### 12. notes that corporations and investors are calling for mandatory human rights due diligence at union level , to harmonise standards , and secure a global level playing field and greater legal and business certainty; ### 12. notes that corporations and investors are calling for mandatory human rights due diligence at union level , to harmonise standards , and secure a global level playing field and greater legal and business certainty; stresses that any regulatory requirements need to be sufficiently clear for companies to be able to comply with those requirements and know how to avoid sanctions , and due diligence legislation should ensure competitive advantage for european companies in the short and medium term;


### 13. considers that conducting due diligence should not absolve undertakings from liability for the harm they have caused or have contributed to; further considers , however , that having a robust due diligence process in place may help undertakings to avoid causing harm; ### deleted


### 13. urges the commission to propose union mandatory human rights and environmental due diligence legislation imposing legal obligations on union companies and companies domiciled or operating in the union internal market and establishing effective monitoring , enforcement and remedy mechanisms; ### 13. urges the commission to propose union mandatory human rights and environmental due diligence legislation imposing legal obligations on union companies and companies domiciled or operating in the union internal market , including third country companies , and establishing effective monitoring , enforcement and remedy mechanisms;


### 13. urges the commission to propose union mandatory human rights and environmental due diligence legislation imposing legal obligations on union companies and companies domiciled or operating in the union internal market and establishing effective monitoring , enforcement and remedy mechanisms; ### 13. urges the commission to propose union mandatory human rights and environmental due diligence legislation imposing legal obligations on union companies; stresses that the legislation should focus on the first tier of the supply chain (t1) outside the eu;


### 14. considers that , in line with the un ‘protect , respect and remedy' framework considerations on the rights of victims to a remedy , the jurisdiction of eu courts should be extended to business-related civil claims brought against eu undertakings on account of harm caused within their value chain on account of human rights violations; further considers necessary the introduction into eu law of a forum necessitatis to give access to a court to victims who risk being denied justice; ### deleted


### 14. recommends that due diligence as required by union legislation be extended to all potential or actual adverse impacts which the company has or may have caused , contributed to or with which it may be directly linked; this extends to , but is not limited to , abuses across the entire value chain , including the parent undertaking , all subsidiaries , direct and indirect suppliers and subcontractors or other business partners; ### deleted


### 14. recommends that due diligence as required by union legislation be extended to all potential or actual adverse impacts which the company has or may have caused , contributed to or with which it may be directly linked; this extends to , but is not limited to , abuses across the entire value chain , including the parent undertaking , all subsidiaries , direct and indirect suppliers and subcontractors or other business partners; ### 14. recommends that due diligence as required by union legislation be extended to all impacts which the company has caused , contributed to or with which it may be directly linked; this extends to , but is not limited to , abuses across the entire value chain , including the parent undertaking , all subsidiaries , direct and indirect suppliers and subcontractors or other business partners;


### 14. recommends that due diligence as required by union legislation be extended to all potential or actual adverse impacts which the company has or may have caused , contributed to or with which it may be directly linked; this extends to , but is not limited to , abuses across the entire value chain , including the parent undertaking , all subsidiaries , direct and indirect suppliers and subcontractors or other business partners; ### 14. recommends that due diligence as required by union legislation be extended to all violations of internationally legally binding human rights which the company has or may have directly caused; this extends to , but is not limited to , violations across the entire value chain , including the parent undertaking , all subsidiaries , direct and indirect suppliers and subcontractors or other business partners;


### 15. stresses that victims of business-related adverse impacts are often not sufficiently protected by the law of the country where the harm has been caused; considers , in this regard , that victims of human rights abuses committed by eu undertakings should be allowed to choose the law of a legal system with high human rights standards , which could be that of the place where the defendant undertaking is domiciled; ### deleted


### 15. recommends that union legislation cover all companies and all sectors , including state-owned enterprises , the banking sector and financial institutions , including the european investment bank; ### deleted


### 15. recommends that union legislation cover all companies and all sectors , including state-owned enterprises , the banking sector and financial institutions , including the european investment bank; ### 15. recommends that union legislation cover all companies and all sectors , including state-owned enterprises , and provide special exemptions for smes in order to avoid disproportionate administrative and regulatory burdens on these small businesses;


### 16. requests that the commission submit without undue delay a legislative proposal on mandatory supply chain due diligence , following the recommendations set out in the annex hereto; considers that , without prejudice to detailed aspects of the future legislative proposal , articles 50 , 83(2) and 114 tfeu should be chosen as legal bases for the proposal; ### 16. requests that the commission submit without undue delay a legislative proposal on due diligence , following the recommendations set out in the annex hereto; considers that , without prejudice to detailed aspects of the future legislative proposal , articles 50 , 83(2) and 114 tfeu should be chosen as legal bases for the proposal;


### 16. stresses that all human rights are universal , indivisible , interdependent and interrelated and should be promoted and implemented in a fair and equitable manner; recommends that due diligence obligations should apply to all business-related human rights abuses; ### 16. stresses that all human rights are universal , indivisible , interdependent and interrelated and should be promoted and implemented in a fair and equitable manner; recommends that due diligence obligations should apply to all business-related violations of internationally legally binding human rights;


### 17. recommends that union mandatory due diligence legislation be adopted to require companies to identify and address their impacts with reference to all internationally recognised human rights including , as a minimum , those encompassed by the udhr , all nine core international human rights treaties , the ilo declaration on fundamental principles and rights at work and all fundamental ilo conventions , as well as the echr and icescr , which are binding on council of europe member states and also bind member states as a result of union law and the common constitutional traditions of the member states; ### 17. recommends that union mandatory due diligence legislation be adopted to require companies to identify and address their impacts with reference to all internationally recognised human rights including , as a minimum , those encompassed by the udhr , all nine core international human rights treaties bearing in mind that not every member state has ratified all the nine treaties , the ilo declaration on fundamental principles and rights at work and all fundamental ilo conventions , as well as the echr and icescr , which are binding on council of europe member states and also bind member states as a result of union law and the common constitutional traditions of the member states;


### 17. recommends that union mandatory due diligence legislation be adopted to require companies to identify and address their impacts with reference to all internationally recognised human rights including , as a minimum , those encompassed by the udhr , all nine core international human rights treaties , the ilo declaration on fundamental principles and rights at work and all fundamental ilo conventions , as well as the echr and icescr , which are binding on council of europe member states and also bind member states as a result of union law and the common constitutional traditions of the member states; ### 17. recommends that union mandatory due diligence legislation for the eu single market be adopted to ensure the full implementation of human rights including , as a minimum , those encompassed by the udhr , all nine core international human rights treaties , the ilo declaration on fundamental principles and rights at work and all fundamental ilo conventions , as well as the echr and icescr , which are binding on council of europe member states and also bind member states as a result of union law and the common constitutional traditions of the member states;


### having regard to the treaty on the functioning of the european union , and in particular articles 50 , 83(2) and 114 thereof , ### having regard to the treaty on the functioning of the european union , and in particular articles 50 , 83(2) , 114 , 153(1)(e) and 191 thereof ,


### 2. within a context of mounting evidence of human rights violations and environmental degradation , concern grew about ensuring businesses respected human rights , in particular when operating in countries with weak legal systems and enforcement , and holding them accountable for causing or contributing to harm. in this light , the un human rights council in 2008 unanimously welcomed the “protect , respect and remedy” framework. this framework rests on three pillars: the state duty to protect against human rights abuses by third parties , including businesses , through appropriate policies , regulation , and adjudication; the corporate responsibility to respect human rights , which means acting with due diligence to avoid infringing on the rights of others and to address adverse impacts that occur , and greater access by victims to effective remedy , both judicial and non-judicial. ### 2. within a context of mounting evidence of human rights violations and environmental degradation , concern grew about ensuring businesses respected human rights , in particular when operating in countries outside of the eu , with weak legal systems and enforcement. in this light , the un human rights council in 2008 unanimously welcomed the “protect , respect and remedy” framework. this framework rests on three pillars: the state duty to protect against human rights abuses by third parties , including businesses , through appropriate policies , regulation , and adjudication; the corporate responsibility to respect human rights , which means acting with due diligence to avoid infringing on the rights of others and to address adverse impacts that occur.


### 2. within a context of mounting evidence of human rights violations and environmental degradation , concern grew about ensuring businesses respected human rights , in particular when operating in countries with weak legal systems and enforcement , and holding them accountable for causing or contributing to harm. in this light , the un human rights council in 2008 unanimously welcomed the “protect , respect and remedy” framework. this framework rests on three pillars: the state duty to protect against human rights abuses by third parties , including businesses , through appropriate policies , regulation , and adjudication; the corporate responsibility to respect human rights , which means acting with due diligence to avoid infringing on the rights of others and to address adverse impacts that occur , and greater access by victims to effective remedy , both judicial and non-judicial. ### 2. within a context of mounting evidence of human rights violations and environmental degradation , concern grew about ensuring businesses respected human rights , in particular when operating in countries with weak legal systems and enforcement , and holding them accountable for causing or contributing to harm. in this light , the un human rights council in 2008 unanimously welcomed the “protect , respect and remedy” framework. this framework rests on three pillars: the state duty to protect against human rights abuses by third parties , including businesses , through appropriate policies , regulation , and adjudication; the corporate responsibility to respect human rights , which means acting with due diligence to avoid infringing on the rights of others and to address adverse impacts that occur.


### 3. this framework was followed by the un human rights council’s endorsement in 2011 of the “guiding principles on business and human rights” (ungps). the ungps introduced the first global standard for “due diligence” and enabled companies to put their responsibility to respect human rights into practice. subsequently , other international organisations developed due diligence standards based on the ungps. the 2011 oecd guidelines for multinational enterprises refer extensively to due diligence and the oecd has developed guidance to help enterprises carry out due diligence in specific sectors and supply chains. in 2018 , the oecd adopted general due diligence guidance for responsible business conduct. similarly , the international labour organisation (ilo) adopted in 2017 the ilo tripartite declaration of principles concerning multinational enterprises and social policy , which encourages enterprises to put in place due diligence mechanisms to identify , prevent , mitigate and account for the manner in which they address their business’s actual and potential adverse impacts as regards internationally recognized human rights. ### 3. this framework was followed by the un human rights council’s endorsement in 2011 of the “guiding principles on business and human rights” (ungps). the ungps introduced the first global standard for “due diligence” and enabled companies to put their responsibility to respect human rights into practice. subsequently , other international organisations developed due diligence standards based on the ungps. the 2011 oecd guidelines for multinational enterprises refer extensively to due diligence and the oecd has developed guidance to help enterprises carry out due diligence in specific sectors and supply chains. in 2018 , the oecd adopted general due diligence guidance for responsible business conduct. similarly , the international labour organisation (ilo) adopted in 2017 the ilo tripartite declaration of principles concerning multinational enterprises and social policy , which encourages enterprises to put in place due diligence mechanisms to identify , prevent , mitigate and account for the manner in which they address their business’s actual and potential adverse impacts as regards internationally recognized human rights. the 2012 united nations global compact , save the children and unicef children’s rights and business principles identify key children’s rights considerations relating to adverse business impact and unicef has developed a series of guidance documents supporting business due diligence and children. the 2013 un committee on the rights of the child general comment no. 16 identifies a comprehensive range of state obligations regarding the impact of the business sector on children’s rights , including states requiring businesses to undertake child-rights due diligence.


### 4. businesses thus currently have at their disposal an important number of international due diligence instruments that can help them fulfil their responsibility to respect human rights. while it is difficult to overstate the importance of these instruments for businesses that take their duty to respect human rights seriously , their voluntary nature hampers their effectiveness and their effect has indeed proved limited , with a restricted number of businesses voluntarily implementing human rights due diligence in relation to their activities and those of their business relationships. respect for human rights continues to play a marginal role in undertakings’ policies and strategies. this is exacerbated by many undertakings’ excessive focus on short-term profit maximisation. ### 4. businesses thus currently have at their disposal an important number of international due diligence instruments that can help them fulfil their responsibility to respect human rights. while it is difficult to overstate the importance of these instruments for businesses that take their duty to respect seriously , their voluntary nature can hamper their effectiveness , with a restricted number of businesses voluntarily implementing human rights due diligence in relation to their activities and those of their business relationships.


### 4. businesses thus currently have at their disposal an important number of international due diligence instruments that can help them fulfil their responsibility to respect human rights. while it is difficult to overstate the importance of these instruments for businesses that take their duty to respect human rights seriously , their voluntary nature hampers their effectiveness and their effect has indeed proved limited , with a restricted number of businesses voluntarily implementing human rights due diligence in relation to their activities and those of their business relationships. respect for human rights continues to play a marginal role in undertakings’ policies and strategies. this is exacerbated by many undertakings’ excessive focus on short-term profit maximisation. ### 4. businesses thus currently have at their disposal an important number of international due diligence instruments that can help them fulfil their responsibility to respect human rights. while it is difficult to overstate the importance of these instruments for businesses that take their duty to respect seriously , their effectiveness should be enhanced and other soft law measures should be developed in order to encourage businesses to voluntarily implement human rights due diligence in relation to their activities and those of their business relationships.


### to this end , it establishes minimum requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account , address and remediate the human rights , environmental and governance risks that those activities may pose. by coordinating safeguards for the protection of human rights , the environment and good governance , those due diligence requirements are aimed at improving the functioning of the internal market. ### to this end , it establishes requirements for undertakings to identify , mitigate and monitor the human rights and environmental risks that those activities may pose. by coordinating safeguards for the protection of human rights and the environment , these due diligence requirements aim at improving the functioning of the internal market.


### to this end , it establishes minimum requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account , address and remediate the human rights , environmental and governance risks that those activities may pose. by coordinating safeguards for the protection of human rights , the environment and good governance , those due diligence requirements are aimed at improving the functioning of the internal market. ### to this end , it establishes minimum requirements for undertakings to identify , mitigate and monitor the human rights and environmental risks that those activities may pose. by coordinating safeguards for the protection of human rights and the environment , those due diligence requirements are aimed at improving the functioning of the internal market while helping to prevent and reduce regulatory fragmentation and increasing legal certainty.


### 2. this directive further aims to ensure that undertakings can be held accountable for their adverse human rights , environmental and governance impacts throughout their value chain. ### deleted


### 2. this directive further aims to ensure that undertakings can be held accountable for their adverse human rights , environmental and governance impacts throughout their value chain. ### 2. this directive further aims to ensure that undertakings can be held accountable and liable for the adverse human rights , environmental and governance impacts they cause , contribute or are directly linked to throughout their value chain.


### in case of insurmountable incompatibility , the sector-specific legislation shall apply. ### in case of insurmountable incompatibility , the legislation that provides the highest standards of protection with regards to human rights , the environment and governance shall apply.


### 1. this directive shall apply to all undertakings governed by the law of a member state or established in the territory of the union. ### 1. this directive shall apply to undertakings governed by the law of a member state or established in the territory of the union with more than 5000 employees.


### 3. member states may exempt micro-undertakings as defined in directive 2013/34/eu from the application of the obligations set up in this directive. ### deleted


### 3. member states may exempt micro-undertakings as defined in directive 2013/34/eu from the application of the obligations set up in this directive. ### 3. small businesses and smes such as micro-undertakings as defined in directive 2013/34/eu shall be exempted from the application of the obligations set up in this directive.


### - 'due diligence' means the process put in place by an undertaking aimed at identifying , ceasing , preventing , mitigating , monitoring , disclosing , accounting for , addressing , and remediating the risks posed to human rights , including social and labour rights , the environment , including through climate change , and to governance , both by its own operations and by those of its business relationships. ### - “due diligence obligation” means the obligation for an undertaking to take all reasonable measures to prevent human rights and environmental adverse impacts from occurring down their value chains , and to properly address such adverse impacts when they occur. the exercise of a due diligence obligation means identifying , assessing , preventing , ceasing , mitigating , monitoring , tracking , communicating , disclosing , accounting for , addressing , and remediating the potential and actual adverse impacts on human rights , including social and labour rights , the environment , including the contribution to climate change , and governance , in their own operations , their value chain and other business relationships.


### - 'due diligence' means the process put in place by an undertaking aimed at identifying , ceasing , preventing , mitigating , monitoring , disclosing , accounting for , addressing , and remediating the risks posed to human rights , including social and labour rights , the environment , including through climate change , and to governance , both by its own operations and by those of its business relationships. ### - “due diligence” means first , an obligation of means and second , a business process imposed on such undertaking to take reasonable precautions to identify , mitigate and monitor the risks posed to human rights and the environment by its own operations and by those of its direct business relationships.


### - ‘stakeholders’ means individuals and groups of individuals whose rights or interests may be affected by the human rights , environmental and good governance risks posed by an undertaking or its business relationships , as well as organisations whose statutory purpose is the defence of human rights , including social and labour rights , the environment and good governance , and includes but is not limited to workers and their representatives , local communities , indigenous peoples , citizens’ associations , trade unions , civil society organisations and the undertakings’ shareholders. ### - ‘stakeholders’ means individuals and groups of individuals who have a direct interest to take legal action in relation to human rights and environmental risks posed by an undertaking or its direct contractual business relationships.


### - ‘stakeholders’ means individuals and groups of individuals whose rights or interests may be affected by the human rights , environmental and good governance risks posed by an undertaking or its business relationships , as well as organisations whose statutory purpose is the defence of human rights , including social and labour rights , the environment and good governance , and includes but is not limited to workers and their representatives , local communities , indigenous peoples , citizens’ associations , trade unions , civil society organisations and the undertakings’ shareholders. ### - ‘stakeholders’ means individuals and groups of individuals whose rights or interests may be affected by the human rights , environmental and good governance risks posed by an undertaking or its business relationships , as well as organisations whose statutory purpose is the defence of human rights , including social and labour rights , the environment and good governance , and includes but is not limited to workers and their representatives , local communities , children , indigenous peoples , citizens’ associations , trade unions , civil society organisations and the undertakings’ shareholders.


### - ‘business relationships’ means the network of relationships of an undertaking with business partners and other entities along its entire value chain , and any other non-state or state entity directly linked to the undertaking’s business operations , products or services. ### - ‘direct contractual business relationships’ means the network of relationships of an undertaking with business partners in the first tier of its supply chain located outside the eu.


### - ‘supplier’ means all business relationships that provide a product or service to an undertaking , either directly or indirectly. ### - ‘supplier’ means all undertakings that provide a product or service directly to an undertaking in the context of a business relationship.


### - ‘value chain’ means all activities , operations , business relationships and investment chains of an undertaking inside or outside the eu. value chain includes entities with which the undertaking has a direct or indirect business relationship , upstream and downstream , and which either (a) supply products or services that contribute to the undertaking’s own products or services , or (b) receive products or services from the undertaking. ### - ‘first tier of the supply chain outside the eu’ means an upstream network characterized by direct contractual business relationships between a company and its suppliers located outside the eu to produce and distribute a specific product to the final buyer


### - ‘risk’ means a potential or actual adverse impact on individuals , groups of individuals and other organisations in relation to human rights , including social and labour rights , the environment , and good governance; ### deleted


### - ‘human rights risk’ means any potential or actual adverse impact that may impair the full enjoyment of human rights by individuals or groups of individuals in relation to internationally recognized human rights , understood , at a minimum , as those expressed in the international bill of human rights , the united nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities , and the principles concerning fundamental rights set out in the ilo declaration on fundamental principles and rights at work , as well as those recognised in the ilo convention on freedom of association and the effective recognition of the right to collective bargaining , the ilo convention on the elimination of all forms of forced or compulsory labour , the ilo convention on the effective abolition of child labour , and the ilo convention on the elimination of discrimination in respect of employment and occupation. they further include , but are not restricted to , adverse impacts in relation to other rights recognised in a number of ilo conventions , such as freedom of association , minimum age , occupational safety and health , and equal remuneration , and the rights recognised in the convention on the rights of the child , the african charter of human and peoples’ rights , the american convention on human rights , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , and national constitutions and laws recognising or implementing human rights. ### - ‘human rights risk’ means any potential or actual adverse impact that may impair the fulfilment of human rights of individuals or groups of individuals in relation to the internationally recognized human rights instruments listed in annex i. the commission is empowered to adopt delegated acts in accordance with article 18(a) , to amend this exhaustive list.


### - ‘human rights risk’ means any potential or actual adverse impact that may impair the full enjoyment of human rights by individuals or groups of individuals in relation to internationally recognized human rights , understood , at a minimum , as those expressed in the international bill of human rights , the united nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities , and the principles concerning fundamental rights set out in the ilo declaration on fundamental principles and rights at work , as well as those recognised in the ilo convention on freedom of association and the effective recognition of the right to collective bargaining , the ilo convention on the elimination of all forms of forced or compulsory labour , the ilo convention on the effective abolition of child labour , and the ilo convention on the elimination of discrimination in respect of employment and occupation. they further include , but are not restricted to , adverse impacts in relation to other rights recognised in a number of ilo conventions , such as freedom of association , minimum age , occupational safety and health , and equal remuneration , and the rights recognised in the convention on the rights of the child , the african charter of human and peoples’ rights , the american convention on human rights , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , and national constitutions and laws recognising or implementing human rights. ### - ‘human rights impact’ means any adverse impact that may impair the full enjoyment of human rights by individuals or groups of individuals in relation to internationally recognized human rights , understood , at a minimum , as those expressed in the international human rights conventions that are binding upon the european union or its member states , the international bill of human rights , international humanitarian law , the united nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities , and the principles concerning fundamental rights set out in the ilo declaration on fundamental principles and rights at work , as well as those recognised in the ilo convention on freedom of association and the effective recognition of the right to collective bargaining , the ilo convention on the elimination of all forms of forced or compulsory labour , the ilo convention on the effective abolition of child labour , and the ilo convention on the elimination of discrimination in respect of employment and occupation. they further include , but are not restricted to , adverse impacts in relation to other rights recognised in a number of ilo conventions , such as freedom of association , minimum age , occupational safety and health , and equal remuneration , and the rights recognised in the convention on the rights of the child , the african charter of human and peoples’ rights , the american convention on human rights , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , and national constitutions and laws recognising or implementing human rights.


### - ‘environmental risk’ means any potential or actual adverse impact that may impair the right to a healthy environment , whether temporarily or permanently , and of whatever magnitude , duration or frequency. these include , but are not limited to , adverse impacts on the climate , the sustainable use of natural resources , and biodiversity and ecosystems. these risks include climate change , air and water pollution , deforestation , loss in biodiversity , and greenhouse emissions. ### - ‘environmental impact’ means any violation of internationally recognized environmental standards , any adverse impact on the environment , regardless of whether this adverse impact has directly affected humans or human rights. environmental impacts that may impair the right to a healthy environment , whether temporarily or permanently , and of whatever magnitude , duration or frequency shall be considered as particularly serious. these include , but are not limited to , adverse impacts on the climate , the sustainable use of natural resources , and biodiversity and ecosystems. these risks include climate change , air and water pollution , deforestation , loss in biodiversity , and greenhouse emissions.


### - ‘environmental risk’ means any potential or actual adverse impact that may impair the right to a healthy environment , whether temporarily or permanently , and of whatever magnitude , duration or frequency. these include , but are not limited to , adverse impacts on the climate , the sustainable use of natural resources , and biodiversity and ecosystems. these risks include climate change , air and water pollution , deforestation , loss in biodiversity , and greenhouse emissions. ### - ‘environmental risk’ means any potential or actual adverse impact as regards climate change , air and water pollution , deforestation , loss in biodiversity , and greenhouse emissions that may impair the right to a healthy environment , whether temporarily or permanently , and of whatever magnitude , duration or frequency , in breach of the applicable legal obligations provided for in the union acts listed in annex ii. the commission is empowered to adopt delegated acts in accordance with article 18(a) , to amend this exhaustive list.


### - ‘governance risk’ means any potential or actual adverse impact on the good governance of a country , region or territory. these include , but are not limited to , non-compliance with oecd guidelines for multinational enterprises , chapter vii on combatting bribery , bribe solicitation and extortion and the principles of the oecd convention on combating bribery of foreign public officials in international business transactions and situations of corruption and bribery where an undertaking exercises undue influence on , or channels undue pecuniary advantages to , public officials to obtain privileges or unfair favourable treatment in breach of the law , and including situations in which an undertaking becomes improperly involved in local political activities , makes illegal campaign contributions or fails to comply with the applicable tax legislation. ### deleted


### - ‘governance risk’ means any potential or actual adverse impact on the good governance of a country , region or territory. these include , but are not limited to , non-compliance with oecd guidelines for multinational enterprises , chapter vii on combatting bribery , bribe solicitation and extortion and the principles of the oecd convention on combating bribery of foreign public officials in international business transactions and situations of corruption and bribery where an undertaking exercises undue influence on , or channels undue pecuniary advantages to , public officials to obtain privileges or unfair favourable treatment in breach of the law , and including situations in which an undertaking becomes improperly involved in local political activities , makes illegal campaign contributions or fails to comply with the applicable tax legislation. ### - ‘governance impact’ means any adverse impact on the good governance of a country , region or territory. these include , but are not limited to , non-compliance with oecd guidelines for multinational enterprises , chapter vii on combatting bribery , bribe solicitation and extortion and the principles of the oecd convention on combating bribery of foreign public officials in international business transactions and situations of corruption and bribery where an undertaking exercises undue influence on , or channels undue pecuniary advantages to , public officials to obtain privileges or unfair favourable treatment in breach of the law , and including situations in which an undertaking becomes improperly involved in local political activities , makes illegal campaign contributions or fails to comply with the applicable tax legislation.


### 1. member states shall lay down rules to ensure that undertakings carry out due diligence with respect to human rights , environmental and governance risks in their operations and business relationships. ### 1. member states shall lay down rules to ensure that undertakings carry out due diligence with respect to human rights and environmental risks in their operations and direct contractual business relationships.


### 1. member states shall lay down rules to ensure that undertakings carry out due diligence with respect to human rights , environmental and governance risks in their operations and business relationships. ### 1. member states shall lay down rules to ensure that undertakings carry out due diligence with respect to human rights and environmental risks in their operations and business relationships.


### 2. undertakings shall in an ongoing manner identify and assess by means of an appropriate monitoring methodology whether their operations and business relationships cause or contribute to any human rights , environmental or governance risks. ### 2. undertakings shall in an ongoing manner identify and assess by means of an appropriate monitoring methodology whether their operations and direct business relationships cause or contribute to any human rights or environmental risks.


### 3. if an undertaking concludes that it does not cause or contribute to risks , it shall publish a statement in that sense , including its risk assessment , which shall be reviewed in the event that new risks emerge or in the event of the undertaking entering into new business relationships that can pose risks. ### deleted


### 4. if an undertaking identifies risks , it shall establish a due diligence strategy. the due diligence strategy shall: ### 4. undertakings shall establish and effectively implement a due diligence strategy. as part of their due diligence strategy , undertakings shall at a minimum:


### specify the risks that the undertaking has identified as likely to be present in its operations and business relationships and the level of severity and urgency thereof. ### identify and specify the potential or actual adverse human rights , environmental and governance impacts that are likely to be present in its operations and the operations of its business relationships and the level of severity , likelihood and urgency thereof.


### (ii) publicly disclose detailed , relevant and meaningful information about the undertaking’s value chain , including names , locations , and other relevant information concerning subsidiaries , suppliers and business partners in its value chain; ### deleted


### (ii) publicly disclose detailed , relevant and meaningful information about the undertaking’s value chain , including names , locations , and other relevant information concerning subsidiaries , suppliers and business partners in its value chain; ### (ii) map their value chain and publicly disclose detailed , relevant and meaningful information , including names , locations , types of products and services supplied , and other relevant information concerning subsidiaries , suppliers , subcontractors and business relationships;


### (iii) indicate the policies and measures that the undertaking intends to adopt with a view to ceasing , preventing or mitigating those risks; ### (iii) adopt all reasonable policies and measures with a view to ceasing , preventing or mitigating potential or actual adverse impacts;


### (iv) set up a prioritisation policy for cases in which the undertaking is not in a position to deal with all the risks at the same time. undertakings shall consider the level of severity and urgency of the different risks present , the scope of the risks , their scale and how irremediable they might be , and if necessary , use the prioritisation policy in dealing with these; ### (iv) set up a prioritisation strategy for cases in which the undertaking is not in a position to deal with all the risks at the same time. undertakings shall consider the level of severity , likelihood and urgency of the different potential or actual adverse impacts , the scope of the risks , their scale and how irremediable they might be , and if necessary , use the prioritisation policy in dealing with these;


### 5. undertakings shall make all reasonable efforts to identify subcontractors and suppliers in their entire value chain. ### 5. undertakings shall make all reasonable efforts to identify subcontractors and suppliers in the first tier of the supply chain outside the eu.


### 6. undertakings shall indicate how their due diligence strategy relates to and integrates with their business strategy , their policies , including purchase policies , and procedures. ### deleted


### 7. the subsidiaries of an undertaking or the companies controlled by an undertaking shall be deemed in compliance with the obligation to establish a due diligence strategy if their parent or controlling company includes them in their due diligence strategy. ### deleted


### 8. undertakings shall carry out value chain due diligence which is proportionate and commensurate to their specific circumstances , particularly their sector of activity , the size and length of their supply chain , the size of the undertaking , its capacity , resources and leverage. ### deleted


### 9. undertakings shall ensure by means of contractual clauses and the adoption of codes of conduct that their business relationships put in place and carry out human rights , environmental and governance policies that are in line with their due diligence strategy. ### 9. undertakings shall ensure by means of contractual clauses and the adoption of codes of conduct that their business relationships in the first tier of the supply chain outside the eu put in place and carry out human rights and environmental policies that are in line with their due diligence strategy.


### 1. member states shall ensure that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that is appropriate to their size and the nature and context of their operations , and shall guarantee , in particular , the right for trade unions at the relevant level to be involved in the establishment and implementation of the due diligence strategy in good faith with their undertaking. ### 1. the commission and the member states shall encourage that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy as appropriate to their size and the nature and context of their operations.


### 2. member states shall ensure that stakeholders are entitled to request from the undertaking that they are consulted within the terms of paragraph 1. ### deleted


### 3. effective protection mechanisms and measures shall be put in place by the undertaking to ensure that affected or potentially affected stakeholders are not put at risk due to participating in the consultations referred to in paragraph 1. ### deleted


### 4. consultations with indigenous peoples shall be undertaken in accordance with international human rights standards , including the standard of free , prior and informed consent and respecting indigenous peoples’ right to self-determination. ### deleted


### 6. member states shall ensure that where an undertaking refuses to carry out consultations with stakeholders , fails to involve trade unions in good faith , or does not adequately inform and consult workers or their representatives , stakeholders and trade unions may refer the matter to the competent national authority ### deleted


### 1. member states shall ensure that undertakings make their due diligence strategy publicly available , accessible and free of charge , especially on the undertakings’ websites. ### deleted


### 22. notes that the united nations high commissioner for human rights and human rights council have stated that climate change has an adverse impact on the full and effective enjoyment of human rights; underlines that the member states of the united nations have an obligation to respect human rights when addressing adverse impacts of climate change; points out that the supreme court of the netherlands has confirmed that articles 2 and 8 of the echr impose a positive obligation for state parties to take appropriate measures to prevent dangerous climate change; insists that climate change mitigation and adaptation in line with the paris agreement’s temperature goals must form part of businesses’ human rights and environmental due diligence obligations under the legislation; ### 22. notes that the united nations high commissioner for human rights and human rights council have stated that climate change has an adverse impact on the full and effective enjoyment of human rights; underlines that the member states of the united nations have an obligation to respect human rights when addressing adverse impacts of climate change; insists that climate change mitigation and adaptation in line with the paris agreement’s temperature goals must form part of businesses’ human rights and environmental due diligence obligations under the legislation;


### 22. notes that the united nations high commissioner for human rights and human rights council have stated that climate change has an adverse impact on the full and effective enjoyment of human rights; underlines that the member states of the united nations have an obligation to respect human rights when addressing adverse impacts of climate change; points out that the supreme court of the netherlands has confirmed that articles 2 and 8 of the echr impose a positive obligation for state parties to take appropriate measures to prevent dangerous climate change; insists that climate change mitigation and adaptation in line with the paris agreement’s temperature goals must form part of businesses’ human rights and environmental due diligence obligations under the legislation; ### 22. notes that the united nations high commissioner for human rights and human rights council have stated that climate change has an adverse impact on the full and effective enjoyment of human rights; underlines that the member states of the united nations have an obligation to respect human rights when addressing adverse impacts of climate change; points out that the supreme court of the netherlands has confirmed that articles 2 and 8 of the echr impose a positive obligation for state parties to take appropriate measures to prevent dangerous climate change; insists that climate change mitigation and adaptation in line with the paris agreement’s temperature goals must form part of multinational businesses’ human rights and environmental due diligence obligations under the legislation;


### 23. notes that some corporations unlawfully exploit natural resources , which not only constitutes a major sustainability and environmental challenge but also results in severe adverse impacts on the social , economic , cultural , civil and political rights of local communities; such business practices violate the fundamental right of peoples to self-determination and the principle of permanent sovereignty , access and control over their natural resources , enshrined in un general assembly resolution 1803 (xvii); recommends that the legislation requires member states to regulate businesses’ activity in compliance with their commitment to the principles enshrined in the charter of the united nations , including the fundamental principles of equality , non-discrimination and self-determination of peoples; ### 23. notes that some corporations unlawfully exploit natural resources , which not only constitutes a major sustainability challenge and causes environmental degradation but also results in severe adverse impacts on the social , economic , cultural , civil and political rights of local communities especially impacting indigenous people and minorities; such business practices violate the fundamental right of peoples to self-determination and the principle of permanent sovereignty , access and control over their natural resources , enshrined in un general assembly resolution 1803 (xvii); recommends that the legislation requires member states to regulate businesses’ activity in compliance with their commitment to the principles enshrined in the charter of the united nations , including the fundamental principles of equality , non-discrimination and self-determination of peoples;


### 23. notes that some corporations unlawfully exploit natural resources , which not only constitutes a major sustainability and environmental challenge but also results in severe adverse impacts on the social , economic , cultural , civil and political rights of local communities; such business practices violate the fundamental right of peoples to self-determination and the principle of permanent sovereignty , access and control over their natural resources , enshrined in un general assembly resolution 1803 (xvii); recommends that the legislation requires member states to regulate businesses’ activity in compliance with their commitment to the principles enshrined in the charter of the united nations , including the fundamental principles of equality , non-discrimination and self-determination of peoples; ### 23. notes that some corporations unlawfully exploit natural resources , which not only constitutes a major sustainability and environmental challenge but also results in severe adverse impacts on the social , economic , cultural , civil and political rights of local communities; such business practices violate the principle of permanent sovereignty , access and control over their natural resources , enshrined in un general assembly resolution 1803 (xvii); recommends that the legislation requires member states to regulate businesses’ activity in compliance with their commitment to the principles enshrined in the charter of the united nations , including the fundamental principles of equality , non-discrimination and self-determination of peoples;


### 25. notes that some businesses are accused of profiting from or even complicity in war crimes and crimes against humanity due to their own activity or that of their business partners in conflict-affected areas or to their business relationships with state- or non-state actors involved in conflicts globally; recommends that , in order to prevent substantial risks of grave human rights abuses and serious breaches of international law , the scope of due diligence under union legislation be extended to breaches of international criminal law and international humanitarian law in which businesses may be implicated; ### 25. notes that some businesses are accused of profiting from or even complicity in war crimes and crimes against humanity due to their own activity or that of their business partners in conflict-affected areas or to their business relationships with state- or non-state actors involved in conflicts globally; recommends that , in order to prevent substantial risks of grave violations of internationally legally binding human rights and serious breaches of international law , the scope of due diligence under union legislation be extended to breaches of international criminal law and international humanitarian law in which businesses may be implicated;


### 25. notes that some businesses are accused of profiting from or even complicity in war crimes and crimes against humanity due to their own activity or that of their business partners in conflict-affected areas or to their business relationships with state- or non-state actors involved in conflicts globally; recommends that , in order to prevent substantial risks of grave human rights abuses and serious breaches of international law , the scope of due diligence under union legislation be extended to breaches of international criminal law and international humanitarian law in which businesses may be implicated; ### 25. notes that some businesses are accused of profiting from or even complicity in war crimes and crimes against humanity due to their own activity or that of their business partners in conflict-affected areas or to their business relationships with state- or non-state actors involved in conflicts globally; recommends that , in order to prevent substantial risks of grave human rights abuses and serious breaches of international law , the scope of due diligence under union legislation be extended to breaches of international criminal law and international humanitarian law in which businesses are directly implicated;


### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms; ### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence should be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses;


### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms; ### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses;


### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms; ### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect universal human rights as articulated by the ungps; businesses should avoid infringing human rights and address them in case of violations , having in place a specific policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related violations of internationally legally binding human rights , including at company level , and other grievance mechanisms;


### 27. is of the view that businesses have a responsibility to ensure that their activities do not undermine or harm the protection of human and environmental rights; insists they must not promote , participate or in any manner contribute to , or endorse policies and activities , which can lead to human rights violations; underlines that businesses must do everything possible , within their capacities , to prevent and mitigate the effect of adverse impacts; ### 27. is of the view that businesses have a responsibility to ensure that their activities do not undermine or harm the protection of human and environmental rights; insists they must not promote , participate or in any manner contribute to , or endorse policies and activities , which can lead to human rights violations , especially regarding religious minorities; underlines that businesses must do everything possible , within their capacities , to prevent and mitigate the effect of adverse impacts;


### 27. is of the view that businesses have a responsibility to ensure that their activities do not undermine or harm the protection of human and environmental rights; insists they must not promote , participate or in any manner contribute to , or endorse policies and activities , which can lead to human rights violations; underlines that businesses must do everything possible , within their capacities , to prevent and mitigate the effect of adverse impacts; ### 27. is of the view that businesses have a responsibility to ensure that their activities do not undermine or harm the protection of human , religious and environmental rights; insists they must not promote , participate or in any manner contribute to , or endorse policies and activities , which can lead to human rights violations; underlines that businesses must do everything possible , within their capacities , to prevent and mitigate the effect of adverse impacts;


### 27. is of the view that businesses have a responsibility to ensure that their activities do not undermine or harm the protection of human and environmental rights; insists they must not promote , participate or in any manner contribute to , or endorse policies and activities , which can lead to human rights violations; underlines that businesses must do everything possible , within their capacities , to prevent and mitigate the effect of adverse impacts; ### 27. is of the view that businesses have a responsibility to ensure that their activities do not undermine the protection of human and environmental rights; insists they must not promote , participate or in any manner contribute to , or endorse policies and activities , which can lead to human rights violations; underlines that businesses must do everything possible , within their capacities , to prevent and mitigate the effect of adverse impacts;


### 28. stresses that human rights impacts can be specific to certain rights holders and vulnerable groups due to intersecting factors such as gender , ethnicity , social and employment status , migrant or refugee status , exposure to conflict or violence or other factors; this must be reflected in the due diligence processes , including the human rights impact assessment phase and remedy procedures; ### 28. stresses that human rights impacts can be specific to certain rights holders and vulnerable groups due to intersecting factors such as gender , ethnicity , religion , social and employment status , migrant or refugee status , indigenous status , exposure to conflict or violence or other factors; this must be reflected in the due diligence processes , including the human rights impact assessment phase and remedy procedures;


### 28. stresses that human rights impacts can be specific to certain rights holders and vulnerable groups due to intersecting factors such as gender , ethnicity , social and employment status , migrant or refugee status , exposure to conflict or violence or other factors; this must be reflected in the due diligence processes , including the human rights impact assessment phase and remedy procedures; ### 28. stresses that universal human rights impacts can be specific to certain rights holders and vulnerable groups due to intersecting factors such as age , sex , ethnicity , religion , social and employment status , migrant or refugee status , exposure to conflict or violence or other factors; this must be reflected in the due diligence processes , including the human rights impact assessment phase and remedy procedures;


### 28. stresses that human rights impacts can be specific to certain rights holders and vulnerable groups due to intersecting factors such as gender , ethnicity , social and employment status , migrant or refugee status , exposure to conflict or violence or other factors; this must be reflected in the due diligence processes , including the human rights impact assessment phase and remedy procedures; ### 28. stresses that human rights impacts can be specific to certain rights holders and vulnerable groups due to intersecting factors such as gender , ethnicity , social and employment status , migrant or refugee status , disability , exposure to conflict or violence or other factors; this must be reflected in the due diligence processes , including the human rights impact assessment phase and remedy procedures;


### 28. stresses that human rights impacts can be specific to certain rights holders and vulnerable groups due to intersecting factors such as gender , ethnicity , social and employment status , migrant or refugee status , exposure to conflict or violence or other factors; this must be reflected in the due diligence processes , including the human rights impact assessment phase and remedy procedures; ### 28. stresses that human rights impacts can be specific to certain rights holders and vulnerable groups due to intersecting factors such as gender , ethnicity , social , religious and employment status , migrant or refugee status , exposure to conflict or violence or other factors; this must be reflected in the due diligence processes , including the human rights impact assessment phase and remedy procedures;


### 29. notes that the risk of business-related human rights adverse impacts does not always depend on the size of the company; insists that the scope of due diligence obligations must be based on the risk of adverse impacts and must be specific to the country and sector of activity; recalls that according to the ungps , three factors should be taken into account in assessing the severity of business impacts on human rights: the scale of the impact , the scope of the impact and whether the impact is irremediable; ### 29. insists that the scope of due diligence obligations must be based on the risk of adverse impacts and must be specific to the country and sector of activity; recalls that according to the ungps , three factors should be taken into account in assessing the severity of business impacts on human rights: the scale of the impact , the scope of the impact and whether the impact is irremediable;


### 29. notes that the risk of business-related human rights adverse impacts does not always depend on the size of the company; insists that the scope of due diligence obligations must be based on the risk of adverse impacts and must be specific to the country and sector of activity; recalls that according to the ungps , three factors should be taken into account in assessing the severity of business impacts on human rights: the scale of the impact , the scope of the impact and whether the impact is irremediable; ### 29. notes that the risk of business-related human rights violations does not always depend on the size of the company; insists that the scope of due diligence obligations must be based on the risk of violations and must be specific to the country and sector of activity; recalls that according to the ungps , three factors should be taken into account in assessing the severity of business impacts on human rights: the scale of the impact , the scope of the impact and whether the impact is irremediable;


### 30. notes that human right risks are context-specific and that , to accurately assess human rights risks , prevent , mitigate and remedy adverse impacts , businesses should include in their analysis , in addition to information from employees , right-holders , affected communities and workers’ representatives , information from reliable independent expert sources , for which transparency is key; stresses in this regard , the key role of national human rights institutions , ngos human rights oversight bodies such as the united nations , ilo and council of europe , osce supervisory mechanisms , and the european union agency for fundamental rights as relevant sources of information and reporting; ### 30. notes that human right risks are context-specific and that , to accurately assess human rights risks , prevent , mitigate and remedy adverse impacts , businesses should seek cooperation and information from reliable independent expert sources , for which transparency is key; stresses in this regard , the key role of national human rights institutions , ngos human rights oversight bodies such as the united nations , ilo and council of europe , osce supervisory mechanisms , and the european union agency for fundamental rights as relevant sources of information and reporting;


### 30. notes that human right risks are context-specific and that , to accurately assess human rights risks , prevent , mitigate and remedy adverse impacts , businesses should include in their analysis , in addition to information from employees , right-holders , affected communities and workers’ representatives , information from reliable independent expert sources , for which transparency is key; stresses in this regard , the key role of national human rights institutions , ngos human rights oversight bodies such as the united nations , ilo and council of europe , osce supervisory mechanisms , and the european union agency for fundamental rights as relevant sources of information and reporting; ### 30. notes that human right violations are context-specific and that , to accurately assess , prevent , mitigate and remedy these violations , businesses should include in their analysis , in addition to information from employees , right-holders , affected communities and workers’ representatives , information from reliable independent expert sources , for which transparency is key; stresses in this regard , the key role of national human rights institutions , ngos human rights oversight bodies such as the united nations , ilo and council of europe , osce supervisory mechanisms , and the european union agency for fundamental rights as relevant sources of information and reporting;


### 31. notes that in order to assess human rights risks , independent monitoring of human rights impacts and working conditions in supply chains is essential , in particular by means of monitoring , which has workers and affected communities at its core and fully involves relevant stakeholders; ### 31. notes that in order to assess human rights violations , independent and non-ideological monitoring of human rights impacts and working conditions in supply chains is essential , in particular by means of monitoring , which has workers and affected communities at its core and fully involves relevant stakeholders;


### 32. notes that due diligence also necessitates measuring the effectiveness of processes and measures taken and communicating results , including periodically producing public evaluation reports; ### 32. notes that due diligence also necessitates measuring the effectiveness of processes and measures taken and communicating results , including when deemed necessary producing public evaluation reports , while fully complying with competition policy and the need to protect internal business know-how;


### 33. stresses that transparency must be at the core and the overriding principle of the monitoring and assessment process and that external participation , oversight and verification are key elements for robust and meaningful corporate human rights due diligence and its evaluation; calls , accordingly , for union due diligence legislation to require the publication of lists of companies within its scope , the publication of due diligence reports via online public repositories , and the identification of companies that comply or have failed to comply with due diligence obligations; ### 33. stresses that transparency must be at the core and the overriding principle of the tracking , monitoring and assessment process and that external participation , oversight and verification are key elements for robust and meaningful corporate human rights due diligence and its evaluation;


### 34. is of the view that transparency should not be corporate led but based on the right to know of those who are impacted by commercial activities , including workers , communities and consumers; suggests that stakeholders have a right to know such information in a comprehensive , timely and honest manner; believes that enforcing the right to be informed allows for the clear establishment of duties and duty bearers and rights and right-holders; ### deleted


### 35. notes that rights holders primarily affected by business-related human rights abuses often lack adequate access to information about their rights and about how they are given effect in domestic legislative systems , and have difficulty accessing state agencies and organisations concerned with protection and enforcement of their rights; recommends that the legislation encourage businesses to engage with all affected and potentially affected stakeholders , with their representatives , or both , including workers’ representatives , at all stages of the due diligence process , from development to monitoring and evaluation , in a timely and meaningful manner; ### 35. notes that rights holders primarily affected by business-related human rights abuses often lack adequate access to information about their rights and about how they are given effect in domestic legislative systems , and have difficulty accessing state agencies and organisations concerned with protection and enforcement of their rights; recommends that the legislation encourage businesses to engage with all affected stakeholders , with their representatives , or both , including workers’ representatives , at all stages of the due diligence process , from development to monitoring and evaluation , in a timely and meaningful manner;


### 35. notes that rights holders primarily affected by business-related human rights abuses often lack adequate access to information about their rights and about how they are given effect in domestic legislative systems , and have difficulty accessing state agencies and organisations concerned with protection and enforcement of their rights; recommends that the legislation encourage businesses to engage with all affected and potentially affected stakeholders , with their representatives , or both , including workers’ representatives , at all stages of the due diligence process , from development to monitoring and evaluation , in a timely and meaningful manner; ### 35. notes that rights holders primarily affected by business-related human rights violations often lack adequate access to information about their rights and about how they are given effect in domestic legislative systems , and have difficulty accessing state agencies and organisations concerned with protection and enforcement of their rights; recommends that the legislation encourage businesses to engage with all affected and potentially affected stakeholders , with their representatives , or both , including workers’ representatives , at all stages of the due diligence process , from development to monitoring and evaluation , in a timely and meaningful manner;


### protection of whistle-blowers , human rights and environmental defenders ### protection of whistle-blowers , human rights , human dignity and environmental defenders


### 37. suggests that the companies establish effective alert mechanisms; through recourse to such mechanisms any interested party , including trade unions , consumers , journalists , civil society organisations , lawyers , and human rights and environmental defenders , or members of the public , should be able to warn the company of adverse impacts and human rights violations; ### 37. suggests that the companies establish effective alert mechanisms; through recourse to such mechanisms any interested party , including trade unions , consumers , journalists , civil society organisations , including faith-based organisations , as well as churches and religious communities , lawyers , human rights and environmental defenders , or members of the public , should be able to talk and potential send early warning signs to the company of adverse impacts and human rights violations;


### 37. suggests that the companies establish effective alert mechanisms; through recourse to such mechanisms any interested party , including trade unions , consumers , journalists , civil society organisations , lawyers , and human rights and environmental defenders , or members of the public , should be able to warn the company of adverse impacts and human rights violations; ### 37. suggests that the companies establish effective alert mechanisms; through recourse to such mechanisms any interested party , including trade unions , consumers , journalists , civil society organisations , including churches and faith based organisations , lawyers , and human rights and environmental defenders , or members of the public , should be able to warn the company of human rights violations;


### 39. deplores that an increasing number of attacks are documented on human rights and environmental defenders and that 572 attacks occurred in 2019 alone; stresses that article 12 of the united nations declaration on human rights defenders imposes a duty on states to ensure the protection of everyone against violence , threats , retaliation , discrimination or any other arbitrary action as a consequence of his or her legitimate right to promote human rights; ### 39. deplores that an increasing number of attacks are documented on human rights and environmental defenders and that 572 attacks occurred in 2019 alone and some of them caused life or serious health damage of environmental activists; stresses that article 12 of the united nations declaration on human rights defenders imposes a duty on states to ensure the protection of everyone against violence , threats , retaliation , discrimination or any other arbitrary action as a consequence of his or her legitimate right to promote human rights;


### 42. highlights the fact that , as recalled by the ungps , states have the duty to ensure , through judicial , administrative , legislative or other appropriate means , that those affected by business-related human rights abuses have access to an effective remedy; recommends that the legislation makes specific reference to this obligation in line with the united nations basic principles and guidelines on the rights to remedy and reparation for victims of gross violations of international human rights law and serious violations of international humanitarian law; ### 42. highlights the fact that , as recalled by the ungps , states and not companies have the duty to ensure , through judicial , administrative , legislative or other appropriate means , that those affected by business-related human rights abuses for which the company is directly responsible have access to an effective remedy; recommends that the legislation makes specific reference to this obligation in line with the united nations basic principles and guidelines on the rights to remedy and reparation for victims of gross violations of international human rights law and serious violations of international humanitarian law;


### 42. highlights the fact that , as recalled by the ungps , states have the duty to ensure , through judicial , administrative , legislative or other appropriate means , that those affected by business-related human rights abuses have access to an effective remedy; recommends that the legislation makes specific reference to this obligation in line with the united nations basic principles and guidelines on the rights to remedy and reparation for victims of gross violations of international human rights law and serious violations of international humanitarian law; ### 42. highlights the fact that , as recalled by the ungps , states have the duty to ensure , through judicial , administrative , legislative or other appropriate means , that those affected by business-related internationally legally binding human rights violations have access to an effective remedy; recommends that the legislation makes specific reference to this obligation in line with the united nations basic principles and guidelines on the rights to remedy and reparation for victims of gross violations of international human rights law and serious violations of international humanitarian law;


### 43. stresses that as part of due diligence , as required by the corporate responsibility to respect human rights , companies should put in place processes to enable the adverse human rights impacts they cause or to which they contribute to be remedied; accordingly , operational level grievance mechanisms should be legitimate , accessible , predictable , equitable , transparent , rights-compatible , based on engagement and dialogue and a source of continued learning as established in united nations guiding principle 31; emphasises that such mechanisms should never be used to obstruct access to justice via state-based , judicial and non-judicial , grievance mechanisms; ### 43. stresses that as part of due diligence , as required by the corporate responsibility to respect human rights , companies should put in place processes to enable victims of human rights violations , environmental damage and corruption abuses they cause or to which they contribute to have access to an effective remedy action;


### 44. insists that access to evidence and time limitations can be major practical and procedural barriers faced by victims of human rights abuses in third countries , obstructing their access to effective legal remedies; stresses that that the burden of proof should be shifted from the victims to the company and that the legislation must require companies to disclose all necessary information for interested parties to engage in judicial proceedings and for victims to access remedies; ### 44. insists that access to evidence and time limitations can be major practical and procedural barriers faced by victims of human rights abuses in third countries , obstructing their access to effective legal remedies;


### 44. insists that access to evidence and time limitations can be major practical and procedural barriers faced by victims of human rights abuses in third countries , obstructing their access to effective legal remedies; stresses that that the burden of proof should be shifted from the victims to the company and that the legislation must require companies to disclose all necessary information for interested parties to engage in judicial proceedings and for victims to access remedies; ### 44. insists that access to evidence and time limitations can be major practical and procedural barriers faced by victims of human rights abuses in third countries , obstructing their access to effective legal remedies; stresses that the legislation must require companies to disclose all necessary information for interested parties to engage in judicial proceedings and for victims to access remedies;


### 44. insists that access to evidence and time limitations can be major practical and procedural barriers faced by victims of human rights abuses in third countries , obstructing their access to effective legal remedies; stresses that that the burden of proof should be shifted from the victims to the company and that the legislation must require companies to disclose all necessary information for interested parties to engage in judicial proceedings and for victims to access remedies; ### 44. insists that access to evidence and time limitations can be major practical and procedural barriers faced by victims of human rights violations in third countries , obstructing their access to effective legal remedies; stresses that that the burden of proof should be shifted from the victims to the company and that the legislation must require companies to disclose all necessary information for interested parties to engage in judicial proceedings and for victims to access remedies;


### 46. recommends that the legislation establishes guidance regarding the elements of an effective , fair and equitable operational grievance mechanism , with a view to defining appropriate measures to prevent harm , including providing adequate access to remedies; ### 46. recommends that the legislation establishes guidance regarding the elements of an effective , fair and equitable operational grievance mechanism , with a view to defining appropriate measures for prevention , including providing adequate access to remedies;


### 46. recommends that the legislation establishes guidance regarding the elements of an effective , fair and equitable operational grievance mechanism , with a view to defining appropriate measures to prevent harm , including providing adequate access to remedies; ### 46. recommends that the legislation establishes guidance regarding the elements of an effective , fair and equitable operational grievance mechanism , with a view to defining appropriate measures to prevent harm , including providing adequate access to remedies; stresses that it is necessary to clarify the precise scope of the jurisdiction of the courts of the member states in remedies;


### 47. calls for measures to ensure that union due diligence legislation is adequately monitored and enforced by national and union bodies with appropriate duties and powers; such bodies should have competence to investigate abuses , initiate enforcement actions and to support victims , for instance through legal advice , technical support and representation; ### 47. calls for measures to ensure that union due diligence legislation is adequately monitored and enforced by national and union bodies with appropriate duties and powers in accordance with their respective competences; such bodies should have competence to investigate violations , initiate enforcement actions and to support victims , for instance through legal advice , technical support and representation;


### 48. recommends that union due diligence legislation require member states to determine effective , proportionate and dissuasive penalties and sanctions for non-compliance by companies with due diligence obligations , including in relation to the making of false or misleading statements; ### 48. recommends that union due diligence legislation could as a last resort , and only after steps aimed at mediation have not resulted in any improvement require member states to determine effective , proportionate and dissuasive penalties and sanctions based on the severity and repetition of misconduct for non-compliance by companies with due diligence obligations , including in relation to the making of false or misleading statements;


### 49. stresses that criminal law and criminal justice are indispensable means of human rights protection against severe human rights violations; ### 49. stresses that criminal law and criminal justice as ultima ratio instruments might be necessary means of human rights protection against severe human rights violations;


### 51. recommends that the legislation include criminal liability provisions for companies and directors and management that are held responsible in the event of severe violations of human rights. ### deleted


### 51. recommends that the legislation include criminal liability provisions for companies and directors and management that are held responsible in the event of severe violations of human rights. ### 51. recommends a discussion on whether the legislation should include criminal liability provisions for top level officials of companies that are directly held responsible in the event of severe violations of human rights;


### 51. recommends that the legislation include criminal liability provisions for companies and directors and management that are held responsible in the event of severe violations of human rights. ### 51. recommends that the legislation include criminal liability provisions for companies and directors and management that are held responsible in the event of the most severe violations of universal human rights.


### 1. stresses that trade policy is an essential tool for implementing the circular economy and the eu’s sustainability agenda globally; underlines that increased recycling can reduce the eu’s reliance on imports of raw materials , and points to the need to decouple economic growth from resource use in order to ensure the long-term sustainability of global value chains; ### 1. stresses that trade policy is an essential tool for implementing the circular economy and the eu’s sustainability agenda globally; underlines that increased recycling and an energy transition in line with the emissions reduction proposed by the commission can reduce the eu's reliance on imports of raw materials and energy resources; stresses that the european union has succeeded in decoupling economic growth from greenhouse gas emissions and points also to the need to decouple economic growth from resource use in order to ensure the long-term sustainability of global value chains;


### 1. stresses that trade policy is an essential tool for implementing the circular economy and the eu’s sustainability agenda globally; underlines that increased recycling can reduce the eu’s reliance on imports of raw materials , and points to the need to decouple economic growth from resource use in order to ensure the long-term sustainability of global value chains; ### 1. stresses that trade policy is an essential tool for implementing the circular economy and the eu’s sustainability agenda globally; underlines that increased recycling and reallocation of excess materials for use in other forms of production can reduce the eu’s reliance on imports of raw materials , and points to the need to decouple economic growth from resource use in order to ensure the long-term sustainability of global value chains whilst maintaining fair competition


### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is key to reducing the overall environmental footprint of european consumption and production , and to reaching the climate goals of the paris agreement; ### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is a key factor in ensuring eus competitiveness globally , reducing the overall environmental footprint of european consumption and production , protecting human health and to reaching the climate goals of the paris agreement; endorses and encourages the commission to come up with the suggested proposals in the annex of the communication;


### 1. welcomes the commission’s intention to review directive 2009/125/ec; stresses that broadening its scope should not lead to any watering down of the results achieved in the field of energy efficiency; ### deleted


### 1. considers that the agriculture , food and forestry sectors and rural areas are essential components of the circular economy; ### 1. considers that the agriculture , food and forestry sectors and rural areas are essential components of the circular economy; stresses that the circular economy will enhance not only the sustainability but also the competitiveness of our farming industry and that farmers should receive support so that they can contribute to this new plan promoting the circular economy;


### 2. regrets the lack of international and european standards on waste quality as this hinders a viable trade policy that is conducive to the circular economy; calls on the commission to present harmonised standards on waste quality and a legal definition of recyclable waste , and to include these in future ftas; ### 2. believes that the harmonization and standardization of international and european norms on waste quality would highly contribute to integrating circular economy objectives into trade policy; calls on the commission to lead the efforts at international level to harmonize standards on waste quality and agree on a legal definition of recyclable waste , and to include these in future ftas;


### 2. calls on the union to increase the share of renewable energies in transport; ### 2. calls on the union to increase the share of renewable energies in the various modes of transport , in particular by seeing to it that directive (eu) 2018/2001 of the european parliament and of the council of 11 december 2018 on the promotion of the use of energy from renewable sources is transposed in the member states;


### 2. takes the view that the announcement of the action plan is a clarion call for profound change to reorient farm production models towards agro-ecology , given the degradation and scarcity both in natural resources and in the rest of the food chain; ### 2. takes the view that the announcement of the action plan is a clarion call for profound change to reorient farm production models towards more sustainable production practices and systems , such as precision farming , smart farming , conservation farming , organic farming or agro-ecology , given the degradation and scarcity both in natural resources and in the rest of the food chain;


### 2. takes the view that the announcement of the action plan is a clarion call for profound change to reorient farm production models towards agro-ecology , given the degradation and scarcity both in natural resources and in the rest of the food chain; ### 2. takes the view that the announcement of the action plan is a clarion call for optimization of production systems , given the degradation and scarcity both in natural resources and in the rest of the food chain;


### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; ### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; insists that circular economy should not be implemented at the detriment of competitiveness and that the level playing field should be guaranteed for eu companies; asks the commission to assist smes in integrating circular economy in their business model; in this regard , calls on the commission to ensure that strong and efficient measures are put in place to assist eu companies in the transition towards circularity , including through incentives and facilitation measures; insists that no additional unnecessary administrative burdens should be put on companies , particularly smes;


### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; ### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; stresses that this must be done in a way that does not impose an undue regulatory burden and ensures that european businesses can still remain competitive and take advantage of strategic diversification of supply chains.


### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; ### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; stresses that such supply chains should , as far as possible , minimise the carbon footprint of their products;


### 3. urges the commission to internalise the external costs of transport and to establish greenhouse gas certification schemes; ### 3. urges the commission to finalise , in a directive , the existing studies on the external costs of transport and to establish greenhouse gas certification schemes;


### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure; ### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market while simultaneously strengthening the unity of the eu market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives so that the eu can take the lead in global circular economy policies; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure;


### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure; ### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments , in particular in innovative infrastructure and technologies , in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure;


### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure; ### 3. believes that a circular economy is the way for the eu and european companies to remain innovative and therefore competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) and member state stimulus packages should be used to put in place circular economy initiatives and infrastructure;


### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure; ### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure and technologies;


### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure; ### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives , infrastructure and technology;