Text · Opinion parliamentary committee draft
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
Document EMPL-PA-735813 · COM(2022)0071 – C90050/2022 – 2022/0051(COD)
- Kind
- Opinion parliamentary committee draft EMPL-PA-735813
- Date
- 24 October 2022
- Committee
- Committee on Employment and Social Affairs
- Rapporteur
- Samira Rafaela
- Dossier
- 2022-0051
More facts (2)
- Formats
- Official page PDF Word
- Reference
- COM(2022)0071 – C90050/2022 – 2022/0051(COD)
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Short justification
Responsible business conduct is an integral part of the European Union’s commitment to decent work worldwide. It is the illustration of how Europe’s social market company can renew existing economic governance practices in order to propel the just transition to sustainability, as well as uphold our commitments to human rights and dignity. The European Union will be the global frontrunner of corporate sustainability due diligence and through leading by example will inspire companies from third countries to match the ambitions set forward by this Directive.
The Rapporteur welcomes the proposal put forward by the European Commission, and with its amendments seeks to strengthen the proposal for the Directive by, amongst others, strongly integrating workers’ representatives and social partners, accounting for gender sensitivity and mainstreaming, broadening the scope, incorporating the climate change lens, and having a victim-based approach. Throughout the text, companies are regarded as partners. The Rapporteur emphasizes the importance of maintaining coherency with existing practices and norms, such as the UN Guiding Principles on Business and Human Rights (UNGPs), ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, and the OECD Guidelines on Due Diligence.
The Rapporteur considers Europe’s SME’S the key to unlocking the full potential of the Directive on Corporate Sustainability Due Diligence. In the Commission proposal, the scope was not in line with the aforementioned UNGP, which includes SME’s, albeit with recommendations proportionate to their size and operating context. Including SME’s will not only increase the impact of the Corporate Sustainability Due Diligence Directive, but it acknowledges the role that all companies play in preventing, addressing, and remedying adverse human or environmental impacts. At the same it, the amendments proposed by the Rapporteur strengthens the capability of SME’s exercising due diligence, through the obligation of Member States to provide training and facilitating network and/or platform creation. Examples from the field have shown the efficiency and effectiveness of such due diligence platforms in decreasing administrative burdens and harnessing the collective expertise of companies.
Furthermore, the scope has now been enlarged to include financial enterprises, as recommended by the OECD Guidance for Responsible Business Conduct. It is irresponsible for the objectives of this Directive to exclude the sector which is integral for all the companies that will have to conduct due diligence. All business must be committed to responsible conduct.
The Rapporteur is convinced that this Directive will not be effective without the integration of a gender sensitive lens. The Directive as it was proposed did not sufficiently address the gendered dimension of responsible business conduct. The “gender-blind” approach will not effectively promote decent work in worldwide value chains. Specifically, the Rapporteur recommends explicitly including the Tourism and Hospitality sector as women are overrepresented in this sector but are underrepresented at the higher levels of employment and management.
Finally, the Rapporteur sees meaningful engagement with potentially affected groups and persons as the center of this Directive as evidenced by the amendments for the complaint procedure. These potentially affected groups include indigenous people, women, children, and human rights and environmental defenders. In the same vein, whistleblowers need to be protected as they may reveal adverse impacts that would have otherwise not been uncovered. The view of the Rapporteur is that meaningful engagement by companies, especially by Europe’s strong and vital SME sector, will be integral to this Directive’s impact and success.
The Committee on Employment and Social Affairs calls on the Committee on Legal Affairs, as the committee responsible, to take into account the following amendments:
| Text proposed by the Commission | Amendment |
|---|---|
| (3) In its Communication on a Strong Social Europe for Just Transition75 , the Commission committed to upgrading Europe’s social market economy to achieve a just transition to sustainability. This Directive will also contribute to the European Pillar of Social Rights, which promotes rights ensuring fair working conditions. It forms part of the EU policies and strategies relating to the promotion of decent work worldwide, including in global value chains, as referred to in the Commission Communication on decent work worldwide76 . | (3) In its Communication on a Strong Social Europe for Just Transition75 , the Commission committed to upgrading Europe’s social market economy to achieve a just transition to sustainability, which needs to take into account economic, social, gender, environmental and financial aspects. This Directive will also contribute to the European Pillar of Social Rights (‘the Pillar’), which promotes rights ensuring fair working conditions. It will also create greater visibility for, and ownership of, the Pillar among the business community, whose involvement is essential for effective implementation of the Pillar. It forms part of the EU policies and strategies relating to the promotion of decent work worldwide, including in global value chains, as referred to in the Commission Communication on decent work worldwide76 . |
| 75 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – A Strong Social Europe for Just Transitions (COM/2020/14 final). | 75 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – A Strong Social Europe for Just Transitions (COM/2020/14 final). |
| 76 Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on decent work worldwide for a global just transition and a sustainable recovery, COM(2022) 66 final. | 76 Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on decent work worldwide for a global just transition and a sustainable recovery, COM(2022) 66 final. |
| Text proposed by the Commission | Amendment |
|---|---|
| (32) In line with international standards, prevention and mitigation as well as bringing to an end and minimisation 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. | (32) In line with international standards, prevention and mitigation as well as bringing to an end and minimisation of adverse impacts should take into account the interests of those adversely impacted after a meaningful engagement with them. 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. In the same line, women in precarious labour conditions could face more severe adverse human rights impacts thus increasing their vulnerability. This should therefore be taken into account when deciding on the appropriate action to take. |
| Text proposed by the Commission | Amendment |
|---|---|
| (42) Companies should provide the possibility for persons and organisations to 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 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. | (42) Companies should provide the possibility for persons and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. Special attention should be given to ensuring the accessibility of that complaints mechanism and to the protection of the complainant, in particular women, vulnerable persons, people with disabilities and minors. Organisations who could submit such complaints should involve worker's representatives, including trade unions, who represent individuals working in the value chain concerned and civil society organisations active in the areas related to the value chain concerned, especially where they have knowledge about a potential or actual adverse impact. Member States should provide a framework, in accordance with their national labour law and practices, to companies on the procedure they should establish for dealing with those complaints and inform workers and their representatives, including trade unions, where relevant, about such processes. In the absence of workers’ representatives, the company should inform its workers. Recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. In accordance with international standards, complainants should be entitled to request from the company appropriate follow-up in written form and, if requested by the complainant, through adequate means of communication, on the complaint. The follow-up should be facts-based and provide supporting evidence for the explanation. Complainants should have the right to meet with the company’s representatives at an appropriate level to discuss potential or actual adverse impacts that are the subject matter of the complaint. This access should not lead to unreasonable solicitations of companies, once the follow-up has been provided by the company. |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the company did not reach the thresholds under point (a), but had more than 250 employees on average and had a net worldwide turnover of more than EUR 40 million in the last financial year for which annual financial statements have been prepared, provided that at least 50% of this net turnover was generated in one or more of the following sectors: | (b) the company did not reach the thresholds under point (a), but at least 50% of its net turnover was generated in one or more of the following sectors: |
| Text proposed by the Commission | Amendment |
|---|---|
| (i) the manufacture of textiles, leather and related products (including footwear), and the wholesale trade of textiles, clothing and footwear; | (i) the manufacture of textiles, wearing apparel, leather and related products (including footwear), and the wholesale trade and retail of textiles, clothing and footwear; |
| Text proposed by the Commission | Amendment |
|---|---|
| (ia) the financial sector, including commercial banks, retail banks, investment banks, rating agencies, financial service providers and institutional investors; |
| Text proposed by the Commission | Amendment |
|---|---|
| (iiia) the tourism and hospitality sector, including tour operators, including travel agents, hotels and airlines, destination management companies, and tourism accommodation providers. |
| Text proposed by the Commission | Amendment |
|---|---|
| (c) ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of one of the rights or prohibitions listed in the Annex, Part I Section 1, as enshrined in the international conventions listed in the Annex, Part I Section 2; | (c) ‘adverse human rights impact’ means an adverse impact on the internationally recognised human rights of persons resulting from the violation of one of the rights or prohibitions listed in the Annex, Part I Section 1, as enshrined in the international conventions listed in the Annex, Part I Section 2; |
| Text proposed by the Commission | Amendment |
|---|---|
| (n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries, and other individuals, groups, communities or entities whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships; | (n) ‘stakeholders’ means the potentially affected groups such as the company’s employees, the employees of its subsidiaries, and other individuals, groups, communities or entities whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships. It also includes the representatives of potentially affected groups, such as human rights or environmental organisations; |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) a code of conduct describing rules and principles to be followed by the company’s employees and subsidiaries; | (b) a code of conduct describing rules and principles, aligned with European climate change goals and gender equality norms, to be followed by the company’s management, employees and their representatives, and the company's subsidiaries. The code of conduct shall be communicated internally to workers and their representatives and externally to all relevant parties and stakeholders, with joint responsibility to be taken by the company for developing procedures for the implementation of its code of conduct; |
| Text proposed by the Commission | Amendment |
|---|---|
| (c) a description of the processes put in place to implement due diligence, including the measures taken to verify compliance with the code of conduct and to extend its application to established business relationships. | (c) a description of the processes put in place to implement due diligence, including the measures taken to verify compliance with the code of conduct, including in its purchasing practices, and to extend its application to established business relationships. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Member States shall ensure that the companies update their due diligence policy annually. | 2. Member States shall ensure that the companies referred to in Article 2(1), point (a), update their due diligence policy annually, and companies referred to in Article 2(1), point (b), every two years. |
| Text proposed by the Commission | Amendment |
|---|---|
| 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. | 4. Member States shall ensure that, for the purposes of identifying and assessing the adverse environmental and human rights impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, including disaggregated data, companies are entitled to make use of appropriate resources, at least including independent reports and information gathered through the complaints procedure provided for in Article 9. Companies shall also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. Member States shall ensure that SMEs receive tailored and comprehensive support, not least via training opportunities and the creation of a networking and knowledge-sharing platform. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4a. The assessment of adverse impacts shall include consideration of how adverse impacts could specifically affect different groups with particular attention given to challenges faced by individuals from groups or populations that may be at a heightened risk of being vulnerable or marginalized, such as indigenous people and people with a disability, and include a gender-sensitive assessment, coherence with ILO norms, and the use of a children’s rights based approach. |
| Text proposed by the Commission | Amendment |
|---|---|
| (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; | (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. That prevention action plan shall be gender sensitive and shall take into account environmental and climate change-related challenges. The prevention action plan shall be developed in consultation with affected and other relevant stakeholders; |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) neutralise the adverse impact or minimise its extent, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact; | (a) neutralise the adverse impact or greatly minimise its extent, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact; |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) where necessary due to the fact that the adverse impact cannot be immediately brought to an end, develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. Where relevant, the corrective action plan shall be developed in consultation with stakeholders; | (b) where necessary due to the fact that the adverse impact cannot be immediately brought to an end, develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. Where relevant, the corrective action plan shall be developed in consultation with stakeholders. That corrective plan shall be shared with and monitored by the representatives of the affected stakeholders; |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Member States shall ensure that the complaints may be submitted by: | 2. Member States shall ensure that companies develop grievance mechanisms that are credible, legitimate, accessible, equitable, transparent and rights-based with specific attention given to the protection of affected persons. Member States shall ensure that such grievance mechanisms at least include an accessible complaints procedure whereby complaints may be submitted by: |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) trade unions and other workers’ representatives representing individuals working in the value chain concerned, | (b) workers' representatives, including trade unions, representing individuals working in the value chain concerned, |
| Text proposed by the Commission | Amendment |
|---|---|
| (c) civil society organisations active in the areas related to the value chain concerned. | (c) civil society organisations active in the areas related to the value chain concerned, |
| Text proposed by the Commission | Amendment |
|---|---|
| (ca) whistleblowers, including those outside of the company and the company's subsidiaries. |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) to request appropriate follow-up on the complaint from the company with which they have filed a complaint pursuant to paragraph 1, and | (a) to request appropriate follow-up in written form, and, if requested by the complainant through adequate means of communication, on the complaint, within at least three months of the request being introduced by the company with which they have filed a complaint pursuant to paragraph 1, and |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) 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. | (b) to meet with the company’s representatives, within at least two months of a request being introduced, at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. |
| Text proposed by the Commission | Amendment |
|---|---|
| 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. | 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, including the social partners, the European Union Agency for Fundamental Rights, the European Environment Agency, and where appropriate with international bodies having expertise in due diligence, shall issue guidelines, including for specific sectors and specific company sizes. Those guidelines shall be established in such a way that they have a gender-specific dimension and cover aspects related to vulnerable groups, such as people with disabilities. The guidelines shall also cover the adverse impacts that are specific to the high risk sectors referred to in Article 2(1), point (b), and specific contexts, such as situations of conflict or environmental fragility. |
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Sources & citation
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- Official source
- Data source
- Licensed CC BY 4.0.
- Retrieved
- 25 September 2026
Cite as
European Parliament (2022). “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”. Text, 24 October 2022. docId EMPL-PA-735813. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/EMPL-PA-735813 (retrieved 25 September 2026). Official source: The text on the European Parliament’s website, https://www.europarl.europa.eu/doceo/document/EMPL-PA-735813_EN.html. Data: European Parliament Open Data, https://data.europarl.europa.eu/ (CC BY 4.0).
BibTeX
@misc{epw-text-empl-pa-735813,
author = {{European Parliament}},
title = {{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}},
year = {2022},
date = {2022-10-24},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/EMPL-PA-735813}},
url = {https://news.eu-parl.st-solutions.dev/texts/EMPL-PA-735813},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId EMPL-PA-735813. Official source: https://www.europarl.europa.eu/doceo/document/EMPL-PA-735813\_EN.html. Data: European Parliament Open Data (CC BY 4.0)}
}