Changes from report parliamentary committee draft to plenary report

AddedArticle 4 – paragraph 1 – point 1 a (new) – point b (new), Article 2 – paragraph 2 – point a: (b) in paragraph 2, point (a) is replaced by the following: / ‘(a) the company generated a net turnover of more than EUR 1.5 billion in the Union in the financial year preceding the last financial year;’;

Directive (EU) 2024/1760

Change 43

RemovedArticle 4 – paragraph 1 – point 3, Article 4 – paragraph 1: Without prejudice to Article 1(2) and (3), Member States shall not introduce, in their national law, provisions within the field covered by this Directive diverging from those laid down in Articles 2 and 3, Articles 6 to 16 and Articles 24, 25 and 26.

AddedArticle 4 – paragraph 1 – point 2 – introductory part, Article 3 – paragraph 1: (2) Article 3(1) is amended as follows:

Directive (EU) 2024/1760

Change 44

RemovedArticle 4 – paragraph 1 – point 3, Article 4 – paragraph 2: deleted

AddedArticle 4 – paragraph 1 – point 2 – point a (new), Article 3 – paragraph 1 – point n: (a) point (n) is replaced by the following: / ‘(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries and of its business partners, and their trade unions and workers’ representatives, and individuals or communities whose rights or interests are or could be directly affected by the adverse impacts on human rights and the environment that stem from the products, services and operations of the company, its subsidiaries and its business partners and the legitimate representatives of those individuals or communities;’;

Directive (EU) 2024/1760

Change 45

RemovedArticle 4 – paragraph 1 – point 3 a (new) – point a, Article 6 – paragraph 1: (3a) Article 6 is amended as follows: / (a) paragraph 1 is replaced by the following: / ‘1 Member States shall ensure that parent companies falling under the scope of this Directive are allowed to fulfil the obligations set out in Articles 7 to 11 on behalf of companies which are subsidiaries of those parent companies and fall under the scope of this Directive, if this ensures effective compliance. This is without prejudice to such subsidiaries being subject to the exercise of the supervisory authority’s powers in accordance with Article 25 and to their civil liability in accordance with Article 29.’

AddedArticle 4 – paragraph 1 – point 2 – point b (new), Article 3 – paragraph 1 – point w (new): (b) the following point (w) is added: / ‘(w) ‘reasonably available information’ means information which can be obtained by the company from its own, or from existing or secondary sources without contacting a business partner.’;

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Change 46

ChangedArticle 4 – paragraph 1 – point 3 a (new) – pointintroductory b,part, Article 6 –4: paragraph(3) 3:Article (b)4 paragraphis 3amended isas deleted.follows:

Directive (EU) 2024/1760

Change 47

RemovedArticle 4 – paragraph 1 – point 4 – point a, Article 8 – paragraph 2: (a) paragraph 2 is replaced by the following: / ‘2. As part of the obligation set out in paragraph 1, and adopting a risk-based approach that takes into account relevant risk factors, including geographical and contextual risk factors, sectoral, product or service risk factors, as well as business operation or business partners risk factors, companies shall take appropriate measures to: / (a) carry out a scoping, based on reasonably available information, to identify general areas across their own operations, those of their subsidiaries and, where related to their chain of activities, those of their business partners where adverse impacts are most likely to occur and to be most severe; / (b) based on the results of the scoping referred to in point (a), carry out a further assessment of their own operations, those of their subsidiaries and, where related to their chains of activities, those of their direct business partners, in the areas where adverse impacts were identified to be most likely to occur and most severe.’;

AddedArticle 4 – paragraph 1 – point 3 – point a (new), Article 4 – paragraph 1: (a) paragraph 1 is replaced by the following: / Without prejudice to Article 1(2) and (3), Member States shall not introduce, in their national law, provisions within the field covered by this Directive diverging from those laid down in Articles 6 to 16

Directive (EU) 2024/1760

Change 48

RemovedArticle 4 – paragraph 1 – point 4 – point b, Article 8 – paragraph 2a – subparagraph 1: Where a company has plausible information that is objective, factual and verifiable and that suggests that adverse impacts at the level of the operations of an indirect business partner have arisen or may arise, it shall carry out a further assessment. The company shall always carry out such an assessment where the indirect, rather than direct, nature of the relationship with the business partner is the result of an artificial arrangement that does not reflect economic reality but points to a circumvention of paragraph 2, point (b). Where the assessment confirms the likelihood or existence of the adverse impact, it is deemed to have been identified.

AddedArticle 4 – paragraph 1 – point 3 – point b (new), Article 4 – paragraph 2: (b) paragraph 2 is deleted; / (deleted)

Directive (EU) 2024/1760

Change 49

RemovedArticle 4 – paragraph 1 – point 4 – point b, Article 8 – paragraph 2a – subparagraph 3: deleted

AddedArticle 4 – paragraph 1 – point 3 a (new), Article 6 – paragraph 4: 3 a. in Article 6 the following paragraph 4 is added: / ‘4. When a company covered by this Directive acquires a company that was not in the scope of this Directive, the acquiring company has two years to integrate the processes of the purchased company into its own due diligence policy.’;

AddedDirective (EU)2024/1760

AddedArticle 4 – paragraph 1 – point 4 – point a, Article 8 – paragraph 2: (a) paragraph 2 is replaced by the following: / ‘2. As part of the obligation set out in paragraph 1, and adopting a risk-based approach that takes into account relevant risk factors, including geographical and contextual risk factors, such as the level of law enforcement; sectoral, product or service risk factors, as well as business operation or business partners risk factors, such as whether the business partner is not a company covered by this Directive, companies shall take appropriate measures to: / (a) carry out a scoping, based on reasonably available information, to identify general areas across their own operations, those of their subsidiaries and, where related to their chains of activities, those of their business partners where adverse impacts are most likely to occur and to be most severe; / (b) based on the results of the scoping referred to in point (a), and where, on the basis of relevant and verifiable information, the company has grounds to believe that adverse impacts have arisen or may arise, carry out a further assessment only in the areas where adverse impacts were identified to be most likely to occur and to be most severe. Companies shall not be required to request any information from business partners, where no likely and severe risks were identified. Companies shall be able to prioritise assessing direct business partners, in line with severity and likelihood of the adverse impacts.’;

Directive (EU) 2024/1760

Change 50

ChangedArticle 4 – paragraph 1 – point 4 – point c,b, Article 8 – paragraph 4:2 (c)a: paragraphdeleted 4/ is(deleted) deleted;/ (deleted) / (deleted)

Directive (EU) 2024/1760

Change 51

ChangedArticle 4 – paragraph 1 – point 4 – point d,b a (new), Article 8 – paragraph 53: –(b subparagrapha) 1:paragraph (d)3 theis followingreplaced paragraphsby arethe added:following: / ‘5.‘3. Member States shall ensure that, for the purposes of the scoping provided for in paragraph 22, point (a), companies do not seek to obtain the information from their business partners but rely solely on information that is already reasonably available.available, including risk factors.’;

Directive (EU) 2024/1760

Change 52

ChangedArticle 4 – paragraph 1 – point 4 – point d,c, Article 8 – paragraph 5 – subparagraph 2:4: 5a.‘4. Member States shall ensure that, for the purposes of the further assessment provided for in paragraph 2, point (b), of this Article companies do not seek to obtain information from direct business partnerspartners, withunless fewerthis thanis 3000necessary. employeesWhere thatthe exceedsbusiness thepartner informationhas specifiedfewer inthan the5000 standardsemployees, forcompanies voluntarymay useseek referredsuch toinformation inonly Articleas 29caa oflast Directiveresort, 2013/34/EU.and Thatif shallit applycannot mutatisreasonably mutandis,be whereobtained relevant,by inother themeans, casesin providedparticular forfrom inexisting paragraphor 2asecondary ofsources. thisIn Article.any /case, Byany wayrequest ofshall derogationbe fromtargeted, thereasonable firstand sub-paragraph,proportionate. where/ additionalWhere information is necessary for the further assessment provided for in paragraph 2, point (b), and where relevant in paragraph 2a, in light of indications of likely adverse impacts or because the standards do not cover relevant impacts, and where such additional information cannot(b) reasonablycan be obtained by other means, mainly from existing ordifferent secondarybusiness sources,partners, the company mayshall seek such information from that business partner and,information, where reasonable, directly from the business partner or partners where the adverse impacts are most likely to occur. Information may be sought individually or collaboratively.’;

Directive (EU) 2024/1760

Change 53

ChangedArticle 4 – paragraph 1 – point 4 a– (new),point d, Article 9:8 (4a)– Articleparagraph 95: is‘5. replacedMember byStates theshall following:ensure /that, ‘Articlefor 9the Prioritisationpurposes of identified actualidentifying and potentialassessing the adverse impacts /referred 1.to Memberin Statesparagraph shall1 ensurebased that,on, where itappropriate, isquantitative notand feasiblequalitative forinformation, companies toare prevent,entitled mitigate,to bringmake touse anof endappropriate orresources, minimiseincluding allindependent adversereports, impactsdigital identifiedsolutions, pursuantindustry toor Articlemulti-stakeholders 8,initiatives, companiescollaboration areand ableinformation togathered prioritisethrough the mostnotification severemechanism and mostthe likelycomplaints adverseprocedure impactsprovided for in orderArticle 14. / Where, despite having taken appropriate measures to fulfilidentify theadverse obligationsimpacts, laidcompanies downdo innot Articlehave 10all orthe 11.’necessary /information (deleted)regarding /their 2.chains Whereof prioritisationactivities, decisionsthey areshall madebe inable accordanceto withreasonably thisexplain Article,why Membersuch Statesinformation shallcannot ensurebe thatobtained. companiesIf, areas nota penalisedresult, underthey Articlecould 25not ortake 27appropriate formeasures anyto harmprevent, stemmingmitigate, frombring anyto lessan significantend or minimise the adverse impactsimpact, thatthey haveshall not yet beenbe addressed.’;penalised.’;

Directive (EU) 2024/1760

Change 54

AddedArticle 4 – paragraph 1 – point 4 a (new), Article 9: 4 a. Article 9 is replaced by the following : / 1. Member States shall ensure that, where it is not feasible for companies to prevent, mitigate, bring to an end or minimise all adverse impacts identified pursuant to Article 8, companies may prioritise the most severe and most likely adverse impacts in order to fulfil the obligations laid down in Article 10 or 11. / 2. Once the most severe and most likely adverse impacts are addressed in accordance with Article 10 or 11 within a reasonable time, the company shall address less severe and less likely adverse impacts. / 3. Where prioritisation decisions are made in accordance with this Article, Member States shall ensure that companies are not penalised under Article 25 or 27 for any harm stemming from any less significant adverse impacts that have not yet been addressed.’;

AddedDirective (EU) 2024/1760

AddedArticle 4 – paragraph 1 – point 5, Article 10 – paragraph 6 – subparagraph 1 – point c: (c) use or increase its leverage, where possible, through the temporary suspension of the business relationship with respect to the activities concerned.

AddedDirective (EU) 2024/1760

Article 4 – paragraph 1 – point 5, Article 10 – paragraph 6 – subparagraph 2: As long as there is a reasonable expectation that the enhanced prevention action plan will succeed, the mere fact of continuing to engage with the business partner shall not expose the company to penalties pursuant to Article 27 or to liability under Article 29.

Directive (EU) 2024/1760

Change 55

ChangedArticle 4 – paragraph 1 – point 5, Article 10 – paragraph 6 – subparagraph 3: Prior to temporarily suspending a business relationship, the company shall assess in consultation with relevant stakeholders, whether suchno available alternative to that business relationship, that provides a raw material, product or service essential to the company’s production of goods or provision of services, exists and the suspension would cause substantial prejudice to the company or whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be prevented or adequately mitigated. Should that be the case, the company shall not be required to suspend the business relationship and shall be in a position to report to the competent supervisory authority about the duly justified reasons for such decision.

Directive (EU) 2024/1760

Change 56

RemovedArticle 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 1 – introductory part: ‘7. As regards actual adverse impacts as referred to in paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures set out in paragraphs 3, 5 and 6, the company shall, as a last resort:’

AddedArticle 4 – paragraph 1 – point 5, Article 10 – paragraph 6 – subparagraph 4: Member States shall provide for an option to suspend or terminate the business relationship in contracts governed by their laws, except for contracts where the parties are obliged by law to enter into them.

Directive (EU) 2024/1760

Change 57

AddedArticle 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 1 – introductory part: ‘7. As regards actual adverse impacts as referred to in paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures set out in paragraphs 3, 5 and 6, the company shall, as a last resort:

AddedDirective (EU) 2024/1760

Article 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 1 – point b: (b) where the law governing its relation with the business partner concerned so entitles it, adopt and implement an enhanced corrective action plan for the specific adverse impact without undue delay, provided that there is a reasonable expectation that those efforts will succeed, and

Directive (EU) 2024/1760

Change 58

AddedArticle 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 1 – point c: (c) use or increase its leverage, where possible, through the temporary suspension of the business relationship with respect to the activities concerned.

AddedDirective (EU) 2024/1760

Article 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 2: As long as there is a reasonable expectation that the enhanced corrective action plan will succeed, the mere fact of continuing to engage with the business partner shall not expose the company to penalties pursuant to Article 27 or to liability pursuant to Article 29.

Directive (EU) 2024/1760

Change 59

ChangedArticle 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 3: Prior to temporarily suspending a business relationship, the company shall assessassess, in consultation with relevant stakeholders, whether suchno available alternative to that business relationship, that provides a raw material, product or service essential to the company’s production of goods or provision of services, exists and the suspension would cause substantial prejudice to the companycompany, or whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be brought to an end or the extent of which could not be adequately minimised. Should that be the case, the company shall not be required to suspend the business relationship and shall be in a position to report to the competent supervisory authority about the duly justified reasons for such decision.

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Change 60

ChangedArticle 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 6:4: WhereMember theStates companyshall decidesprovide notfor an option to suspend or terminate the business relationship pursuant to this Article,in itcontracts shallgoverned monitorby thetheir actuallaws, adverseexcept impactfor andcontracts periodicallywhere assessthe itsparties decisionare andobliged whetherby furtherlaw appropriateto measuresenter areinto available.them.

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Change 61

RemovedArticle 4 – paragraph 1 – point 8 a (new), Article 19 – paragraph 2 – point b: (8a) in Article 19(2), point (b) is deleted;

AddedArticle 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 6: Where the company decides not to suspend the business relationship pursuant to this Article, it shall monitor the actual adverse impact and periodically assess its decision and whether further appropriate measures are available.’;

Directive (EU) 2024/1760

Change 62

RemovedArticle 4 – paragraph 1 – point 9 a (new), Article 22: (9a) Article 22 is deleted;

AddedArticle 4 – paragraph 1 – point 8, Article 15 – second sentence: ‘Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out without undue delay after a significant change occurs, but at least every 4 years and whenever there are reasonable grounds to believe that the measures are no longer adequate or effective or that new risks of the occurrence of those adverse impacts may arise.’;