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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 INTA-PA-737332 · COM(2022)0071 – C90050/2022 – 2022/0051(COD)

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Opinion parliamentary committee draft INTA-PA-737332
Date
18 October 2022
Committee
Committee on International Trade
Rapporteur
Barry Andrews
Dossier
2022-0051
More facts (2)
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Reference
COM(2022)0071 – C90050/2022 – 2022/0051(COD)
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AMENDMENTS

The Committee on International Trade calls on the Committee on Legal Affairs, as the committee responsible, to take into account the following amendments:

Amendment 1

Proposal for a directive

Article 1 – paragraph 1 – subparagraph 1 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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 and the environment, 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, the operations of their subsidiaries, and the supply chain operations carried out by entities with whom the company has an established business relationship and

Or. en

Amendment 2

Proposal for a directive

Article 2 – paragraph 1 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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 turnover of more than EUR 40 million in the Union in the last financial year for which annual financial statements have been prepared;

Or. en

Amendment 3

Proposal for a directive

Article 2 – paragraph 1 – point b – introductory part

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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 turnover of more than EUR 700 000 in the Union 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:

Or. en

Amendment 4

Proposal for a directive

Article 2 – paragraph 1 – point b – point iii a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(iii a) the provision of financial services including the activities of regulated financial undertakings.

Or. en

Amendment 5

Proposal for a directive

Article 2 – paragraph 2 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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;

Or. en

Amendment 6

Proposal for a directive

Article 2 – paragraph 2 – point b

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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 700 000 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).

Or. en

Amendment 7

Proposal for a directive

Article 3 – paragraph 1 – point g

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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) ‘supply 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 as well as the related activities of upstream established business relationships of the company;

Or. en

Amendment 8

Proposal for a directive

Article 3 – paragraph 1 – point j

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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 initiative’ means a combination of voluntary supply chain due diligence procedures, tools and mechanisms, including independent third-party verifications, developed and overseen by the Commission, governments, including the governments of developing countries, industry associations or groupings of interested organisations;

Or. en

Amendment 9

Proposal for a directive

Article 3 – paragraph 1 – point n

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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 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 potential or actual adverse impacts on human rights or on the environment of a company, its subsidiaries or its upstream business relationships;

Or. en

Amendment 10

Proposal for a directive

Article 8 – paragraph 6 – subparagraph 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
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 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 supply chain of which the impact has arisen and shall 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.
(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 severeThe 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.

Or. en

Amendment 11

Proposal for a directive

Article 8 – paragraph 6 – subparagraph 2

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
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 terminate the business relationship in contracts governed by their laws.

Or. en

Amendment 12

Proposal for a directive

Article 9 – paragraph 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
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 provide the possibility for persons and organisations listed in paragraph 2 to submit complaints to them 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 supply chains.

Or. en

Amendment 13

Proposal for a directive

Article 9 – paragraph 2 – point a

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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 grounds to believe that they might be affected by an actual or potential adverse impact,

Or. en

Amendment 14

Proposal for a directive

Article 9 – paragraph 2 – point b

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(b) trade unions and other workers’ representatives representing individuals working in the value chain concerned,(b) trade unions and other workers’ representatives representing individuals working in the supply chain concerned,

Or. en

Amendment 15

Proposal for a directive

Article 9 – paragraph 2 – point c

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(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 supply chain concerned.

Or. en

Amendment 16

Proposal for a directive

Article 9 – paragraph 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
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 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 supply chain concerned, and civil society organisations active in the areas related to the supply 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.

Or. en

Amendment 17

Proposal for a directive

Article 13 – paragraph 1

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
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 Environment Agency, and where appropriate with international bodies having expertise in due diligence, shall issue 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.

Or. en

Amendment 18

Proposal for a directive

Article 14 – paragraph 3

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
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.

Or. en

Amendment 19

Proposal for a directive

Article 14 – paragraph 3 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
3a. The Commission may rely on its cooperation and trade instruments to support the development of an enabling environment in third countries, with particular consideration given to developing countries, through capacity building and expertise that will facilitate companies falling within the scope of this Directive to comply with their due diligence obligations.

Or. en

Amendment 20

Proposal for a directive

Article 14 – paragraph 4

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
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 to support the implementation of their obligations referred to in Articles 5 to 11 of this Directive in circumstances where the Commission is satisfied 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 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.

Or. en

Amendment 21

Proposal for a directive

Article 22 – paragraph 1 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1a. Notwithstanding paragraph 1, companies which are formed in accordance with the legislation of a Member State, and which fall within the scope of this Directive but had less than 250 employees on average and generated a net turnover of less than EUR 40 million in the Union in the last financial year for which annual financial statements have been prepared, shall not be held liable for damages under this Directive. This shall be without prejudice to the right of victims to rely on other applicable Union or national rules to seek damages for harm caused.

Or. en

Amendment 22

Proposal for a directive

Article 22 – paragraph 1 b (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
1b. Notwithstanding paragraph 1, companies which are formed in accordance with the legislation of a third country, and which fall within the scope of this Directive but generated a net turnover of less than EUR 40 million in the Union in the financial year preceding the last financial year, shall not be held liable for damages under this Directive. This shall be without prejudice to the right of victims to rely on other applicable Union or national rules to seek damages for harm caused.

Or. en

Amendment 23

Proposal for a directive

Article 29 – paragraph 1 – introductory part

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
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:

Or. en

Amendment 24

Proposal for a directive

Article 29 – paragraph 1 – point d a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
(da) whether existing Union legislation is consistent with this Directive

Or. en

Amendment 25

Proposal for a directive

Article 29 – subparagraph 1 a (new)

Amendment: Text proposed by the Commission and Amendment
Text proposed by the CommissionAmendment
Subsequent to the findings of the report referred to in the first subparagraph, the Commission shall, if necessary, bring forward the required number of legislative proposals to revise existing Union legislation and bring it in line with this Directive, including but not limited to the Corporate Sustainability Reporting Directive.

Or. en

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Cite as

European Parliament (2022). “DRAFT 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, 18 October 2022. docId INTA-PA-737332. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/INTA-PA-737332 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/INTA-PA-737332 (CC BY 4.0).
BibTeX 
@misc{epw-text-inta-pa-737332,
  author = {{European Parliament}},
  title = {{DRAFT 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 = {2022},
  date = {2022-10-18},
  howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/INTA-PA-737332}},
  url = {https://news.eu-parl.st-solutions.dev/texts/INTA-PA-737332},
  urldate = {2026-09-25},
  publisher = {EU Parl Watch Research},
  note = {Text. docId INTA-PA-737332. Data: EP Open Data API: document record (CC BY 4.0)}
}