of the company, directors of companies referred to in Article 2(1) take into accountare accountable for the consequences of their decisions for sustainability matters, including, where applicable, human rights, climate change and environmental consequences, including in the short, medium and long term.
Amendment 917 #
Proposal for a directive
Article 6 – paragraph 4 a (new)
Article 6 – paragraph 4 a (new)
4a. Member States shall ensure that companies take appropriate measures to reassess impacts at regular intervals, including in relation to significant changes in the undertaking’s operations, business relationships or operating environments, in response to complaints, and periodically during the relevant activity or business relationship.
Amendment 921 #
Proposal for a directive
Article 26 – paragraph 1
Article 26 – paragraph 1
1. Member States shall ensure that directors of companies referred to in Article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in Article 4 and, in paArticular the due diligence policyle 5 and the implementation of the plan referred to in Article 15, with due consideration for relevant input from stakeholders and civil society organisations. The directors shall regularly report to the board of directors in that respect who shall discuss progress and challenges in addressing salient human rights and environmental impacts, and review the company’s business model and any proposed changes to it.
Amendment 922 #
Proposal for a directive
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to prevent, orand where prevention is not possible or not immediately possibhas failed, adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been, or should have been, identified pursuant to Article 6, in accordance with paragraphs 2, 3, 4 and 5 of this Article, environmental and good governance impacts arising from their operations, products and services, those of their subsidiaries, and those occurring in their value chains.
Amendment 924 #
Proposal for a directive
Article 26 – paragraph 2
Article 26 – paragraph 2
2. Member States shall ensure that directors take steps to adapt the corporate strategy tobusiness model and strategy to address sustainability risks and take into account the actual and potential adverse impacts identified pursuant to Article 6 and any measures taken pursuant to Articles 7 to 9this Directive.
Amendment 927 #
Proposal for a directive
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
1a. Member States shall ensure that undertakings respect the rights of Indigenous Peoples, as laid out in the United Nations Declaration on the Rights of Indigenous Peoples, including free, prior and informed consent and indigenous peoples’ right to self- determination.
Amendment 929 #
Proposal for a directive
Article 7 – paragraph 2 – introductory part
Article 7 – paragraph 2 – introductory part
2. Companies shall be required to take appropriate measures, including the following actions, where relevant:
Amendment 930 #
Proposal for a directive
Article 7 – paragraph 2 – point -a (new)
Article 7 – paragraph 2 – point -a (new)
(-a) refrain from entering into business relations with business actors that cannot reasonably be expected to respect human rights, the environment or good governance in the course of its activities;
Amendment 932 #
Proposal for a directive
Article 7 – paragraph 2 – point a
Article 7 – paragraph 2 – point a
(a) where necessary due to the nature or complexity of the measures required for prevention, develop and implement a prevention action plan, with reasonable and clearly defined timelines for actionppropriate measures and qualitative and quantitative indicators for measuring improvement. The prevention action plan shall be developed with trade unions and workers’ representatives, in consultation with affected stakeholders;
Amendment 938 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – introductory part
Article 30 – paragraph 1 – subparagraph 2 – introductory part
They shall apply those provisions as follows:from… [OJ to insert: 2 years from the entry into force of this Directive]
Amendment 938 #
Proposal for a directive
Article 7 – paragraph 2 – point a a (new)
Article 7 – paragraph 2 – point a a (new)
(aa) adapt any product, service, process, operation, facility or project, whether existing or future, to the extent necessary;
Amendment 939 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – point a
Article 30 – paragraph 1 – subparagraph 2 – point a
Amendment 941 #
Proposal for a directive
Article 7 – paragraph 2 – point a b (new)
Article 7 – paragraph 2 – point a b (new)
(ab) if necessary, discontinue any existing or future product, service, process, operation, facility or project;
Amendment 943 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – point b
Article 30 – paragraph 1 – subparagraph 2 – point b
Amendment 944 #
Proposal for a directive
Article 7 – paragraph 2 – point b
Article 7 – paragraph 2 – point b
(b) seek contractualobtain assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conductrespect human rights, the environment and good governance and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s value chain (contractual cascading). When such contractual assurances are obtained, paragraph 4 shall apply;
Amendment 947 #
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 value chain (contractual cascading). When such contractualAgreements concluded with and assurances are obtained, paragraph 4 shall apply from business relationships regarding the prevention of potential adverse impacts shall be fair and equitable, taking into account the resources of the business partner;
Amendment 948 #
Proposal for a directive
Annex I – Part I – point 21 a (new)
Annex I – Part I – point 21 a (new)
21a. Violation of the right to work, defined in Article 6 of the International Covenant on Economic, Social and Cultural Rights
Amendment 949 #
Proposal for a directive
Annex I – Part I – point 21 b (new)
Annex I – Part I – point 21 b (new)
21b. Violation of the prohibition of violating or harassing women, as defined in the ILO Convention N°190, and the ‘Istanbul Convention’.
Amendment 950 #
Proposal for a directive
Annex I – Part I – indent 5 a (new)
Annex I – Part I – indent 5 a (new)
- European Convention of Human Rights (ECHR)
Amendment 950 #
Proposal for a directive
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) make necessary investmentmodifications, improvements to, or investments in, the undertaking’s own operations, such as into management or, production processes and infrastructures, to comply with paragraph 1or other operational processes, facilities, products and product traceability, services and skills, in order to prevent or mitigate potential adverse impacts;
Amendment 951 #
Proposal for a directive
Annex I – Part I – indent 5 b (new)
Annex I – Part I – indent 5 b (new)
- European Social Charter (revised) (ESC)
Amendment 951 #
Proposal for a directive
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) make necessary investments, such as into management or production processes and infrastructures, and adopt pricing mechanisms that contribute to living wages and incomes for their suppliers, to comply with paragraph 1;
Amendment 952 #
Proposal for a directive
Annex I – Part I – indent 5 c (new)
Annex I – Part I – indent 5 c (new)
- Convention on preventing and combating violence against women and domestic violence (‘Istanbul Convention’)
Amendment 952 #
Proposal for a directive
Article 7 – paragraph 2 – point c a (new)
Article 7 – paragraph 2 – point c a (new)
(ca) adapt business models and strategies, including trading, employment, procurement and pricing practices, in order to prevent potential adverse impacts;
Amendment 953 #
Proposal for a directive
Annex I – Part I – indent 5 d (new)
Annex I – Part I – indent 5 d (new)
- Convention on Action against Trafficking in Human Beings
Amendment 954 #
Proposal for a directive
Annex I – Part I – indent 5 e (new)
Annex I – Part I – indent 5 e (new)
- Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data
Amendment 955 #
Proposal for a directive
Annex I – Part I – indent 12 a (new)
Annex I – Part I – indent 12 a (new)
- International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families
Amendment 955 #
Proposal for a directive
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
(d) provide targeted and proportionate support for an SME with which the company has an establiswhen necessary, to take into consideration the resources, knowledge and constraints of thed business relationship, where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the SME and provide support to ensure the prevention of potential adverse impacts and compliance with the prevention action plan;
Amendment 956 #
Proposal for a directive
Annex I – Part I – indent 12 b (new)
Annex I – Part I – indent 12 b (new)
- International Convention for the Protection of All Persons from Enforced Disappearance
Amendment 957 #
Proposal for a directive
Annex I – Part I – indent 12 c (new)
Annex I – Part I – indent 12 c (new)
- UN Declaration on Human Rights Defenders
Amendment 958 #
Proposal for a directive
Annex I – Part I – indent 23 a (new)
Annex I – Part I – indent 23 a (new)
- Occupational Safety and Health Convention, 1981 (No. 155) and its 2002 Protocol
Amendment 959 #
Proposal for a directive
Annex I – Part I – indent 23 b (new)
Annex I – Part I – indent 23 b (new)
- Promotional Framework for Occupational Safety and Health Convention, 2006 (No. 187)
Amendment 960 #
Proposal for a directive
Annex I – Part I – indent 23 c (new)
Annex I – Part I – indent 23 c (new)
- Violence and Harassment Convention, 2019 (No. 190)
Amendment 961 #
Proposal for a directive
Annex I – Part I – indent 23 d (new)
Annex I – Part I – indent 23 d (new)
- Termination of Employment Convention, 1982 (No. 158)
Amendment 963 #
Proposal for a directive
Annex I – Part II – point 1 a (new)
Annex I – Part II – point 1 a (new)
1a. The Paris Agreement,
Amendment 964 #
Proposal for a directive
Annex I – Part II – point 1 b (new)
Annex I – Part II – point 1 b (new)
1b. The UNECE Convention on Long- range Transboundary Air Pollution and its protocols;
Amendment 964 #
Proposal for a directive
Article 7 – paragraph 2 – point e
Article 7 – paragraph 2 – point e
(e) in compliance with Union law including competition law, collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective;
Amendment 965 #
Proposal for a directive
Annex I – Part II – point 1 c (new)
Annex I – Part II – point 1 c (new)
1c. The UN Convention on the Law of the Sea;
Amendment 965 #
Proposal for a directive
Article 7 – paragraph 2 – point e a (new)
Article 7 – paragraph 2 – point e a (new)
(ea) for undertakings who detain shares, exercise their voting rights and influence with a view to prevent adverse impacts on human rights, the environment and good governance;
Amendment 969 #
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
Amendment 977 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 1
Article 7 – paragraph 4 – subparagraph 1
The contractual assurances or the contract shall be accompanied by the appropriate measures to verify compliance. For the purposes of verifying compliance, the company may refer to suitable industry initiatives or independent third-party verification.
Amendment 978 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 1
Article 7 – paragraph 4 – subparagraph 1
The contractual assurances or the contract shall be accompanied by the appropriate measures to verify complianceassurances obtained from business relationships in accordance with point (b) shall be fair and equitable, accompanied by the appropriate measures to support carrying out due diligence and verify their effectivity. For the purposes of verifying compliance, the company may refer to suitable industry initiatives or independent third-party verification.
Amendment 981 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 1 a (new)
Article 7 – paragraph 4 – subparagraph 1 a (new)
Resorting to industry initiatives or third- party verification shall not in itself be considered sufficient to comply with the provisions of this Article. Undertakings resorting to industry initiatives or third- party verification may still be found liable for violations of this Directive and damage suffered by victims as a result.
Amendment 982 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 1 b (new)
Article 7 – paragraph 4 – subparagraph 1 b (new)
Contractual provisions and assurance obtained from business relationships shall not seek to and cannot transfer the responsibility to comply with this Directive onto them.
Amendment 992 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – introductory part
Article 7 – paragraph 5 – subparagraph 1 – introductory part
Amendment 995 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point a
Article 7 – paragraph 5 – subparagraph 1 – point a
(a) temporarily suspend commercial relations with the partner in question, while pursuing prevention and minimisation efforts,adopting appropriate measures to mitigate and bring adverse impacts to an end if there is reasonable expectation that these efforts will succeedappropriate measures will be effective in the short- term;
Amendment 999 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point b
Article 7 – paragraph 5 – subparagraph 1 – point b
(b) terminate the business relationship with respect to the activities concerned if the potential adverse impact is sevre is no reasonable expectation that these measures will be effective in the short-terem.
Amendment 1001 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 a (new)
Article 7 – paragraph 5 – subparagraph 1 a (new)
Member States shall ensure that undertaking assesses if potential adverse impacts can be prevented or if actual adverse impact can effectively be mitigated and brought to an end with trade union and workers’ representatives, and in consultation with affected stakeholders and stakeholders with a legitimate interest.
Amendment 1002 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 b (new)
Article 7 – paragraph 5 – subparagraph 1 b (new)
Prior to temporarily suspending commercial relations or terminating the business relationship, companies shall first be required to assess, in consultation with relevant stakeholders, the adverse impacts of doing so. Should the adverse impact associated with disengagement be deemed to be more severe than the adverse impact which is intended to be prevented or mitigated, and the adverse impact of the disengagement cannot be mitigated, companies may refrain from temporarily suspending commercial relations or terminating the business relationship. Companies shall refer to competent authorities to receive guidance on the course of action to take.
Amendment 1003 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 c (new)
Article 7 – paragraph 5 – subparagraph 1 c (new)
Undertakings shall take appropriate measures to identify, mitigate and bring to an end adverse impacts that have arisen before the suspension or termination of the business relationship.
Amendment 1004 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 d (new)
Article 7 – paragraph 5 – subparagraph 1 d (new)
Undertakings shall take appropriate measures to identify, prevent, mitigate and bring to an end adverse impacts that have arisen as a consequence of the suspension or termination of the business relationship.
Amendment 1007 #
Member States shall provide for the availability of an option to suspend or terminate the business relationship in contracts governed by their laws.
Amendment 1014 #
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 1018 #
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to mitigate and 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 Articleon human rights, the environment and good governance occurring in their own activities, products and services, those of their subsidiaries and in their value chain.
Amendment 1022 #
Proposal for a directive
Article 8 – paragraph 1 a (new)
Article 8 – paragraph 1 a (new)
1a. Member States shall ensure that, when an undertaking identifies an adverse impact on human rights, the environment and good governance in its own operations, products and services, those of its subsidiaries or in its value chains, it takes all appropriate measures to bring it to an end without delay.
Amendment 1025 #
Proposal for a directive
Article 8 – paragraph 2
Article 8 – paragraph 2
2. Where the adverse impact cannot immediately be brought to an end, Member States shall ensure that companies first minimise the extent of such an impact to the greatest extent possible, while developing a corrective action plan to bring the adverse impact to an end without delay.
Amendment 1029 #
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 relevantappropriate measures, including the following:
Amendment 1030 #
Proposal for a directive
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
(a) neutralise the adverse impact or minimise its extent, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. Remediation may take a range of substantive forms and may include apologies, restitution, rehabilitation, financial or non-financial compensation, restoration of the environment to its previous state, as well as the prevention of further harm through, for example, appropriate measures of prevention and guarantees of non-repetition;
Amendment 1031 #
Proposal for a directive
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
(a) neutralise the adverse impact or minimise its extent, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. The nature of appropriate measures for remediation shall be adequate and defined in meaningful consultation with affected stakeholders;
Amendment 1033 #
Proposal for a directive
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
(a) neutralise the adverse impact or minimise its extent, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. The appropriate measures for remediation shall take into account that the adverse impacts can affect different groups of stakeholders;
Amendment 1036 #
Proposal for a directive
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
(a) neutralise the adverse impact or minimise its extent, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The acaking all appropriate measures with a view to fully remediate or adequately contribute to the full remediation of adverse impacts. The appropriate measures for remediation shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact;.
Amendment 1040 #
Proposal for a directive
Article 8 – paragraph 3 – point -a a (new)
Article 8 – paragraph 3 – point -a a (new)
(aa) adapt any product, service, process, operation, facility or project, whether existing or future, to the extent necessary;
Amendment 1041 #
Proposal for a directive
Article 8 – paragraph 3 – point -a b (new)
Article 8 – paragraph 3 – point -a b (new)
(ab) if necessary, discontinue any existing or future product, service, process, operation, facility or project;
Amendment 1046 #
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 actionthe implementation of appropriate measures and qualitative and quantitative indicators for measuring improvement. Where relevant, tThe corrective action plan shall be developed with trade unions and workers’ representatives, in consultation with affected stakeholders;.
Amendment 1050 #
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 value chain (contractual cascading). When such contractualAgreements concluded with and assurances are obtained, paragraph 5 shall apply from business relationships regarding the prevention of potential adverse impacts shall be fair and equitable, taking into account the resources of the business partner.
Amendment 1051 #
Proposal for a directive
Article 8 – paragraph 3 – point c
Article 8 – paragraph 3 – point c
(c) seek contractualobtain assurances from a directbusiness partner with whom it has an established direct business relationship that it will ensure compliance with the code of conductrespect human rights, the environment and good governance and, as necessary, a correctiveprevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that theyir activities are part of the company’s value chain (contractual cascading). When such contractual assurances are obtained, paragraph 5 shall apply.
Amendment 1055 #
Proposal for a directive
Article 8 – paragraph 3 – point d
Article 8 – paragraph 3 – point d
(d) make necessary investmentmodifications, improvements to, or investments in, the undertaking’s own operations, such as into management or, production processes and infrastructures to comply with paragraphs 1, 2 and 3or other operational processes, facilities, products and product traceability, services and skills, in order to bring the impact to an end, remedy it or prevent it from recurring;;
Amendment 1056 #
Proposal for a directive
Article 8 – paragraph 3 – point d
Article 8 – paragraph 3 – point d
(d) make necessary investments, such as into management or production processes and infrastructures to comply with paragraphs 1, 2 and 3, and adopt pricing mechanisms that contribute to living wages and incomes for their suppliers, to comply this Article;
Amendment 1056 #
Proposal for a directive
Article 8 – paragraph 3 – point d
Article 8 – paragraph 3 – point d
(d) make necessary investments, such as into management or production processes and infrastructures to comply with paragraphs 1, 2 and 3, and adopt pricing mechanisms that contribute to living wages and incomes for their suppliers, to comply this Article;
Amendment 1059 #
Proposal for a directive
Article 8 – paragraph 3 – point d a (new)
Article 8 – paragraph 3 – point d a (new)
(da) adapt business models and strategies, including trading, employment, procurement and pricing practices, in order to prevent potential adverse impacts;
Amendment 1060 #
Proposal for a directive
Article 8 – paragraph 3 – point d b (new)
Article 8 – paragraph 3 – point d b (new)
(db) for undertakings who detain shares, exercise their voting rights and influence with a view to mitigate, cease and remediate adverse impacts on human rights, the environment and good governance;
Amendment 1062 #
Proposal for a directive
Article 8 – paragraph 3 – point e
Article 8 – paragraph 3 – point e
(e) provide targeted and proportionate support for an SME with which the company has an establiswhen necessary, to take into consideration the resources, knowledge and constraints of thed business relationship, where compliance with the code of conduct or the corrective action plan would jeopardise the viability of the SME and provide support to ensure the mitigation, cessation and remediation of adverse impacts and compliance with the corrective action plan;
Amendment 1067 #
Proposal for a directive
Article 8 – paragraph 3 – point e a (new)
Article 8 – paragraph 3 – point e a (new)
(ea) engage with a partner with which the undertaking has a business relationship about the undertaking’s expectations with regard to bringing to an end and mitigating adverse impacts, including providing or enabling access to capacity- building, guidance, financial support or participation in collaborative initiatives;
Amendment 1071 #
Proposal for a directive
Article 8 – paragraph 3 – point f
Article 8 – paragraph 3 – point f
(f) in compliance with Union law including competition law, collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective.
Amendment 1075 #
Proposal for a directive
Article 8 – paragraph 4
Article 8 – paragraph 4
Amendment 1077 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1
Article 8 – paragraph 5 – subparagraph 1
The contractual assurances or the contract shall be accompanied by the appropriate measures to verify complianceassurances obtained from business relationships in accordance with this Article shall be fair and equitable, accompanied by the appropriate measures to support carrying out due diligence and verify their effectivity. For the purposes of verifying compliance, the company may refer to suitable industry initiatives or independent third-party verification.
Amendment 1079 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1
Article 8 – paragraph 5 – subparagraph 1
The contractual assurances or the contract shall be accompanied by the appropriate measures to verify compliance. For the purposes of verifying compliance, the company may refer to suitable industry initiatives or independent third-party verification.
Amendment 1082 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1 a (new)
Article 8 – paragraph 5 – subparagraph 1 a (new)
Resorting to industry initiatives or third- party verification shall not in itself be considered sufficient to comply with the provisions of this Article. Undertakings resorting to industry initiatives or third- party verification may still be found liable for violations of this Directive and damage suffered by victims as a result.
Amendment 1083 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1 b (new)
Article 8 – paragraph 5 – subparagraph 1 b (new)
Contractual provisions and assurance obtained from business relationships shall not seek to and cannot transfer the responsibility to comply with this Directive onto them.
Amendment 1087 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – introductory part
Article 8 – paragraph 6 – subparagraph 1 – introductory part
Amendment 1094 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point a
Article 8 – paragraph 6 – subparagraph 1 – point a
(a) temporarily suspend commercial relationships with the partner in question, while pursuing efforts to bring to an end or minimise the extent of the adverse impact, oradopting appropriate measures to mitigate and bring adverse impacts to an end, if there is reasonable expectation that these appropriate measures will be effective in the short-term;
Amendment 1099 #
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 severere is no reasonable expectation that these measures will be effective in the short-term.
Amendment 1105 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 a (new)
Article 8 – paragraph 6 – subparagraph 1 a (new)
Member States shall ensure that undertaking assesses if actual adverse impact can effectively be mitigated and brought to an end with trade union and workers’ representatives, and in consultation with affected stakeholders and stakeholders with a legitimate interest.
Amendment 1106 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 b (new)
Article 8 – paragraph 6 – subparagraph 1 b (new)
Prior to temporarily suspending commercial relations or terminating the business relationship, companies shall first be required to assess, in consultation with relevant stakeholders, the adverse impacts of doing so. Should the adverse impact associated with disengagement be deemed to be more severe than the adverse impact, which is intended to be prevented or mitigated, and the adverse impact of the disengagement cannot be mitigated, companies may refrain from temporarily suspending commercial relations or terminating the business relationship. Companies shall refer to competent authorities to receive guidance on the course of action to take.
Amendment 1107 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 c (new)
Article 8 – paragraph 6 – subparagraph 1 c (new)
Undertakings shall take appropriate measures to identify, mitigate and bring to an end adverse impacts that have arisen before the suspension or termination of the business relationship.
Amendment 1108 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 d (new)
Article 8 – paragraph 6 – subparagraph 1 d (new)
Undertakings shall take appropriate measures to identify, prevent, mitigate and bring to an end adverse impacts that have arisen as a consequence of the suspension or termination of the business relationship.
Amendment 1109 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 e (new)
Article 8 – paragraph 6 – subparagraph 1 e (new)
Amendment 1113 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 2
Article 8 – paragraph 6 – subparagraph 2
Member States shall provide for the availability of an option to suspend or terminate the business relationship in contracts governed by their laws.
Amendment 1119 #
Proposal for a directive
Article 8 – paragraph 7
Article 8 – paragraph 7
Amendment 1124 #
Proposal for a directive
Article 8 a (new)
Article 8 a (new)
Amendment 1126 #
Proposal for a directive
Article 8 b (new)
Article 8 b (new)
Amendment 1129 #
Proposal for a directive
Article 9 – title
Article 9 – title
Amendment 1133 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that companies provide the possibility forestablish or participate in effective grievance mechanisms at operational level, both as an early- warning risk-awareness and as a remediation system, that can be used by persons and organisations listed in paragraph 2 to submit complaints to themraise grievances and request remedy where they have 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 value chains.
Amendment 1141 #
Proposal for a directive
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
1a. Member States shall ensure that companies are enabled to provide such a mechanism through collaborative arrangements with other companies or organisations, by participating in multi- stakeholder grievance mechanisms or joining a Global Framework Agreement.
Amendment 1144 #
Proposal for a directive
Article 9 – paragraph 1 b (new)
Article 9 – paragraph 1 b (new)
1b. Member States shall ensure that grievance mechanisms, as referred to in paragraph 1, shall be legitimate, accessible, predictable, safe, equitable, transparent, rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in Principle 31 of the United Nations Guiding Principles on Business and Human Rights and the United Nations Committee on the Rights of the Child General Comment No 16.
Amendment 1146 #
Proposal for a directive
Article 9 – paragraph 1 c (new)
Article 9 – paragraph 1 c (new)
1c. Member States shall ensure that trade unions, workers’ representatives and affected stakeholders play a central role in the design and evaluation of such independent grievance mechanisms.
Amendment 1147 #
Proposal for a directive
Article 9 – paragraph 1 d (new)
Article 9 – paragraph 1 d (new)
1d. Member States shall ensure that undertakings provide information to actual and potentially affected rights holders and other stakeholders on such grievance mechanisms, including on how to access them, decisions and remedies relating to a company and how the company is implementing them.
Amendment 1150 #
Proposal for a directive
Article 9 – paragraph 1 e (new)
Article 9 – paragraph 1 e (new)
1e. All information published by grievance mechanisms shall be published in a manner that does not endanger the stakeholders’ safety, including by not disclosing their identity.
Amendment 1152 #
Proposal for a directive
Article 9 – paragraph 1 f (new)
Article 9 – paragraph 1 f (new)
1f. All communication and procedures of the grievance mechanism shall be accessible to affected stakeholders in a language that suits them.
Amendment 1155 #
Proposal for a directive
Article 9 – paragraph 2 – introductory part
Article 9 – paragraph 2 – introductory part
2. Member States shall ensure that the complaintgrievances may be submittraised by:
Amendment 1163 #
Proposal for a directive
Article 9 – paragraph 2 – point b
Article 9 – paragraph 2 – point b
(b) trade unions and other workers’ representatives, including those representing individuals working in the value chain concerned,
Amendment 1165 #
Proposal for a directive
Article 9 – paragraph 2 – point b a (new)
Article 9 – paragraph 2 – point b a (new)
(ba) business partners that are unable to prevent adverse impacts due to unfair purchasing practices and other unfair practices of an undertaking;
Amendment 1169 #
Proposal for a directive
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) civil society organisations active in the areas related to the value chain concerned.,
Amendment 1170 #
Proposal for a directive
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) civil society organisations active in the areas related to the value chain concerned.that have a legitimate interest;
Amendment 1173 #
Proposal for a directive
Article 9 – paragraph 2 – point c a (new)
Article 9 – paragraph 2 – point c a (new)
(ca) legal or natural persons defending human rights, good governance and the environment.
Amendment 1174 #
Proposal for a directive
Article 9 – paragraph 2 a (new)
Article 9 – paragraph 2 a (new)
2a. Companies shall take measures to ensure that complainants are free from retaliation or retribution, including by ensuring that complaints can be raised either anonymously or confidentially, as appropriate in accordance with national law, and adopt and implement policies to that effect
Amendment 1180 #
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 complaints referred to in paragraph 1, including a procedure when the company considers the complaint to be unfounded, and inform the relevant workers and, trade unions and affected stakeholders of those procedures. Member States shall ensure that where the complaint is well-founded, the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of Article 6.
Amendment 1186 #
Proposal for a directive
Article 9 – paragraph 4 – introductory part
Article 9 – paragraph 4 – introductory part
4. Member States shall ensure that complainants and their representatives are entitled
Amendment 1188 #
Proposal for a directive
Article 9 – paragraph 4 – point -a (new)
Article 9 – paragraph 4 – point -a (new)
(-a) to guarantees of non-retaliation, confidentiality and anonymity for all actual and potentially affected stakeholders
Amendment 1189 #
Proposal for a directive
Article 9 – paragraph 4 – point -a a (new)
Article 9 – paragraph 4 – point -a a (new)
(-aa) to receive timely and effective information on the steps and actions taken in the context of a specific grievance filed to the independent grievance mechanism
Amendment 1193 #
Proposal for a directive
Article 9 – paragraph 4 – point a
Article 9 – paragraph 4 – point a
(a) to requestceive timely, effective and appropriate follow-up on the complaint from the companyin writing from the grievance mechanism, with which they have filed a complaint pursuant to paragraph 1, providing substantiated reasoning as to whether a claim has been considered unfounded or founded and
Amendment 1199 #
Proposal for a directive
Article 9 – paragraph 4 – point b
Article 9 – paragraph 4 – point b
(b) to engage with the grievance mechanism directly and meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint.
Amendment 1201 #
Proposal for a directive
Article 9 – paragraph 4 – point b a (new)
Article 9 – paragraph 4 – point b a (new)
(ba) to request that companies fully remediate or contribute to the full remediation of actual adverse impacts. The remedy shall be proportionate to the significance and scale of the adverse impact.
Amendment 1203 #
Proposal for a directive
Article 9 – paragraph 4 – point b b (new)
Article 9 – paragraph 4 – point b b (new)
(bb) to receive in writing a timely and substantiated answer from the undertaking to a request for remediation.
Amendment 1204 #
Proposal for a directive
Article 9 – paragraph 4 a (new)
Article 9 – paragraph 4 a (new)
4a. Member States shall ensure that supervisory authorities are empowered to issue guidance to companies and other actors responsible for developing and administering complaints mechanisms, including in relation to their compliance with the criteria set out in this Article, in line with relevant international standards.
Amendment 1208 #
Proposal for a directive
Article 9 – paragraph 4 b (new)
Article 9 – paragraph 4 b (new)
4b. Raising a concern under this Article shall not be a prerequisite nor preclude claimants from having access to the substantiated concerns procedure under Article19 nor to judicial or other non-judicial mechanisms.
Amendment 1212 #
Proposal for a directive
Article 10 – paragraph 1
Article 10 – paragraph 1
Member States shall ensure that companies cregularrly out periodic assessments of their own operations and measures, those of their subsidiaries and, where related to the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, mitigation, bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. Such assessmentsverify and monitor the adequacy and effectiveness of their actions taken in accordance with Article 4. Companies shall be required to carry out monitoring and verification in consultation with affected stakeholders and it shall be based, where appropriatpossible, on qualitative and quantitative indicators and be carried out at least every 12 months, taking into account the nature, severity and likelihood of the adverse impacts in question and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. TWhere appropriate, the due diligence policy shall beand public communication shall be reviewed and updated in accordance with the outcome of those assessments.
Amendment 1220 #
Proposal for a directive
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
Companies shall retain documentation demonstrating their compliance with this Article for at least 5years.
Amendment 1222 #
Proposal for a directive
Article 11 – paragraph -1 (new)
Article 11 – paragraph -1 (new)
-1. Requirements on companies to report on their due diligence process established in Directive 2013/34/EU shall be understood as a requirement for companies to describe how they conduct due diligence as provided for in Article 4.
Amendment 1225 #
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
Member States shall ensure that companies that are not subject to reporting requirements under Articles 19a and 29a of Directive 2013/34/EU report on the matters covered by this Directive by publishing on their website an annual statement in a language customary in the sphere of international business. The statement shall be published by 30 April each year, coveringthat meets the requirements set out in Directive 2013/34/EU and in the present Directive, in a language customary in the sphere of international business, and audited in line with the previous calendar year. quirements outlined in Directive 2006/43/EC
Amendment 1229 #
Proposal for a directive
Article 11 – paragraph 1 a (new)
Article 11 – paragraph 1 a (new)
Members States shall ensure that any person who considers that his or her request for information has been ignored, wrongfully refused, whether in part or in full, inadequately answered, or otherwise not dealt with in accordance with the provisions of that article, has access to a review procedure before a court of law
Amendment 1231 #
Proposal for a directive
Article 11 – paragraph 1 b (new)
Article 11 – paragraph 1 b (new)
When fulfilling the requirements of Directive 2013/34/EU to report on actions taken to identify potential or actual adverse impacts, companies shall disclose the mapping of their individual operations, subsidiaries and business relationships, including names, locations, types of products and services supplied, and other relevant information concerning subsidiaries, suppliers, subcontractors and business relationships.
Amendment 1232 #
Proposal for a directive
Article 11 – paragraph 1 b (new)
Article 11 – paragraph 1 b (new)
The reports on due diligence published by undertakings in accordance with Directive 2013/34/EU and the present Directive shall be publicly accessible for 30 years.
Amendment 1233 #
This reporting should be accessible and sufficiently detailed to demonstrate the adequacy of an undertaking’s due diligence process as per article 4.
Amendment 1241 #
Proposal for a directive
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
Member States shall ensure that undertakings effectively and meaningfully consult affected stakeholders by carrying out effective, meaningful and informed engagement with them on the actions provided for in Articles 4 to 11.
Amendment 1243 #
Proposal for a directive
Article 11 – paragraph 2 b (new)
Article 11 – paragraph 2 b (new)
Undertakings shall consult affected stakeholders proactively and regularly throughout their operations and throughout the due diligence process.
Amendment 1244 #
Proposal for a directive
Article 11 – paragraph 2 c (new)
Article 11 – paragraph 2 c (new)
Amendment 1247 #
Proposal for a directive
Article 11 – paragraph 2 d (new)
Article 11 – paragraph 2 d (new)
Undertakings shall provide sufficient information for affected stakeholders to fully understand the implications of the products, services, operations and projects of the undertaking and its subsidiaries for them.
Amendment 1249 #
Proposal for a directive
Article 11 – paragraph 2 e (new)
Article 11 – paragraph 2 e (new)
Affected stakeholders shall have the right to request additional information, which shall be provided by the undertaking without delay, in an appropriate and comprehensible format for the affected stakeholders.
Amendment 1250 #
Proposal for a directive
Article 11 – paragraph 2 f (new)
Article 11 – paragraph 2 f (new)
If the undertaking refuses a request for additional information submitted by affected stakeholders, the affected stakeholder shall be entitled to timely and written justification for that refusal.
Amendment 1251 #
Proposal for a directive
Article 11 – paragraph 2 g (new)
Article 11 – paragraph 2 g (new)
The consultation of affected stakeholders shall take due account of barriers to participation faced by affected stakeholders, in particular fear of retaliation and retribution, and of the specific needs of vulnerable stakeholders.
Amendment 1252 #
Proposal for a directive
Article 11 – paragraph 2 h (new)
Article 11 – paragraph 2 h (new)
Workers and their representatives shall be informed by their undertaking on its due diligence strategy and the implementation thereof, to which they shall be able to contribute. For workers in the EU, this shall be done in accordance with Directive 2002/14/EC of the European Parliament and of the Council and Directive 2009/38/EC of the European Parliament and of the Council, and Council Directive 2001/86/EC of the European Parliament and of the Council.
Amendment 1253 #
Proposal for a directive
Article 11 – paragraph 2 i (new)
Article 11 – paragraph 2 i (new)
In consulting affected stakeholders, companies shall ensure that participants are not the subject of retaliation or retribution, including by maintaining confidentiality or anonymity. Companies shall respect the rights of and pay particular attention to the needs of vulnerable or marginalised stakeholders, including women and children, Indigenous Peoples and overlapping vulnerabilities and intersecting factors and ensure a gender-responsive approach
Amendment 1254 #
Proposal for a directive
Article 11 – paragraph 2 m (new)
Article 11 – paragraph 2 m (new)
Companies should also ensure that consultation processes respect and do not undermine the rights of indigenous peoples and other communities with collective customary land and resource rights, as laid out in international human rights laws and principles, including their customary tenure and natural resources rights (and restitution of lands and resources when unlawfully expropriated), their right to give or withhold free, prior and informed consent and their right to self-determination.
Amendment 1257 #
Proposal for a directive
Article 12
Article 12
Amendment 1265 #
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, including in relation to rights and protections enshrined in international human rights instruments listed in Annex Part I, the Commission, in consultation with Member States, trade unions and stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, the European Labour Authority and where appropriate with international bodies having expertise in due diligence, mayshall issue guidelines, including for specific sectors, specific areas or specific adverse impacts or contexts, such as situations of conflict or occupation.
Amendment 1273 #
Proposal for a directive
Article 13 – paragraph 1 a (new)
Article 13 – paragraph 1 a (new)
The Commission may issue guidelines on combatting adverse human rights, environmental and good governance impacts affecting women and girls.
Amendment 1275 #
Proposal for a directive
Article 14 – paragraph -1 (new)
Article 14 – paragraph -1 (new)
-1. Member States shall provide information and effective support to potentially affected and affected stakeholders, including dedicated websites, platforms or portals, legal counsel and administrative support to claim rights provided to them by this Directive.
Amendment 1281 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shall, in order to provide information and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this Directive, set up and operate individually or jointly dedicated websites, platforms or portals. Specific consideration shall be given, in that respect, to the SMEs that are present in the value chains of companies.
Amendment 1283 #
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Without prejudice to applicable State aid rules, Member States may financially support SMEs for the purpose of compliance with this Directive. Member States may provide financial support to stakeholders for the purpose of raising their awareness and facilitating access to the rights provided to them by this Directive.
Amendment 1291 #
3a. The Commission may provide capacity-building, legal counsel, financial and administrative support for potentially affected and affected stakeholders to claim rights provided to them by this Directive.
Amendment 1293 #
Proposal for a directive
Article 14 – paragraph 3 b (new)
Article 14 – paragraph 3 b (new)
3b. Member States and the Commission shall provide support and protection for workers’ rights defenders, human rights and environmental defenders in relation to potential or actual adverse impacts related to business operations.
Amendment 1298 #
Proposal for a directive
Article 14 – paragraph 4
Article 14 – paragraph 4
4. Companies may rely onuse credible industry schemes and multi-stakeholder initiatives to support the implementation of their obligations referred to in Articles 5 to 11 of this Directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. The Commission and the Member States may facilitate the dissemination of information on the precise scope and credibility of such schemes or initiatives and their outcome. The Commission, in collaboration with Member States, mayshall issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives.
Amendment 1303 #
Proposal for a directive
Article 14 – paragraph 4 a (new)
Article 14 – paragraph 4 a (new)
4a. Reliance on industry schemes and multi-stakeholder initiatives does not diminish the obligations of undertakings to perform due diligence in line with this Directive, nor can it prevent them from being held liable for violations of their obligations and to repair damages.
Amendment 1305 #
Proposal for a directive
Article 14 – paragraph 4 b (new)
Article 14 – paragraph 4 b (new)
4b. The company shall be responsible for assessing the reliability and quality of any initiative or independent third party verification provider that they use or participate in, and the accuracy and quality of the information they receive or activities undertaken by the initiative or verification provider.
Amendment 1306 #
Proposal for a directive
Article 14 – paragraph 4 c (new)
Article 14 – paragraph 4 c (new)
Amendment 1318 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Member States shall ensure that companies referred to in Article 2(1), point (a), and Article 2(2), point (a), shall adopt a plan to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. This plan shall, in particular, identify, on the basis of information reasonably available to the company, the extent to which climate change is a risk for, or an impact of, the company’s operation, the objective of achieving climate neutrality by 2050 and the 2030 climate target established in Regulation (EU) 2021/1119, and pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change. That plan shall be developed in consultation with stakeholders.
Amendment 1319 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Member States shall ensure that companies referred to in Article 2(1), point (a), and Article 2(2), point (a), shall adop,shall adopt and effectively implement a plan to ensure that the business model and strategy of the company are compatiblealigned with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. This plan shall, in particular, identify, on the basis of information reasonably available to the company, the extent to which climate change is a risk for, or an impact of, the company’s operations.
Amendment 1323 #
Proposal for a directive
Article 15 – paragraph 1 a (new)
Article 15 – paragraph 1 a (new)
1a. This plan shall include short, medium and long-term targets related to sustainability matters, including absolute greenhouse gas emission reduction targets for scope 1, 2 and 3 emissions for 2030 and reviewed every five years up to 2050, explaining their alignment with a 1.5⁰C climate scenario with no or limited overshoot and based on current scientific evidence and data.
Amendment 1324 #
Proposal for a directive
Article 15 – paragraph 1 b (new)
Article 15 – paragraph 1 b (new)
1b. This plan shall be evidence based, regularly updated in line with the best available science, take into account the entire value chain and address scope 1, 2 and 3 emissions;
Amendment 1325 #
Proposal for a directive
Article 15 – paragraph 1 c (new)
Article 15 – paragraph 1 c (new)
1c. Companies active in the energy and agricultural sectors shall specify the share of methane emissions in the total of their emissions, and adopt a methane emissions reduction plan.
Amendment 1326 #
Proposal for a directive
Article 15 – paragraph 1 d (new)
Article 15 – paragraph 1 d (new)
1d. This plan shall include a description of the progress the company has made towards achieving those targets, implementing actions and related financial and investment plans to achieve the company’s climate targets, covering their scope 1, 2, and 3 emissions
Amendment 1327 #
1e. This plan shall define implementing actions for each scope and target, associated with an explanation of decarbonisation levers identified;
Amendment 1328 #
Proposal for a directive
Article 15 – paragraph 1 f (new)
Article 15 – paragraph 1 f (new)
1f. The undertaking shall define and commit to the financial and investments plans designed to reach the targets set out in the plan adopted in line with this Article.
Amendment 1329 #
Proposal for a directive
Article 15 – paragraph 1 g (new)
Article 15 – paragraph 1 g (new)
1g. Member States shall ensure that directors are directly and personally responsible for overseeing the obligations set out in this Article.
Amendment 1332 #
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
2. Member States shall ensure that, in case climate change is or should have been identified as a principal risk for, or a principal impact of, the company’s operations, the company includes emission reduction objectives in its plan each undertaking’s plan is evidence- based, regularly updated and is clear, transparent, accurate, comprehensive, comparable and consistent, by following best practices.
Amendment 1335 #
Proposal for a directive
Article 15 – paragraph 3
Article 15 – paragraph 3
3. Member States shall ensure that companies duly take into account the fulfilment of the obligations referred to in paragraphs 1 and 2 when setting variable remuneration, if variable remuneration is linked to the contribution of a director to the company’s business strategy and long- term interests and sustainabilityundertakings link half of directors’ variable remuneration with the fulfilment of the obligations referred to in paragraphs 1 and 2.
Amendment 1338 #
Proposal for a directive
Article 16 – paragraph 1 a (new)
Article 16 – paragraph 1 a (new)
1a. Member States shall regularly publish an up to date list of authorised representatives under their jurisdiction.
Amendment 1349 #
7. The Commission shall make publicly available, including on its website, a list of the supervisory authorities, and, when a Member State has several supervisory authorities, the respective competences of those authorities. The Commission shall regularly update the list on the basis of the information received from the Member States.
Amendment 1351 #
Proposal for a directive
Article 17 – paragraph 8
Article 17 – paragraph 8
Amendment 1354 #
Proposal for a directive
Article 17 – paragraph 8 a (new)
Article 17 – paragraph 8 a (new)
8a. Member States shall ensure that supervisory authorities publish and make available an annual report detailing their past activities, future work plan and priorities. This includes reporting on closed investigations and their results, potential sanctions or other decisions on investigations.
Amendment 1356 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to request information and carry out investigationsobtain all relevant information from undertakings and carry out investigations, including on-the-spot checks and interviews of relevant stakeholders, in particular trade unions and workers’ representatives, related to compliance with the obligations set out in this Directive.
Amendment 1361 #
Proposal for a directive
Article 18 – paragraph 1 a (new)
Article 18 – paragraph 1 a (new)
1a. Without prejudice to their independence, supervisory authorities may also provide assistance to companies seeking to effectively implement their due diligence plans, and issue guidance and information on due diligence best practices.
Amendment 1365 #
Proposal for a directive
Article 18 – paragraph 2
Article 18 – paragraph 2
2. A supervisory authority may initiate an investigation on its own motion or as a result of substantiated concerns communicated to it pursuant to Article 19, where it considers that it has sufficient information indicating a possible breach by a company of the obligations provided for in the national provisions adopted pursuant to this Directive.
Amendment 1366 #
Proposal for a directive
Article 18 – paragraph 2 a (new)
Article 18 – paragraph 2 a (new)
2a. A supervisory authority may initiate an investigation on its own motion or as a result of substantiated concerns communicated to it pursuant to Article 19, where it considers that it has information indicating a possible misconduct by an entity engaged in independent third-party verification, an industry initiative or multi-stakeholder initiatives which may lead to a breach by an undertaking of these provisions.
Amendment 1369 #
Proposal for a directive
Article 18 – paragraph 3
Article 18 – paragraph 3
3. Inspections shall be conducted in compliance with the national law of the Member State in which the inspection is carried out and without prior warning to the company, except where prior notification hindersis necessary in order to ensure the effectiveness of the inspection. Where, as part of its investigation, a supervisory authority wishes to carry out an inspection on the territory of a Member State other than its own, it shall seek assistance from the supervisory authority in that Member State pursuant to Article 21(2).
Amendment 1371 #
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 1
Article 18 – paragraph 4 – subparagraph 1
If, as a result of the actions taken pursuant to paragraphs 1 and 2, a supervisory authority identifies a failure to comply with national provisions adopted pursuant to this Directive, it shallmay grant the company concerned an appropriate period of time to take remedial action, if such action is possible.
Amendment 1375 #
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 2
Article 18 – paragraph 4 – subparagraph 2
Taking remedial action does not preclude the imposition of administrative sanctions or the triggering of civil liability, including in case of damages, in accordance with Articles 20 and 22, respectively.
Amendment 1379 #
Proposal for a directive
Article 18 – paragraph 5 – point a
Article 18 – paragraph 5 – point a
(a) to order the cessation of infringements of the national provisions adopted pursuant to this Directive, abstention from any repetition of the relevant conduct and, where appropriate, remedial action proportionate to the infringement and necessary to bring it to an enddamage that the undertaking has caused or contributed to;
Amendment 1383 #
Proposal for a directive
Article 18 – paragraph 5 – point c
Article 18 – paragraph 5 – point c
(c) to adopt interim measures to avoid the risk of severe and irreparable harm.
Amendment 1392 #
Proposal for a directive
Article 18 – paragraph 6 a (new)
Article 18 – paragraph 6 a (new)
6a. Supervisory authorities shall publish each year and update without delays a list of all companies subject to this Directive.
Amendment 1393 #
Proposal for a directive
Article 18 – paragraph 6 b (new)
Article 18 – paragraph 6 b (new)
6b. The lists of undertakings subject to this Directive shall display links to access undertakings' due diligence reports.
Amendment 1394 #
Proposal for a directive
Article 18 – paragraph 6 c (new)
Article 18 – paragraph 6 c (new)
6c. Member States shall ensure that the supervisory authorities keep records of the investigations referred to in paragraph 1, indicating, in particular, their nature and result, as well as records of any notice of remedial action issued under paragraph 5. Competent authorities shall publish an annual activity report with the cases of non-compliance and explaining how they were dealt with, with due regard to commercial confidentiality.
Amendment 1397 #
7a. Decisions of supervisory authorities regarding a undertaking’s compliance with this Directive shall be without prejudice to the undertaking’s civil liability under Article 22.
Amendment 1399 #
Proposal for a directive
Article 18 – paragraph 7 b (new)
Article 18 – paragraph 7 b (new)
7b. In the context of ongoing civil liability proceedings, supervisory authorities shall share any information they may have at their disposal about a given undertaking with the court before which the proceedings brought under Article 22 are to be heard.
Amendment 1404 #
Proposal for a directive
Article 19 – paragraph 1 a (new)
Article 19 – paragraph 1 a (new)
1a. Member States shall ensure that, where persons submitting substantiated concerns so request, the supervisory authority takes the necessary measures for the appropriate protection of the identity of that person and for the appropriate protection of any other information, which, if disclosed, would be harmful to that person.
Amendment 1407 #
Proposal for a directive
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Where the substantiated concern falls under the competence of another supervisory authority, the authority receiving the concern shall transmit it to that authority and inform the person that has submitted a substantiated concern as provided for in paragraph 1.
Amendment 1411 #
Proposal for a directive
Article 19 – paragraph 4
Article 19 – paragraph 4
4. The supervisory authority shall, as soon as possible and in accordance with the relevant provisions of national law and in compliance with Union law, inform the person referred to in paragraph 1 of the result of the assessment of their substantiated concern and of its decision to accede to or refuse the request for action, and shall provide the reasoning for it.
Amendment 1412 #
Proposal for a directive
Article 19 – paragraph 4 a (new)
Article 19 – paragraph 4 a (new)
4a. The supervisory authority shall make available to the person that has submitted a substantiated concern all information regarding the measures taken, and shall allow that person to provide additional information in response to the evidence received from the undertaking.
Amendment 1413 #
Proposal for a directive
Article 19 – paragraph 5
Article 19 – paragraph 5
5. Member States shall ensure that the persons submitting the substantiated concern according to this Article and having, in accordance with national law, a legitimate interest in the matter have access to a court or other independent and impartial public body competent to review the procedural and substantive legality of the decisions, acts or failure to act of the supervisory authority.
Amendment 1415 #
Proposal for a directive
Article 19 – paragraph 5 a (new)
Article 19 – paragraph 5 a (new)
5a. Any such procedure shall be fair, equitable, timely and not prohibitively expensive. Member States shall ensure that practical information is made available to the public on access to administrative and judicial review procedures.
Amendment 1421 #
Proposal for a directive
Article 20 – paragraph 1
Article 20 – paragraph 1
1. Member States shall lay down the rules on sanctions applicable to infringements, and misconduct leading to infringements, of national provisions adopted pursuant to this Directive resulting from the investigation in Article 18, and shall take all measures necessary to ensure that they are implemented. The sanctions provided for shall be effective, proportionate and dissuasive.
Amendment 1426 #
Proposal for a directive
Article 20 – paragraph 1 a (new)
Article 20 – paragraph 1 a (new)
1a. Member States shall ensure that undertakings that allege that they have prioritised their action to justify not addressing a potential or actual adverse impact may still be held liable.
Amendment 1427 #
Proposal for a directive
Article 20 – paragraph 1 b (new)
Article 20 – paragraph 1 b (new)
1b. Member States shall ensure that when an undertaking alleges that is has had to prioritised its action to justify not addressing a potential or actual adverse impact, competent authorities carefully examine whether or not the prioritisation was strictly necessary before deciding on the liability of the undertaking.
Amendment 1428 #
Proposal for a directive
Article 20 – paragraph 1 c (new)
Article 20 – paragraph 1 c (new)
1c. Member States shall ensure that undertakings that have resorted to or relied on industry initiatives or schemes, multi-stakeholders initiatives, third-party verification or contractual clauses with business relationships may still be held liable.
Amendment 1434 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
2. In deciding whether to impose sanctions and, if so, in determining their nature and appropriate level, due account shall be taken of the company’s efforts to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as collaboration with other entities to address adverse impacts in its value chains, the severity and duration of the undertaking’s infringement, or the severity of any potential or actual adverse impact, as the case may be.
Amendment 1435 #
2. In deciding whether to impose sanctions and, if so, in determining their nature and appropriate level, due account shall be taken of the company’s efforts to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as collaboration with other entities to address adverse impacts in its value chains, as the case may bedegree to which the undertaking has dealt with complaints or proposals raised by stakeholders, including pursuant to Article 9.
Amendment 1436 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
2. In deciding whether to impose sanctions and, if so, in determining their nature and appropriate level, due account shall be taken of the company’s efforts to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as collaboration with other entities to address adverse impacts in its value chains, asnd the case may bfinancial benefits gained or losses avoided by the undertaking due to the infringement, if the relevant data are available.
Amendment 1437 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
2. In deciding whether to impose sanctions and, if so, in determining their nature and appropriate level, due account shall be taken of the company’s efforts to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as collaboration with other entities to address adverse impacts in its value chains, as the case may bnd any previous infringements by the undertaking of national provisions adopted pursuant to this Directive.
Amendment 1438 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
2. In deciding whether to impose sanctions and, if so, in determining their nature and appropriate level, due account shall be taken of the company’s efforts to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as collaboration with other entities to address adverse impacts in its value chains, as the case may bny other aggravating or mitigating factors applicable to the circumstances of the case..
Amendment 1439 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
2. In deciding whether to impose sanctions and, if so, in determining their nature and appropriate level, due account shall be taken of the company’s efforts to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as collaboration with other entities to address adverse impacts in its value chains, as the case may bend penalties imposed in respect of the same infringement in other Member States.
Amendment 1444 #
Proposal for a directive
Article 20 – paragraph 3
Article 20 – paragraph 3
3. When pecuniary sanctions are imposed, they shall be based on the company’s worldwide annual turnover and not exceed 10% of the undertaking or group of undertakings' worldwide annual turnover.
Amendment 1446 #
Proposal for a directive
Article 20 – paragraph 3 a (new)
Article 20 – paragraph 3 a (new)
3a. When an undertakings is found liable for repeated infringements, pecuniary sanctions shall not exceed 20% of the undertaking's or group of undertakings' annual worldwide turnover.
Amendment 1447 #
Proposal for a directive
Article 20 – paragraph 3 b (new)
Article 20 – paragraph 3 b (new)
3b. Member States may impose periodic penalty payments to undertakings not exceeding 5 % of the average daily turnover in the preceding financial year per day, calculated from the date set by that decision, in order to compel them to comply with the obligations of the present Directive, including obligations to remediate damage.
Amendment 1448 #
Proposal for a directive
Article 20 – paragraph 3 c (new)
Article 20 – paragraph 3 c (new)
3c. Sanctions may also include the request to perform an action, exclusion from public procurement, from State aid, from tax credits, from export credits, from trade missions and from advisory bodies to governments.
Amendment 1450 #
Proposal for a directive
Article 20 – paragraph 4
Article 20 – paragraph 4
4. Member States shall ensure that any decision of the supervisory authorities containing sanctions related to the breach of the provisions of this directive is published. and publicly available no later than a month after the sanction is imposed. This should include the methodology and criteria adopted for applying sanctions.
Amendment 1452 #
Proposal for a directive
Article 20 – paragraph 4 a (new)
Article 20 – paragraph 4 a (new)
4a. Member States shall ensure that a serious infringement by an undertaking of the national provisions adopted in accordance with this Directive constitutes a criminal offence, in particular when committed intentionally or with serious negligence.
Amendment 1453 #
Proposal for a directive
Article 20 – paragraph 4 b (new)
Article 20 – paragraph 4 b (new)
4b. Member States shall ensure that acts or omissions of directors of undertakings leading to a serious infringement by an undertaking of the national provisions adopted in accordance with this Directive constitutes a criminal offence, in particular when committed intentionally or with serious negligence.
Amendment 1454 #
Proposal for a directive
Article 21 – title
Article 21 – title
Amendment 1455 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1
Article 21 – paragraph 1 – subparagraph 1
The Commission shall set upEuropean Labour Authority shall set up, coordinate and supervise a European Network of Supervisory Authorities, composed of representatives of the supervisory authorities. The Network shall facilitate the cooperation of the supervisory authorities and the coordination and alignment of regulatory, investigative, sanctioning and supervisory practices of the supervisory authorities and, as appropriate, sharing of information among them.
Amendment 1458 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1 a (new)
Article 21 – paragraph 1 – subparagraph 1 a (new)
Member States shall cooperate with the European Labour Authority in order to identify all non-European undertakings covered by this Directive, in particular by providing all necessary information in order to assess whether a non-European undertaking fulfils the criteria set in Article 2.
Amendment 1459 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1 b (new)
Article 21 – paragraph 1 – subparagraph 1 b (new)
The European Labour Authority shall set up a public database listing all undertakings subject to this Directive.
Amendment 1460 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1 c (new)
Article 21 – paragraph 1 – subparagraph 1 c (new)
The list of undertakings shall link each undertaking’s name to the latest report it has published in accordance with Article 11. The list shall indicate which undertakings' have not published or are late in publishing their reports.
Amendment 1461 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 2
Article 21 – paragraph 1 – subparagraph 2
The Commission may inviteEuropean Labour Authority shall invite the European Agency for Fundamental Rights, the European Environment Agency, the European Labour Authority and the European Securities and Markets Authority and other Union agencies with relevant expertise in the areas covered by this Directive to join the European Network of Supervisory Authorities.
Amendment 1467 #
Proposal for a directive
Article 21 – paragraph 8 a (new)
Article 21 – paragraph 8 a (new)
8a. The European Labour Authority shall regularly communicate on the activities of the network.
Amendment 1477 #
Proposal for a directive
Article 22 – paragraph 1 – point a
Article 22 – paragraph 1 – point a
(a) they or an undertaking under their control failed to comply with the obligations laid down in Articles 7 and 8 and;this Directive and
Amendment 1482 #
Proposal for a directive
Article 22 – paragraph 1 – point b
Article 22 – paragraph 1 – point b
(b) as a result of this failure the undertaking or a undertaking under their control caused or contributed to an adverse impact that should have been identified, prevented, mitigated, brought to an end, remedied or its extent minimised through the appropriate measures laid down in Articles 7 and 8 occurredthis Directive and led to damage.
Amendment 1492 #
Proposal for a directive
Article 22 – paragraph 1 a (new)
Article 22 – paragraph 1 a (new)
1a. Member States shall ensure that undertakings are held liable to repair the damage that they or the undertakings they control have caused or contributed to as a result of a failure to comply with the obligations of this Directive.
Amendment 1497 #
Proposal for a directive
Article 22 – paragraph 2 – subparagraph 1
Article 22 – paragraph 2 – subparagraph 1
Amendment 1501 #
Notwithstanding paragraph 1, Member States shall ensure that where a company has taken the actions referred to in Article 7(2), point (b) and Article 7(4), or Article 8(3), point (c), and Article 8(5)demonstrates that it has taken all appropriate actions required by this Directive, it shall not be liable for damages caused by an adverse impact arising as a result of the activities of an indirect partner with whom it has an established business relationship, unless it was unreasonable, in the circumstances of the case, to expect that the action actually taken, including as regards verifying compliance, would be adequate to prevent, mitigate, bring to an end or minimise the extent of the adverse impact.
Amendment 1506 #
Proposal for a directive
Article 22 – paragraph 2 – subparagraph 2
Article 22 – paragraph 2 – subparagraph 2
In the assessment of the existence and extent of liability under this paragraph, due account shall be taken of the company’s efforts, insofar as they relate directly to the damage in question, to comply with any remedial action required of them by a supervisory authority, any investments made and any targeted support provided pursuant to Articles 7 and 8, as well as any collaboration with other entities to address adverse impacts in its value chainsany remedial action performed by the undertaking.
Amendment 1513 #
Proposal for a directive
Article 22 – paragraph 2 a (new)
Article 22 – paragraph 2 a (new)
2a. Member States shall ensure that the limitation period for bringing actions for damages is at least twenty-five years, and that such period is to be interrupted or suspended, depending on national law, if the supervisory authority is taking action under Article 18. The suspension shall end at the earliest one year after the decision of the supervisory authority;
Amendment 1515 #
Proposal for a directive
Article 22 – paragraph 2 b (new)
Article 22 – paragraph 2 b (new)
2b. Member States shall ensure that claimants are able to seek injunctive measures before Union courts, including summary proceedings. These shall be in the form of a definitive or provisional measure to cease an action which may be in breach of this Directive, or to comply with a measure in this Directive
Amendment 1517 #
Proposal for a directive
Article 22 – paragraph 2 c (new)
Article 22 – paragraph 2 c (new)
2c. Member States shall ensure that measures are in place to ensure that costs of the proceedings are not prohibitively expensive for claimants to seek justice, which may include structural support, legal aid and limitation of court and administrative fees
Amendment 1518 #
Proposal for a directive
Article 22 – paragraph 2 d (new)
Article 22 – paragraph 2 d (new)
2d. Member States shall ensure that when a claim is brought, that a claimant provides elements substantiating the likelihood of a undertaking’s liability under this Directive, a claimant can request acts of investigations by public authorities, such as searches, including in the facility of the undertaking and an production sites, expertise, and analysis of evidence.
Amendment 1519 #
Proposal for a directive
Article 22 – paragraph 2 e (new)
Article 22 – paragraph 2 e (new)
2e. Member States shall ensure that when a claim is brought, that a claimant provides elements substantiating the likelihood of a undertaking’s liability under this Directive and has indicated that additional evidence may lie in the control of the undertaking, courts are able to order that such evidence be disclosed by the undertaking in accordance with national procedural law, subject to the Union and national rules on confidentiality and proportionality.
Amendment 1520 #
Proposal for a directive
Article 22 – paragraph 2 f (new)
Article 22 – paragraph 2 f (new)
2f. The courts of the Member States shall accept primafacie evidence that an entity is under the control or the ability to control of an undertaking, unless the undertaking can prove otherwise.
Amendment 1521 #
Proposal for a directive
Article 22 – paragraph 2 g (new)
Article 22 – paragraph 2 g (new)
2g. Member States shall take measures to remove language barriers for claimants, including by providing translation of documents and interpretation during proceedings
Amendment 1522 #
Proposal for a directive
Article 22 – paragraph 2 h (new)
Article 22 – paragraph 2 h (new)
2h. Member States shall ensure that trade union organisations and civil society organisations acting in the public interest can bring representative actions before courts on behalf of the collective interests of victims of adverse impacts, and that these entities have the rights and obligations of a claimant party in the proceedings.
Amendment 1523 #
Proposal for a directive
Article 22 – paragraph 2 i (new)
Article 22 – paragraph 2 i (new)
2i. Member States shall ensure that undertakings that allege that they have prioritised their action to justify not addressing a potential or actual adverse impact may still be held liable under this Article.
Amendment 1524 #
Proposal for a directive
Article 22 – paragraph 2 j (new)
Article 22 – paragraph 2 j (new)
2j. Member States shall ensure that when an undertaking alleges that is has had to prioritised its action to justify not addressing a potential or actual adverse impact, competent authorities carefully examine whether or not the prioritisation was strictly necessary before deciding on the liability of the undertaking.
Amendment 1525 #
Proposal for a directive
Article 22 – paragraph 2 k (new)
Article 22 – paragraph 2 k (new)
2k. Member States shall ensure that undertakings that have resorted to or relied on industry initiatives or schemes, multi-stakeholders initiatives, third-party verification or contractual clauses with business relationships may still be held liable.
Amendment 1530 #
Proposal for a directive
Article 22 – paragraph 4
Article 22 – paragraph 4
4. The civil liability rules under this Directive shall be without prejudice to Union or national rules on civil liability, including rules on joint and several 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 1531 #
Proposal for a directive
Article 22 – paragraph 4
Article 22 – paragraph 4
4. The civil liability rules under this Directive shall 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. The civil liability rules under this Directive shall neither exclude nor limit companies' liability under Union or national legal systems regarding civil liability
Amendment 1536 #
Proposal for a directive
Article 22 – paragraph 5
Article 22 – paragraph 5
5. Member States shall ensure that the liability provided for in provisions of national law transposing this Article is of overriding mandatory application in cases where the law applicable to claims to that effect is not the law of a Member State.Directive shall apply irrespective of the law otherwise applicable to companies, to contractual obligations and to non- contractual obligations
Amendment 1539 #
Proposal for a directive
Article 22 – paragraph 5 a (new)
Article 22 – paragraph 5 a (new)
5a. The law applicable to non- contractual obligations arising out of this Directive shall be the law determined by virtue of the Rome 2 Regulation, unless the plaintiff chooses to base his or her claim on the law of the country in which the event giving rise to the damage occurred.
Amendment 1541 #
Proposal for a directive
Article 22 – paragraph 5 b (new)
Article 22 – paragraph 5 b (new)
5b. Article 17 of the Rome 2 Regulation cannot be invoked by the defendant to exonerate or limit their liability.
Amendment 1554 #
Proposal for a directive
Article 24 – paragraph 1
Article 24 – paragraph 1
Member States shall ensure that no companies applybenefiting forom public support certify that no sanctions have been imposed on themhas been sanctioned for a failure to comply with the obligations of this Directive.
Amendment 1555 #
Proposal for a directive
Article 24 – paragraph 1
Article 24 – paragraph 1
Member States shall ensure that companies applying for public support, including but not limited to government-backed loans, state aid, tax credit or export credit, certify that no sanctions have been imposed on them for a failure to comply with the obligations of this Directive.
Amendment 1557 #
Proposal for a directive
Article 24 – paragraph 1 a (new)
Article 24 – paragraph 1 a (new)
In accordance with Article 18(2) of Directive2014/24/EU of the European Parliament and of the Council, Article 36(2) of Directive 2014/25/EU of the European Parliament and of the Council and Article 30(3) of Directive 2014/23/EU of the European Parliament and of the Council, Member States shall take appropriate measures to ensure that in the performance of public procurement or concession contracts companies comply with the obligations laid down in national provisions adopted pursuant to Articles 4to 11a of this Directive.
Amendment 1564 #
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Member States shall ensure that, when fulfilling their duty to act in the best interest of the company, directors of companies referred to in Article 2(1) take into accountare accountable for the consequences of their decisions for sustainability matters, including, where applicable, human rights, climate change and, environmental consequences, includingand good governance actual or potential adverse impacts in the short, medium and long term.
Amendment 1567 #
Proposal for a directive
Article 25 – paragraph 2
Article 25 – paragraph 2
2. Member States shall ensure that their laws, regulations and administrative provisions providing for a breach of directors’ duties apply also to the provisions of this Article.
Amendment 1568 #
Proposal for a directive
Article 25 – paragraph 2 a (new)
Article 25 – paragraph 2 a (new)
2a. Member States shall ensure that acts or omissions by directors of an undertaking that have led to severe damage as a result of a failure to comply with the obligations of this Directive are considered criminal offenses, in particular when committed intentionally or with serious negligence.
Amendment 1569 #
Proposal for a directive
Article 25 – paragraph 2 b (new)
Article 25 – paragraph 2 b (new)
2b. Member States shall ensure that directors who have by acts or omissions led an undertaking to commit a serious breach of the obligations of this Directive are prohibited from directing, managing or administering a company
Amendment 1573 #
Proposal for a directive
Article 26 – paragraph 1
Article 26 – paragraph 1
1. Member States shall ensure that directors of companies referred to in Article 2(1) are responsible and accountable for putting in place and overseeing the due diligence actions referred to in Article 4, and in particular the due diligence policy referred tofor ensuring that the overall business model and strategy of the undertaking is aligned to the transition to a sustainable economy and with the limiting of global warmingto1.5 °C in line with the Paris Agreement as provided for in Article 15, with due consideration for relevant input from stakeholders and, including civil society organisations and trade unions and workers’ representatives. The directors shall regularly report to the board of directors in that respect.
Amendment 1577 #
Proposal for a directive
Article 26 – paragraph 2
Article 26 – paragraph 2
2. Member States shall ensure that directors take steps to adapt the corporate strategy to take into accountadapt the business model and strategy to address sustainability risks and the actual and potential adverse impacts identified pursuant to Article 6 and any measures taken pursuant to Articles 7 to 9 and the plan to combat climate change adopted pursuant to Article 15.
Amendment 1595 #
Proposal for a directive
Article 29 – paragraph 1 – introductory part
Article 29 – paragraph 1 – introductory part
No later than … [OP please insert the date = 73 years after the date of entry into force of this Directive], the Commission shall submit a report to the European Parliament and to the Council on the implementation of this Directive. The report shall evaluate the effectiveness of this Directive in reaching its objectives and assess the following issues:
Amendment 1599 #
Proposal for a directive
Article 29 – paragraph 1 – point a
Article 29 – paragraph 1 – point a
(a) whether the thresholds regarding the number of employees andworkers, the modality for calculating thresholds, and the net turnover laid down in Article 2(1) need to be lowered;
Amendment 1623 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – introductory part
Article 30 – paragraph 1 – subparagraph 2 – introductory part
They shall apply those provisions as follows:from… [OJ to insert: 2 years from the entry into force of this Directive]
Amendment 1625 #
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2 – point a
Article 30 – paragraph 1 – subparagraph 2 – point a
Amendment 1633 #
Amendment 1636 #
Proposal for a directive
Annex I – Part I – subheading 1
Annex I – Part I – subheading 1
Amendment 1638 #
Proposal for a directive
Annex I – Part I – subheading 1 - point 7
Annex I – Part I – subheading 1 - point 7
7. Violation of tThe right to enjoy just and favourable conditions of work including a fair wage,remuneration that provides for a decent living, safe and healthy working conditions and reasonable limitation of working hours. This includes both the right to a living wage for employees and the right to a living income for self-employed workers and smallholders in accordance with Article 7 of the International Covenant on Economic, Social and Cultural Rights;
Amendment 1641 #
Proposal for a directive
Annex I – Part I – subheading 1 - point 7 a (new)
Annex I – Part I – subheading 1 - point 7 a (new)
7a. The right to an adequate standard of living for themselves and their family, including adequate food, clothing and housing, and to continuous improvement of living conditions in accordance with Article 11 of the International Covenant on Economic, Social and Cultural Rights
Amendment 1644 #
Proposal for a directive
Annex I – Part I – subheading 1 - point 18 – point a
Annex I – Part I – subheading 1 - point 18 – point a
(a) impairs the natural bases for the preservation and production of food and feed or
Amendment 1647 #
Proposal for a directive
Annex I – Part I – subheading 1 - point 19 a (new)
Annex I – Part I – subheading 1 - point 19 a (new)
19a. The rights of indigenous peoples to self-determination in accordance with Article 3 and their right to be consulted in order to obtain their free and informed consent prior to the approval of any project affecting their lands or territories and other resources, in accordance with Article 32 of the United Nations Declaration on the Rights of Indigenous Peoples
Amendment 1648 #
Proposal for a directive
Annex I – Part I – subheading 1 - point 20
Annex I – Part I – subheading 1 - point 20
20. Violation of the iIndigenous peoples’ right to the lands, territories and resources which they have traditionally owned, occupied or otherwise used or acquired in accordance with Article 10, 25, 26 (1) and (2), 27, 28 and 29 (2) of the United Nations Declaration on the Rights of Indigenous Peoples and customary rights;
Amendment 1649 #
Proposal for a directive
Annex I – Part I – subheading 1 - point 20 a (new)
Annex I – Part I – subheading 1 - point 20 a (new)
20a. The right of indigenous peoples and other peoples’ to self-determination. The right of indigenous peoples and other peoples and communities with collective customary land and resource rights, to give or withhold their free, prior and informed consent for any project affecting their lands or territories or other resources and prior to their relocation, in accordance with Article 3, 10 and 32 of the UN declaration on the Rights of Indigenous Peoples; Articles1 and 27 of the International Covenant on Civil and Political Rights; Articles1 and 15 of the International Convention on Economic Social and Cultural Rights; articles 20, 21 of the African Charter on Human and Peoples’ Rights;
Amendment 1651 #
Proposal for a directive
Annex I – Part I – subheading 1 - point 20 b (new)
Annex I – Part I – subheading 1 - point 20 b (new)
20b. The indigenous peoples’ right to give, modify, withhold or withdraw their free, prior, and informed consent to interventions, decisions and activities that may affect their lands, territories, resources and rights, in accordance with Article 10, 11 (2), 19, 28, 29 (2), 32 (2), of the United Nations Declaration on the Rights of Indigenous Peoples and Article 6 and 16 (2) of ILO Convention 169 on Indigenous and Tribal Peoples;
Amendment 1652 #
Proposal for a directive
Annex I – Part I – subheading 1 - point 21
Annex I – Part I – subheading 1 - point 21
21. Violation of a prohibition or right not covered by points 1 to 20 above but included in the human rights agreements listed in Section 2 of this Part, which directly impairs a legal interest protected in those agreements, provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the obligations referred to in Article 4 of this Directive taking into account all relevant circumstances of their operations, such as the sector and operational context.ere there is a foreseeable risk that the such prohibition or right may be affected
Amendment 1655 #
Proposal for a directive
Annex I – Part I – subheading 2
Annex I – Part I – subheading 2
Human rights and fundamental freedoms conventions and instruments These include, amongst others:
Amendment 1657 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 3 a (new)
Annex I – Part I – subheading 2 - indent 3 a (new)
- The European Convention on Human Rights
Amendment 1658 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 3 b (new)
Annex I – Part I – subheading 2 - indent 3 b (new)
- The Charter of Fundamental Rights of the European Union
Amendment 1659 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 3 c (new)
Annex I – Part I – subheading 2 - indent 3 c (new)
- The European Social Charter
Amendment 1660 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 3 d (new)
Annex I – Part I – subheading 2 - indent 3 d (new)
- The European Convention on The Legal Status of Migrant Workers
Amendment 1661 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 3 e (new)
Annex I – Part I – subheading 2 - indent 3 e (new)
- Council of Europe Convention on preventing and combating violence against women and domestic violence
Amendment 1662 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 6 a (new)
Annex I – Part I – subheading 2 - indent 6 a (new)
- The International Convention for the Protection of All Persons from Enforced Disappearance
Amendment 1663 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 7 a (new)
Annex I – Part I – subheading 2 - indent 7 a (new)
- The United Nations Declaration of the Elimination of Violence against Women;
Amendment 1666 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 10 a (new)
Annex I – Part I – subheading 2 - indent 10 a (new)
- The United Nations Declaration on Human Rights Defenders
Amendment 1667 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 10 b (new)
Annex I – Part I – subheading 2 - indent 10 b (new)
- The International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families;
Amendment 1668 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 11 a (new)
Annex I – Part I – subheading 2 - indent 11 a (new)
- The United Nations Declaration on the Elimination of All Forms of Intolerance and of Discrimination Based on Religion or Belief
Amendment 1669 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 11 b (new)
Annex I – Part I – subheading 2 - indent 11 b (new)
- The United Nations Declaration on the Rights of Peasants and Other People Working in Rural Areas
Amendment 1671 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 14 a (new)
Annex I – Part I – subheading 2 - indent 14 a (new)
- The International Labour Organisation’s Indigenous and Tribal Peoples’ Convention, 1989 (No. 169)
Amendment 1673 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 14 b (new)
Annex I – Part I – subheading 2 - indent 14 b (new)
- The International Labour Organisation’s Domestic Workers Convention, 2011 (No. 189);
Amendment 1674 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 14 c (new)
Annex I – Part I – subheading 2 - indent 14 c (new)
- The International Labour Organisation’s Violence and Harassment Convention,2019 (No. 190)
Amendment 1675 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 20 a (new)
Annex I – Part I – subheading 2 - indent 20 a (new)
- Occupational Safety and Health Convention, 1981 (No. 155)
Amendment 1677 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 a (new)
Annex I – Part I – subheading 2 - indent 23 a (new)
- The International humanitarian law instruments
Amendment 1679 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 b (new)
Annex I – Part I – subheading 2 - indent 23 b (new)
- The Four Geneva Conventions of 1949;
Amendment 1681 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 c (new)
Annex I – Part I – subheading 2 - indent 23 c (new)
- The Convention (I) for the Amelioration of the Condition of the Wounded and Sick in Armed Forces in the Field
Amendment 1682 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 d (new)
Annex I – Part I – subheading 2 - indent 23 d (new)
- Convention (II) for the Amelioration of the Condition of Wounded, Sick and Shipwrecked Members of the Armed Forces at Sea
Amendment 1685 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 e (new)
Annex I – Part I – subheading 2 - indent 23 e (new)
- Convention (III) relative to the Treatment of Prisoners of War
Amendment 1687 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 f (new)
Annex I – Part I – subheading 2 - indent 23 f (new)
- Convention (IV) relative to the Protection of Civilian Persons in Time of War
Amendment 1688 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 g (new)
Annex I – Part I – subheading 2 - indent 23 g (new)
- Additional protocols to the Geneva Conventions
Amendment 1691 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 h (new)
Annex I – Part I – subheading 2 - indent 23 h (new)
- United Nations Basic Principles and Guidelines on the Right to a Remedy and Reparation of Victims of Gross Violations of International Human Rights Law and Serious Violations of International Humanitarian Law
Amendment 1693 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 i (new)
Annex I – Part I – subheading 2 - indent 23 i (new)
- UNHRC Resolution on the Human Right to a Safe, Clean, Healthy and Sustainable Environment.
Amendment 1694 #
Proposal for a directive
Annex I – Part I – subheading 2 - indent 23 j (new)
Annex I – Part I – subheading 2 - indent 23 j (new)
- United Nations Protocol against the Smuggling of Migrants by Land, Sea and Air supplementing the United Nations Convention against Transnational Organized Crime
Amendment 1696 #
violations of Union and internationally recognized objectives and prohibitions included in environmental conventions and Union legislation
Amendment 1700 #
Proposal for a directive
Annex I – Part II – point 12 a (new)
Annex I – Part II – point 12 a (new)
12a. Violation of the greenhouse gas emissions reduction objectives of the Paris Agreement under the United Nations Framework on Climate Changes, the European Climate Law, and the Global Methane Pledge
Amendment 1704 #
Proposal for a directive
Annex I – Part II a (new) – title
Annex I – Part II a (new) – title
Violations of internationally recognized objectives and prohibitions included in good governance and anti-corruption conventions
Amendment 1705 #
Proposal for a directive
Annex I – Part II a – point 1 (new)
Annex I – Part II a – point 1 (new)
1. United Nations Basic Principles on the Independence of the Judiciary, 1985
Amendment 1706 #
Proposal for a directive
Annex I – Part II a – point 2 (new)
Annex I – Part II a – point 2 (new)
2. United Nations Convention Against Corruption, 2003
Amendment 1707 #
Proposal for a directive
Annex I – Part II a – point 3 (new)
Annex I – Part II a – point 3 (new)
3. United Nations Declaration of Basic Principles of Justice for Victims of Crime and Abuse of Power, 1985
Amendment 1708 #
Proposal for a directive
Annex I – Part II a – point 4 (new)
Annex I – Part II a – point 4 (new)
4. Council of Europe Civil Law on Corruption, 1999
Amendment 1709 #
Proposal for a directive
Annex I – Part II a – point 5 (new)
Annex I – Part II a – point 5 (new)
5. OECD Anti-Bribery Convention, 1997
Amendment 1710 #
Proposal for a directive
Annex I – Part II a – point 6 (new)
Annex I – Part II a – point 6 (new)
6. European Union Convention against Corruption Involving Officials (EU Convention against Corruption)
Amendment 1711 #
Proposal for a directive
Annex I – Part II a – point 7 (new)
Annex I – Part II a – point 7 (new)
7. Principle Ten on Anti-Corruption of the UN Global Compact
Amendment 1712 #
Proposal for a directive
Annex I – Part II a – point 8 (new)
Annex I – Part II a – point 8 (new)
8. Article 5 of the United Nations Framework Convention on Tobacco Control (UNFCTC)
Amendment 1713 #
Proposal for a directive
Annex I – Part II a – point 9 (new)
Annex I – Part II a – point 9 (new)
9. The OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS