Text · Opinion parliamentary committee
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 INTA-AD-737332 · COM(2022)0071 – C90050/2022 – 2022/0051(COD)
- Kind
- Opinion parliamentary committee INTA-AD-737332
- Date
- 26 January 2023
- Committee
- Committee on International Trade
- Rapporteur
- Barry Andrews
- Dossier
- 2022-0051
More facts (2)
- Formats
- Official page PDF Word
- Reference
- COM(2022)0071 – C90050/2022 – 2022/0051(COD)
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The Committee on International Trade calls on the Committee on Legal Affairs, as the committee responsible, to take into account the following amendments:
| Text proposed by the Commission | Amendment |
|---|---|
| (18) The value chain should cover activities related to the production of a good or 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 established business relationships of the company. It should encompass upstream established direct and indirect business relationships that design, extract, manufacture, transport, store and supply raw material, products, parts of products, or provide services to the company that are necessary to carry out the company’s activities, and also downstream relationships, including established direct and indirect business relationships, that use or receive products, parts of products or services from the company up to the end of life of the product, including inter alia the distribution of the product to retailers, the transport and storage of the product, dismantling of the product, its recycling, composting or landfilling. | (18) The value chain should cover activities of a company and of its business partners related to the production and supply of goods or the provision of services, including upstream direct and indirect business partners that design, extract, manufacture, transport, store and supply raw material, products, parts of products, or provide services to the company including the development of the product or the service, and downstream direct and indirect business partners that distribute the product to wholesalers, retailers or consumers, transport and store the product, dismantle or recycle the product, including compost or landfill waste resulting from the operations of the company. The use of the goods should not be considered as part of the value chain for the purposes of this Directive. |
| Text proposed by the Commission | Amendment |
|---|---|
| (21) Under this Directive, EU companies with more than 500 employees on average and a worldwide net turnover exceeding EUR 150 million in the financial year preceding the last financial year should be required to comply with due diligence. As regards companies which do not fulfil those criteria, but which had more than 250 employees on average and more than EUR 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors, due diligence should apply 2 years after the end of the transposition period of this directive, in order to provide for a longer adaptation period. In order to ensure a proportionate burden, 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. | (21) Under this Directive, EU companies with more than 250 employees on average and which generated a worldwide net turnover of more than EUR 40 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 50 employees or more on average and generated more than EUR 8 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors, due diligence should apply 2 years after the end of the transposition period of this directive, in order to provide for a longer adaptation period. In order to ensure a proportionate burden, 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). | 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). |
| Text proposed by the Commission | Amendment |
|---|---|
| (22) In order to reflect the priority areas of international action aimed at tackling human rights and environmental issues, the selection of high-impact sectors for the purposes of this Directive should be based on existing sectoral OECD due diligence guidance. The following sectors should be regarded as high-impact for the purposes of this Directive: the manufacture of textiles, leather and related products (including footwear), and the wholesale trade of textiles, clothing and footwear; agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products). As regards the financial sector, due to its specificities, in particular as regards the value chain and the services offered, even if it is covered by sector-specific OECD guidance, it should not form part of the high-impact sectors covered by this Directive. At the same time, in this sector, the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings, even if they do not have a legal form with limited liability. | (22) In order to reflect the priority areas of international action aimed at tackling human rights and environmental issues, the selection of high-impact sectors for the purposes of this Directive should be based on existing sectoral OECD due diligence guidance. The following sectors should be regarded as high-impact for the purposes of this Directive: the manufacture of textiles, leather and related products (including footwear), and the wholesale trade of textiles, clothing and footwear; agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products); the provision of financial services such as loans, credits, financing, pensions, market funding, risk management, payment services, securitisation, insurance or reinsurance services, investment services and activities, and other financial services. |
| Text proposed by the Commission | Amendment |
|---|---|
| (23) In order to achieve fully the objectives of this Directive addressing human rights and adverse environmental 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 150 million in the Union in the financial year preceding the last financial year or a net turnover of more than EUR 40 million but less than EUR 150 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. | (23) In order to achieve fully the objectives of this Directive addressing human rights and adverse environmental 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 more than EUR 40 million in the Union in the financial year preceding the last financial year or a net turnover of more than EUR 8 million but less than EUR 40 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. |
| Text proposed by the Commission | Amendment |
|---|---|
| (36) In order to ensure that prevention and mitigation of potential adverse impacts is effective, companies should prioritize engagement with business relationships in the value chain, instead of terminating the business relationship, as a last resort action after attempting at preventing and mitigating adverse potential impacts without success. However, the Directive should also, for cases where potential adverse impacts could not be addressed by the described prevention or mitigation measures, refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question and, where the law governing their relations so entitles them to, to either temporarily suspend commercial relationships with the partner in question, while pursuing prevention and minimisation 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. | (36) In order to ensure that prevention and mitigation of potential adverse impacts is effective, companies should prioritize engagement with business relationships in the value chain, instead of terminating the business relationship, as a last resort action after attempting at preventing and mitigating adverse potential impacts without success. However, the Directive should also, for cases where potential adverse impacts could not be addressed by the described prevention or mitigation measures, refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question in connection to or in the value chain of which the impact has arisen and, where the law governing their relations so entitles them to and if they are in the best interest of the potential victims of the potential or actual adverse impacts, in line with responsible disengagement to temporarily suspend commercial relationships with the partner in question, while pursuing appropriate efforts to bring to an end or mitigate the extent of the adverse impact, or as a last resort to terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe, systemic or state-sponsored. 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. |
| Text proposed by the Commission | Amendment |
|---|---|
| (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 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 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 terminate the business relationship in contracts governed by their laws. | (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 which could not be mitigated by the described measures, refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question and, if they are in the best interest of the potential victims of the potential or actual adverse impacts, in line with responsible disengagement to temporarily suspend commercial relationships with the partner in question, while pursuing appropriate efforts to bring to an end or mitigate the extent of the adverse impact. The company may as a last resort terminate the business relationship with respect to the activities concerned, if the adverse impact is considered severe, systemic or state-sponsored. The company should engage in a timely, efficient and meaningful manner with stakeholders, including workers and their legitimate representatives impacted by the decision to disengage before reaching this decision, and should address the adverse impacts related to the decision to disengage. |
| 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 notifications or complaints directly to them in case of legitimate concerns regarding actual or potential human rights, environmental impacts or good governance impacts with respect to their value chain, their own operations, the operations of their subsidiaries and their business partners. Organisations who could submit such complaints should include the company’s employees, the employees of its subsidiaries, workers, trade unions, civil society organisations 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 safe, legitimate, accessible and equitable 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 preclude 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. |
| Text proposed by the Commission | Amendment |
|---|---|
| (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. | (47) 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. |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) on obligations for companies regarding actual and potential human rights adverse impacts and 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 | (a) on obligations for companies to integrate due diligence into their policies, identify and assess actual and potential adverse impacts to human rights, the environment and good governance, prevent and mitigate such potential adverse impacts and bring those actual adverse impacts to an end, establish and maintain a complaints procedure, monitor the effectiveness of their due diligence policy, publicly communicate on their due diligence policy and provide for or cooperate in remediation where appropriate with respect to their own operations, products and services, the operations of their subsidiaries, and the value chain operations carried out by entities with whom the company has a business relationship and |
| Text proposed by the Commission | Amendment |
|---|---|
| The nature of business relationships as ‘established’ shall be reassessed periodically, and at least every 12 months. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) the company had more than 500 employees on average and had a net worldwide turnover of more than EUR 150 million in the last financial year for which annual financial statements have been prepared; | (a) the company had more than 250 employees on average and generated a net worldwide turnover of more than EUR 40 million in the last financial year for which annual financial statements have been prepared; |
| 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 had 50 employees or more on average and generated a net worldwide turnover of more than EUR 8 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: |
| Text proposed by the Commission | Amendment |
|---|---|
| (iii a) the provision of financial services such as loans, credits, financing, pensions, market funding, risk management, payment services, securitisation, insurance or reinsurance services, investment services and activities, and other financial services; |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) generated a net turnover of more than EUR 150 million in the Union in the financial year preceding the last financial year; | (a) generated a net turnover of more than EUR 40 million in the Union in the financial year preceding the last financial year; |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) generated a net turnover of more than EUR 40 million but not more than EUR 150 million in the Union in the financial year preceding the last financial year, provided that at least 50% of its net worldwide turnover was generated in one or more of the sectors listed in paragraph 1, point (b). | (b) generated a net turnover of more than EUR 8 million but not more than EUR 40 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). |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the Annex, Part II; | (b) ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations established under international environmental and climate legislation including but not limited to the international environmental conventions listed in the Annex, Part II; |
| Text proposed by the Commission | Amendment |
|---|---|
| (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; | (g) ‘value chain’ means activities of a company and of its business partners related to the production and supply of goods or the provision of services, including: |
| (i) upstream direct and indirect business partners that design, extract, manufacture, transport, store and supply raw material, products, parts of products, or provide services to the company including the development of the product or the service, and | |
| (ii) downstream direct and indirect business partners that distribute the product to wholesalers, retailers or consumers, transport and store the product, dismantle or recycle the product, including compost or landfill waste resulting from the operations of the company. | |
| The use of the goods shall not be considered as part of the value chain for the purposes of this Directive. |
| Text proposed by the Commission | Amendment |
|---|---|
| (j) ‘industry initiative’ means a combination of voluntary value chain due diligence procedures, tools and mechanisms, including independent third-party verifications, developed and overseen by governments, industry associations or groupings of interested organisations; | (j) ‘industry or multi-stakeholder initiative’ means a combination of voluntary value chain due diligence procedures, best practices, tools and mechanisms, including independent third-party verifications and audits overseen by the Commission, governments, including the governments of developing countries, industry associations or groupings of interested organisations that: |
| (i) are voluntarily adopted by companies, and, when adopted, are binding companies and, if applicable, their partners, | |
| (ii) include the perspectives of civil society in audits and the steering of the standards and grievance mechanisms according to the effectiveness criteria of the UNGP; |
| 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 persons or groups who have interests that are or could be affected by the potential or actual adverse impacts on human rights, the environment and good governance caused by the products, services and operations of a company, its subsidiaries and its business relationships across the value chain such as the company’s employees, the employees of its subsidiaries, workers and their representatives, trade unions, company’s shareholders, rightsholders and other individuals, groups, communities or entities; |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. By way of derogation from paragraph 1, companies referred to in Article 2(1), point (b), and Article 2(2), point (b), shall only be required to identify actual and potential severe adverse impacts relevant to the respective sector mentioned in Article 2(1), point (b). | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 3. When companies referred to in Article 3, point (a)(iv), provide credit, loan or other financial services, identification of actual and potential adverse human rights impacts and adverse environmental impacts shall be carried out only before providing that service.. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| As regards actual adverse impacts within the meaning of paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures provided for in paragraphs 3, 4 and 5, 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: | 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 mitigated by the measures provided for in paragraphs 3, 4 and 5, or any other means and where there is no reasonable prospect of change the company shall refrain from entering into new or extending existing relations with the partner in connection to or in the value chain of which the impact has arisen and shall, where the law governing their relations so entitles them to, and if they are in the best interest of the potential victims of the potential and actual adverse impacts, in line with responsible disengagement temporarily suspend commercial relationships with the partner in question, while pursuing appropriate efforts to bring to an end or mitigate the extent of the adverse impact. |
| (a) 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 | |
| (b) terminate the business relationship with respect to the activities concerned, if the adverse impact is considered severe. | The company may also, as a last resort, terminate the business relationship with respect to the activities concerned, if the adverse impact is considered severe, systemic or state-sponsored. The company shall engage in a timely, efficient and meaningful manner with stakeholders impacted by the decision to disengage before reaching this decision, and shall address the adverse impacts related to the decision to disengage. |
| Text proposed by the Commission | Amendment |
|---|---|
| Member States shall provide for the availability of an option to terminate the business relationship in contracts governed by their laws. | Member States shall provide for, the availability of an option to suspend or as a last resort, to terminate the business relationship in contracts governed by their laws. |
| Text proposed by the Commission | Amendment |
|---|---|
| 7. By way of derogation from paragraph 6, point (b), when companies referred to in Article 3, point (a)(iv), provide credit, loan or other financial services, they shall not be required to terminate the credit, loan or other financial service contract, when this can be reasonably expected to cause substantial prejudice to the entity to whom that service is being provided. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 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 adverse environmental impacts with respect to their own operations, the operations of their subsidiaries and their value chains. | 1. Member States shall ensure that companies establish or participate in effective mechanisms that can be used by persons and organisations listed in paragraph 2 to submit notifications or complaints to them regarding actual or potential human rights, environmental impacts or good governance impacts with respect to their value chain, their own operations, the operations of their subsidiaries and their business partners. Member States shall ensure that companies are able to provide the possibility to submit notifications and complaints through collaborative arrangements with other companies or organisations, by participating in multi-stakeholder grievance mechanisms or joining a Global Framework Agreement. The complaint procedure shall be safe, legitimate, accessible and equitable, and shall provide for the possibility to raise complaints anonymously in accordance with Union and national law and confidentially. Recourse to such procedures shall not preclude claimants from having access to judicial mechanisms. |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) persons who are affected or have reasonable grounds to believe that they might be affected by an adverse impact, | (a) persons who are affected or have reasonable and factual grounds to believe that they might be affected by an actual or potential adverse impact, the products, services and operations of that company, |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) trade unions and other workers’ representatives representing individuals working in the value chain concerned, | (b) the company’s employees, the employees of its subsidiaries, workers, trade unions, other workers’ representatives or civil society organisations representing individuals working in or affected by the value chain concerned, |
| Text proposed by the Commission | Amendment |
|---|---|
| 3. Member States shall ensure that the companies establish a procedure for dealing with complaints referred to in paragraph 1, including a procedure when the company considers the complaint to be unfounded, and inform the relevant workers and trade unions of those procedures. Member States shall ensure that where the complaint is well-founded, the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of Article 6. | 3. Member States shall ensure that the companies establish a procedure for dealing with complaints referred to in paragraph 1, including a safe procedure when the company considers the complaint to be unfounded. Member States shall ensure that companies inform the relevant persons, trade unions, and other workers' representatives of individuals working in the value chain concerned, and civil society organisations active in the areas related to the value chain concerned of those procedures. Member States shall ensure that where the complaint is well-founded the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of Article 6. Member States shall ensure that companies provide information to stakeholders on such complaints mechanisms, including on how to access them, on decisions and remedies relating to a company and on how the company is implementing them. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4a. Member States shall ensure that supervisory authorities are empowered to issue guidance to companies and other actors responsible for developing and administering complaints mechanisms, including in relation to their compliance with the criteria set out in this Article, in line with relevant international standards. |
| 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, the European Union Agency for Fundamental Rights, the European Agency for Small and Medium enterprises, the European Environment Agency, the European Labour Authority and where appropriate with international bodies having expertise in due diligence, shall issue clear and comprehensive, guidelines, including for specific sectors, specific adverse impacts, and on appropriate follow-up to a complaint. These guidelines shall also clarify how companies' obligations stemming from this Directive interact with obligations stemming from other Union legislation to ensure coherence and complementarity. The guidelines shall particularly take into account SMEs’ needs and shall enable administrative and financial assistance. The guidelines shall help companies, in particular SMEs, to fulfil their due diligence obligations in accordance with Articles 5 to 11, taking into account the need to simplify the administrative burden for smaller companies, to ensure a level playing field within the Union and to ensure a consistent implementation of this Directive. These guidelines may include the following: |
| (a) for specific sectors or specific adverse impacts; | |
| (b) an overview on applicable industry initiatives, multi-stakeholder initiatives and industry schemes; | |
| (c) practical guidance on how proportionality and prioritisation, in terms of impacts, sectors and geographical areas, may be applied to due diligence obligations depending on the size and sector of the company; | |
| (d) responsible purchasing practices; | |
| (e) gender-responsive and culturally responsive due diligence; | |
| (f) resource and information sharing among companies and other legal entities for the purposes of preventing, mitigating and remediating adverse impacts in compliance with competition law; | |
| (g) responsible disengagement; | |
| (h) heightened due diligence in conflict-affected areas. |
| Text proposed by the Commission | Amendment |
|---|---|
| 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. | 3. The Commission shall complement Member States’ support measures building on existing Union action to support due diligence in the Union and in third countries and shall devise new measures, including facilitation of joint stakeholder initiatives to help companies fulfil their obligations as well as a non-exhaustive list of industry schemes in accordance to Article 3, point (j). The Commission and Member States shall develop and strengthen cooperation and partnership mechanisms with third countries to address the root causes of adverse impacts on human rights, the environment and good governance, and build the capacity of upstream economic actors to comply with the requirements under this Directive. The Commission shall support safe participatory collection of the independent data on such adverse impacts and undertake necessary actions for the data to be used in the implementation of this Directive. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. Companies may rely on industry schemes and multi-stakeholder initiatives to support the implementation of their obligations referred to in Articles 5 to 11 of this Directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. The Commission and the Member States may facilitate the dissemination of information on such schemes or initiatives and their outcome. The Commission, in collaboration with Member States, may issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives. | 4. Companies may rely on industry schemes and multi-stakeholder initiatives deemed fit by the Commission, in accordance to Article 3, point (j), to support the implementation of their obligations referred to in Articles 5 to 11 of this Directive that such schemes and initiatives are appropriate to support the fulfilment of those obligations. The Commission and the Member States shall facilitate the dissemination of information on the precise scope and alignment with this Directive of such schemes or initiatives and their outcome. The Commission, in collaboration with Member States, shall issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives. Participation in industry or multi-stakeholder initiatives remain complementary to the company’s individual responsibility and obligations to perform due diligence under this Directive. |
| Text proposed by the Commission | Amendment |
|---|---|
| No later than … [OP please insert the date = 7 years after the date of entry into force of this Directive], the Commission shall submit a report to the European Parliament and to the Council on the implementation of this Directive. The report shall evaluate the effectiveness of this Directive in reaching its objectives and assess the following issues: | No later than … [OP please insert the date = 5 years after the date of entry into force of this Directive], the Commission shall submit a report to the European Parliament and to the Council on the implementation of this Directive. The report shall evaluate the effectiveness of this Directive in reaching its objectives and assess the following issues: |
| Text proposed by the Commission | Amendment |
|---|---|
| (d a) the impact on SMEs |
| Text proposed by the Commission | Amendment |
|---|---|
| (d b) the availability and effectiveness of supporting tools |
| Text proposed by the Commission | Amendment |
|---|---|
| violations of internationally recognized objectives and prohibitions included in environmental conventions | violations of EU and internationally recognized objectives and prohibitions included in environmental and climate conventions and Union legislation |
| Text proposed by the Commission | Amendment |
|---|---|
| 1 a. Violation of European environmental principles as defined in Article 191 TFEU; |
Procedure pages and committee votes
How the committees handled the text and how their members voted on it. Collapsed.
Procedure – committee asked for opinion 1 block
| Title | Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937 | |
| References | COM(2022)0071 – C9-0050/2022 – 2022/0051(COD) | |
| Committee responsible Date announced in plenary | JURI 4.4.2022 | |
| Opinion by Date announced in plenary | INTA 4.4.2022 | |
| Associated committees - date announced in plenary | 15.9.2022 | |
| Rapporteur for the opinion Date appointed | Barry Andrews 14.7.2022 | |
| Discussed in committee | 21.3.2022 | 14.11.2022 |
| Date adopted | 24.1.2023 | |
| Result of final vote | +: –: 0: | 22 19 1 |
| Members present for the final vote | Barry Andrews, Tiziana Beghin, Geert Bourgeois, Saskia Bricmont, Jordi Cañas, Daniel Caspary, Arnaud Danjean, Paolo De Castro, Raphaël Glucksmann, Roman Haider, Christophe Hansen, Heidi Hautala, Karin Karlsbro, Danilo Oscar Lancini, Bernd Lange, Thierry Mariani, Margarida Marques, Emmanuel Maurel, Javier Moreno Sánchez, Carles Puigdemont i Casamajó, Samira Rafaela, Catharina Rinzema, Inma Rodríguez-Piñero, Helmut Scholz, Sven Simon, Mihai Tudose, Kathleen Van Brempt, Marie-Pierre Vedrenne, Jörgen Warborn, Iuliu Winkler, Jan Zahradil, Juan Ignacio Zoido Álvarez | |
| Substitutes present for the final vote | Mazaly Aguilar, Anna Cavazzini, Enikő Győri, Manuela Ripa, Angelika Winzig | |
| Substitutes under Rule 209(7) present for the final vote | Catherine Griset, Leopoldo López Gil, Karsten Lucke, Christian Sagartz, Simone Schmiedtbauer |
Final vote by roll call in committee asked for opinion 3 blocks
22 · For
- No group
- Tiziana Beghin, Carles Puigdemont i Casamajó
- Renew
- Barry Andrews, Jordi Cañas, Karin Karlsbro, Samira Rafaela, Marie-Pierre Vedrenne
- S&D
- Paolo De Castro, Raphaël Glucksmann, Bernd Lange, Karsten Lucke, Margarida Marques, Javier Moreno Sánchez, Inma Rodríguez-Piñero, Mihai Tudose, Kathleen Van Brempt
- The Left
- Emmanuel Maurel, Helmut Scholz
- Greens
- Saskia Bricmont, Anna Cavazzini, Heidi Hautala, Manuela Ripa
19 · Against
- ECR
- Mazaly Aguilar, Geert Bourgeois, Jan Zahradil
- ID
- Catherine Griset, Roman Haider, Danilo Oscar Lancini, Thierry Mariani
- No group
- Enikő Győri
- EPP
- Daniel Caspary, Arnaud Danjean, Christophe Hansen, Leopoldo López Gil, Christian Sagartz, Simone Schmiedtbauer, Sven Simon, Jörgen Warborn, Iuliu Winkler, Angelika Winzig, Juan Ignacio Zoido Álvarez
Connections
The dossier, the decisions on this text and its other versions.
No connections found for this item.
Sources & citation
Where the facts on this page come from, and how to cite it.
- Data source
- Licensed CC BY 4.0.
- Retrieved
- 25 September 2026
Cite as
European Parliament (2023). “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”. Text, 26 January 2023. docId INTA-AD-737332. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/INTA-AD-737332 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/INTA-AD-737332 (CC BY 4.0).
BibTeX
@misc{epw-text-inta-ad-737332,
author = {{European Parliament}},
title = {{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}},
year = {2023},
date = {2023-01-26},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/INTA-AD-737332}},
url = {https://news.eu-parl.st-solutions.dev/texts/INTA-AD-737332},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId INTA-AD-737332. Data: EP Open Data API: document record (CC BY 4.0)}
}