Activities of Marisa MATIAS 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 (143)
Amendment 289 #
Proposal for a directive
Recital 5 a (new)
Recital 5 a (new)
(5 a) The United Nations Guiding Principles on Business and Human Rights further recognise, as part of their duty to protect against business-related human rights abuses, that States should take appropriate steps to ensure, through judicial, administrative and legislative means, that those affected have access to an effective remedy.
Amendment 290 #
Proposal for a directive
Recital 6
Recital 6
(6) The concept of human rights due diligence was specified and further developed in the OECD Guidelines for Multinational Enterprises80 which extended the application of due diligence to environmental and governance topics. The OECD Guidance on Responsible Business Conduct and sectoral guidance81 are internationally recognised frameworks setting out practical due diligence steps to help companies identify, prevent, mitigate and account for how they address actual and potential impacts in their operations, value chains and other business relationships. The OECD guidelines also set out the requirement for companies to engage with relevant stakeholders in order to provide meaningful opportunities for their views to be taken into account in relation to planning and decision making for projects or other activities that may significantly impact local communities. The concept of due diligence is also embedded in the recommendations of the International Labour Organisation (ILO) Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.82 _________________ 80 OECD Guidelines for Multinational Enterprises, 2011 updated edition, available at http://mneguidelines.oecd.org/guidelines/.h ttps://mneguidelines.oecd.org/mneguidelin es/ 81 OECD Guidance on Responsible Business Conduct, 2018, and sector- specific guidance, available at https://www.oecd.org/investment/due- diligence-guidance-for-responsible- business-conduct.htm. 82 The International Labour Organisation’s “Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, Fifth Edition, 2017, available at: https://www.ilo.org/empent/Publications/ WCMS_094386/lang--en/index.htm.
Amendment 292 #
Proposal for a directive
Recital 14 a (new)
Recital 14 a (new)
(14 a) This Directive aims to ensure that the victims of harm that is linked to human rights, environmental and good governance adverse impacts that are connected with companies’operations, subsidiaries and value chains, have access to justice and effective legal remedies.
Amendment 295 #
Proposal for a directive
Recital 15
Recital 15
(15) Companies should take appropriate steps to set up and carry out due diligence measures, with respect to their own operations, their subsidiaries, as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this Directive. This Directive should not require companies to guarantee, in all circumstances, that adverse impacts will never occur or that they will be stopped. For example with respect to business relationships where the adverse impact results from State intervention, the company might not be in a position to arrive at such results. Therefore, the main obligations in this Directive should be ‘obligations of means’. The company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. Account should be taken of the specificities of the company’s value chain, sector or geographical area in which its value chain partners operate, the company’s power to influence its direct and indirect business relationships, and whether the company could increase its power of influence.
Amendment 296 #
Proposal for a directive
Recital 15 a (new)
Recital 15 a (new)
(15 a) Companies should adapt the measures taken pursuant to their due diligence obligations to the context, environment and circumstances of their own operations, their subsidiaries, as well as their business relationships throughout their value chains. As conflict-affected areas and situations of occupation have increased worldwide, including in Europe, companies face an increased risk of being involved in serious human rights abuses. In conflict-affected regions, Member States and companies should respect their obligations under International Humanitarian Law (IHL) and refer to existing international standards and guidance including the Geneva Conventions, its additional protocols and the guidance on heightened human rights due diligence for business in conflict-affected contexts developed by the UNDP. In a context of conflict and occupation, due diligence obligations should be complemented by a conflict- sensitive approach. Member States should require companies to conduct heightened due diligence, which should focus on identifying, preventing and mitigating potential and actual adverse impacts on human rights, the environment and good governance, as well as on the conflict itself. This involves carrying out a conflict analysis to understand root causes, triggers and parties driving the conflict and active stakeholder engagement. For the purpose of conducting due diligence, conflict-affected areas refer to geographic areas, regions and countries that experience various levels of armed conflict or widespread violence including inter-state or civil war, armed insurrection, violent extremism or other forms of organized violence.
Amendment 298 #
Proposal for a directive
Recital 16 a (new)
Recital 16 a (new)
(16 a) In order to comply fully with due diligence obligations, companies should, for each of the six steps, carry out meaningful engagement with affected and potentially affected stakeholders. As set- out in the OECD Guidelines for Multinational Enterprises, effective stakeholder engagement involves interactive processes, is characterised by two-way communication and depends on the good faith of the participants on both sides. For the purpose of this Directive, stakeholder engagement processes should guarantee the safety and protection of the physical and legal integrity of stakeholders. Companies should address risks of retaliation and reprisal faced by stakeholders due to their participation and should prioritise engagement with most impacted and vulnerable stakeholders.Vulnerable stakeholders should be defined on the basis of intersecting and possibly overlapping factors, including, among others, sex, gender, age, race, ethnicity, class, education, migration status, disability, as well as social and economic status, and should take into account the context of the situation of vulnerability. Such individuals and right-holders groups suffer from differentiated and often disproportionate adverse impacts and often face discrimination and additional barriers to participation and access to justice.They can include, among others, women and girls, children, indigenous people, migrant workers, seasonal workers, homeworkers, illiterate workers, people of low standing in a caste system or ethnic minorities.
Amendment 303 #
Proposal for a directive
Recital 19
Recital 19
Amendment 304 #
Proposal for a directive
Recital 20
Recital 20
Amendment 307 #
Proposal for a directive
Recital 21
Recital 21
(21) Under this Directive, EU companies with more than 2500 employees on average and a worldwide net turnover exceeding EUR 1540 million and/or a balance sheet of more than EUR 20 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 2510 employees on average and more than EUR 40 million worldwide net turnover, had a net worldwide turnover of more than EUR 700 000 and/or a balance sheet of more than EUR 350 000 in the last financial year preceding the last financial year and, and are publicly listed on the stock exchange or 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, 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 , 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 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 311 #
Proposal for a directive
Recital 23
Recital 23
(23) In order to achieve fully the objectives of this Directive addressing human rights and adverse environmental, environmental and good governance adverse impacts with respect to companies’ operations, subsidiaries and value chains, third-country companies with significant operations in the EU should also be covered. More specifically, the Directive should apply to third-country companies which generated a net turnover of at least EUR 1540 million in the Union in the financial year preceding the last financial year or a net turnover of more than EUR 410 million but less than EUR 1540 million in the financial year preceding the last financial year in one or more of the high- impact sectors, as of 2 years after the end of the transposition period of this Directive.
Amendment 313 #
Proposal for a directive
Recital 29
Recital 29
(29) To comply with due diligence obligations, companies need to take appropriate measures with respect to identification, prevention and bringing to an end adverse impacts. An ‘appropriate measure’ should mean a measure that is capable of achieving the objectives of due diligence, commensurate with the degree of severity and the likelihood of the adverse impact, and reasonably available to the company, taking into account the circumstances of the specific case, including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof, and the need to ensure prioritisation of action. In this context, in line with international frameworks, the company’s influence over a business relationship should include, on the one hand its ability to persuade the business relationship to take action to bring to an end or prevent adverse impacts (for example through ownership or factual control, market power, pre-qualification requirements, linking business incentives to human rights and environmental performance, provision for contractual penalties in the event of non-compliance with international human rights and environmental standards, etc.) and, on the other hand, the degree of influence or leverage that the company could reasonably exercise, for example through cooperation with the business partner in question or engagement with another company which is the direct business partner of the business relationship associated with adverse impact.
Amendment 315 #
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 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 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 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. Free, Prior and Informed Consent of Indigenous Peoples should be a pre-requisit for any activity that affects their lands, territories and natural resources. 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 circumstances.
Amendment 316 #
Proposal for a directive
Recital 31
Recital 31
Amendment 317 #
Proposal for a directive
Recital 32
Recital 32
(32) In line with international standards, prevention and mitigation as well as bringing to an end and minimisremediation of adverse impacts should 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 zero- tolerance on child labour. Terminating a business relationship in which child labour was found 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 take.
Amendment 318 #
Proposal for a directive
Recital 34
Recital 34
(34) So as to comply with the prevention and mitigation obligation under this Directive, companies should be required to take the following actions, where relevant. Where necessary due to the complexity of prevention measures, c. Companies should develop and implement a prevention action plan. Companies should seek to obtain contractual assurances from a directengage and support business partners with whom they have an established business relationship that it willroughout their ensutire compliance with the code of conduct or the prevention action plan, including by seeking corresponding contractual assurances from its partners to the extent that their activities are part of the companies’ value chain. Thvalue chains in order to obtain assurance, contractual or otherwise, of implementation of the prevention action plan of the company concerned. Possible contractual assurances should be accompanied by appropriate measures to verify compliance. To ensure comprehensive prevention of actual and potential adverse impacts, companies should also adapt their business models and strategies, including trading, procurement, purchasing and pricing practices, and make investments which aim to prevent adverse impacts, provide targeted and proportionate support for an SME with which they have an established business relationshippartners, suppliers, including SMEs such as financing, for example, through direct financing, low- interest loans, guarantees of continued sourcing, and assistance in securing financing, to help implement the code of conduct or prevention action plan, or technical guidance such as in the form of training, management systems upgrading, and collaborate with other companies.
Amendment 320 #
Proposal for a directive
Recital 35
Recital 35
Amendment 321 #
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, t. 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 efforts, if there is reasonable expectation that these efforts are to succeed in the short-term; or to terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe. 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 322 #
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 adverse impacts, it shouldis obliged to 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. 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 impacts. 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 human rights and environmental adverse impacts to an end and minimisation of their extent, where relevant depending on the circumstances.
Amendment 324 #
Proposal for a directive
Recital 39
Recital 39
(39) So as to comply with the obligation of bringing to an end and minimising the extent of actual adverse impacts under this Directive, companies should be required to take the following actions, where relevant. They should neutralise the adverse impact or minimise its extent, with an action proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. Where necessary due to the fact that the adverse impact cannot be immediately brought to an end, cCompanies should develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. Companies should also seek to obtain contractual assurances from a direct business partner with whom they have an established business relationship that they will ensure compliance with the company’s code of conduct and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s value chain. The contractual assurances should be accompanied by the appropriate measures to verify compliance. Finally, companies should also make investments aiming at ceasing or minimising the extent of adverse impact, provide targeted and proportionate support for an SMEs with which they have an established business relationship and collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end.
Amendment 326 #
Proposal for a directive
Recital 40
Recital 40
Amendment 327 #
Proposal for a directive
Recital 41
Recital 41
(41) In order to ensure that bringing actual adverse impacts to an end or minimising them 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 bringing actual adverse impacts to an end or minimising them without success. However, this Directive should also, for cases where actual adverse impacts could not be brought to an end or adequately mitigated by the described measures, refer to the obligation for companiescompanies should be obliged 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 eitheror to temporarily suspend commercial relationships with the partner in question, while pursuing efforts to bring to an end or minimise the extent of the adverse impact, or terminate the business relationship with respect to the activities concerned, if the adverse impact is considered severe. In order to allow companies to fulfil that obligation, Member States should provide for the availability of an option to suspend or terminate the business relationship in contracts governed by their laws. However, the liability of the company for damages arising previously under this Directive should remain unaffected, in particular for the purposes of compensation and reparation.
Amendment 329 #
(42) Companies should provide the possibility for persons and organisations to alert, provide early warnings and submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and environmental 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. Companies should establish a directly or indirectly related to its activity, its business and its commercial relations. The right to file a complaint may be exercised by any person or entity, namely trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations. Companies should establish an accessible and expeditious procedure for dealing with those complaints and inform the complainants and all stakeholders, namely, 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, c and effective access to justice. 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 331 #
Proposal for a directive
Recital 43
Recital 43
(43) Companies should monitor the implementation and effectiveness of their due diligence measures. They should 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 and remediation of human rights and environmental adverse impacts. Such assessments should verify that potential or actual adverse impacts are properly identified, due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end in a timely manner. In order to ensure that such assessments are up-to- date, they should be carried out jointly with stakeholders 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 334 #
Proposal for a directive
Recital 44
Recital 44
(44) Like in the existing international standards set by the United Nations Guiding Principles on Business and Human Rights and the OECD framework, it forms part of the due diligence requirement to communicate externally relevant information on due diligence policies, processes and activities conducted to identify and address actual or potential adverse impacts, including the findings and outcomes of those activities. The proposal to amend Directive 2013/34/EU as regards corporate sustainability reporting sets out relevant reporting obligations for the companies covered by this directive. In order to avoid duplicating reporting obligations, this Directive should therefore not introduce any new reporting obligations in addition to those under Directive 2013/34/EU for the companies covered by that Directive as well as the reporting standards that should be developed under it. As regards companies that are within the scope of this Directive, but do not fall under Directive 2013/34/EU, in order to comply with their obligation of communicating as part of the due diligence under this Directive, they should publish on their website an annual statement in a language customary ll relevant information regarding the sphere of international business.is directive and up-to-date identification of all participants in its chain of value
Amendment 336 #
Proposal for a directive
Recital 46
Recital 46
(46) In order to provide support and practical tools to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, using relevant international guidelines and standards as a reference, and 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, should have the possibility to issue guidelines, including for specific sectors or specific adverse impacts. the following aspects: specific adverse impacts, including adverse impacts on good governance; full mapping of companies’ value chains and efficient processes to monitor partners’ behaviours throughout the entire value chain; responsible and sustainable trading, purchasing and pricing policies; facilitation of access to justice for victims, including regarding collective redress, representative actions, non-discriminatory costs of proceedings and appropriate limitation periods; prevention and mitigation of retaliation risks faced by stakeholders, including human rights and environmental rights defenders, as a result of their participation; implementation of heightened due diligence in conflict-affected areas, occupation situations, and non-self- governing territories; responsible disengagement from harmful business relationships; methodology and criteria tobe used by supervisory authorities to make decisions related to administrative sanctions and nature and harmonisation of effective, proportionate and dissuasive sanctions; assessing the integrity and fitness of industry schemes and multi- stakeholder initiatives, in particular the inclusion of the perspectives of civil society and stakeholders in audits.
Amendment 338 #
Proposal for a directive
Recital 47
Recital 47
(47) Although SMEs are not included in the scope of this Directive, they could be impacted by its provisions as contractors or subcontractors to the companies which are in the scope. The aim is nevertheless to mitigate financial or administrative burden on SMEs, many of which are already struggling in the context of the global economic and sanitary crisis. In order to support SMEs, Member States should set up and operate, either individually or jointly, dedicated websites, portals or platforms, and Member States could also financially support SMEs and help them build capacity. Such support should also be made accessible, and where necessary adapted and extended to upstream economic operators in third countries. Companies whose business partner is an SME, are also encouraged to support them to comply with due diligence measures, in case such requirements would jeopardize the viability of the SME and use fair, reasonable, non-discriminatory and proportionate requirements vis-a-vis the SMEs.
Amendment 339 #
Proposal for a directive
Recital 50
Recital 50
(50) In order to ensure that this Directive effectively contributes to combating climate change, companies should adopt a plan to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. In case climate is or should have been identified as a principal risk for or a principal impact of the company’s operations, the company should include mandatory short, medium, and long-term emissions reduction objectivestargets aiming at carbon neutrality in its plan.
Amendment 340 #
Proposal for a directive
Recital 51
Recital 51
Amendment 341 #
Proposal for a directive
Recital 52
Recital 52
(52) In order to allow for the effective oversight of and, where necessary, enforcement of this Directive in relation to those companies that are not governed by the law of a Member State, those companies should designate a sufficiently mandated authorised representative in the Union and provide information relating to their authorised representatives. It should be possible for the authorised representative to also function as point of contact, namely for the purpose of receiving notifications and official communications, provided the relevant requirements of this Directive are complied with.
Amendment 342 #
Proposal for a directive
Recital 53
Recital 53
(53) In order to ensure the monitoring of the correct implementation of companies’ due diligence obligations and ensure the proper enforcement of this Directive, Member States should designate one or more national supervisory authorities. These supervisory authorities should be of a public nature, independent from the companies falling within the scope of this Directive or other market interests, and free of conflicts of interest. In accordance with national law, Member States should ensure appropriate financingal and human resources of the competent authority. They should be entitled to carry out investig, as well as ensure staff have appropriate qualifications, experience and skills in relation to human rights, good governance and the environment to perform its duties and exercise its powers. They should be entitled to require companies to disclose information and to carry out investigations, including interviews with stakeholders and on site examinations, on their own initiative or based on complaints or substantiated concerns raised under this Directive. Where competent authorities under sectoral legislation exist, Member States could identify those as responsible for the application of this Directive in their areas of competence. They could designate authorities for the supervision of regulated financial undertaking also as supervisory authorities for the purposes of this Directive.
Amendment 343 #
Proposal for a directive
Recital 54
Recital 54
(54) In order to ensure effective enforcement of national measures implementing this Directive, Member States should provide for dissuasive, proportionate and effective sanctions for infringements of those measures. In order for such sanction regime to be effective, administrative sanctions to be imposed by the national supervisory authorities should include pecuniary sanctiontake into account the severity and the duration of the infringement; whether or not it has taken place repeatedly; any previous infringements by the company; penalties imposed in respect of the same infringement in other Member States; the degree to which the company has dealt with complaints by stakeholders. Sanctions can include pecuniary sanctions, temporary or indefinite exclusion from public procurement, from state aid, from public schemes, including schemes relying on export credit agencies, loans and seizure of commodities. Where the legal system of a Member State does not provide for administrative sanctions as foreseen in this Directive, the rules on administrative sanctions should be applied in such a way that the sanction is initiated by the competent supervisory authority and imposed by the judicial authority. Therefore, it is necessary that those Member States ensure that the application of the rules and sanctions has an equivalent effect to the administrative sanctions imposed by the competent supervisory authorities.
Amendment 346 #
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 and criminal 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.
Amendment 347 #
Proposal for a directive
Recital 57
Recital 57
(57) As regards damages occurring Member States should ensure that their level of established indirect business relationships, the liability of the company should be subject to specific conditions. The compgislation guarantees effective access to justice and to due compensation in cases covered by this Directive anyd should not be liable if it carried out specific due diligence measures. However, it should not be exonerated from liability through implementing such measures in case it was unreasonable to expect that the action actually taken, including as regards verifying compliance, would be adequate to prevent, mitigate, bring to an end or minimise the adverse impact. In addition, in the assessment ofremove all legal and procedural obstacles and limitations to the exercise of this right by claimants. The liability of companies under this Directive should cover conduct arising from action and omission, whether intentional or negligent, and compensation may take into account the existencet and extent of liability, due account is to 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 as well as any collaboration with other entities to addressseverity of the damage caused and the degree of fault of the undertaking concerned, as well as the efforts made by the company to prevent, mitigate or remedy the adverse impacts ion its value chains.
Amendment 349 #
Proposal for a directive
Recital 58
Recital 58
Amendment 350 #
Proposal for a directive
Recital 59
Recital 59
(59) As regards civil liability rules, the civil liability of a company for damages arising due to its failure to carry out adequate due diligence should be without prejudice to civil liability of its subsidiaries or the respective civil liability of direct and indirect business partners in the value chain. Also, the civil liability rules under this Directive should be without prejudice to Union or national rules on civil liability related to adverse human rights impacts or to adverse environmental impacts that provide for liability in situations not covered by or providing for stricter liability than this Directive.
Amendment 355 #
Proposal for a directive
Recital 65
Recital 65
(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 and human rights and environmental rights defenders 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. _________________ 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 358 #
Proposal for a directive
Recital 71
Recital 71
(71) The fundamental objective of this Directive, namely better exploiting is the effective protection and respect of human rights and of the environment throughout the world and to ensure that products and services in circulation on the market have not involved breaches of human rights and environmental rights, and, at the same time, enhance 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 adverse impacts in companies’ value chains. This objective, 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 360 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – introductory part
Article 1 – paragraph 1 – subparagraph 1 – introductory part
This Directive lays down rulesaims to ensure that companies respect human rights, the environment and good governance within their own operations, the operations of their subsidiaries and operations of entities throughout their entire value chain.
Amendment 363 #
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 actual and potential environmental adverse impacts, with respect to their own operations, the operations of their subsidiaries, and the value chain operations carried out by entities with whom the company has an established business relationship and
Amendment 365 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 a (new)
Article 1 – paragraph 1 – subparagraph 1 a (new)
(c) on access to justice and compensation for those affected by adverse impacts on human rights and the environment
Amendment 366 #
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 2
Article 1 – paragraph 1 – subparagraph 2
Amendment 367 #
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
2. This Directive shall not constitute grounds for reducing the level of protection of human rights or, of protection of the environment or, the protection of the climate and access to justice provided for by the law of Member States at the time of the adoption of this Directive.
Amendment 368 #
Proposal for a directive
Article 1 – paragraph 3
Article 1 – paragraph 3
3. This Directive shall be without prejudice to obligations in the areas of human rights, protection of the environment and climate change under other International and Union legislative acts and instruments. If the provisions of this Directive conflict with a provision of another Union legislative act pursuing the same objectives and providing for more extensive or more specific obligations, the provisions of the other Union legislative act shall prevail to the extent of the conflict and shall apply to those specific obligations.
Amendment 372 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) the company had more than 2500 employees on average and had a net worldwide turnover of more than EUR 1540 million and/ or a balance sheet of more than 20 million in the last financial year for which annual financial statements have been prepared;
Amendment 376 #
Proposal for a directive
Article 2 – paragraph 1 – point a a (new)
Article 2 – paragraph 1 – point a a (new)
(a a) the company did not reach the thresholds under point (a) but is publicly listed on the stock exchange and had more than 10 employees on average and had a net worldwide turnover of more than EUR 700 000 and/or a balance sheet of more than EUR 350000 in the last financial year for which annual financial statements have been prepared;
Amendment 379 #
Proposal for a directive
Article 2 – paragraph 1 – point b – introductory part
Article 2 – paragraph 1 – point b – introductory part
(b) the company did not reach the thresholdfulfil one of the conditions under point (a) and point (b), but had more than 2510 employees on average and had a net worldwide turnover of more than EUR 40 million700 000 and/or a balance sheet of more than EUR 350 000 in the last financial year for which annual financial statements have been prepared, provided that at least 50% of thits net turnover was generated in one or more of the following sectors:
Amendment 386 #
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii
Article 2 – paragraph 1 – point b – point iii
(iii) the extraction of mineral resources regardless from where they are extracted (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products).
Amendment 394 #
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
(a) generated a net turnover of more than EUR 1540 million in the Union in the financial year preceding the last financial year;
Amendment 396 #
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
(b) generated a net turnover of more than EUR 410 million but not more than EUR 1540 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).
Amendment 397 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
3. For the purposes of paragraph 1, the number of part-time employees shall be calculated on a full-time equivalent basis. Temporary agency workers and service providers shall be included in the calculation of the number of employees in the same way as if they were workers employed directly for the same period of time by the company.
Amendment 402 #
Proposal for a directive
Article 3 – paragraph 1 – point c
Article 3 – paragraph 1 – point c
(c) ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violaany action ofr one ofmission throughout the company's entire value chains, which affects or limits their rights orand protection by prohibitions listed in the Annex, Part I Section 1, as enshrined in the international conventions and instruments listed in the Annex, Part I Section 2;
Amendment 409 #
Proposal for a directive
Article 3 – paragraph 1 – point e – introductory part
Article 3 – paragraph 1 – point e – introductory part
(e) ‘business relationship’ means a relationship with a subsidiary, contractor, subcontractor or any other legal entities (‘partner’) within their value chain
Amendment 412 #
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
Amendment 413 #
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production of goods or the provision of services by a company, including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. As regards companies within the meaning of point (a)(iv), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
Amendment 418 #
Proposal for a directive
Article 3 – paragraph 1 – point l
Article 3 – paragraph 1 – point l
Amendment 421 #
Proposal for a directive
Article 3 – paragraph 1 – point n
Article 3 – paragraph 1 – point n
(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries, workers and their representatives, trade unions, local communities, indigenous people, human rights and environmental rights defenders, civil society organisations, company’s shareholders and other individuals, groups, communities or entities whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships;
Amendment 429 #
Proposal for a directive
Article 3 – paragraph 1 a (new)
Article 3 – paragraph 1 a (new)
(r) ‘Free, Prior and Informed Consent’ means a process that results from the right to self-determination and the collective human right of Indigenous Peoples and Local Communities to offer or withhold their consent prior to the commencement of any activity that may affect their rights, lands, resources, territories, livelihoods and food security, as recognised in the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
Amendment 431 #
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 and the environment throughout their value chain and conduct human rights and environmental due diligence as laid down in Articles 5 to 11 (‘due diligence’) by carrying out the following actions:
Amendment 432 #
Proposal for a directive
Article 4 – paragraph 1 – point c
Article 4 – paragraph 1 – point c
(c) preventing and mitigating potential and actual adverse impacts, and bringing actual adverse impacts to an end, providing for remedy and minimising their extent in accordance with Articles 7 and 8;
Amendment 434 #
Proposal for a directive
Article 4 – paragraph 1 – point e
Article 4 – paragraph 1 – point e
(e) monitoring and evaluating the effectiveness of their due diligence policy and measures and reviewing it in accordance with Article 10;
Amendment 435 #
Proposal for a directive
Article 4 – paragraph 1 – point f
Article 4 – paragraph 1 – point f
(f) publicly communicating on due diligence and relevant information in accordance with Article 11.
Amendment 436 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 1 (new)
Article 4 – paragraph 1 – subparagraph 1 (new)
(g) guaranteeing the consultation and free and informed consent of Indigenous Peoples prior to the approval and/or commencement of any project that may affect the lands, territories and resources owned, occupied or otherwise used by them in view of their collective rights to self-determination. (h) developing and put in place a plan establishing mandatory short, medium, and long-term emission reduction targets aiming at carbon neutrality. (i) concluding, on their behalf and on behalf of their directors and officers, insurance contracts covering civil liability in respect of the damage covered by this Directive.
Amendment 437 #
Proposal for a directive
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
2 a. Member States shall ensure that companies operating in situations of conflict and occupation conduct heightened conflict-sensitive due diligence to address the higher risk of gross human rights abuses and to ensure that their operations do not aggravate or fund ongoing conflicts. Such heightened due diligence efforts should include a thorough conflict analysis and meaningful stakeholder engagement. Member States shall ensure that companies operating in conflict-affected, occupied regions and non-self-governing territories respect their international humanitarian law obligations.
Amendment 440 #
Proposal for a directive
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. Member States shall ensure that companies integrate due diligence into all their corporate policies and have in place a due diligence policy. The due diligence policy shall be developed in consultation with stakeholders and contain all of the following:
Amendment 441 #
Proposal for a directive
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) a code of conduct describing rules and, principles and commitments to be followed by the company’s employees and subsidiaries;
Amendment 442 #
Proposal for a directive
Article 5 – paragraph 1 – point c a (new)
Article 5 – paragraph 1 – point c a (new)
Amendment 444 #
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States shall ensure that the companies update their due diligence policy whenever necessary and at least annually.
Amendment 449 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
Amendment 452 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
Amendment 458 #
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 actual or potential adverse impacts and its prevention, mitigation and remediation.
Amendment 462 #
Proposal for a directive
Article 7 – paragraph 2 – introductory part
Article 7 – paragraph 2 – introductory part
2. Companies shall be required to take the following actions, where relevant:
Amendment 467 #
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 stakeholders;
Amendment 468 #
Proposal for a directive
Article 7 – paragraph 2 – point a – point i (new)
Article 7 – paragraph 2 – point a – point i (new)
i) independent reports and information gathered through the complaints mechanisms provided for in Article 9;
Amendment 471 #
Proposal for a directive
Article 7 – paragraph 2 – point b
Article 7 – paragraph 2 – point b
(b) seek contractual assurances from a business partner with whom it has a direct business relationship throughout the entire value chain that it will ensure compliance with the international conventions and instruments listed in the Annex and the company’s code of conduct and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s value chain (contractual cascading). Regardless of the provision of contractual guarantees, the company maintains its individual responsibility to perform due diligence and does not exclude the responsibility of the contracting entities towards third parties. When such contractual assurances are obtained, paragraph 4 shall apply;
Amendment 472 #
Proposal for a directive
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
(d) provide targeted and proportionate support for an SME with which the company has an established business relationship, such as loans or financing for SMEs, where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the SME;
Amendment 474 #
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
Amendment 475 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 1
Article 7 – paragraph 4 – subparagraph 1
The contractual assurances or the contract shall be accompanied by the appropriate measures to verify compliance. For the purposes of verifying compliance, the company may refer to suitable industry initiatives or independent third-party verification. However, the individual responsibility of the company remains.
Amendment 476 #
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 1 a (new)
Article 7 – paragraph 4 – subparagraph 1 a (new)
Member States shall ensure that third party auditors authorised to verify compliance are certified by public authorities, are independent and can be held accountable for the reliability and quality of the audit and for failure to conduct adequate verification.
Amendment 477 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point b
Article 7 – paragraph 5 – subparagraph 1 – point b
(b) terminate the business relationship with respect to the activities concerned ifing the potential adverse impact is severe.
Amendment 478 #
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 2
Article 7 – paragraph 5 – subparagraph 2
Member States shall provide for the availability of an option to suspend or terminate the business relationship in contracts governed by their laws.
Amendment 479 #
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 481 #
Proposal for a directive
Article 8 – paragraph 2
Article 8 – paragraph 2
2. Where the adverse impact cannot be brought to an end, Member States shall ensure that companies minimistigate the extent of such an impact, while continuing to pursue all efforts to bring the adverse impact to an end.
Amendment 483 #
Proposal for a directive
Article 8 – paragraph 3 – introductory part
Article 8 – paragraph 3 – introductory part
3. Companies shall be required to take the following actions, where relevant:
Amendment 488 #
Proposal for a directive
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
(a) neutralise the adverse impact or minimistigate its extent, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact;
Amendment 491 #
Proposal for a directive
Article 8 – paragraph 3 – point a a (new)
Article 8 – paragraph 3 – point a a (new)
(a a) Member States shall ensure enforcement of the remediation decision and that the proposal for remediation does not prevent affected stakeholders from engaging the civil liability of companies for damages pursuant to national law. Stakeholders shall not be required to seek non-judicial remedies before filing a claim before a court. Remedies provided for or contributed to by companies shall be duly considered by courts in civil proceedings.
Amendment 494 #
Proposal for a directive
Article 8 – paragraph 3 – point b
Article 8 – paragraph 3 – point b
(b) wWhere necessary due to the fact thatn 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, tThe corrective action plan shall be developed in consultation with stakeholders;
Amendment 497 #
Proposal for a directive
Article 8 – paragraph 3 – point b – point i (new)
Article 8 – paragraph 3 – point b – point i (new)
i) independent reports and information gathered through the complaints mechanisms provided for in Article 9;
Amendment 498 #
Proposal for a directive
Article 8 – paragraph 3 – point b – point ii (new)
Article 8 – paragraph 3 – point b – point ii (new)
ii) meaningful engagement with stakeholders, taking due account of barriers to participation faced by stakeholders and of specific needs by vulnerable stakeholders; procedures for stakeholder engagement shall guarantee safety and shall allow for anonymity and confidentiality;
Amendment 499 #
Proposal for a directive
Article 8 – paragraph 3 – point c
Article 8 – paragraph 3 – point c
(c) seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the the international conventions and instruments listed in the Annex and 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). Regardless of the provision of contractual guarantees, the company maintains its individual responsibility to perform due diligence and does not exclude the responsibility of the contracting entities towards third parties. When such contractual assurances are obtained, paragraph 5 shall apply.
Amendment 501 #
Proposal for a directive
Article 8 – paragraph 4
Article 8 – paragraph 4
Amendment 502 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1
Article 8 – paragraph 5 – subparagraph 1
The contractual assurances or the contract shall be accompanied by the appropriate measures to verify compliance. For the purposes of verifying compliance, the company may refer to suitable industry initiatives or independent third-party verification. However, the individual responsibility of the company remains.
Amendment 503 #
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1 a (new)
Article 8 – paragraph 5 – subparagraph 1 a (new)
Member States shall ensure that third party auditors authorised to verify compliance are certified by public authorities, are independent and can be held accountable for the reliability and quality of the audit and for failure to conduct adequate verification;
Amendment 504 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – introductory part
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 minimistigated by the measures provided for in paragraphs 3, 4 and 5, 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, where the law governing their relations so entitles them to, take one of the following actions:
Amendment 505 #
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point a
Article 8 – paragraph 6 – subparagraph 1 – point a
(a) temporarily suspend commercial relationships with the partner in question, while pursuing efforts to bring to an end or minimistigate the extent of the adverse impact, or
Amendment 506 #
Proposal for a directive
Article 8 – paragraph 7
Article 8 – paragraph 7
Amendment 509 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that companies provide the possibility for persons and organisations listed in paragraph 2 to submit complaints to them where they have legitimate concerns regarding actual or potential adverse human rights impacts and actual or potential adverse environmental impacts with respect to their own operations, the operations of their subsidiaries and their value chains.
Amendment 515 #
Proposal for a directive
Article 9 – paragraph 2 – point a
Article 9 – paragraph 2 – point a
(a) persons who arindividuals, groups, communities or entities whose rights or interests are or could be affected or have reasonable grounds to believe that they might be affected by an adverse impact,
Amendment 517 #
Proposal for a directive
Article 9 – paragraph 2 – point b
Article 9 – paragraph 2 – point b
(b) the company’s employees, the employees of its subsidiaries, workers, trade unions and other workers’ representatives representing individuals working in the value chain concerned,
Amendment 521 #
Proposal for a directive
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) civil society organisations and human rights and environmental rights defender active in the areas related to the value chain concerned.
Amendment 532 #
Proposal for a directive
Article 9 – paragraph 4 – point b a (new)
Article 9 – paragraph 4 – point b a (new)
(b a) to obtain an effective remedy from companies, as referred to in and within the meaning of Article 8(3)point (a), through the complaints mechanism and receive guarantees that harms that are the subject of the complaint will not be repeated.
Amendment 535 #
Proposal for a directive
Article 9 – paragraph 4 a (new)
Article 9 – paragraph 4 a (new)
Amendment 541 #
Proposal for a directive
Article 10 – paragraph 1
Article 10 – paragraph 1
Member States shall ensure that companies, in consultation of relevant stakeholders, carry out periodic assessments of their own operations and measures, those of their subsidiaries and, where related to the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, mitigation, bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. The due diligence policy shall be updated in accordance with the outcome of those assessments.
Amendment 543 #
Proposal for a directive
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
Member States shall ensure that companies disclose and publish in an accessible and timely manner, all information relevant to stakeholders on the matters and procedures regulated by this Directive. That information shall include, but not be limited to, a full mapping of their value chains, including relevant information such as names, locations, types of products and services supplied concerning subsidiaries, suppliers and business partners in their entire value chains.
Amendment 544 #
Proposal for a directive
Article 11 – paragraph 2 b (new)
Article 11 – paragraph 2 b (new)
Member States shall ensure that stakeholders are entitled to submit additional information requests to companies regarding all information necessary for exercising their rights under this Directive. Where a company denies a request for information, it shall inform the stakeholders of the grounds for that denial. Member States shall ensure that supervisory authorities or competent courts are entitled to order the disclosure of the information.
Amendment 545 #
Proposal for a directive
Article 12 – paragraph 1
Article 12 – paragraph 1
In order to provide support to companies to facilitate their compliance with Article 7(2), point (b), and Article 8(3), point (c), the Commission, in consultation of relevant stakeholders, shall adopt guidance about voluntary model contract clauses.
Amendment 550 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shall, in order to provide information and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this Directive, set up and operate individually or jointly dedicated websites, platforms or portals. Specific consideration shall be given, in that respect, to the SMEs that are present in the value chains of companies.
Amendment 551 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Commission may 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 and stakeholders exercise their rights.
Amendment 552 #
Proposal for a directive
Article 14 – paragraph 3 a (new)
Article 14 – paragraph 3 a (new)
3 a. The Commission and Union delegations in third countries shall complement Member States’ support measures in order to help stakeholders exercise their rights, including the submission of substantiated concerns pursuant to Article 19 and of civil claims pursuant to Article 22. Union Delegations shall be mandated to and provided with adequate resources to fulfil that facilitation and support role.
Amendment 553 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Member States shall ensure that companies referred to in Article 2(1), point (a), and Article 2(2), point (a), shall adopt a plan to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement. This plan shall, in particular, identify, on the basis of information reasonably available to the company, the extent to which climate change is a risk for, or an impact of, the company’s operations.
Amendment 554 #
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
2. Member States shall ensure that, in case climate change is or should have been identified as a principal risk for, or a principal impact of, the company’s operations, the company includes emission reduction objectives in its planin its plan mandatory short, medium, and long- term emission reduction targets aiming at carbon neutrality.
Amendment 555 #
Amendment 556 #
Proposal for a directive
Article 16 – paragraph 1
Article 16 – paragraph 1
1. Member States shall ensure that each company referred to in Article 2(2) designates a legal or natural person as its authorised representative, established or domiciled in one of the Member States where it operates, namely for the purpose of receiving notifications and official communications,. The designation shall be valid when confirmed as accepted by the authorised representative .
Amendment 557 #
Proposal for a directive
Article 16 – paragraph 4
Article 16 – paragraph 4
4. Member States shall ensure that each company empowers its authorised representative to receive communicationsnotifications and communications, whether from complainants, private or public entities, and from supervisory authorities on all matters necessary for compliance with and, enforcement of national provisions transposing this Directive. Companies shall be required to provide their authorised representative with the necessary powers and resources to cooperate with supervisory authorities.
Amendment 559 #
Proposal for a directive
Article 17 – paragraph 8 – subparagraph 1 (new)
Article 17 – paragraph 8 – subparagraph 1 (new)
Member States shall ensure that supervisory authorities have the appropriate qualification, experience and skills in relation to human rights, the environment and good governance to perform their duties and exercise their powers.
Amendment 561 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to request information and carry out investigations and inspections related to compliance with the obligations set out in this Directive.
Amendment 562 #
Proposal for a directive
Article 18 – paragraph 5 – point b
Article 18 – paragraph 5 – point b
(b) to impose pecuniaryadministrative sanctions in accordance with Article 20;
Amendment 563 #
Proposal for a directive
Article 18 – paragraph 5 – point c
Article 18 – paragraph 5 – point c
(c) to adopt interim measures to avoid the risk of severe andor irreparable harm.
Amendment 564 #
Proposal for a directive
Article 18 – paragraph 7
Article 18 – paragraph 7
7. Member States shall ensure that each natural or legal person has the right to an effective judicial remedy against a legally binding decisions by a supervisory authority concerning them.
Amendment 565 #
Proposal for a directive
Article 18 – paragraph 7 a (new)
Article 18 – paragraph 7 a (new)
7 a. Member States shall ensure that decisions of supervisory authorities regarding a company’s compliance with this Directive shall be without prejudice to the company’s civil liability under Article 22.
Amendment 566 #
Proposal for a directive
Article 19 – paragraph 1
Article 19 – paragraph 1
1. Member States shall ensure that natural and legal persons are entitled to submit substantiated concerns to any supervisory authority when they have reasons to believe, on the basis of objective circumstances, that a company is failing to comply with the national provisions adopted pursuant to this Directive (‘substantiated concerns’).
Amendment 567 #
Proposal for a directive
Article 19 – paragraph 3
Article 19 – paragraph 3
3. Member States shall ensure that supervisory authorities assess the substantiated concerns and, where appropriate, exercise their powers as referred to in Article 18.
Amendment 568 #
Proposal for a directive
Article 19 – paragraph 3 a (new)
Article 19 – paragraph 3 a (new)
3 a. Member States shall ensure that those procedures guarantee the safety of those persons, including by ensuring that concerns and information the disclosure of which could be harmful to the person concerned remain anonymous and confidential.
Amendment 569 #
Proposal for a directive
Article 19 – paragraph 5
Article 19 – paragraph 5
5. Member States shall ensure that the personsRegardless of the possibility to submitting the substantiated concern according to this Article and having, in accordance with national law, a legitimate interest in the matter hav, Member States shall ensure access to a court or other independent and impartial public body competent to review the procedural and substantive legality of the decisions, acts or failure to act of the supervisory authority.
Amendment 570 #
Proposal for a directive
Article 19 – paragraph 5 a (new)
Article 19 – paragraph 5 a (new)
5 a. Member States shall ensure that submission of substantiated concerns shall not preclude stakeholders from having unhindered access to public judicial mechanisms. Stakeholders shall not be required to have submitted concerns before being entitled to file a complaint to competent judicial bodies and courts, pursuant to Article 22.
Amendment 571 #
Proposal for a directive
Article 19 – paragraph 5 b (new)
Article 19 – paragraph 5 b (new)
5 b. Member States missions and Union delegations in third countries shall be mandated to facilitate and support the submission of substantiated concerns to relevant supervisory authorities by stakeholders in third countries.
Amendment 572 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
Amendment 573 #
Proposal for a directive
Article 20 – paragraph 2 a (new)
Article 20 – paragraph 2 a (new)
2 a. Sanctions provided for shall include pecuniary sanctions, such as administrative fines, temporary or indefinite exclusion from public procurement, from state aid, from public schemes, including schemes relying on export credit agencies and loans, and seizure of commodities.
Amendment 574 #
Proposal for a directive
Article 20 – paragraph 3
Article 20 – paragraph 3
3. WAdministrative sanctions may include, notably but not limited, pecuniary sanctions, such as fines, exclusion from public procurement and the revocation of operating licences. In addition to the criteria referred to in paragraph 2, when pecuniary sanctions are imposed, they shall be based onalso take into account the company’s turnover.
Amendment 575 #
Proposal for a directive
Article 20 – paragraph 4
Article 20 – paragraph 4
4. Member States shall ensure that any decision of the supervisory authorities containing sanctions related to the breach of the provisions of this directive is duly published.
Amendment 577 #
Proposal for a directive
Article 22 – paragraph 1 – point a
Article 22 – paragraph 1 – point a
(a) they failed to comply with the obligations laid down in Articles 7 and 8pursuant to actions referred to in Article 4 and laid down in Articles 5 to 11 and Article 15 and;
Amendment 578 #
Proposal for a directive
Article 22 – paragraph 1 – point b
Article 22 – paragraph 1 – point b
(b) as a result of this failure an adverse impact that should have been identified, prevented, mitigated, brought to an end or its extent minimisremediated through the appropriate measures laid down in Articles 7 and 85 to 11 and Article 15 occurred and led to damage.
Amendment 579 #
Proposal for a directive
Article 22 – paragraph 2 – subparagraph 1
Article 22 – paragraph 2 – subparagraph 1
Notwithstanding paragraph 1, Member States shall ensure that where a company has taken the actions referred to in Article 7(2), point (b) and Article 7(4), or Article 8(3), point (c), and Article 8(5), it shall notshall be liable for damages caused by an adverse impact arising as a result of the activities of an indirect partner with whom it has an established business relationship, unless it was unreasonable, in the circumstances of the case, to expect that the action actually taken, including as regards verifying compliance, would be adequate to prevent, mitigate, bring to an end or minimise the extent of the adverse impact.
Amendment 581 #
Proposal for a directive
Article 22 – paragraph 2 a (new)
Article 22 – paragraph 2 a (new)
2 a. Member States shall ensure that claimants base their cases on a reasonably available preliminary level of evidence. For the purpose of assessing the existence and extent of liability Member States shall ensure that courts are able to order the respondent companies to disclose further evidence relevant to the case, including evidence regarding their operations, subsidiaries and value chains, the nature of the business relationships and the measures taken to meet their obligations under this Directive.
Amendment 582 #
Proposal for a directive
Article 22 – paragraph 2 b (new)
Article 22 – paragraph 2 b (new)
2 b. Member States shall ensure that liability regimes put in place pursuant to this Article address existing barriers to access to justice, and in particular: - allow for collective redress, - allow for representative actions byorganisations acting on behalf of and for the protection of the collectiveinterests of victims, - ensure that the costs of theproceedings based on provisions of national law transposing this Directive donot prevent claimants from having access to courts,
Amendment 585 #
Proposal for a directive
Article 22 a (new)
Article 22 a (new)
Article 22 a 22 a. Member States shall also ensure that liability regimes put in place address existing barriers to effective access to justice, namely in terms of administrative and judicial costs, allow for collective redress and establish suspension or interruption of the statute of limitation from the moment of the claim and for the duration of the procedure.
Amendment 587 #
Proposal for a directive
Article 23 – paragraph 1 a (new)
Article 23 – paragraph 1 a (new)
1 a. Member States shall ensure that companies refrain from retaliation against any stakeholders and their representatives for exercising their rights under the Directive, and shall identify, prevent, mitigate and monitor the risk of retaliation and reprisal, related to their business relationships and their value chains.
Amendment 588 #
Proposal for a directive
Article 23 – paragraph 1 b (new)
Article 23 – paragraph 1 b (new)
1 b. Member States shall ensure that companies are liable for retaliation actions against stakeholders and their representatives, including whistleblowers and human rights and environmental rights defenders, taken by themselves or by actors mandated to doso.
Amendment 589 #
Proposal for a directive
Article 25 a (new)
Article 25 a (new)
Article 25 a 3. Member States shall make it binding on companies to conclude, on their behalf and on behalf of their directors and officers, insurance contracts covering civil liability in respect of the adverse impacts and damages covered by this Directive
Amendment 594 #
Proposal for a directive
Annex I – Part I – point 7 a (new)
Annex I – Part I – point 7 a (new)
7 a. the right to an adequate standard of living for oneself and one’s family, including adequate food, clothing and housing, and the right to continuous improvement of living conditions in accordance with Article 11 of the International Covenant on Economic, Social and Cultural Rights;
Amendment 599 #
Proposal for a directive
Annex I – Part I – point 20 a (new)
Annex I – Part I – point 20 a (new)
20 a. the indigenous peoples’ right to self-determination in accordance with Article 3 of the United Nations Declaration on the Rights of Indigenous Peoples and their right to be consulted in order to obtain their free and informed consent prior to the approval of any project affecting their lands or territories and other resources, in accordance with Article 32 thereof;
Amendment 605 #
Proposal for a directive
Annex I – Part I – indent 10
Annex I – Part I – indent 10
— The United Nations Declaration on the Rights of Indigenous Peoples, UNDG Guidelines on Indigenous Issues (2008) and UN-REDD Programme Guidelines on Free, Prior and Informed Consent (2013);
Amendment 607 #
Proposal for a directive
Annex I – Part I – indent 10 a (new)
Annex I – Part I – indent 10 a (new)
- UN Guiding Principles on Business and Human Rights (2011);
Amendment 611 #
Proposal for a directive
Annex I – Part I – indent 23 a (new)
Annex I – Part I – indent 23 a (new)