### 3. the financial penalties referred to in paragraph 2 , point (a) , shall amount to a maximum of at least eur 10 000 000 or 2 % of the undertaking’s total annual worldwide turnover in the preceding business year , whichever is higher. ### 3. the severe financial penalties referred to in paragraph 2 , point (a) , shall amount to a maximum of at least eur 10 000 000 or 2 % of the undertaking’s total annual worldwide turnover in the last business year approved. such penalties may be moderated if the undertaking’s situation in the current business year is less favourable than that in the preceding business year , including as a result of a crisis.


### 3. the financial penalties referred to in paragraph 2 , point (a) , shall amount to a maximum of at least eur 10 000 000 or 2 % of the undertaking’s total annual worldwide turnover in the preceding business year , whichever is higher. ### 3. the financial penalties referred to in paragraph 2 , point (a) , shall amount to a maximum of at least eur 10 000 000 or 2 % of the undertaking’s worldwide business results in the last business year approved.


### 4. in the case of intentional infringements , member states shall provide for a maximum financial penalty of at least eur 20 000 000 or 4 % of the undertaking’s total worldwide annual turnover in the preceding business year , whichever is higher. ### deleted


### 4. in the case of intentional infringements , member states shall provide for a maximum financial penalty of at least eur 20 000 000 or 4 % of the undertaking’s total worldwide annual turnover in the preceding business year , whichever is higher. ### 4. in the case of very serious and repeated infringements , member states shall provide for a maximum financial penalty of at least eur 20 000 000 or 4 % of the undertaking’s total worldwide annual turnover in the last business year approved.


### 4. in the case of intentional infringements , member states shall provide for a maximum financial penalty of at least eur 20 000 000 or 4 % of the undertaking’s total worldwide annual turnover in the preceding business year , whichever is higher. ### 4. in the case of intentional infringements , member states shall provide for a maximum financial penalty of at least eur 20 000 000 or 4 % of the undertaking’s worldwide annual business results in the last business year approved.


### “points (a) and (b) of the first subparagraph shall apply only in so far as the obligations arising from this directive have already been fully complied with.”; ### “points (a) and (b) of the first subparagraph shall apply only in so far as the obligations arising from this directive have already been complied with or the agreement between the undertaking and the ewc provides for its application on its own terms in preference to the obligations arising from this directive.”;


### (9) in annex i , point 2 is replaced by the following: ### deleted


### “the european works council shall have the right to meet with the central management twice a year , to be informed and consulted , on the basis of a report drawn up by the central management , on the progress of the business of the community-scale undertaking or community-scale group of undertakings and its prospects. the local managements shall be informed accordingly.” ### “the european works council shall have the right to meet with the central management twice a year , to be informed and consulted , on the basis of a report drawn up by the central management , on the progress of the business of the community-scale undertaking or community-scale group of undertakings and its prospects. the local managements shall be informed accordingly. the need to hold two or more annual meetings shall be justified by the european works council on the basis of the undertaking’s specific development.”


### “the european works council shall have the right to meet with the central management twice a year , to be informed and consulted , on the basis of a report drawn up by the central management , on the progress of the business of the community-scale undertaking or community-scale group of undertakings and its prospects. the local managements shall be informed accordingly.” ### “the european works council shall have the right to meet with the central management once a year , or twice if so determined by the member state in whose territory said central management is situated , to be informed and consulted , on the basis of a report drawn up by the central management , on the progress of the business of the community-scale undertaking or community-scale group of undertakings and its prospects. the local managements shall be informed accordingly.”


### — having regard to the millennium development goals defined by the united nations in 2000 , in particular to eradicate extreme poverty and hunger (goal 1) , achieve universal primary education (goal 2) and promote gender equality (goal 3) , ### — having regard to the united nations resolution no. 44/13 adopted by the human rights council on 16 july 2020 , on extreme poverty and human rights ,


### — having regard to council recommendation 92/441/eec of 24 june 1992 on common criteria concerning sufficient resources and social assistance in social protection systems (recommendation on minimum income)1 , ### — having regard to council recommendation 92/441/eec of 24 june 1992 on common criteria concerning sufficient resources and social assistance in social protection systems


### a. whereas 96.5 million people are currently at risk of poverty and social exclusion in the eu , representing 21.9 % of the population4 ; whereas a world bank report estimated that an additional 68 to 135 million people could be pushed into poverty by 2030 as a result of climate change5 ; ### a. whereas 96.5 million people are currently at risk of poverty and social exclusion in the eu , representing 21.9 % of the population4 ; whereas a world bank report estimated that an additional 68 to 135 million people worldwide could be pushed into poverty by 2030 as a result of an alleged climate change , particularly in sub-saharan africa and south asia5 ;


### b. whereas the gender poverty gap has been increasing for the past five years , as women are increasingly and disproportionately affected by poverty and the risk of social exclusion in comparison with men , in particular women who experience intersectional forms of discrimination and households headed by single mothers6 ; whereas the unequal distribution of unpaid care and household work among men and women presents a crucial factor in determining whether women enter into and stay in employment and the quality of the jobs they have; ### b. whereas women are affected by poverty in 21 member states between 2017 and 2020 , according to a report by eige6 ; whereas , according to the same report , poverty or social exclusion are concentrated among certain particularly vulnerable groups of women and men: lone mothers , women above 65 years of age , women and men with disabilities , women and men with a low level of education , and migrant populations.


### c. whereas around 35 % of the working age eu population at risk of poverty is not covered by minimum income or any other social benefits; whereas no member state has in place a benefit system that is sufficient to guarantee every person a decent standard of living , despite the eu being one of the world’s richest regions; ### c. whereas around 35 % of the working age eu population at risk of poverty is not covered by minimum income or any other social benefits; whereas no member state has in place a benefit system that is sufficient to guarantee every person a decent standard of living , despite some parts of the eu without this minimum income scheme being one of the world’s richest regions; therefore these countries , like sweden , should be an example for the rest of the eu member states. minimum wages in sweden are set by sector or industry through collective bargaining and a minimum wage would interfere with the excellent working collective bargaining.


### c. whereas around 35 % of the working age eu population at risk of poverty is not covered by minimum income or any other social benefits; whereas no member state has in place a benefit system that is sufficient to guarantee every person a decent standard of living , despite the eu being one of the world’s richest regions; ### c. whereas a minimum income is considered by some as a social benefit covering working age population at risk of poverty; whereas the eu should have in place a benefit system that is sufficient to guarantee every person a decent standard of living;


### d. whereas climate change has been hitting the poorest the hardest , since extreme weather has caused inflation in various sectors , such as energy , food items (‘heatflation’) , clothes and electronics , and damage to housing due to flooding , as well as having an impact on health; whereas we are still recovering from the covid-19 pandemic and mitigating the rise in the cost of living due to high inflation exacerbated by the invasion of ukraine7 ; ### d. whereas economic policy in the european union has been hitting the poorest the hardest , since both union as well as poor national response in some member states has caused inflation in various sectors , such as energy , food items (‘heatflation’) , clothes and electronics , and damage to housing due to the lack of support to smes , as well as having an impact on health; whereas we are still recovering from the covid-19 pandemic and mitigating the rise in the cost of living due to high inflation accentuated by the invasion of ukraine7 ;


### f. whereas principle 3 of the european pillar of social rights proclaims that ‘everyone has the right to equal treatment and opportunities regarding employment , social protection , education , and access to goods and services available to the public’ , and principle 14 states that ‘everyone lacking sufficient resources has the right to adequate minimum income benefits ensuring a life in dignity at all stages of life , and effective access to enabling goods and services’; ### f. whereas principle 3 of the european pillar of social rights proclaims that ‘everyone has the right to equal treatment and opportunities regarding employment , social protection , education , and access to goods and services available to the public’ , and principle 14 states that ‘everyone lacking sufficient resources has the right to adequate minimum income benefits ensuring a life in dignity at all stages of life , and effective access to enabling goods and services. for those that can work , minimum income benefits should be combined with incentives to (re)integrate into the labour market’;


### g. whereas today , all eu member states have some sort of minimum income scheme (mis) in place and all have set their schemes at a level below the at-risk-of-poverty (arop) threshold , and sometimes as little as 20 % of the at-risk-of-poverty-or-social-exclusion (arope) threshold , which in practical terms means that those receiving minimum income do not have enough income to make ends meet; ### g. whereas today , all eu member states have some sort of minimum income scheme (mis) in place but some have set their schemes at a level below the at-risk-of-poverty (arop) threshold , and sometimes as little as 20 % of the at-risk-of-poverty-or-social-exclusion (arope) threshold , which in practical terms means that those receiving minimum income do not have enough income to make ends meet , even if they cannot (re)integrate into the labour market;


### g. whereas today , all eu member states have some sort of minimum income scheme (mis) in place and all have set their schemes at a level below the at-risk-of-poverty (arop) threshold , and sometimes as little as 20 % of the at-risk-of-poverty-or-social-exclusion (arope) threshold , which in practical terms means that those receiving minimum income do not have enough income to make ends meet; ### g. whereas today , not all eu member states have some sort of minimum income scheme (mis) in place and all have set their schemes at a level below the at-risk-of-poverty (arop) threshold , and sometimes as little as 20 % of the at-risk-of-poverty-or-social-exclusion (arope) threshold , which in practical terms means that those receiving minimum income do not have enough income to make ends meet;


### h. whereas the soft law approach and policy coordination mechanisms used in the last 20 years have failed to reduce monetary poverty , in-work poverty and income inequalities in an effective and sustainable manner; ### deleted


### h. whereas the soft law approach and policy coordination mechanisms used in the last 20 years have failed to reduce monetary poverty , in-work poverty and income inequalities in an effective and sustainable manner; ### h. whereas the soft law approach and policy coordination mechanisms used in the last 20 years have not completely achieved the objective to reduce monetary poverty , in-work poverty and excessive income inequalities , thereby questioning the european union's social market model as it is currently being imposed and benefitting a minority;


### i. whereas women , single-parent households , persons with disabilities or long-term diseases , people with migrant or minority backgrounds , homeless people , the lbgtiq+ community and the unemployed are those most affected by poverty or at risk of falling into poverty; ### i. whereas the most vulnerable and the unemployed are those most affected by poverty or at risk of falling into poverty;


### i. whereas women , single-parent households , persons with disabilities or long-term diseases , people with migrant or minority backgrounds , homeless people , the lbgtiq+ community and the unemployed are those most affected by poverty or at risk of falling into poverty; ### i. whereas some social groups , such as single-parent households , large families , persons with disabilities or long-term diseases , people with migrant backgrounds despite their legal residence in the union , homeless people , the youth , the elderly and the unemployed are those most affected by poverty or at risk of falling into poverty;


### 1. recalls that at the porto summit , the commission , the social partners and civil society committed to reducing the number of people at risk of poverty or social exclusion by at least 15 million , including at least 5 million children , by 2030; recalls that the eu had already largely failed to meet its target of lifting 20 million people out of poverty by 2020 before the covid-19 pandemic hit; notes that the current rise in the cost of living will push an increasing number of people into poverty unless action is taken rapidly; stresses that poverty is not solely a lack of economic means , but is rather a multidimensional phenomenon that encompasses a lack of both income and access to essential goods and services , and thus the basic conditions for living in dignity; notes that persons living in poverty experience many interrelated and mutually reinforcing deprivations that prevent them from enjoying their rights and perpetuate their poverty; ### 1. recalls that at the porto summit , the commission , the social partners and civil society committed to reducing the number of people at risk of poverty or social exclusion by at least 15 million in the european union , including at least 5 million children , by 2030; recalls that such reduction is rather modest , and that the eu had already largely failed to meet its target of lifting 20 million people out of poverty by 2020 before the covid-19 pandemic hit; notes that the current rise in the cost of living will push an increasing number of people into poverty unless action is taken rapidly; stresses that poverty is not solely a lack of economic means , but is rather a multidimensional phenomenon that encompasses a lack of both income and access to essential goods and services , and thus the basic conditions for living in dignity; notes that persons living in poverty experience many interrelated and mutually reinforcing deprivations that prevent them from enjoying their rights and perpetuate their poverty;


### 2. acknowledges that the social protection committee and existing soft law mechanisms such as the country-specific recommendations and social scoreboard established under the european semester have not been enough to encourage member states to set their mis above the arop line; reiterates its call for all member states to set their mis above 60 % of the national median income before social benefits , together with other indicators such as reference budgets to cover the expenses needed to live a decent life; ### deleted


### 2. acknowledges that the social protection committee and existing soft law mechanisms such as the country-specific recommendations and social scoreboard established under the european semester have not been enough to encourage member states to set their mis above the arop line; reiterates its call for all member states to set their mis above 60 % of the national median income before social benefits , together with other indicators such as reference budgets to cover the expenses needed to live a decent life; ### 2. acknowledges that despite the social protection committee and existing soft law mechanisms such as the country-specific recommendations and social scoreboard established under the european semester , several member states have not set their mis above the arop line; reiterates its call for all member states to set their mis according to the value of the basic needs estimated by each member state;


### 2. acknowledges that the social protection committee and existing soft law mechanisms such as the country-specific recommendations and social scoreboard established under the european semester have not been enough to encourage member states to set their mis above the arop line; reiterates its call for all member states to set their mis above 60 % of the national median income before social benefits , together with other indicators such as reference budgets to cover the expenses needed to live a decent life; ### 2. acknowledges that the social protection committee and existing soft law mechanisms such as the country-specific recommendations and social scoreboard established under the european semester encourage member states to set their mis above the arop line; reiterates its call for all member states to set their mis above 60 % of the national median income before social benefits , together with other indicators such as reference budgets to cover the expenses needed to live a decent life;


### 3. calls on the commission to propose an eu directive on adequate minimum income in order to legally oblige all member states to ensure that mis are protecting people in need from falling into poverty or social exclusion; considers that such a directive must not only ensure adequate protection , but must also include common definitions at eu level for adequate , accessible and enabling mis that acknowledge the differences in national security systems and respect the principle of subsidiarity , while achieving a level playing field; calls for such an instrument to contain a non-regression clause that applies to the level of benefits across member states to guarantee upward social convergence; ### deleted


### 3. calls on the commission to propose an eu directive on adequate minimum income in order to legally oblige all member states to ensure that mis are protecting people in need from falling into poverty or social exclusion; considers that such a directive must not only ensure adequate protection , but must also include common definitions at eu level for adequate , accessible and enabling mis that acknowledge the differences in national security systems and respect the principle of subsidiarity , while achieving a level playing field; calls for such an instrument to contain a non-regression clause that applies to the level of benefits across member states to guarantee upward social convergence; ### 3. notes the commission proposal for a new council recommendation on adequate minimum income so that all member states are better equipped to protect people in need from falling into poverty or social exclusion; considers that mis must acknowledge the differences in national security systems and respect the principle of subsidiarity , while achieving a level playing field; calls for such an instrument to contain a non-regression clause that applies to the level of benefits across to guarantee upward social convergence;


### 3. calls on the commission to propose an eu directive on adequate minimum income in order to legally oblige all member states to ensure that mis are protecting people in need from falling into poverty or social exclusion; considers that such a directive must not only ensure adequate protection , but must also include common definitions at eu level for adequate , accessible and enabling mis that acknowledge the differences in national security systems and respect the principle of subsidiarity , while achieving a level playing field; calls for such an instrument to contain a non-regression clause that applies to the level of benefits across member states to guarantee upward social convergence; ### 3. calls on the commission to launch an impact assessment in order to analyse the convenience of proposing an eu directive on adequate minimum income , including with regards to the legal base of such proposal; considers that such a directive should ensure adequate protection , but also acknowledge the differences in national security systems and respect the principle of subsidiarity , while achieving a level playing field; calls for such an instrument to contain a non-regression clause that applies to the level of benefits across member states , since minimum income is not the only factor to take into account in favour of beneficiaries in order to assure their protection from the risk of poverty;


### 4. insists that for mis to be adequate , they must be evaluated , updated and compared to the cost of living; calls on the member states to set up an automatic adjustment mechanism to ensure that the level of the allocation is adjusted based on changes in median income and the cost of living; stresses that minimum income should not be seen as spending but rather as investment , as it is an effective economic stimulus package that is used to reverse immediate needs and under which expenditure re-enters the economy; ### deleted


### 4. insists that for mis to be adequate , they must be evaluated , updated and compared to the cost of living; calls on the member states to set up an automatic adjustment mechanism to ensure that the level of the allocation is adjusted based on changes in median income and the cost of living; stresses that minimum income should not be seen as spending but rather as investment , as it is an effective economic stimulus package that is used to reverse immediate needs and under which expenditure re-enters the economy; ### 4. insists that mis must be evaluated , updated and compared to the cost of living; calls on the member states to ensure that the level of the allocation is adjusted based on changes in median income and the cost of living; stresses that minimum income could serve as an effective economic stimulus package used to reverse immediate needs and under which expenditure re-enters the economy;


### 4. insists that for mis to be adequate , they must be evaluated , updated and compared to the cost of living; calls on the member states to set up an automatic adjustment mechanism to ensure that the level of the allocation is adjusted based on changes in median income and the cost of living; stresses that minimum income should not be seen as spending but rather as investment , as it is an effective economic stimulus package that is used to reverse immediate needs and under which expenditure re-enters the economy; ### 4. insists that for mis to be adequate , they must be evaluated , updated and compared to the cost of living; calls on the member states to set up , as they may deem convenient , an adjustment mechanism to ensure that the level of the allocation is adjusted based on changes in median income , or other measures , and the cost of living; stresses that minimum income should not be seen solely as spending but also as investment , as it is an effective economic stimulus package that is used in times free of inflation to reverse immediate needs and under which expenditure re-enters the economy;


### 5. stresses that the use of household means testing , which falsely assumes that members of the household pool and distribute their resources equally , is creating a cycle of dependency that reinforces the male-breadwinning model and does not lead to an individual’s full enjoyment of their rights; notes that it has a negative effect on women’s economic independence , which can result in economic gender violence and limit women’s options for escaping gender-based violence and abuse; ### 5. stresses that the use of household means testing , which assumes that members of the household always pool and distribute their resources equally , can presuppose a single breadwinning model when this is not always the case , as for example families where both parents have freely decided to work; notes that further items on top of household means testing can be convenient in order to avoid potential distortions in the analysis of different household incomes and needs;


### 6. considers that access to a minimum income must be comprehensive and non-discriminatory and must be provided for everyone who needs it for as long as they need it , without unnecessary administrative barriers , including cash income support schemes topped up with in-kind benefits related , in particular , to nutrition , childcare , education , health , housing , long-term care , transport and access to sports or socio-cultural activities; stresses that they must take into account the specific needs of individuals and intersecting inequalities , such as disability-related expenses; ### 6. considers that access to a minimum income must be provided without unnecessary administrative barriers; stresses that they must take into account the specific needs of individuals and intersecting inequalities , such as disability-related expenses;


### 6. considers that access to a minimum income must be comprehensive and non-discriminatory and must be provided for everyone who needs it for as long as they need it , without unnecessary administrative barriers , including cash income support schemes topped up with in-kind benefits related , in particular , to nutrition , childcare , education , health , housing , long-term care , transport and access to sports or socio-cultural activities; stresses that they must take into account the specific needs of individuals and intersecting inequalities , such as disability-related expenses; ### 6. considers that access to a minimum income must be comprehensive and non-discriminatory and must be provided for every legal resident who needs it for as long as they need it , without unnecessary administrative barriers , including cash income support schemes topped up with in-kind benefits related , in particular , to nutrition , childcare , education , health , housing , long-term care , transport and access to sports or socio-cultural activities; such in-kind benefits will be taken into account in order to calculate the income support scheme for its beneficiaries , so that the total is not excessive , but adapted to their real needs; stresses that they must take into account the specific needs of individuals and their families , such as the situation of the former self-employed or disability-related expenses;


### 6. considers that access to a minimum income must be comprehensive and non-discriminatory and must be provided for everyone who needs it for as long as they need it , without unnecessary administrative barriers , including cash income support schemes topped up with in-kind benefits related , in particular , to nutrition , childcare , education , health , housing , long-term care , transport and access to sports or socio-cultural activities; stresses that they must take into account the specific needs of individuals and intersecting inequalities , such as disability-related expenses; ### 6. considers that national labour policies must be comprehensive and non-discriminatory and must be provided for everyone who needs it for as long as they need it , without unnecessary administrative barriers , including cash income support schemes topped up with in-kind benefits related , in particular , to nutrition , childcare , education , health , housing , long-term care , transport and access to sports or socio-cultural activities; stresses that they must take into account the specific needs of individuals and intersecting inequalities , such as disability-related expenses;


### 9. insists that an effective measure to tackle the non-take-up problem is to proactively grant support under such schemes to those in need , without the recipient having to request it; calls on social services and public administrations to proactively identify those in need and notify them of their right to receive a minimum income , as well as assisting them in the application process to ensure that benefits are granted smoothly; ### deleted


### 9. insists that an effective measure to tackle the non-take-up problem is to proactively grant support under such schemes to those in need , without the recipient having to request it; calls on social services and public administrations to proactively identify those in need and notify them of their right to receive a minimum income , as well as assisting them in the application process to ensure that benefits are granted smoothly; ### 9. insists that an effective measure to tackle the non-take-up problem is to proactively grant support to those in need , without the recipient having to request it; calls on social services and public administrations to proactively identify those in need and notify them of their right to receive a minimum income , as well as assisting them in the application process to ensure that benefits are granted smoothly;


### 10. believes that mis are a way to recognise unpaid work , which is mostly carried out by women , and to encourage the equal distribution of care responsibilities; considers that providing access to mis will make it easier for everyone to engage in care work , thereby recognising its value for the economy and society; notes that mis need to be accompanied by policies that promote and encourage a more equal and fair redistribution of care responsibilities among genders; ### 10. considers that providing access to mis would make it easier for everyone to engage in care work , thereby recognising its value for the economy and society; notes that mis could be an element of policies that promote and encourage a more equal and fair redistribution of care responsibilities among genders;


### 10. believes that mis are a way to recognise unpaid work , which is mostly carried out by women , and to encourage the equal distribution of care responsibilities; considers that providing access to mis will make it easier for everyone to engage in care work , thereby recognising its value for the economy and society; notes that mis need to be accompanied by policies that promote and encourage a more equal and fair redistribution of care responsibilities among genders; ### 10. believes that mis or other schemes such as vouchers or fiscal measures are a way to recognise domestic and care work carried out by members of a family according to the free choice of such families and individuals; considers that providing access to mis is one of different means to engage in care work , thereby recognising its value for the economy and society; notes that mis need to be accompanied by other policies that promote and encourage the effective avoidance of poverty risk , such as favourable tax measures targeting mis recipients;


### 10. believes that mis are a way to recognise unpaid work , which is mostly carried out by women , and to encourage the equal distribution of care responsibilities; considers that providing access to mis will make it easier for everyone to engage in care work , thereby recognising its value for the economy and society; notes that mis need to be accompanied by policies that promote and encourage a more equal and fair redistribution of care responsibilities among genders; ### 10. believes that not only mis can be a way to recognise unpaid work , which is mostly carried out by women , and to encourage the equal distribution of care responsibilities; considers that providing access to mis will make it easier for everyone to engage in care work , thereby recognising its value for the economy and society; notes that mis need to be accompanied by policies that promote and encourage a more equal and fair redistribution of care responsibilities among genders;


### 11. calls on member states to remove any negative punitive conditionalities , such as cuts or forced acceptance of poor-quality jobs; ### deleted


### 11. calls on member states to remove any negative punitive conditionalities , such as cuts or forced acceptance of poor-quality jobs; ### 11. calls on member states to remove any negative punitive conditionalities , such as undue cuts or forced acceptance of poor-quality jobs with discriminatory conditions in comparison to those available in the labour market;


### 12. acknowledges that mis alone will not lift people out of poverty , and calls on member states to make them part of a proactive inclusion strategy that has people’s participation and wellbeing at its core , involving both general policies and targeted measures , that empowers those who are able to work to secure stable , quality and safe jobs , and that provides access to social and public services for all; ### deleted


### 12. acknowledges that mis alone will not lift people out of poverty , and calls on member states to make them part of a proactive inclusion strategy that has people’s participation and wellbeing at its core , involving both general policies and targeted measures , that empowers those who are able to work to secure stable , quality and safe jobs , and that provides access to social and public services for all; ### 12. acknowledges that mis alone will not lift people out of poverty , and calls on member states to make them part of a proactive inclusion strategy that has people’s participation and wellbeing at its core , involving both general policies and targeted measures , such as fiscal measures , benefit vouchers , support to entrepreneurs and/or economic incentives to excellence , but also inviting those who are able to work to access stable , quality and safe jobs , and the assurance that they can benefit from access to social and public services regardless of their situation as mis beneficiaries;


### 12. acknowledges that mis alone will not lift people out of poverty , and calls on member states to make them part of a proactive inclusion strategy that has people’s participation and wellbeing at its core , involving both general policies and targeted measures , that empowers those who are able to work to secure stable , quality and safe jobs , and that provides access to social and public services for all; ### 12. acknowledges that mis alone cannot lift people out of poverty , and calls on member states to consider them as part of a proactive inclusion strategy that has people’s participation and wellbeing at its core , involving both general policies and targeted measures , that empowers those who are able to work to secure stable , quality and safe jobs , and that provides access to social and public services for all;


### 13. calls on the commission and the member states to involve social partners and civil society organisations in the development , implementation and monitoring of mis , with a view to reforming coverage , accessibility , adequacy and the promotion of participation across the policies and benefits of social protection systems; calls for an increase in the number of adequately trained social workers at national and regional level to enable them to work in optimal conditions to provide personalised assistance for vulnerable people; ### deleted


### 13. calls on the commission and the member states to involve social partners and civil society organisations in the development , implementation and monitoring of mis , with a view to reforming coverage , accessibility , adequacy and the promotion of participation across the policies and benefits of social protection systems; calls for an increase in the number of adequately trained social workers at national and regional level to enable them to work in optimal conditions to provide personalised assistance for vulnerable people; ### 13. calls on the commission and the member states to involve social partners and civil society organisations in the development , implementation and monitoring of mis , with a view to reforming coverage , accessibility , adequacy and the promotion of participation across the policies and benefits of social protection systems; calls for an assessment of the number of adequately trained social workers at national and regional level , in order to ascertain whether they can carry out their work efficiently in order to provide personalised assistance for vulnerable people;


### 13. calls on the commission and the member states to involve social partners and civil society organisations in the development , implementation and monitoring of mis , with a view to reforming coverage , accessibility , adequacy and the promotion of participation across the policies and benefits of social protection systems; calls for an increase in the number of adequately trained social workers at national and regional level to enable them to work in optimal conditions to provide personalised assistance for vulnerable people; ### 13. encourages the member states to involve social partners and civil society organisations in the development , implementation and monitoring of mis , with a view to reforming coverage , accessibility , and the promotion of participation across the policies and benefits of social protection systems; calls for an increase in the number of adequately trained social workers at national and regional level to enable them to work in optimal conditions to provide personalised assistance for vulnerable people;


### 14. stresses the need for the development of a strong monitoring and evaluation system , which should involve the participation of people experiencing poverty and civil society organisations so as to ensure a real impact on the ground; ### deleted


### 15. believes that to ensure a life in dignity and guarantee essential human and social rights , mis must enable those who can work to (re)integrate into sustainable , decent and quality employment; stresses that those who cannot work must be given the opportunity to contribute to society through non-economic means , such as education , training and volunteering , and civic participation; ### 15. believes that to ensure a life in dignity and guarantee essential human and social rights , national labour policies must enable those who can work to (re)integrate into sustainable , decent and quality employment; stresses that those who cannot work must be given the opportunity to contribute to society through non-economic means , such as education , training and volunteering , and civic participation;


### 15. believes that to ensure a life in dignity and guarantee essential human and social rights , mis must enable those who can work to (re)integrate into sustainable , decent and quality employment; stresses that those who cannot work must be given the opportunity to contribute to society through non-economic means , such as education , training and volunteering , and civic participation; ### 15. believes that to ensure a life in dignity and guarantee the avoidance of the risk of poverty in the union , mis must enable those who can work to (re)integrate into sustainable , decent and quality employment; stresses that those who cannot work must be given the opportunity to contribute to society through non-economic means , such as education , training and volunteering , and civic participation;


### — having regard to the commission communication of 14 january 2020 entitled ‘a strong social europe for just transitions’ (com(2020)0014) , ### deleted


### — having regard to the united nations 2030 agenda for sustainable development , ### deleted


### — having regard to the european courts of auditors special report 10/2021 entitled ‘gender mainstreaming in the eu budget: time to turn words into action’14 , ### deleted


### k. whereas discrimination against young people in general remains an issue in europe , with young women , and young people with disabilities or different ethnic backgrounds being at a much higher risk of unemployment , in-work poverty and social exclusion; ### k. whereas discrimination against young people in general remains an issue in europe , and whereas young people from vulnerable groups are at a particularly high risk of unemployment , in-work poverty , and social exclusion;


### 3. stresses the vital role that young people must play in shaping employment and social policies in europe; welcomes the eu youth dialogue and the youth work that brings the eu closer to young people; encourages the promotion of the co-management principle in the development of youth policies; calls on the commission to recognise the positive impact of the third sector , including youth organisations , and the non-formal and informal learning opportunities that they provide through volunteering opportunities; ### 3. stresses the vital role that young people must play in shaping employment and social policies in europe; welcomes the eu youth dialogue and the youth work that brings the eu closer to young people; encourages the promotion of the co-management principle in the development of youth policies , through safeguarding the distribution of competences as established in the treaties; calls on the commission to recognise the positive impact of the third sector , including youth organisations , and the non-formal and informal learning opportunities that they provide through volunteering opportunities;


### 9. calls on the member states to facilitate access for young people to paid traineeships and apprenticeships; calls for the reinforcement of monitoring schemes , ensuring that young people receive adequate and quality opportunities for upskilling and new qualifications or credentials , avoiding unfair practices such as exploitative or unpaid internships; ### 9. calls on the member states to facilitate access for young people to paid traineeships and apprenticeships; calls for the reinforcement of monitoring schemes , ensuring that young people receive adequate and quality opportunities for upskilling and new qualifications or credentials , avoiding unfair and exploitative practices;


### 16. calls on the commission and council to ensure that traineeships , apprenticeships and job placements count as work experience and consequently grant access to social entitlements; calls for a decrease in the minimum period of contributions needed to access social benefits; ### 16. encourages the member states to consider traineeships , apprenticeships and job placements as work experience , so that they can consequently grant access to social entitlements; calls on the member states for an increase in youth access to social benefits;


### 18. recalls the fact that young women are at increased risk of workplace discrimination13 , unemployment , being single-parent families and being long-term caregivers , which often excludes them from the workforce or keeps them below the poverty line; recommends that the council and commission include dedicated targets for assistance and tailored aid schemes for young women at risk in all initiatives from 2022 onwards; calls on the commission to work with the member states to integrate child guarantee national action plans with labour integration measures at national level to support young single parents; ### 18. recalls the fact that young women are at increased risk of workplace discrimination13 , unemployment , being single-parent families and being long-term caregivers , which can result in the exclusion from the workforce or can keep them below the poverty line; recommends that the council and commission include dedicated targets for assistance and tailored aid schemes for young women at risk in all initiatives from 2022 onwards; calls on the commission to work with the member states to integrate child guarantee national action plans with labour integration measures at national level to support young single parents;


### 19. reiterates the importance of access to housing and tailored social services for vulnerable young people; asks the commission to work with the member states on housing first for youth programmes complemented by employment , social and health support services; stresses the importance of private and public investment in social infrastructure for young people; ### 19. reiterates the importance of access to housing and tailored social services for vulnerable young people , such as disabled young people and young people from large families; asks the commission to work with the member states on housing first for youth programmes complemented by employment , social and health support services; stresses the importance of private and public investment in social infrastructure for young people;


### (5) on 25 september 2015 , the un general assembly adopted a new global sustainable development framework: the 2030 agenda for sustainable development (the ‘2030 agenda’). the 2030 agenda has at its core the sustainable development goals and covers the three dimensions of sustainability: economic , social and environmental. the commission communication of 22 november 2016 on the next steps for a sustainable european future linked the sustainable development goals to the union policy framework to ensure that all union actions and policy initiatives , both in and beyond the union , take those goals on board at the outset45 . in its conclusions of 20 june 2017 , the council confirmed the commitment of the union and its member states to the implementation of the 2030 agenda in a full , coherent , comprehensive , integrated and effective manner , in close cooperation with partners and other stakeholders46. ### (5) on 25 september 2015 , the un general assembly adopted a new global sustainable development framework: the 2030 agenda for sustainable development (the ‘2030 agenda’). the 2030 agenda has at its core the sustainable development goals and covers the three dimensions of sustainability: economic , social and environmental. the commission communication of 22 november 2016 on the next steps for a sustainable european future linked the sustainable development goals to the union policy framework45 , although since it is a communication it is not binding. in its conclusions of 20 june 2017 , the council confirmed the commitment of the union and its member states to the implementation of the 2030 agenda in a full , coherent , comprehensive , integrated and effective manner , in close cooperation with partners and other stakeholders46.


### (5) on 25 september 2015 , the un general assembly adopted a new global sustainable development framework: the 2030 agenda for sustainable development (the ‘2030 agenda’). the 2030 agenda has at its core the sustainable development goals and covers the three dimensions of sustainability: economic , social and environmental. the commission communication of 22 november 2016 on the next steps for a sustainable european future linked the sustainable development goals to the union policy framework to ensure that all union actions and policy initiatives , both in and beyond the union , take those goals on board at the outset45. in its conclusions of 20 june 2017 , the council confirmed the commitment of the union and its member states to the implementation of the 2030 agenda in a full , coherent , comprehensive , integrated and effective manner , in close cooperation with partners and other stakeholders46. ### (5) on 25 september 2015 , the un general assembly adopted a new global sustainable development framework: the 2030 agenda for sustainable development (the ‘2030 agenda’). the 2030 agenda has at its core the sustainable development goals and covers the three dimensions of sustainability: economic , social and environmental. the commission communication of 22 november 2016 on the next steps for a sustainable european future linked the sustainable development goals to the union policy framework , albeit without a binding character45. in its conclusions of 20 june 2017 , the council confirmed the commitment of the union and its member states to the implementation of the 2030 agenda in a full , coherent , comprehensive , integrated and effective manner , in close cooperation with partners and other stakeholders46.


### (6) directive 2014/95/eu of the european parliament and the council47 amended directive 2013/34/eu as regards disclosure of non-financial information by certain large undertakings and groups. directive 2014/95/eu introduced a requirement on undertakings to report information on , as a minimum , environmental , social and employee matters , respect for human rights , and anti-corruption and bribery matters. with regard to these topics , directive 2014/95/eu required undertakings to disclose information under the following reporting areas: business model , policies (including due diligence processes implemented) , the outcome of the policies , risks and risk management , and key performance indicators relevant to the business. ### (6) directive 2014/95/eu of the european parliament and the council47 amended directive 2013/34/eu as regards disclosure of non-financial information by certain large undertakings and groups. directive 2014/95/eu introduced a requirement on those large undertakings to report information on , as a minimum , environmental , social and employee matters , respect for human rights , and anti-corruption and bribery matters. with regard to these topics , directive 2014/95/eu required undertakings to disclose information under the following reporting areas: business model , policies (including due diligence processes implemented) , the outcome of the policies , risks and risk management , and key performance indicators relevant to the business.


### (6) directive 2014/95/eu of the european parliament and the council47 amended directive 2013/34/eu as regards disclosure of non-financial information by certain large undertakings and groups. directive 2014/95/eu introduced a requirement on undertakings to report information on , as a minimum , environmental , social and employee matters , respect for human rights , and anti-corruption and bribery matters. with regard to these topics , directive 2014/95/eu required undertakings to disclose information under the following reporting areas: business model , policies (including due diligence processes implemented) , the outcome of the policies , risks and risk management , and key performance indicators relevant to the business. ### (6) directive 2014/95/eu of the european parliament and the council47 amended directive 2013/34/eu as regards disclosure of non-financial information by certain large undertakings and groups. directive 2014/95/eu introduced a requirement on said large undertakings to report information on , as a minimum , environmental , social and employee matters , respect for human rights , and anti-corruption and bribery matters. with regard to these topics , directive 2014/95/eu required undertakings to disclose information under the following reporting areas: business model , policies (including due diligence processes implemented) , the outcome of the policies , risks and risk management , and key performance indicators relevant to the business.


### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). the first group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. the second group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their impacts on people and the environment. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers and environmental agencies may use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports. ### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. it is vital for this benefit to be compatible with the freedom of enterprise and the good of the economy in general. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). the first group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. the second group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their impacts on people and the environment. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers and environmental agencies may use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports.


### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). the first group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. the second group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their impacts on people and the environment. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers and environmental agencies may use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports. ### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). the first group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the social and environmental impacts of those investments , which also affect their image. the second group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their social and environmental impacts , including on equality between women and men , and enhanced social inclusion. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers , social and economic partners and environmental agencies may use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy , including as regards tackling discrimination. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports.


### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). the first group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. the second group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their impacts on people and the environment. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers and environmental agencies may use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports. ### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. this benefit needs to be proportionate to the new burdens and obligations that the business fabric of the eu will face. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). the first group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. the second group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their impacts on people and the environment. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers and environmental agencies may use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports.


### (9) there has been a very significant increase in demand for corporate sustainability information in recent years , especially on the part of the investment community. that increase in demand is driven by the changing nature of risks to undertakings and growing investor awareness of the financial implications of these risks. that is especially the case for climate-related financial risks. awareness of the risks to undertakings and to investments resulting from other environmental issues and from social issues , including health issues , is also growing. the increase in demand for sustainability information is also driven by the growth in investment products that explicitly seek to meet certain sustainability standards or achieve certain sustainability objectives. part of that increase is the logical consequence of previously adopted union legislation , notably regulation (eu) 2019/2088 and regulation (eu) 2020/852. some of the increase would have happened in any case , due to fast-changing citizen awareness , consumer preferences and market practices. the covid-19 pandemic will further accelerate the increase in users’ information needs , in particular as it has exposed the vulnerabilities of workers and of undertaking’s value chains. information on environmental impacts is also relevant in the context of mitigating future pandemics with human disturbance of ecosystems increasingly linked to the occurrence and spread of diseases. ### (9) there has been a very significant increase in demand for corporate sustainability information in recent years , especially on the part of the eu institutions. that increase in demand is driven by an ideological requirement that handicaps undertakings in their freedom of manoeuvre and corporate vision , jeopardising their economic activities. the covid-19 pandemic has accelerated the vulnerability of workers and of undertaking’s value chains.


### (9) there has been a very significant increase in demand for corporate sustainability information in recent years , especially on the part of the investment community. that increase in demand is driven by the changing nature of risks to undertakings and growing investor awareness of the financial implications of these risks. that is especially the case for climate-related financial risks. awareness of the risks to undertakings and to investments resulting from other environmental issues and from social issues , including health issues , is also growing. the increase in demand for sustainability information is also driven by the growth in investment products that explicitly seek to meet certain sustainability standards or achieve certain sustainability objectives. part of that increase is the logical consequence of previously adopted union legislation , notably regulation (eu) 2019/2088 and regulation (eu) 2020/852. some of the increase would have happened in any case , due to fast-changing citizen awareness , consumer preferences and market practices. the covid-19 pandemic will further accelerate the increase in users’ information needs , in particular as it has exposed the vulnerabilities of workers and of undertaking’s value chains. information on environmental impacts is also relevant in the context of mitigating future pandemics with human disturbance of ecosystems increasingly linked to the occurrence and spread of diseases. ### (9) there has been a very significant increase in demand for corporate sustainability information in recent years , especially on the part of the investment community. that increase in demand is driven by the changing nature of risks to undertakings and growing investor awareness of the financial implications of these risks , including to their image. that is especially the case for climate-related financial risks. awareness of the risks to undertakings and to investments resulting from other environmental issues and from social issues , including health , gender equality and social exclusion issues , is also growing. the increase in demand for sustainability information is also driven by the growth in investment products that explicitly seek to meet certain sustainability standards or achieve certain sustainability objectives. part of that increase is the logical consequence of previously adopted union legislation , notably regulation (eu) 2019/2088 and regulation (eu) 2020/852. some of the increase would have happened in any case , due to fast-changing citizen awareness , consumer preferences and market practices. the covid-19 pandemic will further accelerate the increase in users’ information needs , in particular as it has exposed the vulnerabilities of workers , including women and people with disabilities , and of undertaking’s value chains. information on environmental impacts is also relevant in the context of mitigating future pandemics with human disturbance of ecosystems increasingly linked to the occurrence and spread of diseases.


### (9) there has been a very significant increase in demand for corporate sustainability information in recent years , especially on the part of the investment community. that increase in demand is driven by the changing nature of risks to undertakings and growing investor awareness of the financial implications of these risks. that is especially the case for climate-related financial risks. awareness of the risks to undertakings and to investments resulting from other environmental issues and from social issues , including health issues , is also growing. the increase in demand for sustainability information is also driven by the growth in investment products that explicitly seek to meet certain sustainability standards or achieve certain sustainability objectives. part of that increase is the logical consequence of previously adopted union legislation , notably regulation (eu) 2019/2088 and regulation (eu) 2020/852. some of the increase would have happened in any case , due to fast-changing citizen awareness , consumer preferences and market practices. the covid-19 pandemic will further accelerate the increase in users’ information needs , in particular as it has exposed the vulnerabilities of workers and of undertaking’s value chains. information on environmental impacts is also relevant in the context of mitigating future pandemics with human disturbance of ecosystems increasingly linked to the occurrence and spread of diseases. ### (9) there has been a very significant increase in demand for corporate sustainability information in recent years , especially on the part of eu institutions. that increase in demand is driven by an ideological requirement that constrains companies’ freedom of manoeuvre and corporate vision , putting their economic activity at risk. part of that increase is the logical consequence of previously adopted union legislation , notably regulation (eu) 2019/2088 and regulation (eu) 2020/852 with a view to increasing and improving the information provided by companies on sustainability. as a result of the legislation in force , most companies have adapted their internal reporting systems to meet the requirements that taxonomy , due diligence and the sustainable development of corporate governance impose. therefore , the amendments made in the revision of this directive should reduce and harmonise the reporting obligations provided for in other pieces of legislation. some of the increase would have happened in any case , due to fast-changing awareness among citizens and undertakings , consumer preferences and market practices. the covid-19 pandemic will further accelerate the increase in users’ need for high-quality information , in particular as it has exposed the vulnerabilities of workers and of undertaking’s value chains. information on environmental impacts is also relevant in the context of mitigating future pandemics with human disturbance of ecosystems increasingly linked to the occurrence and spread of diseases.


### (10) undertakings themselves stand to benefit from carrying out high quality reporting on sustainability matters. the growth in the number of investment products that aim to pursue sustainability objectives means that good sustainability reporting can enhance an undertaking’s access to financial capital. sustainability reporting can help undertakings to identify and manage their own risks and opportunities related to sustainability matters. it can provide a basis for better dialogue and communication between undertakings and their stakeholders , and can help undertakings to improve their reputation. ### (10) some large undertakings stand to benefit from carrying out high quality reporting on sustainability matters , as do the undertakings that help them to produce the reports. the growth in the number of investment products that aim to pursue sustainability objectives means that good sustainability reporting can enhance an undertaking’s access to financial capital , by providing a response to the ideological conditionality to which they are subject. sustainability reporting can help undertakings to improve their reputation.


### (10) undertakings themselves stand to benefit from carrying out high quality reporting on sustainability matters. the growth in the number of investment products that aim to pursue sustainability objectives means that good sustainability reporting can enhance an undertaking’s access to financial capital. sustainability reporting can help undertakings to identify and manage their own risks and opportunities related to sustainability matters. it can provide a basis for better dialogue and communication between undertakings and their stakeholders , and can help undertakings to improve their reputation. ### (10) some undertakings may benefit from carrying out high quality reporting on sustainability matters despite increased costs and administrative burdens related to compliance with the new obligations. the growth in the number of investment products that aim to pursue sustainability objectives means that good sustainability reporting can enhance an undertaking’s access to financial capital. sustainability reporting can help undertakings to identify and manage their own risks and opportunities related to sustainability matters. it can provide a basis for better dialogue and communication between undertakings and their stakeholders , and can help undertakings to improve their reputation.


### (11) the report on the review clause of the non-financial reporting directive (directive 2014/95/eu) , and its accompanying fitness check on corporate reporting , identified problems as to the effectiveness of that directive48. there is significant evidence that many undertakings do not disclose material information on all major sustainability-related topics. the report also identified as significant problems the limited comparability and reliability of sustainability information. additionally , many undertakings from which users need sustainability information are not obliged to report such information. ### (11) the report on the review clause of the non-financial reporting directive (directive 2014/95/eu) , and its accompanying fitness check on corporate reporting , identified problems as to the effectiveness of that directive48. this should be the subject of a compliance review of that directive.


### (11) the report on the review clause of the non-financial reporting directive (directive 2014/95/eu) , and its accompanying fitness check on corporate reporting , identified problems as to the effectiveness of that directive48. there is significant evidence that many undertakings do not disclose material information on all major sustainability-related topics. the report also identified as significant problems the limited comparability and reliability of sustainability information. additionally , many undertakings from which users need sustainability information are not obliged to report such information. ### (11) the report on the review clause of the non-financial reporting directive (directive 2014/95/eu) , and its accompanying fitness check on corporate reporting , identified problems as to the effectiveness of that directive48. there is significant evidence that many undertakings do not disclose material information on all major sustainability-related topics. the report also identified as significant problems the limited comparability and reliability of sustainability information. additionally , many undertakings from which users need sustainability information are not obliged to report such information even if they provide it on a voluntary basis so as to improve transparency and communication regarding their activities.


### (12) in the absence of policy action , the gap between users’ information needs and the sustainability information reported by undertakings is expected to grow. this gap has significant negative consequences. investors are unable to take sufficient account of sustainability-related risks and opportunities in their investment decisions. the aggregation of multiple investment decisions that do not take adequate account of sustainability-related risks has the potential to create systemic risks that threaten financial stability. the european central bank and international organisations such as the financial stability board have drawn attention to those systemic risks , in particular in the case of climate. investors are also less able to channel financial resources to undertakings and economic activities that address and do not exacerbate social and environmental problems , which undermines the objectives of the european green deal and the action plan on financing sustainable growth. non-governmental organisations , social partners , communities affected by undertakings’ activities , and other stakeholders are less able to hold undertakings accountable for their impacts on people and the environment. this creates an accountability deficit , and may contribute to lower levels of citizen trust in businesses , which in turn may have negative impacts on the efficient functioning of the social market economy. the lack of generally accepted metrics and methods for measuring , valuing , and managing sustainability-related risks is also an obstacle to the efforts of undertakings to ensure that their business models and activities are sustainable. ### deleted


### (12) in the absence of policy action , the gap between users’ information needs and the sustainability information reported by undertakings is expected to grow. this gap has significant negative consequences. investors are unable to take sufficient account of sustainability-related risks and opportunities in their investment decisions. the aggregation of multiple investment decisions that do not take adequate account of sustainability-related risks has the potential to create systemic risks that threaten financial stability. the european central bank and international organisations such as the financial stability board have drawn attention to those systemic risks , in particular in the case of climate. investors are also less able to channel financial resources to undertakings and economic activities that address and do not exacerbate social and environmental problems , which undermines the objectives of the european green deal and the action plan on financing sustainable growth. non-governmental organisations , social partners , communities affected by undertakings’ activities , and other stakeholders are less able to hold undertakings accountable for their impacts on people and the environment. this creates an accountability deficit , and may contribute to lower levels of citizen trust in businesses , which in turn may have negative impacts on the efficient functioning of the social market economy. the lack of generally accepted metrics and methods for measuring , valuing , and managing sustainability-related risks is also an obstacle to the efforts of undertakings to ensure that their business models and activities are sustainable. ### (12) in the absence of proportional policy action and of effective coordination of the different legislative instruments in place with regard to sustainability reporting , the gap between users’ information needs and the sustainability information reported by undertakings is expected to grow. this gap has significant negative consequences. investors are unable to take sufficient account of sustainability-related risks and opportunities in their investment decisions. the aggregation of multiple investment decisions that do not take adequate account of sustainability-related risks has the potential to create systemic risks that threaten financial stability. the european central bank and international organisations such as the financial stability board have drawn attention to those systemic risks , in particular in the case of climate. investors are also less able to channel financial resources to undertakings and economic activities that address and do not exacerbate social and environmental problems , which undermines the objectives of the european green deal and the action plan on financing sustainable growth. non-governmental organisations , social partners , communities affected by undertakings’ activities , and other stakeholders are less able to hold undertakings accountable for their impacts on people and the environment. this creates an accountability deficit , and may contribute to lower levels of citizen trust in businesses , which in turn may have negative impacts on the efficient functioning of the social market economy. the lack of generally accepted metrics and methods for measuring , valuing , and managing sustainability-related risks in some cases and the proliferation of indicators in others also constitute an obstacle to the efforts of undertakings to ensure that their business models and activities are sustainable. simplification and the cost-benefit analysis will constitute some of the key indicators for assessing legislative measures in the area of non-financial reporting.


### (12) in the absence of policy action , the gap between users’ information needs and the sustainability information reported by undertakings is expected to grow. this gap has significant negative consequences. investors are unable to take sufficient account of sustainability-related risks and opportunities in their investment decisions. the aggregation of multiple investment decisions that do not take adequate account of sustainability-related risks has the potential to create systemic risks that threaten financial stability. the european central bank and international organisations such as the financial stability board have drawn attention to those systemic risks , in particular in the case of climate. investors are also less able to channel financial resources to undertakings and economic activities that address and do not exacerbate social and environmental problems , which undermines the objectives of the european green deal and the action plan on financing sustainable growth. non-governmental organisations , social partners , communities affected by undertakings’ activities , and other stakeholders are less able to hold undertakings accountable for their impacts on people and the environment. this creates an accountability deficit , and may contribute to lower levels of citizen trust in businesses , which in turn may have negative impacts on the efficient functioning of the social market economy. the lack of generally accepted metrics and methods for measuring , valuing , and managing sustainability-related risks is also an obstacle to the efforts of undertakings to ensure that their business models and activities are sustainable. ### (12) in the absence of policy action , such as , for example , an impact assessment study regarding legislation in force , the gap between users’ information needs and the sustainability information reported by undertakings is expected to grow. this gap has significant negative consequences. investors are unable to take sufficient account of sustainability-related risks and opportunities in their investment decisions. the aggregation of multiple investment decisions that do not take adequate account of sustainability-related risks has the potential to create systemic risks that threaten financial stability. the european central bank and international organisations such as the financial stability board have drawn attention to those systemic risks , in particular in the case of climate. investors are also less able to channel financial resources to undertakings and economic activities that address and do not exacerbate social and environmental problems , which undermines the objectives of the european green deal and the action plan on financing sustainable growth. non-governmental organisations , social partners , communities affected by undertakings’ activities , and other stakeholders are less able to hold undertakings accountable for their impacts on people and the environment. this creates an accountability deficit , and may contribute to lower levels of citizen trust in businesses , which in turn may have negative impacts on the efficient functioning of the social market economy. the lack of generally accepted metrics and methods for measuring , valuing , and managing sustainability-related risks is also an obstacle to the efforts of undertakings to ensure that their business models and activities are sustainable.


### (13) the report on the review clause of directive 2014/95/eu , and its accompanying fitness check on corporate reporting , also recognised a significant increase in information requests for information about sustainability matters to undertakings in an attempt to address the existing information gap. in addition , ongoing expectations on undertakings to use a variety of different frameworks and standards are likely to continue and may even intensify as the value placed on sustainability information continues to grow. in the absence of policy action to build consensus on the information that undertakings should report , there will be significant increases in costs and burden for reporting undertakings and for users of such information. ### deleted


### (14) the growing gap between users’ information needs and the current reporting practices of undertakings makes it more likely that individual member states will introduce increasingly divergent national rules or standards. different reporting requirements in different member states would create additional costs and complexity for undertakings operating across borders and therefore undermine the single market , and would undermine the right of establishment and the free movement of capital across the union. those different reporting requirements also make reported information less comparable across borders , undermining the capital markets union. ### deleted


### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings and all undertakings listed on regulated markets , except micro undertakings , to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level. ### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings and all undertakings listed on regulated markets , but not including , in any event , small or medium-sized undertakings or micro undertakings , to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level.


### (20) article 23(4) , first subparagraph , point (i) , and article 23(4) , fourth subparagraph of directive 2004/109/ec empower the commission to adopt measures to set up a mechanism for the determination of equivalence of information required under the directive , and for the establishment of general equivalence criteria regarding accounting standards , respectively. article 23(4) , third subparagraph , of directive 2004/109/ec also empowers the commission to take the necessary decisions on the equivalence of accounting standards that are used by third-country issuers. in order to reflect the inclusion of the sustainability requirements in directive 2004/109/ec , the commission should be empowered to establish a mechanism for the determination of equivalence of sustainability reporting standards applied by third-country issuers of securities. for the same reason , the commission should also be empowered to take the necessary decisions on the equivalence of sustainability reporting standards that are used by third-country issuers. those amendments will ensure consistent equivalence regimes for sustainability reporting obligations and for financial reporting obligations regarding the annual financial report. ### (20) article 23(4) , first subparagraph , point (i) , and article 23(4) , fourth subparagraph of directive 2004/109/ec empower the commission to adopt measures to set up a mechanism for the determination of equivalence of information required under the directive , and for the establishment of general equivalence criteria regarding accounting standards , respectively. article 23(4) , third subparagraph , of directive 2004/109/ec also empowers the commission to take the necessary decisions on the equivalence of accounting standards that are used by third-country issuers. in order to reflect the inclusion of the sustainability requirements in directive 2004/109/ec , the commission should be empowered to establish a mechanism for the determination of equivalence of sustainability reporting standards applied by third-country issuers of securities. for the same reason , the commission should also be empowered to take the necessary decisions on the equivalence of sustainability reporting standards that are used by third-country issuers. those amendments will ensure consistent equivalence regimes for sustainability reporting obligations and for financial reporting obligations regarding the annual financial report. the commission’s powers must in any event not encroach upon the competences of member states.


### (24) the list of sustainability matters on which undertakings are required to report should be as coherent as possible with the definition of ‘sustainability factors’ laid down in regulation (eu) 2019/2088. that list should also correspond to the needs and expectations of users and undertakings themselves , who often use the terms ‘environmental’ , ‘social’ and ‘governance’ as a means to categorise the three main sustainability matters. the list of sustainability factors laid down in regulation (eu) 2019/2088 does not explicitly include governance matters. the definition of sustainability matters in directive 2013/34/eu should therefore be based on the definition of ‘sustainability factors’ laid down in regulation (eu) 2019/2088 , but with the addition of governance matters. ### (24) the list of sustainability matters on which undertakings are required to report should be as coherent as possible with the definition of ‘sustainability factors’ laid down in regulation (eu) 2019/2088. that list should also correspond to the needs and expectations of financial sector users and undertakings themselves , who often use the terms ‘environmental’ , ‘social’ and ‘governance’ as a means to categorise the three main sustainability matters in that sector. the list of sustainability factors laid down in regulation (eu) 2019/2088 does not explicitly include governance matters. the definition of sustainability matters in directive 2013/34/eu should therefore be based on the definition of ‘sustainability factors’ laid down in regulation (eu) 2019/2088 , but with the addition of governance matters.


### (24) the list of sustainability matters on which undertakings are required to report should be as coherent as possible with the definition of ‘sustainability factors’ laid down in regulation (eu) 2019/2088. that list should also correspond to the needs and expectations of users and undertakings themselves , who often use the terms ‘environmental’ , ‘social’ and ‘governance’ as a means to categorise the three main sustainability matters. the list of sustainability factors laid down in regulation (eu) 2019/2088 does not explicitly include governance matters. the definition of sustainability matters in directive 2013/34/eu should therefore be based on the definition of ‘sustainability factors’ laid down in regulation (eu) 2019/2088 , but with the addition of governance matters. ### (24) the list of sustainability matters on which undertakings are required to report should be as coherent as possible with the definition of ‘sustainability factors’ laid down in regulation (eu) 2019/2088. that list should also correspond to the needs and expectations of users and financial sector undertakings themselves , who often use the terms ‘environmental’ , ‘social’ and ‘governance’ as a means to categorise the three main sustainability matters in said sector. the list of sustainability factors laid down in regulation (eu) 2019/2088 does not explicitly include governance matters. the definition of sustainability matters in directive 2013/34/eu should therefore be based on the definition of ‘sustainability factors’ laid down in regulation (eu) 2019/2088 , but with the addition of governance matters.


### (28) directive 2013/34/eu does not require the disclosure of information on intangibles other than intangible assets recognised in the balance sheet. it is widely recognised that information on intangible assets and other intangible factors , including internally-generated intangibles , is underreported , impeding the proper assessment of an undertaking’s development , performance and position and monitoring of investments. to enable investors to better understand the increasing gap between the accounting book value of many undertakings and their market valuation , which is observed in many sectors of the economy , adequate reporting on intangibles should be required. it is therefore necessary to require undertakings to disclose information on intangibles other than intangible assets recognised in the balance sheet , including intellectual capital , human capital , including skills development , and social and relationship capital , including reputation capital. information on intangibles should also include information related to research and development. ### deleted


### (33) no existing standard or framework satisfies the union’s needs for detailed sustainability reporting by itself. information required by directive 2013/34/eu needs to cover information relevant from each of the materiality perspectives , needs to cover all sustainability matters and needs to be aligned , where appropriate , with other obligations under union law to disclose sustainability information , including obligations laid down in regulation (eu) 2020/852 and regulation (eu) 2019/2088. in addition , mandatory sustainability reporting standards for union undertakings must be commensurate with the level of ambition of the european green deal and the union’s climate-neutrality objective for 2050. it is therefore necessary to empower the commission to adopt union sustainability reporting standards , enabling their rapid adoption and ensuring that the content of sustainability reporting standards are consistent with the union’s needs. ### (33) no existing standard or framework satisfies the union’s needs for detailed sustainability reporting by itself. information required by directive 2013/34/eu needs to cover information relevant from each of the materiality perspectives , needs to cover all sustainability matters and needs to be aligned , where appropriate , with other obligations under union law to disclose sustainability information , including obligations laid down in regulation (eu) 2020/852 and regulation (eu) 2019/2088. in addition , mandatory sustainability reporting standards for union undertakings must be commensurate with the level of ambition of the european green deal and the union’s climate-neutrality objective for 2050. it is therefore necessary to empower the commission to adopt union sustainability reporting standards , enabling their rapid adoption and ensuring that the content of sustainability reporting standards are consistent with the union’s needs. these standards are not binding , as the commission does not have legislative powers; such powers are held by parliament and the council.


### (36) sustainability reporting standards should take account of the commission guidelines on non-financial reporting60 and the commission guidelines on reporting climate-related information61. they should also take account of other reporting requirements in directive 2013/34/eu not directly related to sustainability , with the aim of providing the users of the reported information with a better understanding of the development , performance , position and impact of the undertaking , by maximising the links between the sustainability information and other information reported in accordance with directive 2013/34/eu. ### (36) sustainability reporting standards should take account of the commission guidelines on non-financial reporting60 and the commission guidelines on reporting climate-related information61. however , these guidelines are not binding , since they are not issued by an institution with legislative powers. they should also take account of other reporting requirements in directive 2013/34/eu not directly related to sustainability , with the aim of providing the users of the reported information with a better understanding of the development , performance , position and impact of the undertaking , by maximising the links between the sustainability information and other information reported in accordance with directive 2013/34/eu.