BETA

94 Amendments of Anna CAVAZZINI related to 2022/0051(COD)

Proposal for a directive
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, products and services, the operations of their subsidiaries, and the value chain operations carried out by entities with whom the company has a~~n established~~ business relationship or that are in their value chain and

2022/11/18
Committee: INTA

Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)

(b a) on access to justice for victims of the violations of the obligations mentioned above

2022/11/18
Committee: INTA

Proposal for a directive
Article 1 – paragraph 1 – subparagraph 2

~~The nature of business relationships as ‘established’ shall be reassessed periodically, and at least every 12 months.~~deleted

2022/11/18
Committee: INTA

Proposal for a directive
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~~ , with the exceptione of ~~the following conditions:~~micro-enterprises as defined by article 3(1) of Directive2013/34/EU;

2022/11/18
Committee: INTA

Proposal for a directive
Article 2 – paragraph 1 – point a

~~(a) the company had more than 500 employees on average and had a net worldwide turnover of more than EUR 150 million in the last financial year for which annual financial statements have been prepar~~deleted;

2022/11/18
Committee: INTA

Proposal for a directive
Article 2 – paragraph 1 – point b

(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 in one or more of the following sectors: (i) the manufacture of textiles, leather and related products (including footwear), and the wholesale trade of textiles, clothing and footwear; (ii) agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages; (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 (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products).deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 2 – paragraph 1 – point b – point i

~~(i) the manufacture of textiles, leather and related products (including footwear), and the wholesale trade of textiles, clothing and footwear;~~deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 2 – paragraph 1 – point b – point ii

~~(ii) agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages;~~deleted

2022/11/18
Committee: INTA

Proposal for a directive
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 (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products).deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 2 – paragraph 1 a (new)

1 a. This Directive shall also apply to EU Member states’ Export Credit Agencies covered in Regulation (EU) No 1233/2011.

2022/11/18
Committee: INTA

Proposal for a directive
Article 2 – paragraph 2 – introductory part

2. This Directive shall also apply to large as well as listed small and medium- sized companies which are formed in accordance with the legislation of a third country, and ~~fulfil one of the following conditions:~~have generated a net turnover of more than EUR 8 million in the Union in the financial year preceding the last financial year.

2022/11/18
Committee: INTA

Proposal for a directive
Article 2 – paragraph 2 – point a

~~(a) generated a net turnover of more than EUR 150 million in the Union in the financial year preceding the last financial year;~~deleted

2022/11/18
Committee: INTA

Proposal for a directive
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 generated in one or more of the sectors listed in paragraph 1, point (b).deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 3 – paragraph 1 – point b

(b) ‘adverse environmental and climate impact’ means an adverse impact on the environment or climate resulting from the violation of one of the prohibitions and obligations ~~pursuant~~established under international environmental and climate legislation including but not limited to the international environmental conventions listed in the Annex, Part II;

2022/11/18
Committee: INTA

Anna CAVAZZINI, Saskia BRICMONT

Proposal for a directive
Article 3 – paragraph 1 – point b a (new)

(b a) ‘high-impact sector’ means any of the following: (i) the energy sector, including gas, nuclear, steam, electricity and other sources throughout their life cycle, from extraction, refining, production, combustion of fuels, transportation, storage and waste management including radioactive waste; (ii) the production, use and disposal of organic and inorganic chemicals, including pharmaceuticals, plant protection products and fertilisers; (iii) the manufacture of textiles, apparel, leather, fur and related products (including footwear), and the wholesale trade and retail of textiles, clothing and footwear; (iv) plastic production, waste shipment and management; (v) agriculture, water supply, forestry, fisheries (including aquaculture), the management of land and resources (including in relation to nature conservation or other related activities), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, animal products, wood, food, beverages; (vi) construction sector and building infrastructures; (vii) transportation sector, logistics and storage; (viii) the extraction and refining of mineral resources, transport and handling, regardless from where they are extracted (including crude petroleum, naturalgas, 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, and the wholesale trade of mineral resources, basic and intermediate mineral products (including metal sand metal ores, construction materials, fuels, chemicals and other intermediate products); (ix) the production, use and waste management of electronic products; (x) waste management sector; (xi) employment activities; (xii) health care, social care and elder care; (xiii) cleaning and household services; (xiv) hospitality; (xv) the services provided by regulated financial undertakings defined in Art. 3(a)(iv) such as loan, credit, financing, investment, pensions, securitisation, insurance and reinsurance, market funding, risk management, payment services and other financial services; (xvi) technology, digital activities and online platforms; (xvii) manufacture of weapons and ammunition, including dual-use items, manufacture of military fighting vehicles; (xviii) private security activities and security systems service activities, including the development and operation of biometrics and surveillance technologies;

2022/11/18
Committee: INTA

Proposal for a directive
Article 3 – paragraph 1 – point e – introductory part

(e) ‘business relationship’ means a relationship ~~with~~between the company or one of its subsidiaries and a contractor, subcontractor or any other legal entities ~~(‘partner’)~~within their value chain (‘partner’) which are directly linked to the company’s operations, products or services

2022/11/18
Committee: INTA

Proposal for a directive
Article 3 – paragraph 1 – point e – point i

~~(i) with whom the company has a commercial agreement or to whom the company provides financing, insurance or reinsurance, or~~deleted

2022/11/18
Committee: INTA

Proposal for a directive
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;~~deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 3 – paragraph 1 – point f

(f) ‘established business relationship’ means a business relationship, whether direct or indirect, which is, or which is expected to be lasting, in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the value chain;deleted

2022/11/18
Committee: INTA

Proposal for a directive
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 and its subsidiaries, including the development of the product or the service and the use, waste management 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; or its subsidiaries.

2022/11/18
Committee: INTA

(h) ‘independent third-party verification’ means verification of the compliance by a company, or parts of its value chain, with human rights ~~and~~, good governance, environmental and climate requirements resulting from the provisions of this Directive by an ~~auditor~~entity which is independent from the company, free from any conflicts of interests, has experience, expertise and competence in environmental, climate and human rights matters and is accountable for the quality and reliability of the audit;

2022/11/18
Committee: INTA

Proposal for a directive
Article 3 – paragraph 1 – point j

(j) ‘industry initiative’ means a combination of ~~voluntary~~ value chain due diligence procedures, t~~ools and mechanisms,~~hat: (i) are voluntarily adopted by companies, and, when adopted, are binding companies and, if applicable, their partners, (ii) includ~~ing~~e independent third- party ~~verifications,~~audit, (iii) include the perspectives of civil society in audits and the steering of the standards and grievance mechanisms according to the effectiveness criteria of the UNGP, (iv) are developed and overseen by governments, industry associations or groupings of interested organisations, subject to the prior approval of the European Network of Supervisory Authorities;

2022/11/18
Committee: INTA

Proposal for a directive
Article 3 – paragraph 1 – point l

(l) ‘severe adverse impact’ means an adverse environmental and climate impact or an adverse human rights impact that is or could be especially significant by its nature, or affects or could affect a large number of persons or a large area of the environment, or which is or could be irreversible, or is particularly difficult to remedy as a result of the measures necessary to restore the situation prevailing prior to the impact;

2022/11/18
Committee: INTA

Proposal for a directive
Article 3 – paragraph 1 – point n

(n) ‘stakeholders’ means: (i) 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 relationshipsworkers, the workers of its subsidiaries, its small shareholders and other individuals, groups, communities, including indigenous peoples, entities or civil society organisations whose rights or interests are or could be affected by the products, services and operations or by the potential or actual adverse impacts on human rights, climate or the environment of that company, its subsidiaries and its business relationships across the entire value chain; (ii) organisations representing the individuals, groups, communities or entities included in (i); (iii) organisations who have as a statutory purpose the defence of human rights, good governance, the environment or climate;and (iv) other legal or natural persons engaged in the defence of human rights, good governance, the environment or climate;

2022/11/18
Committee: INTA

Proposal for a directive
Article 3 – paragraph 1 – point q

(q) ‘appropriate measure’ means a measure that is capable of achieving the objectives of due diligence and effectively addressing the 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, the company’s ability to increase its influence thereof and the need to ensure prioritisation of action.

2022/11/18
Committee: INTA

Proposal for a directive
Article 3 – paragraph 1 – point q a (new)

(q a) ‘conflict-affected and high-risk areas’ means areas in a state of armed conflict or fragile post-conflict, areas under occupation and/or annexation, as well as areas witnessing weak or non- existent governance and security, such as failed states, and widespread and severe violations of international humanitarian and/or human rights law;

2022/11/18
Committee: INTA

Proposal for a directive
Article 4 – paragraph 1 – introductory part

1. Member States shall ensure that companies conduct human rights ~~and~~, environmental and climate due diligence as laid down in Articles 5 to 11 (‘due diligence’) by carrying out the following actions:

2022/11/18
Committee: INTA

Proposal for a directive
Article 4 – paragraph 1 – point d a (new)

(d a) engaging with stakeholders in good faith and in an effective and meaningful way throughout the whole due diligence process;

2022/11/18
Committee: INTA

Proposal for a directive
Article 4 a (new)

Article 4 a Hightened due diligence in conflict affected and high risk areas Member States shall ensure that companies operating in situations of armed conflict or military occupation respect their obligations under international humanitarian law. Member States shall ensure that in conflict- affected and high-risk areas undertakings conduct heightened, conflict-sensitive due diligence on all their operations and business relations through integrating a conflict analysis, based on meaningful and conflict-sensitive stakeholder engagement of the root causes, triggers and parties driving the conflict, and the impact of the company’s business activities on the conflict into their due diligence.

2022/11/18
Committee: INTA

Proposal for a directive
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 a due diligence policy. The due diligence policy shall be developed in consultation with all stakeholders and shall contain all of the following:

2022/11/18
Committee: INTA

Proposal for a directive
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 relationships.

2022/11/18
Committee: INTA

1. Member States shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations ~~or those of their subsidiaries and, where related to their value chains, from their established business relationships, in accordance with paragraph 2, 3 and 4~~, products and services in their operations and business relationships.

2022/11/18
Committee: INTA

Proposal for a directive
Article 6 – paragraph 2

2. By way of derogation from paragraph 1, companies referred to in Article 2(1), point (b), and Article 2(2), point (b), shall only be required to identify actual and potential severe adverse impacts relevant to the respective sector mentioned in Article 2(1), point (b).deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 6 – paragraph 3

3. When companies referred to in Article 3, point (a)(iv), provide credit, loan or other financial services, identification of actual and potential adverse human rights impacts and adverse environmental impacts shall be carried out only before providing that service..deleted

2022/11/18
Committee: INTA

Proposal for a directive
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 relevant stakeholders to gather information on, identify and assess actual or potential adverse impacts.

2022/11/18
Committee: INTA

Proposal for a directive
Article 8 – paragraph 2

2. Where the adverse impact cannot be brought to an end immediately, Member States shall ensure that companies minimise the extent of such an impact. while continuing to pursue all efforts, proportionate to the significance and scale of the adverse impact, in order to bring the adverse impact to an end

2022/11/18
Committee: INTA

Anna CAVAZZINI, Saskia BRICMONT

Proposal for a directive
Article 8 – paragraph 3 – introductory part

3. Companies shall be required to take appropriate measures, including the following actions~~, where relevant~~:

2022/11/18
Committee: INTA

Proposal for a directive
Article 8 – paragraph 3 – point b

(b) where ~~necessary due to the fact that~~ the adverse impact cannot be immediately brought to an end, develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. ~~Where relevant, t~~The corrective action plan shall be developed in consultation with stakeholders and shall be publicly available;

2022/11/18
Committee: INTA

Proposal for a directive
Article 8 – paragraph 3 – point c

(c) ~~seek~~obtain contractual a~~ssurances from a direct partner with whom it has an established~~nd other assurances regarding its business relationship ~~that it will ensure~~s of 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. With regards to contractual assurances the terms shall be reasonable and non- discriminatory. In cases where the business relationship is active in a high risk sector as defined in article 3 (b)(a), the assurances shall also include details on ensuring compliance with regards to the risks that are specific to that sector.

2022/11/18
Committee: INTA

Proposal for a directive
Article 8 – paragraph 3 – point e

(e) provide targeted and proportionate support for ~~an SME with which the company has an established business relationship~~business partners, in particular for SMEs, where compliance with the code of conduct or the corrective action plan would jeopardise the viability of the ~~SME~~business partner;

2022/11/18
Committee: INTA

Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – introductory part

As regards actual adverse impacts within the meaning of paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures provided for in paragraphs 3, 4 and 5, bringing the impact to an end is not possible, or where there is no reasonable prospect of change, the company shall refrain from entering into new or extending existing relations with the partner in connection to or in the value chain of which the impact has arisen ~~and shall~~. Companies shall, in consultation with stakeholders, identify and address the risks and impacts of their actions and, where the law governing their relations so entitles them to, take one of the following actions:

2022/11/18
Committee: INTA

Proposal for a directive
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 mi~~nimis~~tigate the extent of the adverse impact, or

2022/11/18
Committee: INTA

Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point b

(b) terminate the business relationship with respect to the activities concerned, only as a last resort and if the adverse impact is considered severe, systematic or state-sponsored. The company shall engage in a timely, efficient and meaningful manner with stakeholders impacted by the decision to disengage, in particular with the company's workers and their legitimate representatives, before reaching this decision. The company shall address the adverse impacts related to the decision to disengage and shall disclose, as part of its reporting obligation, the number of instances where it decided to disengage, the reason for this disengagement and the location of the concerned business relationships without disclosing their identity.

2022/11/18
Committee: INTA

Proposal for a directive
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.

2022/11/18
Committee: INTA

Proposal for a directive
Article 8 – paragraph 7

7. By way of derogation from paragraph 6, point (b), when companies referred to in Article 3, point (a)(iv), provide credit, loan or other financial services, they shall not be required to terminate the credit, loan or other financial service contract, when this can be reasonably expected to cause substantial prejudice to the entity to whom that service is being provided.deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 1

1. Member States shall ensure that companies ~~provide the possibility for~~establish, in consultation with stakeholders, or participate in an effective complaints mechanism 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 and request remedy to them where they have ~~legitimat~~reasonable concerns regarding actual or potential adverse human rights ~~impacts and adverse~~, environmental or climate impacts with respect to their own operations, ~~the operation~~products and services, the operations, products and services of their subsidiaries and their value chains.

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 1 a (new)

1 a. Member States shall ensure that complaints procedures as established by companies, are legitimate, accessible, predictable, safe, equitable, transparent, rights-compatible and adaptable. Such mechanisms shall provide for the possibility to raise concerns either anonymously or confidentially, in accordance with national law.

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 1 b (new)

1 b. Member States shall ensure that companies provide information to stakeholders, including in particular actual and potentially affected rights holders, on such complaints mechanisms, including on how to access them, on decisions and remedies relating to a company and on how the company is implementing them. All information shall be published in a manner that does not endanger the stakeholders’ safety, including by not disclosing their identity.

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 1 c (new)

1 c. Member States shall ensure that stakeholders, including in particular actual and potentially affected rights holders, play a central role in the design and evaluation of such independent complaints mechanisms and in the provision of remedy.

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 1 d (new)

1 d. Member States shall ensure that companies are enabled to provide a complaints mechanism through collaborative arrangements with other companies or organisations, by participating in multi-stakeholder complaints mechanisms or joining a Global Framework Agreement.

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 1 e (new)

1 e. The body or person applying the complaints mechanism shall be entitled to make proposals to the companies on how potential or actual adverse impacts may be addressed and on how to improve the complaints mechanism.

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 2 – introductory part

2. Member States shall ensure that the complaints may be submitted by: all persons, groups, communities, entities and civil society organisations covered by Article 3 (n) as well as the natural and legal persons representing them, including in particular trade unions and other workers’ representatives.

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 2 – point a

~~(a) persons who are affected or have reasonable grounds to believe that they might be affected by an adverse impact,~~deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 2 – point b

~~(b) trade unions and other workers’ representatives representing individuals working in the value chain concerned,~~deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 2 – point c

~~(c) civil society organisations active in the areas related to the value chain concern~~deleted.

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 3

3. Member States shall ensure that the companies ~~establish~~' complaints mechanism includes a procedure for dealing with complaints referred to in paragraph 1, including a procedure when the company or its internal complaint mechanism considers the complaint to be unfounded, and inform the relevant stakeholders, including workers and trade unions 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.

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 4 – introductory part

4. Member States shall ensure that complainants and their representatives are entitled

2022/11/18
Committee: INTA

Proposal for a directive
Article 9 – paragraph 4 – point b

(b) to ~~meet~~engage 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.

2022/11/18
Committee: INTA

Proposal for a directive
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

2022/11/18
Committee: INTA

Proposal for a directive
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, ~~may~~shall issue g~~uidelines, including for specific sectors or specific adverse impacts.~~ eneral as well as sector-specific and impact-specific guidelines, in particular for the high impact sectors defined in article 3 (b)(a). The issues to be addressed by the guidelines shall include the specific obligations under article 5 to 11 of this Directive as well as: (a) contexts, such as situations of conflict or occupation; (b) responsible purchasing practices; (c) gender-responsive and culturally responsive due diligence; (d) resource and information sharing among companies and other legal entities for the purposes of preventing, mitigating and remediating adverse impacts in compliance with competition law; (e)measures that companies should take to address the challenges faced by small holders, including access to a living income; (f) responsible disengagement; (g)hightened due diligence in conflict- affected areas.

2022/11/18
Committee: INTA

Proposal for a directive
Article 13 – paragraph 1 – point a (new)

(a) measures that companies should take to address the challenges faced by small holders, including access to a living income;

2022/11/18
Committee: INTA

Proposal for a directive
Article 13 – paragraph 1 – point b (new)

(b) hightened due diligence in conflict-affected areas.

2022/11/18
Committee: INTA

Proposal for a directive
Article 13 – paragraph 1 – point b (new)

(b) responsible disengagement;

2022/11/18
Committee: INTA

Proposal for a directive
Article 14 – paragraph 1

1. Member States shall~~, in order to~~ provide information, advice 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,. To this end, Member States shall set up and operate individually or jointly dedicated interactive websites, platforms or portals. S~~pecific consideration shall be given, in that respect, to the SMEs that are present in the value chains of companies~~uch information, advice and support shall be tailored to the specific needs of SMEs and shall be accompanied by the appointment or the establishment of an SME contact point.

2022/11/18
Committee: INTA

Proposal for a directive
Article 14 – paragraph 3

3. The Commission ~~may~~shall complement Member States’ support measures building on existing Union action to support due diligence in the Union and in third countries and may devise new measures, including facilitation of joint stakeholder initiatives to help companies fulfil their obligations.

2022/11/18
Committee: INTA

Proposal for a directive
Article 14 – paragraph 3 a (new)

3 a. The Commission shall develop and implement measures to support safe participatory collection of independent data on human rights violations, good governance and environmental and climate damages and to undertake necessary actions for the data to be considered.

2022/11/18
Committee: INTA

Proposal for a directive
Article 14 – paragraph 3 b (new)

3 b. The Commission shall review the EU‘s cooperation and trade instruments to ensure that they support the development of an enabling environment in third countries, with particular consideration as well as capacity building given to developing countries. The Commission shall develop guidelines for EU export credit agencies and set up an oversight mechanism to ensure that EU and Member States‘ funds and export credits operate in line with the principles of this Directive.

2022/11/18
Committee: INTA

Proposal for a directive
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, i~~n collaboration with Member States, may issue guidance for assessing the fitness of~~s empowered to adopt a delegated act on industry schemes and multi-stakeholder initiatives. The criteria for assessing the fitness of an industry scheme shall include the perspectives of civil society in audits and the steering of the standards and complaint mechanisms according to the effectiveness criteria of the UNGPs. Reliance on industry schemes and multi- stakeholder initiatives shall not absolve the company of its individual responsibility and obligations to perform due diligence and prevent it from being held liable under article 22 of this Directive.

2022/11/18
Committee: INTA

Proposal for a directive
Article 22 – paragraph 1 – point a

(a) they failed to comply with the obligations laid down in ~~Articles 7 and 8~~this Directive and;

2022/11/18
Committee: INTA

Proposal for a directive
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 8~~this Directive occurred and led to damage.

2022/11/18
Committee: INTA

Proposal for a directive
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~~shall be liable for damages ~~caused by~~that result from an adverse impact arising as a result of the activities of an indirect partner with whom it has a~~n established~~ business relationship, unless ~~it was unreasonable, in~~ they c~~ircumstances of the case, to expect that the action actually taken, including~~ an prove they took appropriate meas ure~~gards verifying compliance, would be adequate to~~s capable of preventing, mitigat~~e, br~~ing or bringing to an end or minimiseing the extent of the adverse impact.

2022/11/18
Committee: INTA

Proposal for a directive
Article 22 – paragraph 2 – subparagraph 2

In the assessment of the existence and extent of liability under this paragraph, due account ~~shall~~may 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 chains.

2022/11/18
Committee: INTA

Proposal for a directive
Article 22 – paragraph 2 – subparagraph 2 a (new)

Where there is a civil liability claim for damages in accordance with art 22 paragraph 1 and 2, and that the claimant provides primafacie elements substantiating the likelihood of the respondent's liability under the directive, Member States shall take such measures as 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.

2022/11/18
Committee: INTA

Proposal for a directive
Article 22 – paragraph 2 – subparagraph 2 b (new)

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.

2022/11/18
Committee: INTA

Proposal for a directive
Article 22 – paragraph 5 a (new)

5 a. Member States shall ensure that the limitation periods for bringing actions for damages are at least ten years.

2022/11/18
Committee: INTA

Proposal for a directive
Article 22 – paragraph 5 b (new)

5 b. Member States shall ensure that right holders, groups of rights holders or any legal or natural 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.

2022/11/18
Committee: INTA

Proposal for a directive
Article 22 – paragraph 5 c (new)

5 c. Member States shall take measures to ensure the right to an effective remedy and to ensure that the costs and the length of the proceedings under national law do not prevent claimants from access to courts. These measures may include, among others, 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.

2022/11/18
Committee: INTA

Proposal for a directive
Article 22 – paragraph 5 d (new)

5 d. Member States shall ensure that trade unions, civil society organisations and other relevant actors acting in the public interest can bring representative actions before court 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.

2022/11/18
Committee: INTA

Proposal for a directive
Article 29 – title

29 Review and report

2022/11/18
Committee: INTA

Proposal for a directive
Article 29 – paragraph 1 – introductory part

No later than … [OP please insert the date = 75 years after the date of entry into force of this Directive and every 3 years thereafter], the Commission shall submit a report to the European Parliament and to the Council on the implementation of this Directive. The report shall be accompanied, if appropriate, by legislative proposals and shall evaluate the effectiveness of this Directive in reaching its objectives and assess the following issues:

2022/11/18
Committee: INTA

Proposal for a directive
Article 29 – paragraph 1 – point a

(a) ~~whether the thresholds regarding the number of employees and net turnover laid down in Article 2(1) need to be lowered~~the impact of this Directive on SMEs, accompanied by an account and assessment of the effectiveness of the different measures and tools for support provided to SMEs by the Commission and Member States;

2022/11/18
Committee: INTA

Proposal for a directive
Article 29 – paragraph 1 – point b

~~(b) whether the list of sectors in Article 2(1), point (b), needs to be changed, including in order to align it to guidance from the Organisation for Economic Cooperation and Development;~~deleted

2022/11/18
Committee: INTA

Proposal for a directive
Article 29 – paragraph 1 – point b a (new)

(b a) the effectiveness of the enforcement mechanisms put in place at national level and in particular of the sanctions and the procedures for civil liability;

2022/11/18
Committee: INTA

Proposal for a directive
Article 29 – paragraph 1 – point b b (new)

(b b) the use and accessibility of complaints procedures and follow-up actions undertaken by companies and public authorities;

2022/11/18
Committee: INTA

Proposal for a directive
Article 29 – paragraph 1 – point b c (new)

(b c) the involvement of stakeholders throughout all due diligence processes;

2022/11/18
Committee: INTA

Proposal for a directive
Article 29 – paragraph 1 – point c

(c) whether the Annex needs to be ~~modifi~~expanded or updated, including in light of international developments

2022/11/18
Committee: INTA

Proposal for a directive
Article 29 – paragraph 1 – point d

(d) whether Articles 4 to 14 should be extended to additional adverse climate impacts.

2022/11/18
Committee: INTA

Proposal for a directive
Annex I – Part II – subheading 1

violations of EU and internationally recognized objectives and prohibitions included in environmental ~~conventions~~and climate conventions and Union legislation

2022/11/18
Committee: INTA

Proposal for a directive
Annex I – Part II – point 1 a (new)

1 a. Violation of European environmental principles as defined in Article 191 TFEU;

2022/11/18
Committee: INTA

Proposal for a directive
Annex I – Part II – point 1 b (new)

1 b. Violation of one of the universally binding rules of customary international environmental law including but not limited to: (a) the obligation not to cause significant damage to the environment (prevention principle); (b) the principle that lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation (precautionary approach); (c) the obligation to carry out an environmental impact assessment for activities likely to have a significant adverse impact on the environment; (d) the approach that the polluter should, in principle, bear the cost of pollution (polluter-pays principle).

2022/11/18
Committee: INTA

Proposal for a directive
Annex I – Part II – point 12 a (new)

12 a. Violation of the obligation to take all measures consistent with the UN Convention on the Laws of the Sea (UNCLOS) that are necessary to prevent, reduce and control pollution of the marine environment from any source.

2022/11/18
Committee: INTA

Proposal for a directive
Annex I – Part II – point 12 b (new)

12 b. Violation of the Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (Aarhus Convention) as well as the Regional Agreement on Access to Information, Public Participation and Justice in Environmental Matters in Latin America and the Caribbean (Escazú Agreement).

2022/11/18
Committee: INTA

Proposal for a directive
Annex I – Part II – point 12 c (new)

12 c. Violation of the 1992 Convention on the Protection and Use of Transboundary Watercourses and International Lakes.

2022/11/18
Committee: INTA

Proposal for a directive
Annex I – Part II – point 12 d (new)

12 d. Violation of the obligations under the Paris Agreement

2022/11/18
Committee: INTA