31 Amendments of Kira Marie PETER-HANSEN related to 2021/0104(COD)
Amendment 42 #
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
(2 a) Gender equality is a core value of the EU, a human and fundamental right and key principle of the European Pillar of Social Rights. The promotion of gender equality is a task for the Union, in all its activities, required by the Treaties. On 5 of March 2020 in its Communication on “A Union of Equality: Gender Equality Strategy 2020-2025” the European Commission made a commitment to address the gender pay and pension gaps and to table as a key action the Pay Transparency Directive. The Commission also committed to ensure the transposition of the Work Life Balance Directive as improving the work-life balance of workers is one of the ways of addressing the gender gaps in the labour market and to push for the adoption of the 2012 proposal fora Directive on improving the gender balance on corporate boards. The Commission also announced the tabling of a legislative proposal to combat gender- based violence and stressed the importance for Member States to ratify the International Labour Organisation (ILO) Convention on combating violence and harassment in the world of work and implement the existing EU rules on protecting workers from sexual harassment;
Amendment 49 #
Proposal for a directive
Recital 8
Recital 8
(8) The ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. Savers who want to invest sustainably will have the opportunity to do so, while all citizens should benefit from a stable, sustainable and, inclusive, accountable and responsible economic system. To realise these benefits, the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). The first group of users consists of investors, including asset managers, who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. The second group of users consists of organisations, including non- governmental organisations and social partners, that wish to better hold undertakings to account for their impacts on people and the environment. Other stakeholders may also make use of sustainability information disclosed in annual reports. The integration of gender- related information into sustainability reporting can also assist organizations in publicly demonstrating their accountability to women and commitment towards gender equality and non- discrimination. It can help companies win recognition by workers, investors and consumers and allow all interested stakeholders to gain insights into the effects of organizations’ operations, products, and services on gender equality. The business partners of undertakings, including customers, may rely on this information to understand, and where necessary report on, the sustainability risks and impacts through their own value chains. Policy makers and environmental agencies may use such information, in particular on an aggregate basis, to monitor environmental and social, social, gender equality and human rights trends, to contribute to environmental accounts, and to inform public policy. Few individual citizens and consumers directly consult undertaking’s reports, but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. Many investors and asset managers purchase sustainability information from third party data providers, who collect information from various sources, including public corporate reports.
Amendment 52 #
Proposal for a directive
Recital 9
Recital 9
(9) There has been a very significant increase in demand for corporate sustainability information in recent years, especially on the part of the investment community. That increase in demand is driven by the changing nature of risks to undertakings and growing investor awareness of the financial implications of these risks. That is especially the case for climate-related financial risks. Awareness of the risks to undertakings and to investments resulting from other environmental issues and from social issues, including health issues, is also growing. The increase in demand for sustainability information is also driven by the growth in investment products that explicitly seek to meet certain sustainability standards or achieve certain sustainability objectives. Part of that increase is the logical consequence of previously adopted Union legislation, notably Regulation (EU) 2019/2088 and Regulation (EU) 2020/852. Some of the increase would have happened in any case, due to fast-changing citizen awareness, consumer preferences and market practices. The COVID-19 pandemic will further accelerate the increase in users’ information needs, in particular as it has exposed the vulnerabilities of workers and of undertaking’s value chains. Information on environmental impacts is also relevant in the context of mitigating future pandemics with human disturbance of ecosystems increasingly linked to the occurrence and spread of diseases. Still companies rarely report much gender disaggregated data despite the inclusion of gender-related indicators in the GRI framework, and global recognition of the importance of gender equality;
Amendment 56 #
Proposal for a directive
Recital 18
Recital 18
(18) Considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (SMEs) listed on regulated markets comprise a significant proportion of all listed undertakings in the Union, in order to ensure investor protection it is appropriate to require that also those SMEs disclose information on sustainability matters. The reporting standards are not only necessary but also useful and constitute an opportunity for companies to demonstrate their commitment to the ecological, social and gender equal transition and therefore the establishment of leading standards and thereby feed into their competitive advantage The introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. It will therefore help to protect and enhance the access of smaller listed undertakings to financial capital, and avoid discrimination against such undertakings on the part of financial market participants. The introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in Regulation (EU) 2019/2088. SMEs listed on regulated markets should, however, be provided with sufficient time to prepare for the application of the requirement to report sustainability information, due to their smaller size and more limited resources, and taking account of the difficult economic circumstances created by the COVID-19 pandemic. They should also be given the possibility to report according to standards that are proportionate to the capacities and resources of SMEs. Non- listed SMEs can also choose to use these proportionate standards on a voluntary basis. The SME standards will set a reference for undertakings that are within the scope of the Directive regarding the level of sustainability information that they could reasonably request from SME suppliers and clients in their value chains.
Amendment 59 #
Proposal for a directive
Recital 25
Recital 25
(25) Articles 19a and 29a of Directive 2013/34/EU require reporting not only on information ‘to the extent necessary for an understanding of the undertaking's development, performance, position’, but also on information necessary for an understanding of the impact of the undertaking’s activities on environmental, social and employee mattersclimate-related, social and workers' rights, gender equality, respect for human rights, anti-corruption and bribery matters. Those articles therefore require undertakings to report both on how various sustainability matters affect the undertaking, and on the impacts of the activities of the undertaking on people and the environment. That is referred to as the double-materiality perspective, in which the risks to the undertaking and the impacts of the undertaking each represent one materiality perspective. The fitness check on corporate reporting shows that those two perspectives are often not well understood or applied. It is therefore necessary to clarify that undertakings should consider each materiality perspective in its own right, and should disclose information that is material from both perspectives as well as information that is material from only one perspective.
Amendment 65 #
Proposal for a directive
Recital 34
Recital 34
(34) The European Financial Reporting Advisory Group (EFRAG) is a non-profit association established under Belgian law that serves the public interest by providing advice to the Commission on the endorsement of international financial reporting standards. EFRAG has established a reputation as a European centre of expertise on corporate reporting, and is well placed to foster coordination between European sustainability reporting standards and international initiatives that seek to develop standards that are consistent across the world. In March 2021, a multi-stakeholder task force set up by EFRAG published recommendations for the possible development of sustainability reporting standards for the European Union. Those recommendations contain proposals to develop a coherent and comprehensive set of reporting standards, covering all sustainability matters from a double-materiality perspective. Those recommendations also contain a detailed roadmap for developing such standards, and proposals for mutually reinforcing cooperation between global standard- setting initiatives and standard-setting initiatives of the European Union. In March 2021, the EFRAG President published recommendations for possible governance changes to EFRAG if it were to be asked to develop technical advice about sustainability reporting standards. These recommendations include offsetting up within EFRAG a new sustainability reporting pillar while not significantly modifying the existing financial reporting pillar. When adopting sustainability reporting standards, the Commission should take account of technical advice that EFRAG will develop. In order to ensure high-quality standards that contribute to the European public good and meet the needs of undertakings and of users of the information reported, EFRAG’s technical advice should be developed with proper due process, public oversight and transparency, accompanied by cost benefit analyses, and be developed with the expertise of relevant stakeholders. To ensure that Union sustainability reporting standards take account of the views of the Member States of the Union, before adopting the standards the Commission should consult the Member State Expert Group on Sustainable Finance referred to in Article 24 of Regulation (EU) 2020/852 on EFRAG’s technical advice. The European Securities and Markets Authority (ESMA) plays a role in drafting regulatory technical standards pursuant to Regulation (EU) 2019/2088 and there needs to be coherence between those regulatory technical standards and sustainability reporting standards. According to Regulation (EU) No 1095/2010 of the European Parliament and of the Council54 , ESMA also plays a role in promoting supervisory converge in the enforcement of corporate reporting by issuers whose securities are listed on EU regulated markets and who will be required to use these sustainability reporting standards. Therefore, ESMA should be required to provide an opinion on EFRAG’s technical advice. This opinion should be provided within two months from the date of receipt of the request from the Commission. In addition, the Commission should consult the European Banking Authority, the European Insurance and Occupational Pensions Authority, the European Environment Agency, the European Union Agency for Fundamental Rights, European Foundation for the Improvement of Living and Working Conditions, the European Agency for Safety and Health at Work, the European Institute for Gender Equality, the European Central Bank, the Committee of European Auditing Oversight Bodies and the Platform on Sustainable Finance as well as relevant stakeholders such as trade unions and civil society organisations to ensure that the sustainability reporting standards are coherent with relevant Union policy and legislation. Where any of those bodies decide to submit an opinion, they shall do so within two months from the date of being consulted by the Commission. _________________ 54 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).
Amendment 69 #
Proposal for a directive
Recital 43
Recital 43
(43) Sustainability reporting standards should specify the information that undertakings should disclose on social factors, including employee factorsand gender equality factors, including workers’ right, equality, diversity, inclusion and human rights. Such information should cover the impacts of undertakings on peopleits workers, including on human health. The information that undertakings disclose about human rights should include information about forced labour in their value chains where relevant. Reporting standards that address social factors should specify the information that undertakings should disclose with regard to the 20 principles of the European Pillar of Social Rights that are relevant to businesses, including equal opportunities for all andparticularly equal opportunities for all, gender equality, work life balance and fair working conditions. The European Pillar of Social Rights Action Plan adopted in March 2021 calls for stronger requirements on undertakings to report on social issues. The information undertakings disclose about gender equality should include Gender Action Plans containing policies to ensure equal pay between genders, the pay reporting requirements as stablished by the Pay Transparency Directive and relevant activities to promote equal opportunities, diversity, work life balance and anti-harassment measures in the work place. The Gender Action Plans should contain relevant indicators and monitoring tools to ensure progress in the area. The reporting standards should also specify the information that undertakings should disclose with regard to the human rights, fundamental freedoms, democratic principles and standards established in the International Bill of Human Rights and other core UN human rights conventions, including CEDAW Convention, the UN Convention on the Rights of Persons with Disabilities, the UN Declaration on the Rights of Indigenous Peoples the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the fundamental conventions of the International Labour Organisation, and the Charter of Fundamental Rights of the European Union.
Amendment 74 #
Proposal for a directive
Recital 44
Recital 44
(44) Users need information about governance factors, including information on the role of an undertaking’s administrative, management and supervisory bodies, including with regard to sustainability matters, the composition of such bodies, particularly with regard to workers' and women's participation, age, ethnic/racial backgrounds and other diversity and intersectional aspects and an undertaking’s internal control and risk management systems, including in relation to the reporting process. Users also need information about undertakings’ corporate culture and approach to business ethics, including anti-corruption and anti-bribery, and about their political engagements, including lobbying activities. Information about the management of the undertaking and the quality of relationships with business partners, including payment practices relating to the date or period for payment, the rate of interest for late payment or the compensation for recovery costs referred to in Directive 2011/7/EU of the European Parliament and of the Council62 on late payment in commercial transactions, helps users to understand an undertaking’s risks as well as its impacts on sustainability matters. Every year, thousands of businesses, especially SMEs, suffer administrative and financial burdens because they are paid late, or not at all. Ultimately, late payments lead to insolvency and bankruptcy, with destructive effects on entire value chains. Increasing information about payment practices should empower other undertakings to identify prompt and reliable payers, detect unfair payment practices, access information about the businesses they trade with, and negotiate fairer payment terms. _________________ 62 Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions (OJ L 48, 23.2.2011, p. 1).
Amendment 76 #
Proposal for a directive
Recital 48
Recital 48
(48) Directive 2013/34/EU does not require that the financial statements or the management report are provided in a digital format, which hinders the findability and usability of the reported information. Users of sustainability information increasingly expect such information to be findable and machine- readable in digital formats and fully accessible, including for persons with disabilities. Digitalisation creates opportunities to exploit information more efficiently and holds the potential for significant cost savings for both users and undertakings. Undertakings should therefore be required to prepare their financial statements and their management report in XHTML format in accordance with Article 3 of Commission Delegated Regulation (EU) 2019/815,63 and to mark- up sustainability information, including the disclosures required by Article 8 of Regulation (EU) 2020/852, in accordance with that Delegated Regulation. A digital taxonomy to the Union sustainability reporting standards will be necessary to allow for the information reported to be tagged in accordance with those standards. These requirements should feed into the work on digitalisation announced by the Commission in its Communication A European strategy for data64 and in the Digital Finance Strategy for the EU.65 These requirements also complement the creation of a European single access point for public corporate information as envisaged in the capital markets union action plan, which also considers the need for structured data. _________________ 63 Commission Delegated Regulation (EU) 2018/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format (OJ L 143, 29.5.2019, p. 1). 64 https://ec.europa.eu/digital-single- market/en/european-strategy-data 65 https://ec.europa.eu/info/publications/2009 24-digital-finance-proposals_en
Amendment 81 #
Proposal for a directive
Recital 51
Recital 51
(51) Article 20 of Directive 2013/34/EU requires undertakings with securities listed on regulated markets to include a corporate governance statement in their management report, which has to contain among other information a description of the diversity policy applied by the undertaking in relation to its administrative, management and supervisory bodies. Article 20 of Directive 2013/34/EU leaves flexibility to undertakings to decide what aspects of diversity they report on. It does not explicitly oblige undertakings to include information on any particular aspect of diversity. In order progress towards a more gender-balanced participation in economic decision-making, it is necessary to ensure that undertakings with securities listed on regulated markets always report on their gender diversity policies and the implementation thereof in particular with respect to reaching gender parity representation in company boards, compliance with the pay transparency requirements, fighting against harassment in the work place and promoting work life balance. However, to avoid unnecessary administrative burden, those undertakings should have the possibility to report some of the information required by Article 20 of Directive 2013/34/EU alongside other sustainability-related information.
Amendment 87 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
article 19a
article 19a
(iv) how the undertaking’s business model and strategy take account of theensure decent work and safeguard the rights and interests of the undertaking’s stakeholders, including workers and communities and of the impacts of the undertaking on sustainability matters;
Amendment 88 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
article 19a
article 19a
(iv a) the gender equality plans of the undertaking to ensure equality, non- dicrimination, diversity, and equal opportunities
Amendment 91 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
article 19a – paragrah 2
article 19a – paragrah 2
(ii) the principal actual or potential adverse impacts connected with the undertaking’s supply and value chain, including its own operations, its products and services, its business relationships and its supply chain; including with regards to all people affected by those impacts with particular attention to persons who frequently face intersectional and diverse discriminations or are in a vulnerable situation, such as women, children minorities, LGBTIQ persons, persons with disabilities, from ethnic/racial backgrounds or persons experiencing poverty, especially the20% poorest, or social exclusion
Amendment 95 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
article 19a – paragrah 3
article 19a – paragrah 3
-1 When possible, the undertaking shall also include the gender disaggregated data of the information referred to in paragraphs 1 and 2 as a way to incorporate gender mainstreaming in the sustainability reporting
Amendment 98 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 1
article 19b – paragraph 1
The Commission shall, at least every three years after its date of application, review any delegated act adopted pursuant to this Article, taking into consideration the technical advice of the European Financial Reporting Advisory Group (EFRAG), the European Foundation for Living and Working Conditions, the European Agency for Safety and Health at Work, the European Institute for Gender Equality, and relevant stakeholders, including trade unions and civil society organisations, and where necessary shall amend such delegated act to take into account relevant developments, including developments with regard to international standards.
Amendment 100 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2
article 19b – paragraph 2
(b) specify the information that undertakings are to disclose about social factors, includand gender equality factors, including the undertaking information about:
Amendment 102 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2b
article 19b – paragraph 2b
(-i) composition of governance bodies and breakdown of employ-ees per category according to gender, age group, and other indica-tors of diversity.
Amendment 108 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2b
article 19b – paragraph 2b
(i a) information required under the pay reporting and pay assessment provisions as stablished under the Pay Transparency Directive for those undertakings concerned
Amendment 109 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2b
article 19b – paragraph 2b
(i b) information on pay levels disaggregated by gender, quartils and category of worker for undertakings not included in the Pay Transparency Directive;
Amendment 111 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2b
article 19b – paragraph 2b
(ii) working conditions, including secure and adaptable employment, wages, social dialogue, collective bargaining and the involvement of workers, work-life balance, and a healthy, safe and well- adapted work environment;
Amendment 112 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2b
article 19b – paragraph 2b
(i) equal opportunities for all, including gender equality and equal pay for equal work,description of gender equality action plans with concret indicators and monitoring tools to ensure its progress, including equal opportunity policies, anti- harassment measures, trainings and mechanism to complain, instruments to achieve gender parity in leadership and management positions, actions to tackle the gender pay gap and other forms of discrimination and training and skills development, and employment and inclusion of people with disabilities;
Amendment 115 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2b
article 19b – paragraph 2b
(ii a) Actions to promote work-life balance, and a healthy, safe and well- adapted work environment and take up and return rates of paternity, maternity and parental leaves and, flexible work arrangements, disaggregated by gender;
Amendment 116 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2b
article 19b – paragraph 2b
(iii) respect for the human rights, fundamental freedoms, democratic principles and standards established in the International Bill of Human Rights and other core UN human rights conventions, including the CEDAW Convention, UN Convention on Persons with Disabilities, the UN Declaration on the Rights of Indigenous Peoples, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the ILO fundamental conventions and the Charter of Fundamental Rights of the European Union.
Amendment 117 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2b
article 19b – paragraph 2b
(iii a) Human rights and gender equality impacts assessments carried out by the undertaking including in supply chains with respect to affected communities, in particular indigenous peoples' rights and the implementation of the undertaking's policy on free, prior and informed consent.
Amendment 118 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2c
article 19b – paragraph 2c
(i) the role of the undertaking’s administrative, management and supervisory bodies, including with regard to sustainability matters, and their composition including with regards to the representation of women, person with disabilities, different ages, minority and ethnic/racial backgrounds;
Amendment 122 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2013/34/EU
article 19b – paragraph 2c
article 19b – paragraph 2c
(i a) the number of workers and the type of arrangement they are engaged under by the undertaking, including through its operations and business activities, disaggregated by gender;
Amendment 127 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point a
Article 1 – paragraph 1 – point 5 – point a
Directive 2013/34/EU
Article 20(1) – point g
Article 20(1) – point g
(g) a description of the gender equality, equal opportunities, and diversity policy applied in relation to the undertaking's administrative, management and supervisory bodies with regard to gender and other aspects such as, age, orsocial, ethnic/racial educational and professional backgrounds, the objectives of that diversity policy, how it has been implemen as well other intersectional characteristics and discriminations protected aund the results in the reporting period. If no such policy is applied, the statement shall contain an explanation as to why thier Directives 2000/43/EC and 2000/78/EC , the objectives and indicators of that policy established and, how it has been implemented and the results and monitoring tools isn the case.; reporting period.
Amendment 135 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29a paragrah 2
Article 29a paragrah 2
(v) how the group’s strategy has been implemented with regard to sustainability matters, including gender equality;
Amendment 138 #
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2013/34/EU
Article 29a paragrah 2
Article 29a paragrah 2
(ii) the principal actual or potential adverse impacts connected with the group’s value chain, including its own operations, its products and services, its business relationships and its supply chain including with regards to all people affected by those impacts with particular attention to persons who frequently face intersectional and diverse discriminations or are in a vulnerable situation, such as women, children minorities, LGBTIQ persons, persons with disabilities, from ethnic/racial backgrounds or persons experiencing poverty, especially the 20% poorest, or social exclusion;
Amendment 143 #
Proposal for a directive
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
Directive 2004/109/EC
Article 28d
Article 28d
After consulting the European Environment Agency and the European Union Agency for Fundamental Rights, the European Foundation for Living and Working Conditions, the European Agency for Safety and Health at Work, the European Institute for Gender Equality, and relevant stakeholders, including trade unions and civil society organisations. ESMA shall issue guidelines in accordance with Article 16 of Regulation 1095/2010 on the supervision of sustainability reporting by national competent authorities.
Amendment 172 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19a – paragraph 5
Article 19a – paragraph 5