Changes from report parliamentary committee draft to plenary report

AddedArticle 8 – paragraph 6 – subparagraph 1 a (new): Prior to temporarily suspending commercial relations or terminating the business relationship, companies shall first be required to assess whether the adverse impacts of doing so would be greater than the adverse impact which is intended to be brought to an end or mitigated. Should that be the case, companies may refrain from temporarily suspending commercial relations or terminating the business relationship. Where companies do temporarily suspend commercial relations or terminate the business relationship, they shall take steps to prevent, mitigate or bring to an end the impacts of suspension or termination, provide reasonable notice to the business partner and keep that decision under review.

RemovedArticle 8 a (new): Article 8a / Remedying actual adverse impacts / 1. Member States shall ensure that where a company has, or may have, caused or contributed to an adverse impact, that company shall take appropriate measures to remedy that adverse impact and the possible harm it has caused to people. / 2. Such remedial measures may include, but are not limited to, financial or non-financial compensation, restitution, rehabilitation, public apologies, reinstatement or a contribution to investigations. / 3. Any such remedial measures shall be developed in consultation with all affected stakeholders. / 4. Member States shall ensure that any remedial action does not prevent affected stakeholders from taking further action, including making complaints and commencing civil procedures, and in particular stakeholders affected by an adverse impact shall not be required to seek remediation prior to filing claims in court. / 5. Where a company is directly linked to an adverse impact, Member States shall encourage its voluntary participation in any remedial measures, where appropriate, and encourage companies to consider using their leverage with responsible parties to enable the remediation of any damage caused by an impact.

AddedArticle 8 – paragraph 6 – subparagraph 2: Member States shall provide for the availability of an option to suspend or terminate a business relationship in contracts governed by their laws, except for contracts where the parties are obliged by law to enter into them. Companies may refer to supervisory authorities to receive guidance on the course of action to take.

RemovedArticle 9 – title: Complaints mechanism

AddedArticle 8 – paragraph 7: 7. By way of derogation from paragraph 6, point (b), when companies referred to in Article 3, point (a)(iv), provide financial services to entities that cause or contribute to actual adverse impacts in the meaning of paragraph 1, they shall not be required to terminate the financial service contract, if this is strictly necessary to prevent bankruptcy to the entity to whom that service is being provided. In addition to paragraph 6, second subparagraph, a decision to terminate the financial service contract in derogation from paragraph 6, point (b) may only be taken, as a last resort, if the leverage efforts of companies referred to in Article 3(1), point (a)(iv) have ultimately failed to influence the entity to whom that service is being provided to bring actual adverse impacts to an end or to minimise their extent.

RemovedArticle 9 – paragraph 1: 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 complaints to them where they have legitimate concerns regarding actual or potential adverse human rights, environmental or good governance impacts with respect to the companies’ own operations, the operations of their subsidiaries and their value chains. Member States shall ensure that companies are able to provide such a possibility to submit complaints through collaborative arrangements with other companies or organisations, by participating in multi-stakeholder grievance mechanisms or joining a Global Framework Agreement.

AddedArticle 8 a (new): Article 8a / Appropriate measures by institutional investors and asset managers to induce their investee companies to bring actual adverse impacts caused by them to an end / 1. Member States shall ensure that institutional investors and asset managers take appropriate measures as described in paragraph 3 of this Article to induce their investee companies to bring actual adverse impacts to an end that have been, or should have been identified pursuant to Article 6. / 2. Where the adverse impact cannot be brought to an end, Member States shall ensure that institutional investors and asset managers induce their investee companies to minimise the extent of such an impact. / 3. Where relevant, institutional investors and asset managers shall be required to engage with the investee company and exercise voting rights in line with Article 3g (1), point (a), of Directive 2007/36/EC [SRD2], in order to induce the management body of an investee company to bring the actual impact to and end or minimise its extent. The action sought from the investee company shall be proportionate to the significance and scale of the adverse impact and to the contribution of the investee company’s conduct to the adverse impact. Likewise, the actions required from institutional investors and asset managers shall be proportionate and commensurate, and shall take due account of the degree of control they have over the investee company.

RemovedArticle 9 – paragraph 2 – point b: (b) trade unions and other workers’ representatives, including those representing individuals working in the value chain concerned,

AddedArticle 8 b (new): Article 8b / Prioritising actual and potential adverse impacts / 1. In cases where it is not possible to prevent, bring to an end or mitigate all identified adverse impacts simultaneously through appropriate measures as outlined in Articles 7 and 8, companies may prioritise the order in which they take appropriate measures on the basis of the likelihood and severity of adverse impacts. / 2. Companies shall be required to take appropriate measures as per paragraph 1 according to the severity and likelihood of impacts and taking into account risk factors. / 3. Once the most severe and likely adverse impacts are addressed in accordance with Articles 7 or 8 in a reasonable time, the company shall address less severe and less likely adverse impacts.

RemovedArticle 9 – paragraph 2 – point c: (c) civil society organisations active in the areas related to the value chain concerned, and

AddedArticle 8 c (new): Article 8c / Remediation of actual adverse impacts / 1. Member States shall ensure that where a company has caused or contributed to an actual adverse impact, that company shall take appropriate measures to remediate that adverse impact and the possible harm it has caused to people or the environment, or contribute to its remediation. The remediation may be proposed as a result of a non-judicial grievance procedure as laid down in Article 9. / 2. Such remedial measures shall aim to restore the affected persons and groups or communities and/or the environment to a situation equivalent or as close as possible to their situation prior to the impact. They may include compensation, restitution, rehabilitation, public apologies, reinstatement or a contribution to investigations. Companies shall prevent additional harm being caused. / 3. Member states shall ensure that the single helpdesk as designated pursuant to Article 14a acts as a contact point for due diligence mediation in order to assist companies and stakeholders in finding remedial solutions. In performing those duties, the single helpdesk shall be impartial, predictable and equitable. / 4. Where a company is directly linked to an adverse impact, Member States shall encourage its voluntary participation in any remedial measures, where appropriate, and encourage companies to consider using their leverage with responsible parties to enable the remediation of any damage caused by an impact.

RemovedArticle 9 – paragraph 2 – point c a (new): (ca) legal or natural persons defending human rights, good governance and the environment.

AddedArticle 8 d (new): Article 8d / Carrying out meaningful engagement with affected stakeholders / 1. Member States shall ensure that companies take appropriate measures to carry out meaningful engagement with affected stakeholders that allows for genuine interaction and dialogue in their due diligence process. To this end, the engagement shall cover information and consultation of affected stakeholders and shall be comprehensive, structural, effective, timely and culturally and gender sensitive. / 2. Where it is not possible to carry out meaningful engagement with affected stakeholders, or where engagement with additional expert perspectives is useful to allow the company to comply fully with the requirements of this Directive, in particular in the context of scoping and prioritisation decisions under Article 6, companies shall engage in a meaningful way with other relevant stakeholders, such as civil society organisations, or legal or natural persons defending human rights or the environment in order to gain credible insights into potential or actual adverse impacts, in order to be able to comply with the requirements of this Directive. / 3. Companies shall, as appropriate, provide comprehensive, targeted and relevant information to affected stakeholders about their value chain and their actual or potential adverse impacts on the environment, human rights and good governance. / 4. Affected stakeholders shall be allowed to request additional written information, which shall be provided by the com…

RemovedArticle 9 – paragraph 3 a (new): 3a. Member States shall ensure that when companies establish or participate in complaints mechanisms, those mechanisms are legitimate, accessible, predictable, equitable, transparent, rights-compatible and based on engagement and dialogue. Complaints mechanisms shall be designed and operated in a manner that is informed by the perspectives of stakeholders and adapted to the needs of people who may be most vulnerable to adverse impacts.

AddedArticle 9 – title: Notification and non-judicial grievance mechanism

RemovedArticle 9 – paragraph 3 b (new): 3b. Member States shall ensure companies proactively raise awareness among stakeholders of the existence, objectives and processes of complaints mechanisms. Companies shall take measures to ensure that complainants are free from retaliation or retribution, including by ensuring that complaints can be raised either anonymously or confidentially, as appropriate in accordance with national law, and adopt and implement policies to that effect.

AddedArticle 9 – paragraph 1: 1. Member States shall ensure that companies provide publicly available and effective notification and non-judicial grievance mechanisms at operational level, that can be used by persons and organisations listed in paragraph 2 to notify them of or raise grievances and request remediation, where they have legitimate information or concerns regarding actual or potential adverse human rights or environmental impacts with respect to the companies’ own operations, the operations of their subsidiaries and their value chains. Member States shall ensure that companies are able to provide such a possibility to submit notifications and grievances through collaborative arrangements, including industry initiatives, with other companies or organisations, by participating in multi-stakeholder grievance mechanisms or joining a global framework agreement.

RemovedArticle 9 – paragraph 3 c (new): 3c. Companies shall report on reasonable concerns raised via their grievance mechanisms and regularly report on progress made in those instances. All information shall be published in a manner that does not endanger the stakeholders’ safety, including by not disclosing their identity.

AddedArticle 9 – paragraph 2 – introductory part: (2) Member States shall ensure that the grievances may be submitted by:

RemovedArticle 9 – paragraph 4 – point a: (a) to receive timely and appropriate follow-up on the complaint from the company with which they have filed a complaint pursuant to paragraph 1, providing substantiated reasoning as to whether a claim has been considered founded or unfounded, and

AddedArticle 9 – paragraph 2 – point a: (a) persons who are affected or have reasonable grounds to believe that they might be affected by an adverse impact, and the legitimate representatives of such individuals, or, in cases where there are no individuals, groups or communities affected by an adverse impact on the environment, credible and experienced organisations whose purpose includes the protection of the environment,

RemovedArticle 9 – paragraph 4 – point b: (b) 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.

AddedArticle 9 – paragraph 2 – point c: deleted

RemovedArticle 9 – paragraph 4 a (new): 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.

AddedArticle 9 – paragraph 2 a (new): 2a. Member States shall ensure that notifications may be submitted by the persons and organisations listed in points (a) and (b) of paragraph 2, and in addition, in as far as they are not covered under those points, by the following: / (a) legal or natural persons defending human rights or the environment; / (b) civil society organisations active in the areas related to the value chain concerned.

RemovedArticle 9 – paragraph 4 b (new): 4b. Raising a concern under this Article shall not be a prerequisite nor preclude the claimants from having access to the substantiated concerns procedure under Article 19 nor to judicial or other non-judicial mechanisms.

AddedArticle 9 – paragraph 3: 3. Member States shall ensure that the companies establish a procedure for dealing with notifications and grievances referred to in paragraph 1, including a procedure when the company considers the notifications or grievances to be unfounded, and inform the relevant affected stakeholders, and their representatives where applicable, and other relevant persons or organisations covered by paragraphs 2 and 2a, of those procedures. Member States shall ensure that where the notification or grievance is well-founded, the adverse impact that is the subject matter of the notification or grievance is deemed to be identified within the meaning of Article 6.

RemovedArticle 10 – title: Monitoring and verification

AddedArticle 9 – paragraph 3 a (new): 3a. Member States shall ensure that when companies establish or participate in notification and grievance mechanisms, those mechanisms are legitimate, accessible, predictable, equitable, transparent, rights-compatible, gender- and culturally responsive, and based on engagement and dialogue. Notification and grievance mechanisms shall be designed and operated in a manner that is informed by the perspectives of stakeholders and adapted to the needs of people who may be most vulnerable to adverse impacts. Companies shall adopt and implement policies and processes to maintain the independence of the notification and grievance mechanism.

RemovedArticle 10 – paragraph 1: Member States shall ensure that companies regularly verify and monitor the adequacy and effectiveness of their actions taken in accordance with Article 4. Companies shall be required to carry out monitoring and verification in consultation with affected stakeholders and it shall be based, where possible, on qualitative and quantitative indicators and be carried out at least every 12 months, taking into account the nature, severity and likelihood of the adverse impacts in question and whenever there are reasonable grounds to believe that new risks of the occurrence of those adverse impacts may arise. Where appropriate, the due diligence policy and public communication shall be reviewed and updated in accordance with the outcome of those assessments. Companies shall retain documentation demonstrating their compliance with this Article for 5 years.

AddedArticle 9 – paragraph 3 b (new): 3b. Companies shall take measures to ensure that persons submitting notifications or grievances are free from retaliation or retribution, including by ensuring that notifications and grievances can be raised either anonymously or confidentially, in accordance with national law and adopt and implement policies to that effect. Where information needs to be shared, it shall be in a manner that does not endanger the stakeholders’ safety, including by not disclosing their identity.

RemovedArticle 11 – paragraph -1 (new): Requirements on companies to report on their due diligence process established in Directive 2013/34/EU shall be understood as a requirement for companies to describe how they conduct due diligence as provided for in Article 4. When fulfilling the requirements of Directive 2013/34/EU to report on actions taken to identify potential or actual adverse, companies shall explain whether they prioritised the order in which they took appropriate measures, how that approach was applied, and why it was necessary to prioritise.

AddedArticle 9 – paragraph 3 c (new): 3c. Member States shall ensure that persons submitting grievances under paragraph 2, where they do not do so anonymously, are entitled to receive timely and appropriate follow-up from the company with which they have filed a grievance pursuant to paragraph 1 and shall also be entitled: / (a) to be provided with the reasoning as to whether a grievance has been considered founded or unfounded and provided with information on the steps and actions taken; / (b) to engage with the company’s representatives at an appropriate level to discuss potential or actual adverse impacts that are the subject matter of the grievance; / (c) to request that companies remediate or contribute to the remediation of actual adverse impacts, in line with Article 8c.

RemovedArticle 11 – paragraph 1: Member States shall ensure that companies that are not subject to reporting requirements under Articles 19a and 29a of Directive 2013/34/EU report on the matters covered by this Directive by publishing on their website an annual statement that meets those requirements in a language customary in the sphere of international business, and audited in line with the requirements outlined in Directive 2006/43/EC129a. The statement shall be published by 30 April each year, covering the previous calendar year. / 129a Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87).

AddedArticle 9 – paragraph 4 – introductory part: 4. Member States shall ensure that persons submitting notifications under paragraph 2a, where they do not do so anonymously, are entitled to receive timely and appropriate follow-up from the company with which they have filed a notification pursuant to paragraph 1.

RemovedArticle 11 – paragraph 2: The Commission shall adopt delegated acts in accordance with Article 28 concerning the content and criteria for such reporting under paragraph 1, specifying information on the description of due diligence, its design and methodology, potential and actual adverse impacts and actions taken on those.

AddedArticle 9 – paragraph 4 – point a: deleted

RemovedArticle 11 a (new): Article 11a / Consultation of affected stakeholders / 1. Member States shall ensure that companies consult affected stakeholders by carrying out effective, meaningful and informed engagement with them on the actions provided for in Articles 4 to 11. / 2. Companies shall consult affected stakeholders proactively, and shall provide timely and culturally sensitive information to affected stakeholders about their actual or potential adverse impacts on the environment, human rights and good governance, including information about any changes to operations, activities or operating context. Affected stakeholders shall have the right to request additional written information, which shall be provided by the company within a reasonable timeframe and in an appropriate and comprehensible format. If the company refuses a request for additional information, the affected stakeholder shall be entitled to written justification for that refusal. / 3. The consultation of affected stakeholders shall take due account of barriers to participation faced by affected stakeholders and of the specific needs of vulnerable stakeholders. / 4. Workers representatives shall be informed by their company on its due diligence strategy and the implementation thereof, to which they shall be able to contribute, in accordance with Directive 2002/14/EC of the European Parliament and of the Council129a and Directive 2009/38/EC of the European Parliament and of the Council129b, and Council Directive 2001/86/EC of the…

AddedArticle 9 – paragraph 4 – point b: deleted

RemovedArticle 12 – paragraph 1: 1. In order to provide support to companies to facilitate their compliance with Article 7(2), point (b), and Article 8(3), point (c), the Commission shall adopt guidance about voluntary model contract clauses These clauses shall provide for the shared responsibility for due diligence in contractual clauses. Those model contractual clauses shall stipulate, as a minimum: / (a) that the responsibility to undertake due diligence consists of mutual obligations shared between both contracting parties, in ongoing cooperation, and contractual clauses shall not be such as to result in the transfer of responsibility for carrying out due diligence; and / (b) without prejudice to Article 7 (5) and Article 8 (6), that, where due diligence related contractual provisions have been infringed, giving rise to potential adverse impacts, prevention, mitigation and remediation of adverse impacts are to be prioritised over termination or suspension of the contract.

AddedArticle 9 – paragraph 4 a (new): 4a. Member States shall ensure that supervisory authorities are empowered to issue guidance to companies and other relevant actors responsible for developing and administering notification and grievance mechanisms, including in relation to their compliance with the criteria set out in this Article, and in line with relevant international standards.

RemovedArticle 12 – paragraph 1 a (new): 1a. The guidance shall further clarify that contractual provisions cannot, on their own, satisfy the due diligence standards of this Directive.

AddedArticle 9 – paragraph 4 b (new): 4b. The submission of a notification or grievance under this Article shall not be a prerequisite for or preclude the persons submitting them from having access to the substantiated concerns procedure under Article 19 or to judicial or other non-judicial mechanisms, such as the OECD National contact points where they exist.

RemovedArticle 12 – paragraph 1 b (new): 1b. A company concluding contractual terms with a partner with which it has a business relationship shall assess whether the business partner can be reasonably expected to carry out due diligence in accordance with this Directive, and provide the necessary support in order to overcome any organisational or structural impediments.

AddedArticle 10 – title: Monitoring and verifying

RemovedArticle 13 – paragraph 1: In order to provide support to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, in consultation with Member States, representative SME organisations, business organisations and stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, the European Labour Authority and where appropriate with international bodies having expertise in due diligence, shall issue guidelines, including for specific sectors or specific adverse impacts or contexts, such as situations of conflict or occupation. The Commission may also issue guidelines on responsible purchasing practices.

AddedArticle 10 – paragraph 1: Member States shall ensure that companies continuously verify the implementation and monitor the adequacy and effectiveness of their actions taken in accordance with this Directive. Monitoring and verification shall be based, where appropriate, on qualitative and quantitative indicators and be carried out continuously, taking into account the nature, severity and likelihood of the adverse impacts in question and whenever there are reasonable grounds to believe that new risks of the occurrence of those adverse impacts may arise. Where appropriate, the due diligence policy, the prevention action plan and the corrective action plan shall be reviewed and updated in accordance with the outcome of those assessments.

RemovedArticle 14 – paragraph 1: 1. Member States shall, in order to provide information and support to companies and the partners with whom they have business relationships in their value chains in their efforts to fulfil the obligations resulting from this Directive, set up and operate individually or jointly dedicated user-friendly websites, platforms or portals. Specific consideration shall be given, in that respect, to SMEs . Member States shall also ensure that training on how to perform due diligence is made available for companies, especially SMEs.

AddedArticle 11 – paragraph 1: 1. Member States shall ensure that companies that are not subject to reporting requirements under Articles 19a, 29a and 40a of Directive 2013/34/EU report on the matters covered by this Directive by publishing on their website an annual statement in at least one of the official languages of the Union. The statement shall be published no later than 12 months after the balance sheet date of the financial year for which the statement is drawn up. For non-EU companies the statement will include information on the way to contact the company’s authorised representative as defined in Article 16.

RemovedArticle 14 – paragraph 1 a (new): 1a. Member States shall provide support for stakeholders, including for their capacity development, and provide them with information and assistance to facilitate their access to justice.

AddedArticle 11 – paragraph 2: 2. The Commission shall adopt delegated acts in accordance with Article 28 concerning the content and criteria for such reporting under paragraph 1, ensuring that it is consistent with the disclosure requirements for due diligence outlined in Article 40b of Directive 2013/34/EU, and specifying information on the description of due diligence, potential and actual adverse impacts and actions taken on those. This reporting should be sufficiently detailed to demonstrate it complied with the obligations under this Directive. / When adopting delegated acts, the Commission shall ensure that there is no duplication in reporting requirements for companies referred to in Article 3, point (a)(iv), that are subject to reporting requirements and consider principal adverse impacts under Article 4 of Regulation (EU) 2019/2088 of the European Parliament and of the Council, while maintaining in full the minimum obligations stipulated in this Directive. / For companies that do not have a website, Member States shall dedicate a website to the publication of the annual statement of the companies concerned.

RemovedArticle 14 – paragraph 2: 2. Without prejudice to applicable State aid rules, Member States shall provide financial and other support to SMEs, in order to meet the expectations imposed on them under this Directive.

AddedArticle 11 a (new): Article 11a / Accessibility of information on the European Single Access Point (ESAP) / 1. Member States shall ensure that, when making public the annual statements drawn-up pursuant to Article 11(1) of this Directive, companies submit that information at the same time to the collection body referred to in paragraph 3 of this Article for accessibility on ESAP, as established under Regulation (EU) XX/XXXX [ESAP Regulation] of the European Parliament and of the Council1a. / That information shall comply with all of the following requirements: / (a) the information shall be prepared in a data extractable format as defined in Article 2, point (3), of Regulation (EU) XX/XXXX [ESAP Regulation]1b or, where required under Union law, in a machine-readable format, as defined in Article 2, point (13), of Directive (EU) 2019/1024 of the European Parliament and of the Council1c; / (b) the information shall be accompanied by all the following metadata: / (i) all the names of the company to which the information relates; / (ii) the legal entity identifier of the company, as specified pursuant to Article 7(4) of Regulation (EU) XX/XXXX [ESAP Regulation]; / (iii) the size of the company by category, as specified pursuant to Article 7(4) of Regulation (EU) XX/XXXX [ESAP Regulation]; / (iv) the type of information, as classified pursuant to Article 7(4) of Regulation (EU) XX/XXXX [ESAP Regulation]; / (v) the specific period for which the information is to be made publicly available on ESAP, whe…

RemovedArticle 14 – paragraph 3: 3. The Commission may complement Member States’ support measures building on existing Union action to support due diligence in the Union and in third countries and may devise new measures, including facilitation of joint stakeholder initiatives to help companies fulfil their obligations. 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.

AddedArticle 12 – paragraph 1: In order to provide support to companies to facilitate their compliance with Article 7(2), point (b), and Article 8(3), point (c), the Commission shall, in consultation with Member States and relevant stakeholders, adopt guidance, tailored to the sector and size of companies, about voluntary model contract clauses by the application date of this Directive. Those model contractual clauses shall stipulate, as a minimum:

RemovedArticle 14 – paragraph 4: 4. Companies may use credible 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 the precise scope, alignment with this Directive, and credibility 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. The company shall be responsible for assessing the reliability and quality of any industry initiative that they use.

AddedArticle 12 – paragraph 1 – point a (new): (a) the clear allocation of tasks between both contracting parties, in ongoing cooperation, and that contractual clauses shall not be such as to result in the transfer of responsibility for carrying out due diligence; and

RemovedArticle 15 – paragraph 1: 1. Member States shall ensure that companies referred to in Article 2, shall adopt and effectively implement a plan to ensure that the business model and strategy of the company are aligned with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement, the objective of achieving climate neutrality by 2050 and the 2030 climate target established in Regulation (EU) 2021/1119, and pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change. That plan shall be developed in consultation with stakeholders, and the plan and its implementation shall be approved by the company’s shareholders, where applicable. It shall include, in particular:

AddedArticle 12 – paragraph 1 – point b (new): (b) that without prejudice to Article 7 (5) and Article 8 (6), where contractual clauses are breached, companies shall first take appropriate measures in line with Article 7 (4) and Article 8 (5) and shall avoid terminating such clauses.

RemovedArticle 15 – paragraph 1 – point a (new): (a) short, medium and long-term targets related to sustainability matters, including absolute greenhouse gas emission reduction targets for scope 1, 2 and 3 emissions for 2030 and reviewed every five years up to 2050, explaining their alignment with a 1.5⁰c climate scenario with no or limited overshoot and where such targets are based on science, pursuant to the latest recommendations of the IPCC and the European Scientific Advisory Board on Climate Change. Before targets are set, the identification of risks and impacts shall be done beforehand. Companies active in the energy and agricultural sectors shall specify the share of methane emissions, including their methane emissions reduction plan;