Activities of Michèle RIVASI related to 2022/0051(COD)
Shadow opinions (1)
OPINION on the proposal for a directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937
Amendments (89)
Amendment 160 #
Proposal for a directive
Recital 1
Recital 1
(1) The Union is founded on the respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights as enshrined in the EU Charter of Fundamental Rights. Article 191 of the Treaty on the Functioning of the European Union (TFEU) states that Union policy shall contribute to preserving, protecting and improving the quality of the environment, protecting human health, prudent and rational utilisation of natural resources and promoting measures at international level to deal with regional or worldwide environmental problems, and in particular combating climate change. Those core values that have inspired the Union’s own creation, as well as the universality and indivisibility of human rights, and respect for the principles of the United Nations Charter and international law, should guide the Union’s action on the international scene. Such action includes fostering the sustainable economic, social and environmental development of developing countries.
Amendment 162 #
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
(2a) To achieve these objectives, a systemic change to the Union economy is needed to ensure that the green transition is achieved in a just and inclusive way, within planetary boundaries. Achievement of the SDGs by the Union and its support for third countries to do the same will be essential if the Union is to demonstrate global leadership in achieving sustainability transitions[1]. [1] See how to refer to it: General Union Environment Action Programme to 2030, A9-0203/127;
Amendment 167 #
Proposal for a directive
Recital 10 a (new)
Recital 10 a (new)
(10a) Due diligence practices under this Directive should contribute to preserving and restoring marine and terrestrial biodiversity by, inter alia, halting, mitigating and reversing biodiversity loss and improving the state of ecosystems and their functions and the services they provide, and by improving the state of the environment, in particular air, water and soil, as part of the main objectives of protecting the health and well-being of people, animals and ecosystems from environment-related risks, in line with Agenda 2030.
Amendment 175 #
Proposal for a directive
Recital 16 a (new)
Recital 16 a (new)
(16a) Companies should develop and adapt the due diligence measures in light of the political context in which companies, their subsidiaries and their business relationships operate throughout their value chains. In conflict-affected and high-risk areas, companies run additional risk to be involved in severe human rights abuses. In these areas, companies should therefore undertake heightened, conflict-sensitive due diligence, in order to address these heightened risks and to ensure that they do not facilitate, finance, exacerbate or otherwise negatively impact the conflict or contribute to violations of international human rights law or international humanitarian law in conflict-affected or high-risk areas.
Amendment 182 #
Proposal for a directive
Recital 21
Recital 21
(21) Under this Directive, all EU companies with more than 500 employees on average and a worldwide net turnover exceeding EUR 150 million in the financial year preceding the last financial year should be required to comply with due diligence. As regards companies which do not fulfil those criteria, but which had more than 250 employees on average and more than EUR 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors, due diligence should apply 2 years after the end of the transposition period of this directive, in order to provide for a longer adaptation period. In order to ensure a proportionate burden, cthe exception of micro- enterprises as defined by Article 3(1) of Directive 2013/34/EU should be required to comply with due diligence. Companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. Temporary agency workers, including those posted under Article 1(3), point (c), of Directive 96/71/EC, as amended by Directive 2018/957/EU of the European Parliament and of the Council103 [1], should be included in the calculation of the number of employees in the user company. Posted workers under Article 1(3), points (a) and (b), of Directive 96/71/EC, as amended by Directive 2018/957/EU, should only be included in the calculation of the number of employees of the sending company. _________________ 103[1] Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (OJ L 173, 9.7.2018, p. 16).
Amendment 184 #
Proposal for a directive
Recital 22
Recital 22
(22) In order to reflect the priority areas of international action aimed at tackling human rights, and environmental issues, the selection of high-impact sectors for the purposes of this Directive should be basedand climate issues, this Directive should provide a list of high-impact sectors based¸ among others, on existing sectoral OECD due diligence guidance. The following sectors that should be regarded as high-impact for the purposes of this Directive: include: the energy sector including gas, nuclear, steam, electricity and other sources throughout their life cycle, from extraction, refining, production, combustion of fuels, in transportation, storage and waste management including radioactive waste; the chemicals sector; the manufacture of textiles, apparel, fur, leather and related products (including footwear), and the wholesale trade and retail of textiles, clothing and footwear; plastic production, waste shipment and management; agriculture, 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, and beverages; construction sector and infrastructure building; transportation sector, logistics and storage; the extraction and refining of mineral resources regardless of where they are extracted from (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). As regards the financial sector, due to its specificities, in particular as regards the value cha the production, use and waste management of electronic products; waste management sector; employment activities, health, social and elder care; cleaning and the services offered, even if it is covered by sector-specific OECD guidance, it should not form part of the high-impact sectors covered by this Directive. At the same time, in this sector, the broader covehousehold services; hospitality; financial and insurance activities; technology, digital activities and online platforms; manufacture and tragde of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings, even ifweapons and ammunition, including dual-use items, manufacture and trade of military fighting vehicles; private security activities and security systems service activities, including they do not have a legal form with limited liability. evelopment and operation of biometrics and surveillance technologies.
Amendment 191 #
Proposal for a directive
Recital 25
Recital 25
(25) In order to achieve a meaningful contribution to the sustainability transition, due diligence under this Directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the Annex to this Directive. In order to ensure a comprehensive coverage of human rights, a violation of a prohibition or right not specifically listed in that Annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this Directive, 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 due diligence obligations under this Directive, taking into account all relevant circumstances of their operations, such as the sector and operational context. Due diligence should further encompass adverse environmental impacts resulting from the violation of one of the prohibitions and ob. Due diligence should further encompass adverse environmental and climate impacts resulting from the violation of one of the prohibitions and obligations established under EU and international environmental law, including, but not limited to the international environmental conventions listed in the Annex to this Directive, in particular adverse impacts on air quality, air pollution and atmosphere, water pollution, water contamination, access to water and depletion of freshwater, soil, such as soil pollution, soil contamination, soil erosion, and land degradation, biodiversity, including damage to wildlife, seabed and marine environment, flora, fauna, natural habitats and ecosystems, human health in accordance with the 'One Health' approach, cligmations pursuant to the international environmental conventions listed in the Annex to this Directivee, including through greenhouse gas emissions and the destruction or degradation of sinks.
Amendment 195 #
Proposal for a directive
Recital 27
Recital 27
(27) In order to conduct appropriate human rights, climate and environmental due diligence with respect to their operations, produced goods and services throughout their life-cycle, and those their subsidiaries, and their value chains, companies covered by this Directive should, after meaningful consultation with stakeholders, integrate due diligence into corporate policies with short-, medium- and long-term measures, identify, prevent and mitigate as well as bring to an end and minimise the extent of potential and actual adverse human rights and, environmental and climate impacts, establish and maintain a complaints procedure, monitor and assess the effectiveness of the taken measures in accordance with the requirements that are set up in this Directive and communicate publicly on their due diligence. In order to ensure clarity for companies, in particular the steps of preventing and mitigating potential adverse impacts and of bringing to an end, or when this is not possible, minimising actual adverse impacts should be clearly distinguished in this Directive.
Amendment 198 #
Proposal for a directive
Recital 28
Recital 28
(28) In order to ensure that due diligence forms part of companies’ corporate policies, and in line with the relevant international framework, companies should integrate due diligence into all their corporate policies and have in place a due diligence policy. The due diligence policy should contain a description of the company’s approach, including in the long term, to due diligence, a code of conduct describing the rules and principles to be followed by the company’s employees and subsidiaries; 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. The code of conduct should apply in all relevant corporate functions and operations, including procurement and purchasing decisions. Companies must put in place adequate policies to avoid passing on the costs of the due diligence process to business partners in a weaker position. The due diligence policy should notably include a strategy of co-investment to build the capacity of weaker business partners to carry out due diligence. Companies should also update their due diligence policy annually.
Amendment 202 #
Proposal for a directive
Recital 30
Recital 30
(30) Under the due diligence obligations set out by this Directive, a company should identify actual or potential adverse human rights and, environmental and climate impacts. In order to allow for a comprehensive identification of adverse impacts, such identification should be based on quantitative and qualitative information. For instance, as regards adverse environmental and climate impacts, the company should obtain information about baseline conditions at higher risk sites or facilities in value chains. Identification of adverse impacts should include assessing the human rights, and environmental and climate context in a dynamic way and in regular intervals: prior to a new activity or relationship, prior to major decisions or changes in the operation; in response to or anticipation of changes in the operating environment; and periodically, at least every 12 months, throughout the life of an activity or relationship. Regulated financial undertakings providing loan, credit, or other financial services should identify the adverse impacts only at the inception of the contract. 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. Where the company cannot prevent, bring to an end or minimize all its adverse impacts at the same time, it should be able to prioritize its action, provided it takes the measures reasonably available to the company, taking into account the specific circumstancesdevelop and implement a prioritisation strategy in consultation with stakeholders, which shall take into account the level of severity, likelihood, the duration, the spread and reversibility of the different potential adverse impacts on human rights, the environment and the climate.
Amendment 206 #
Proposal for a directive
Recital 31
Recital 31
(31) In order to avoid undue burden on the smaller companies operating in high- impact sectors which are covered by this Directive, those companies should only be obliged to identify those actual or potential severe adverse impacts that are relevSMEs covered by this Directive, those companies should be supported with adequate and targeted measures antd to the respective sectorols.
Amendment 207 #
Proposal for a directive
Recital 32
Recital 32
(32) In line with international standards, prevention and mitigation and remediation as well as bringing to an end and minimisation of adverse impacts should fully take into account the interests of those adversely impacted. In order to enable continuous engagement with the value chain business partner instead of termination of business relations (disengagement) and possibly exacerbating adverse impacts, this Directive should ensure that disengagement is a last-resort action, in line with the Union`s policy of ze and should be designed and determined on the basis of meaningful engagement with them. Companies should engage in a timely manner, efficiently and meaningfully with stakeholders impacted by the decision to suspend or terminate the adverse impacts before reaching that decision, and shall address the adverse impacts derived fro-m tolerance on child labour. Terminating a business relationship in whichhose actions. In particular, contributions to ending the child labour was fshounld could expose the child to even more severe adverse human rights impacts. This should therefore be taken into account when deciding on the appropriate action to takeinclude adjusting pricing practices to ensure a decent living of families and farmers, supporting children’s access to education and require the supplier to avoid child labour.
Amendment 211 #
Proposal for a directive
Recital 36
Recital 36
(36) In order to ensure that prevention and mitigation of potential adverse impacts is effective, companies should prioritize engagement with business relationships in the value chain, instead of terminating the business relationship, as a last resort action after attempting at preventing and mitigating adverse potential impacts without success. However, the Directive should also, for cases where potential adverse impacts could not be addressed by the described prevention or mitigation measures, refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question and, where the law governing their relations so entitles them to, to either temporarily suspend commercial relationships with the partner in question, while pursuing prevention and, minimisation effortsand remediation efforts where appropriate, if there is reasonable expectation that these efforts are to succeed in the short-termaccordance with a joint time-bound plan; or to terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe. Companies shall engage meaningfully with stakeholders impacted by the decision to disengage before reaching this decision, and shall address the adverse impacts related to the decision to disengage and pursue remediation of past adverse impacts where appropriate. In order to allow companies to fulfil that obligation, Member States should provide for the availability of an option to terminate the business relationship in contracts governed by their laws. It is possible that prevention of adverse impacts at the level of indirect business relationships requires collaboration with another company, for example a company which has a direct contractual relationship with the supplier. In some instances, such collaboration could be the only realistic way of preventing adverse impacts, in particular, where the indirect business relationship is not ready to enter into a contract with the company. In these instances, the company should collaborate with the entity which can most effectively prevent or mitigate adverse impacts at the level of the indirect business relationship while respecting competition law.
Amendment 214 #
Proposal for a directive
Recital 38
Recital 38
(38) Under the due diligence obligations set out by this Directive, if a company identifies actual human rights or, environmental, climate, rule of law and good governance adverse impacts, it should take appropriate measures to bring those to an end. It can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries and to require partners to do so. However, it should be clarified that, as regards established business relationships, where adverse impacts cannot be brought to an end, companies should minimise the extent of such impactssuch impacts, to the greatest extent possible. Minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. To provide companies with legal clarity and certainty, this Directive should define which actions companies should be required to take for bringing actual adverse human rights and environmental, climate, rule of law and good governance adverse impacts to an end and minimisation of their extent, where relevant depending on the circumstances.
Amendment 217 #
Proposal for a directive
Recital 42
Recital 42
(42) Companies should provide the possibility for persons, groups, communities, entities and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and, environmental and climate adverse impacts. Organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impact, human rights and environmental rights defenders, or other legal or natural persons who have as a statutory purpose the defence of human rights, climate, the environment or good governance. Companies should establish a procedure for dealing with those complaints and inform workers, trade unions and other workers’ representatives, where relevant, about such processes. Recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. In accordance with international standards, complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. This access should not lead to unreasonable solicitations of companies.
Amendment 219 #
Proposal for a directive
Recital 43
Recital 43
(43) Companies should monitor the implementation and effectiveness of their due diligence measures. They should, in consultation with stakeholders, carry out periodic assessments of their own operations, 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, minimisation, bringing to an end and mitigation of human rights and, environmental and climate adverse impacts. Such assessments should verify that adverse impacts are properly identified, due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. In order to ensure that such assessments are up-to- date, they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.
Amendment 221 #
Proposal for a directive
Recital 44 a (new)
Recital 44 a (new)
(44a) Companies should provide stakeholders adequate, comprehensive meaningful information about actual and potential adverse human rights, environmental and climate impacts and the actions taken to respect their due diligence. Stakeholders should also be able to request additional information from a company regarding the actions taken to comply with the obligations set in this Directive. The confidentiality of commercial and industrial information shall not serve as a bar for access to information that relates to the implementation, by a company, of the provisions of national law transposing this Directive.
Amendment 224 #
Proposal for a directive
Recital 46 a (new)
Recital 46 a (new)
Amendment 226 #
Proposal for a directive
Recital 49
Recital 49
(49) The Commission and Member States should continue to work in partnership with third countries to support upstream economic operators build the capacity to effectively prevent and mitigate adverse human rights and, environmental, climate, rule of law and good governance impacts of their operations and business relationships, paying specific attention to the challenges faced by smallholders. They, who are some of the most marginalised actors in the global value chains. If smallholders do not meet their needs, then they cannot afford the social (e.g. no child labour) and environmental improvements (e.g. no deforestation or sustainable diversification) that they buyers, governments and consumers expect from them. Henceforth, the Commission and Member States should use their neighbourhood, development and international cooperation instruments to support third country governments and upstream economic operators in third countries addressing adverse human rights and, environmental, climate, rule of law and good governance impacts of their operations and upstream business relationships. This could include working with partner country governments, the local private sector and stakeholders on addressing the root causes of adverse human rights and environmental impacts, climate, rule of law and good governance impacts. In the same line, the Commission and Member States should provide targeted support to stakeholders in developing countries, in order to ensure their meaningful engagement in all due diligence processes. In particular, support should be provided to national and local civil society organisations to monitor corporate practices and hold companies accountable and dedicated measures and funds should ease access to justice.
Amendment 227 #
Proposal for a directive
Recital 50
Recital 50
(50) In order to ensure that this Directive effectively contributes to combating climate change, companies should, in consultation with stakeholders, adopt 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. In case climate is or should have been identified as a principal risk for or a principal impact of the company’s operations and with the objective of achieving climate neutrality by 2050 at the latest as established in Regulation EU 2021/1119 (European Climate Law), pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change. Accordingly, the company should include emissions reduction objectives in its plan.
Amendment 230 #
Proposal for a directive
Recital 56
Recital 56
(56) In order to ensure effective compensation of victims of adverse impacts, Member States should be required to lay down rules governing the civil liability of companies for damages arising due to its failure to comply with the due diligence process. The company should be liable for damages if they failed to comply with the obligations to prevent and mitigate potential adverse impacts or to bring actual impacts to an end and minimise their extent, and 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 occurred and led to damage. The company should also be liable for damages that result from adverse human rights, environmental or climate impacts that should have been identified, prevented, mitigated, brought to an end or their extent minimised by its subsidiaries.
Amendment 235 #
Proposal for a directive
Recital 59 a (new)
Recital 59 a (new)
(59a) The right to an effective remedy is an internationally recognised human right, enshrined in Article 8 of the Universal Declaration of Human Rights, and Article 2(3) of the International Covenant on Civil and Political Rights, and is also a fundamental right of the Union within the meaning of Article 47 of the Charter. Member States should thus ensure that victims have access to an effective remedy and that the costs and the length of the proceedings 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 236 #
Proposal for a directive
Recital 59 b (new)
Recital 59 b (new)
(59b) The most significant barriers to access to justice for victims of adverse impacts is the difficulty in proving the company's failure to meet its obligations. In case of a civil liability claim for damages and when prima facie elements are provided by the claimants, the causal link between the damage and the company’s failure to comply should be presumed and the respondent should have to prove it has complied with its obligations and that appropriate measures were taken.
Amendment 237 #
Proposal for a directive
Recital 59 c (new)
Recital 59 c (new)
(59c) Trade unions, civil society organisations or other relevant actors acting in the public interest, such as National Human Rights Institutions or an Ombudsman, should be able to 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 242 #
(65) Persons who work for companies subject to due diligence obligations under this Directive or who are in contact with such companies in the context of their work-related activities can play a key role in exposing breaches of the rules of this Directive. They can thus contribute to preventing and deterring such breaches and strengthening the enforcement of this Directive. Directive (EU) 2019/1937 of the European Parliament and of the Council106 should therefore apply to the reporting of all breaches of this Directive and to the protection of persons reporting such breaches. In particular, stakeholders submitting complaints or concerns should be effectively protected, notably by ensuring the confidentiality and anonymity of the complaint or concern raised. _________________ 106 Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (OJ L 305, 26.11.2019, p. 17).
Amendment 243 #
Proposal for a directive
Recital 65 a (new)
Recital 65 a (new)
(65a) Human rights and environmental rights defenders are on the front line of the consequences of adverse environmental, climate and human rights impacts worldwide and in the EU, and may be directly threatened, intimidated, persecuted, harassed or even murdered, and as such should also benefit from balanced and effective protection. Companies should measure the actual and potential risks of their activities, as well as contextual risks to human rights and environmental rights defenders, engage with them and publish a policy on defenders that includes a zero-tolerance stance on threats or violence against them. Company policies must explicitly include in their due diligence protocols for safeguarding the rights of land and environmental rights defenders.
Amendment 245 #
Proposal for a directive
Recital 70
Recital 70
(70) The Commission should assess and report on a regular basis whether new sectors should be added to the list of high- impact sectors covered by this Directive, in order to align it to guidance from the Organisation for Economic Cooperation and Development or in light of clear evidence on labour exploitation, human rights violations or newly emerging environmental threats, whether the list of relevant international conventions referred to in this Directive should be amended, in particular in the light of international developments, or whether the provisions on due diligence under this Directive should be extended to adverse climate impacts.
Amendment 247 #
Proposal for a directive
Recital 71
Recital 71
(71) The objective of this Directive, namely better exploiting the potential of the single market to contribute to the transition to a sustainable economy and contributing to sustainable development through the prevention and mitigation of potential or actual human rights and, environmental and climate adverse impacts in companies’ value chains, cannot be sufficiently achieved by the Member States acting individually or in an uncoordinated manner, but can rather, by reason of the scale and effects of the actions, be better achieved at Union level. In particular, addressed problems and their causes are of a transnational dimension, as many companies are operating Union wide or globally and value chains expand to other Member States and to third countries. Moreover, individual Member States’ measures risk being ineffective and lead to fragmentation of the internal market. Therefore, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective.
Amendment 249 #
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 operationand climate adverse impacts and rule of law and good governance adverse impacts, with respect to their own operations, products 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 257 #
Proposal for a directive
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
1a. This Directive aims to ensure that companies respect human rights, good governance and protect the environment and the climate within their own operations, products and services, and those of their subsidiaries, and value chains.
Amendment 262 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. This Directive shall apply to companies and other legal persons (including with a non-profit purpose) undertaking activities of commercial nature, which are formed in accordance with the legislation of a Member State and which fulfil one of the following conditions:, with the exception of micro- enterprises as defined by article 3(1) of Directive 2013/34/EU.
Amendment 265 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
Amendment 268 #
Proposal for a directive
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
Amendment 270 #
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), 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, wood, food, and beverages; and sale to consumers;
Amendment 275 #
Proposal for a directive
Article 2 – paragraph 2 – introductory part
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 financial year preceding the last financial year.
Amendment 278 #
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
Amendment 280 #
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
Amendment 284 #
Proposal for a directive
Article 3 – paragraph 1 – point a a (new)
Article 3 – paragraph 1 – point a a (new)
(aa) a legal person which undertakes activities of commercial nature, independently of its legal form, its sector of activity or its purpose (profit or non- profit).
Amendment 285 #
Proposal for a directive
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) ‘adverse environmental and climate impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant: (i) contributing to the exceeding of planetary boundaries; (ii) an adverse impact on the following elements or functions of ecosystems and the interrelations between them; (a) climate, including but not limited to greenhouse gas emissions and the destruction or degradation of sinks; (b) air and the atmosphere, including but not limited to air pollution; (c) water and access to water, including but not limited to, water use, water pollution, water quantities and depletion of freshwater; (d) soil, including but not limited to, soil pollution, soil erosion, land use and land degradation, soil contamination from waste disposal and treatment; (e) biodiversity, including but not limited to, damage to wildlife, flora, seabed and marine environment, natural habitats and ecosystems; (f) hazardous substances; (g) energy use; (h) the transition to a circular economy; (i) human health in accordance with the ‘One Health’ approach and the right to a healthy environment. (iii) an adverse impact on the environment or climate resulting from the violation of one of the prohibitions and obligations established under international environmental and climate legislation including but not limited to the international environmental and climate conventions listed in the Annex, Part II; ;
Amendment 289 #
Proposal for a directive
Article 3 – paragraph 1 – point c a (new)
Article 3 – paragraph 1 – point c a (new)
Amendment 293 #
Proposal for a directive
Article 3 – paragraph 1 – point c b (new)
Article 3 – paragraph 1 – point c b (new)
Amendment 308 #
Proposal for a directive
Article 3 – paragraph 1 – point l
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 especially significant by its nature, or affects a large number of persons or a large area of the environment, or which is irreversible, or is particularly difficult to remedy as a result of the measures necessary to restore the situation prevailing prior to the impact;
Amendment 310 #
Proposal for a directive
Article 3 – paragraph 1 – point n
Article 3 – paragraph 1 – point n
(n) ‘stakeholders’ means (i) the company’s employees workers, the employees workers of its subsidiaries, its small shareholders and other individuals, groups, communities, or entities or civil society organisations, whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships; r by the potential or actual adverse impacts on human rights, climate or 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.
Amendment 312 #
Proposal for a directive
Article 3 – paragraph 1 – point n a (new)
Article 3 – paragraph 1 – point n a (new)
(na) ‘meaningful engagement with stakeholders’ means an interactive, responsive, ongoing and gender-inclusive process of engagement with potentially affected stakeholders and their representative organisations, especially vulnerable stakeholders, such as workers, trade unions, smallholders, indigenous peoples and local communities, at each phase of the due diligence process. Companies shall engage with the genuine intention to understand how relevant stakeholder interests are affected by its activities, and shall engage with stakeholders prior to taking decisions that may impact them and take into consideration their interests. It involves the timely provision of all information needed by the potentially impacted stakeholders to make an informed judgment on how the decision could affect them. It should ensure a proper follow-up of the implementation of agreed commitments, ensuring that adverse impacts to impacted and potentially impacted stakeholders are addressed.
Amendment 316 #
Proposal for a directive
Article 3 – paragraph 1 – point q
Article 3 – paragraph 1 – point q
(q) ‘appropriate measures’ means a set of measures 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, and the need to ensure prioritisation of action.
Amendment 323 #
Proposal for a directive
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Member States shall ensure that companies respect human rights, the environment and climate by obliging them to 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:
Amendment 327 #
Proposal for a directive
Article 4 – paragraph 1 – point f a (new)
Article 4 – paragraph 1 – point f a (new)
(fa) engaging with stakeholders in a meaningful way. In particular, (i) Member States shall ensure that companies carry out in good faith effective, meaningful and informed engagement with relevant stakeholders when implementing the due diligence process. Member States shall guarantee, in particular, the right for trade unions and for workers and smallholders’ representatives to be involved in implementation of the due diligence process in good faith with the companies. (ii) Companies may prioritise engagement with the most impacted stakeholders such as trade unions, workers and smallholders’ representatives, indigenous peoples and local communities, and engage in a manner that is appropriate to their size and to the nature and context of their operations. (iii) In situations where direct engagement is not possible, Member States shall ensure that companies consider other reasonable alternatives such as independent experts, human rights and environment defenders and civil society organizations representing stakeholders’ interests.
Amendment 344 #
Proposal for a directive
Article 5 – paragraph 1 – point c a (new)
Article 5 – paragraph 1 – point c a (new)
(ca) capacity of weaker business partners to carry out due diligence, taking into account the leverage of the company to ensure that the costs of the due diligence process are not passed on to business partners in a weaker position.
Amendment 346 #
Proposal for a directive
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1a. For undertakings operating in one of the sectors referred to in article 3 point (ca), the description of the company’s approach, the code of conducts and description of the processes and measures required under paragraph 1 (a) to (c) shall also include a detailed focus on the risks and impacts that are specific to that sector.
Amendment 352 #
Proposal for a directive
Article 6 – title
Article 6 – title
Identifying and assessing actual and potential adverse impacts
Amendment 353 #
1. Member States shall ensure that companies take appropriate measures to identify and assess actual and potential adverse human rights impacts and adverse environmentalas well as environmental and climate adverse 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. These measures shall also include the assessment of the impact of policies and strategies regarding business relationships, including trading, procurement and pricing practices.
Amendment 366 #
Proposal for a directive
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
Amendment 371 #
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 relevant stakeholders to gather information on also carry out meaningful, gender inclusive engagement with potentially affected stakeholders and their representative organisations, especially vulnerable stakeholders, such as workers, trade unions, smallholders, indigenous peoples and local communities, to gather information on as well as to identify and assess actual or potential adverse impacts.
Amendment 377 #
Proposal for a directive
Article 6 – paragraph 4 a (new)
Article 6 – paragraph 4 a (new)
4a. When carrying out consultations with stakeholders as provided for by this Directive under articles 6, 7 and 8, companies shall ensure that where the stakeholders are Indigenous Peoples, such consultations are conducted in accordance with international human rights standards, such as those developed in the United Nations Declaration on the Rights of Indigenous Peoples, including by respecting Indigenous Peoples’ rights to free, prior and informed consent and to self-determination.
Amendment 378 #
Proposal for a directive
Article 6 – paragraph 4 b (new)
Article 6 – paragraph 4 b (new)
4b. Member States shall ensure that in the context of conflict-affected and high- risk areas, companies engage in heightened due diligence and augment their due diligence framework with tools from atrocity prevention and conflict prevention.
Amendment 382 #
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 environmentalas well as environmental and climate adverse 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.
Amendment 387 #
Proposal for a directive
Article 7 – paragraph 2 – point a
Article 7 – paragraph 2 – point a
(a) where necessary due to the nature or complexity of the measures required for prevention, develop and implement a prevention action plan, with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. The prevention action plan shall be developed in consultation with affected stakeholdersaccordance with Article 4(2) point (a) on meaningful stakeholder engagement. When necessary, this plan should also include a prioritisation strategy on the basis of severity and irremediability of actual or potential harm;
Amendment 394 #
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, capacity building, joint prevention and mitigation measures with value chain partners, pricing mechanisms that contribute to living wages and incomes for their suppliers and infrastructures, to comply with paragraph 1;
Amendment 401 #
Proposal for a directive
Article 7 – paragraph 2 – point e a (new)
Article 7 – paragraph 2 – point e a (new)
(ea) adjust their business models and strategies, including trading, procurement and pricing practices, to prevent potential adverse impacts they may contribute to.
Amendment 424 #
(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 426 #
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 and measures with reasonable and clearly defined timelines for action, tools and qualitative and quantitative indicators for measuring improvement. Where relevant, the corrective action plan shall be developed in consultation with stakeholdersThe 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. This is without prejudice to the possibility for Member States to uphold or introduce joint and several liability for different companies with a shared responsible for an adverse impact. The corrective action plan shall be developed with the meaningful engagement of stakeholders including trade unions and workers’ representatives, and shall be made publicly available, and shall be publicly available;
Amendment 430 #
Proposal for a directive
Article 8 – paragraph 3 – point b a (new)
Article 8 – paragraph 3 – point b a (new)
(ba) where the stakeholders are Indigenous Peoples, the corrective action plan shall be developed in consultation with them and companies must obtain their free, prior and informed consent.
Amendment 434 #
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, capacity building, joint remediation and mitigation plans with value chain partners, pricing mechanisms that contribute to living wages and incomes for their suppliers and infrastructures to comply with paragraphs 1, 2 and 3;
Amendment 440 #
Proposal for a directive
Article 8 – paragraph 3 – point f a (new)
Article 8 – paragraph 3 – point f a (new)
(fa) adjust their business models and strategies, including trading, procurement and pricing practices, to bring to an end the adverse impacts they contribute to.
Amendment 448 #
Proposal for a directive
Article 8 – paragraph 7 a (new)
Article 8 – paragraph 7 a (new)
7a. Companies shall 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 action remedy shall be proportionate to the significance and scale of the adverse impact. Remedy may include apologies, restitution, rehabilitation, financial or non-financial compensation, restoration of the environment to its previous state and punitive sanctions (whether criminal or administrative, such as fines), as well as the prevention of harm through, for example, injunctions or guarantees of non-repetition.
Amendment 450 #
Proposal for a directive
Article 8 a (new)
Article 8 a (new)
Article 8a Responsible Disengagement 1. Member States shall ensure that companies disengage responsibly, and only as a last resort, when responding to situations where potential and adverse impacts within the meaning of Articles 7.1 and 8.1 cannot be prevented, brought to an end, or otherwise effectively mitigated or meaningfully minimized according to the views of affected stakeholders, in particular workers, or other stakeholders with a legitimate interest. To this end, companies shall meaningfully engage with stakeholders in accordance with article 9a, before taking a decision. 2. Companies shall disclose as part of their reporting obligation as referred to in Article 11, the number of instances where they have decided to disengage; the reason for this disengagement and the location of the concerned business relationships without disclosing their identity.
Amendment 453 #
Proposal for a directive
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
1a. Member States shall ensure that companies put in place complaints mechanisms that are locally accessible, context appropriate and transparent, which take particular care in protecting against retaliation, in ensuring that Indigenous Peoples can understand and be understood in these proceedings and in ensuring that these mechanisms have been developed in conjunction with the communities concerned.
Amendment 464 #
Proposal for a directive
Article 9 – paragraph 2 – point c a (new)
Article 9 – paragraph 2 – point c a (new)
(ca) business partners that are unable to fulfil the requirements of contractual assurances as referred to in Article 7.2(b) and 8.3(c) due to unfair purchasing practices of their buyers.
Amendment 485 #
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, potential and actual adverse impacts and actions taken on those., including:
Amendment 488 #
Proposal for a directive
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
measures companies have implemented to take into account stakeholders' views and interests throughout the due diligence process;
Amendment 491 #
measures companies have implemented as part of their strategies of co-investment to build the capacity of weaker business partners to carry out due diligence;
Amendment 492 #
Proposal for a directive
Article 11 – paragraph 2 c (new)
Article 11 – paragraph 2 c (new)
information on the number of instances where companies have decided to disengage, the reason for this disengagement and the location of the concerned suppliers without disclosing their identity, except where companies deem it acceptable to do so in accordance with applicable laws.
Amendment 496 #
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, may issue guidelines, including for specific sectors or specific adverse impacts. the European Union Agency for Criminal Justice Cooperation (Eurojust), the European Union Agency for Law Enforcement Cooperation (Europol), the European Public Prosecutor’s Office, the European Anti-Fraud Office (OLAF) and where appropriate with international bodies having expertise in due diligence, may issue guidelines, concerning: - specific sectors or and in particular high-risk sectors of economic activity leading to severe adverse impacts; - impacts on the rule of law and good governance systems; - gender-responsive and culturally responsive due diligence; - specific adverse impactsimplementation of enhanced due diligence in conflict- affected areas; - safe, effective and meaningful engagement with stakeholders in all due diligence processes; - mapping of companies value chains and efficient process to monitor business partners’ behaviours throughout the value chains; - specific corporate policies such as trading, procurement, purchasing and pricing; - measures that companies should take to address the challenges faced by smallholders, including access to a living income; - facilitating access to justice for victims and persons, groups of persons and organisations with legitimate interests; - prevention and mitigation of retaliation risks faced by stakeholders including human rights, environmental, rule of law and good governance defenders for their involvement in due diligence processes; - responsible disengagement from a harmful business relationships or from a specific area or economic sector; - and cooperation with partner countries’ authorities in order to carry out investigations.
Amendment 505 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Commission may complementand Member States’ support measures building on existing Union action to support due diligence in the Unhall develop cooperation and partnership mechanisms with third countries to address the root causes of human rights violations and in third countries and mayenvironmental harms, devise new measures, including facilitation of joint stakeholder initiatives, to build the capacity of upstream economic actors to help companies fulfil their obligations.
Amendment 579 #
Proposal for a directive
Article 23 – paragraph 1 a (new)
Article 23 – paragraph 1 a (new)
Member States shall take the necessary measures to ensure that all stakeholder engagement procedures, and in particular those set in place to raise complaints or concerns, shall allow the confidentiality of those concerns, as well as the anonymity and safety and physical and legal integrity of all stakeholders and complainants, including human rights and environmental defenders. In the event that such procedures concern whistleblowers, those procedures should be in line with Directive (EU) 2019/1937 of the European Parliament and of the Council.
Amendment 594 #
Proposal for a directive
Annex I – Part I – point 2
Annex I – Part I – point 2
2. Violation of the right to life and securityself- determination in accordance with common Article 31 of the Universal Declaration on Human rInternational Covenant on Civil and Political Rights and of the International Covenant on Economic, Social and Cultural Rights;
Amendment 595 #
Proposal for a directive
Annex I – Part I – point 7
Annex I – Part I – point 7
7. Violation of the right to enjoy just and favourable conditions of work including a fair wage, a decent living, safe and healthy working conditions and reasonable limitation of working hours in accordance with Article 7 of the International Covenant on Economic, Social and Cultural Rights and Article 23.3 and 25.1. of the Universal Declaration of Human Rights;
Amendment 596 #
Proposal for a directive
Annex I – Part I – point 7 a (new)
Annex I – Part I – point 7 a (new)
Amendment 598 #
Proposal for a directive
Annex I – Part I – point 17
Annex I – Part I – point 17
17. Violation of the prohibition of withholding an adequate living wage in accordance with Article 7 of the International Covenant on Economic, Social and Cultural Rights; and to obstruct the ability of persons to earn a living income in accordance with Article 11 of the International Covenant on Economic, Social and Cultural Rights and Article 25 of the Universal Declaration of Human Rights.
Amendment 599 #
Proposal for a directive
Annex I – Part I – point 18 – paragraph 1
Annex I – Part I – point 18 – paragraph 1
in accordance with Article 3 of the Universal Declaration of Human Rights, Article 5 of the International Covenant on Civil and Political Rights and Article 12 of the International Covenant on Economic, Social and Cultural Rights, and the right to a clean, healthy and sustainable environment environment;
Amendment 601 #
Proposal for a directive
Annex I – Part I – point 20 a (new)
Annex I – Part I – point 20 a (new)
20 a. Violation of 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 603 #
Proposal for a directive
Annex I – Part I – point 21 a (new)
Annex I – Part I – point 21 a (new)
21 a. In conflict affected areas, violations of international humanitarian law as laid out notably in the Geneva Conventions and the additional protocols.
Amendment 607 #
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 the Rights of Peasants and Other People Working in Rural Areas;
Amendment 612 #
Proposal for a directive
Annex I – Part I – indent 14 a (new)
Annex I – Part I – indent 14 a (new)
- The International Labor Organisation’s Convention on Indigenous and Tribal Peoples (no. 169) ;
Amendment 617 #
Proposal for a directive
Annex I – Part I – indent 23 a (new)
Annex I – Part I – indent 23 a (new)
- The rights to a clean, healthy and sustainable environment (UN GA A/76/L.75)
Amendment 620 #
Proposal for a directive
Annex I – Part I – indent 23 b (new)
Annex I – Part I – indent 23 b (new)
- The Rome Statute of the International Criminal Court;
Amendment 621 #
Proposal for a directive
Annex I – Part I – indent 23 c (new)
Annex I – Part I – indent 23 c (new)
- The instruments and conventions of international humanitarian law, including the four Geneva Conventions of 1949 and their additional protocols;
Amendment 622 #
Proposal for a directive
Annex I – Part I – indent 23 d (new)
Annex I – Part I – indent 23 d (new)
- The United Nations Convention against Corruption;
Amendment 623 #
Proposal for a directive
Annex I – Part II – subheading 1
Annex I – Part II – subheading 1
violations of EU and internationally recognized objectives and prohibitions included in environmental conventionsand climate conventions and Union legislation