### the company had more than 500 employees on average and had a net worldwide turnover of more than eur 150 million in the last financial year for which annual financial statements have been prepared; ### the company had more than 5000 employees on average and had a net turnover of more than eur 150 million in the european union in the last financial year for which annual financial statements have been prepared;


### the company had more than 500 employees on average and had a net worldwide turnover of more than eur 150 million in the last financial year for which annual financial statements have been prepared; ### the company had more than 5000 employees on average and had a net worldwide turnover of more than eur 150 million in the last financial year for which annual financial statements have been prepared;


### the company did not reach the thresholds under point (a) , but had more than 250 employees on average and had a net worldwide turnover of more than eur 40 million in the last financial year for which annual financial statements have been prepared , provided that at least 50% of this net turnover was generated in one or more of the following sectors: ### deleted


### the company did not reach the thresholds under point (a) , but had more than 250 employees on average and had a net worldwide turnover of more than eur 40 million in the last financial year for which annual financial statements have been prepared , provided that at least 50% of this net turnover was generated in one or more of the following sectors: ### the company did not reach the thresholds under point (a) , but had globally , including all its subsidiaries and affiliates , more than 250 employees on average and had a net worldwide turnover of more than eur 40 million in the last financial year for which annual financial statements have been prepared , provided that at least 50% of this net turnover was generated in one or more of the following sectors:


### the company did not reach the thresholds under point (a) , but had more than 250 employees on average and had a net worldwide turnover of more than eur 40 million in the last financial year for which annual financial statements have been prepared , provided that at least 50% of this net turnover was generated in one or more of the following sectors: ### the company had more than 3000 employees on average and had a net worldwide turnover of more than eur 50 million in the last financial year for which annual financial statements have been prepared , provided that at least 50% of this net turnover was generated in one or more of the following sectors:


### (iii) the extraction of mineral resources regardless from where they are extracted (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). ### (iii) the extraction of mineral resources regardless from where they are extracted (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , rare earth elements , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products).


### (iii) the extraction of mineral resources regardless from where they are extracted (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). ### (iii) the extraction of mineral resources regardless from where they are extracted (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals , quarry products and conflict minerals) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products).


### 2. this directive shall also apply to companies which are formed in accordance with the legislation of a third country , and fulfil one of the following conditions: ### 2. this directive shall also apply to large companies and publicly listed medium-sized companies operating in high risk sectors which are formed in accordance with the legislation of a third country , and fulfil one of the following conditions:


### generated a net turnover of more than eur 150 million in the union in the financial year preceding the last financial year; ### generated a net worldwide turnover of more than eur 150 million in the financial year preceding the last financial year and at least eur 20 million hereof was generated in the union;


### generated a net turnover of more than eur 150 million in the union in the financial year preceding the last financial year; ### generated a net worldwide turnover of more than eur 150 million in the financial year preceding the last financial year of which at least 40 million was generated in the union;


### generated a net turnover of more than eur 40 million but not more than eur 150 million in the union in the financial year preceding the last financial year , provided that at least 50% of its net worldwide turnover was generated in one or more of the sectors listed in paragraph 1 , point (b). ### deleted


### generated a net turnover of more than eur 40 million but not more than eur 150 million in the union in the financial year preceding the last financial year , provided that at least 50% of its net worldwide turnover was generated in one or more of the sectors listed in paragraph 1 , point (b). ### generated a net worldwide turnover of more than eur 40 million , where at least eur 10 million was generated in the union in the financial year preceding the last financial year , provided that at least 50% of its net worldwide turnover was generated in one or more of the sectors listed in paragraph 1 , point (b).


### generated a net turnover of more than eur 40 million but not more than eur 150 million in the union in the financial year preceding the last financial year , provided that at least 50% of its net worldwide turnover was generated in one or more of the sectors listed in paragraph 1 , point (b). ### generated a net worldwide turnover of more than eur 50 million but not more than eur 150 million of which at least 40 million was generated in the union in the financial year preceding the last financial year , provided that at least 50% of its net worldwide turnover was generated in one or more of the sectors listed in paragraph 1 , point (b).


### 3. for the purposes of paragraph 1 , the number of part-time employees shall be calculated on a full-time equivalent basis. temporary agency workers shall be included in the calculation of the number of employees in the same way as if they were workers employed directly for the same period of time by the company. ### 3. for the purposes of paragraph 1 , the number of part-time employees shall be calculated on a full-time equivalent basis.


### a legal person constituted as one of the legal forms listed in annex i to directive 2013/34/eu of the european parliament and of the council110 ; ### a legal person constituted as one of the legal forms listed in annex i and ii to directive 2013/34/eu of the european parliament and of the council110 ;


### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex , part ii; ### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of the principles set out in the oecd due diligence guidance for responsible business conduct , the oecd guidelines for multinational enterprises as well as the principles set out in the international environmental conventions listed in the annex , part ii;


### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex , part ii; ### ‘adverse environmental impact’ means:


### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex , part ii; ### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the principles set out in the oecd due diligence guidance for responsible business conduct , the oecd guidelines for multinational enterprises and the un guiding principles on business and human rights as regards the environment;


### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex , part ii; ### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex , part ii , taking into account the national provisions implementing one of these prohibitions and obligations;


### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex , part ii; ### ‘adverse environmental impact’ means an adverse impact on the environment resulting from any violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex , part ii;


### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex , part ii; ### ‘adverse environmental impact’ means an adverse impact on the environment resulting from the violation of one of the principles set out in the oecd due diligence guidance for responsible business conduct and the oecd guidelines for multinational enterprises.


### ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of one of the rights or prohibitions listed in the annex , part i section 1 , as enshrined in the international conventions listed in the annex , part i section 2; ### (c)‘adverse human rights impact’ means an adverse impact on protected persons that may impair the full enjoyment of human rights resulting from the violation of one of the principles set out in the oecd due diligence guidance for responsible business conduct and guidance for multinational enterprises and the un guiding principles on business and human rights.


### ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of one of the rights or prohibitions listed in the annex , part i section 1 , as enshrined in the international conventions listed in the annex , part i section 2; ### ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of the principles set out in the oecd due diligence guidance for responsible business conduct , the oecd guidelines for multinational enterprises as well as one of the rights or prohibitions listed in the annex , part i section 1 , as enshrined in the international conventions listed in the annex , part i section 2;


### ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of one of the rights or prohibitions listed in the annex , part i section 1 , as enshrined in the international conventions listed in the annex , part i section 2; ### ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of one of the rights or prohibitions listed in the annex , part i section 1 , as enshrined in the international conventions listed in the annex , part i section 2 , taking into account the national provisions implementing one of these prohibitions and obligations;


### ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of one of the rights or prohibitions listed in the annex , part i section 1 , as enshrined in the international conventions listed in the annex , part i section 2; ### ‘adverse human rights impact’ means any negative impact on enjoyment of human rights as enshrined in the international conventions in particular the rights listed in the annex , part i section 2 and especially the protected position in the annex , part 1 section 1;


### ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of one of the rights or prohibitions listed in the annex , part i section 1 , as enshrined in the international conventions listed in the annex , part i section 2; ### ‘adverse human rights impact’ means an adverse impact on protected persons resulting from the violation of one of the principles set out in the oecd due diligence guidance for responsible business conduct , the oecd guidelines for multinational enterprises and the un guiding principles on business and human rights as regards human rights;


### ‘business relationship’ means a relationship with a contractor , subcontractor or any other legal entities (‘partner’) ### ‘business relationship’ means a relationship with a contractor , subcontractor or any other legal entities (‘partner’) in the supply chain


### ‘business relationship’ means a relationship with a contractor , subcontractor or any other legal entities (‘partner’) ### ‘business relationship’ means a direct contractual relationship with any other legal entities (‘partner’)


### ‘business relationship’ means a relationship with a contractor , subcontractor or any other legal entities (‘partner’) ### ‘business relationship’ means a relationship between the company or one of its subsidiaries with a contractor , subcontractor or any other legal entities (‘partner’)


### ‘business relationship’ means a relationship with a contractor , subcontractor or any other legal entities (‘partner’) ### ‘direct business relationship’ means a direct contractual relationship with any other legal entity from a third country (‘direct business partner’) for the supply of goods or the provision of services that are necessary for the production of the company’s product or the provision and use of the relevant service


### ‘established business relationship’ means a business relationship , whether direct or indirect , which is , or which is expected to be lasting , in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the value chain; ### ‘established business relationship’ means a direct business relationship , which is , or which is expected to be lasting , in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the supply chain;


### ‘established business relationship’ means a business relationship , whether direct or indirect , which is , or which is expected to be lasting , in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the value chain; ### ‘established business relationship’ means a direct business relationship which is expected to be lasting , in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the supply chain;


### ‘established business relationship’ means a business relationship , whether direct or indirect , which is , or which is expected to be lasting , in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the value chain; ### ‘established business relationship’ means a direct business relationship , which is lasting in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the supply chain and which has lasted for more than one year;


### ‘established business relationship’ means a business relationship , whether direct or indirect , which is , or which is expected to be lasting , in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the value chain; ### ‘established business relationship’ means a direct business relationship which is , or which is expected to be , lasting , in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the value chain;


### ‘established business relationship’ means a business relationship , whether direct or indirect , which is , or which is expected to be lasting , in view of its intensity or duration and which does not represent a negligible or merely ancillary part of the value chain; ### deleted


### ‘value chain’ means activities related to the production of goods or the provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. as regards companies within the meaning of point (a)(iv) , ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan , credit , and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. the value chain of such regulated financial undertakings does not cover smes receiving loan , credit , financing , insurance or reinsurance of such entities; ### ‘supply chain’ means activities related to the production of goods or the provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream established business relationships of the company. as regards companies within the meaning of point (a)(iv) , ‘supply chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan , credit , and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. the supply chain of such regulated financial undertakings does not cover smes receiving loan , credit , financing , insurance or reinsurance of such entities;


### ‘value chain’ means activities related to the production of goods or the provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. as regards companies within the meaning of point (a)(iv) , ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan , credit , and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. the value chain of such regulated financial undertakings does not cover smes receiving loan , credit , financing , insurance or reinsurance of such entities; ### ‘supply chain’ means activities related to the production of goods or the provision of services by a company , including the development of the product or the service as well as the related activities of upstream established business relationships of the company. as regards companies within the meaning of point (a)(iv) , ‘supply chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan , credit , and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. the supply chain of such regulated financial undertakings does not cover smes receiving loan , credit , financing , insurance or reinsurance of such entities;


### ‘value chain’ means activities related to the production of goods or the provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. as regards companies within the meaning of point (a)(iv) , ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan , credit , and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. the value chain of such regulated financial undertakings does not cover smes receiving loan , credit , financing , insurance or reinsurance of such entities; ### ‘value chain’ means activities related to the production of goods or the provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream established business relationships of the company. as regards companies within the meaning of point (a)(iv) , ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan , credit , and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. the value chain of such regulated financial undertakings does not cover smes receiving loan , credit , financing , insurance or reinsurance of such entities;


### ‘value chain’ means activities related to the production of goods or the provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. as regards companies within the meaning of point (a)(iv) , ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan , credit , and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. the value chain of such regulated financial undertakings does not cover smes receiving loan , credit , financing , insurance or reinsurance of such entities; ### ‘supply chain’ means activities directly necessary for the production of goods or the provision of services by a company , including the development of the product or the service as well as the related activities of direct upstream business relationships of the company.


### ‘value chain’ means activities related to the production of goods or the provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. as regards companies within the meaning of point (a)(iv) , ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan , credit , and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. the value chain of such regulated financial undertakings does not cover smes receiving loan , credit , financing , insurance or reinsurance of such entities; ### ‘value chain’ means activities related to the production of goods or the provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. as regards companies within the meaning of point (a)(iv) , ‘value chain’ with respect to the provision of these financing , insurance or reinsurance shall only include the activities of the clients receiving such financing , insurance or reinsurance and of other companies belonging to the same group whose activities are linked to the service in question. the value chain of such regulated financial undertakings does not cover smes and natural persons receiving loan , credit , financing , insurance or reinsurance of such entities; the downstream value chain of such regulated financial undertakings does only cover clients that are direct business partners;


### ‘independent third-party verification’ means verification of the compliance by a company , or parts of its value chain , with human rights and environmental requirements resulting from the provisions of this directive by an auditor which is independent from the company , free from any conflicts of interests , has experience and competence in environmental and human rights matters and is accountable for the quality and reliability of the audit; ### ‘independent third-party verification’ means verification of the compliance by a company , or parts of its value chain , with human rights and environmental requirements resulting from the provisions of this directive by a duly authorised auditor which is independent from the company , free from any conflicts of interests , has experience and competence in environmental and human rights matters and is accountable for the quality and reliability of the audit , including legal liability to third parties who may suffer damage as a result of a deficient audit;


### ‘independent third-party verification’ means verification of the compliance by a company , or parts of its value chain , with human rights and environmental requirements resulting from the provisions of this directive by an auditor which is independent from the company , free from any conflicts of interests , has experience and competence in environmental and human rights matters and is accountable for the quality and reliability of the audit; ### ‘independent third-party verification’ means verification of the compliance by a company , or parts of its supply chain , with human rights and environmental requirements resulting from the provisions of this directive by an auditor which is independent from the company , free from any conflicts of interests , has the requisite experience and competence and is accountable for the quality and reliability of the audit;


### ‘industry initiative’ means a combination of voluntary value chain due diligence procedures , tools and mechanisms , including independent third-party verifications , developed and overseen by governments , industry associations or groupings of interested organisations; ### ‘industry initiative’ means a combination of voluntary supply chain due diligence procedures , tools and mechanisms , including independent third-party verifications , developed and overseen by governments , industry associations or groupings of interested organisations;


### ‘severe adverse impact’ means an adverse environmental impact or an adverse human rights impact that is especially significant by its nature , or affects a large number of persons or a large area of the environment , or which is irreversible , or is particularly difficult to remedy as a result of the measures necessary to restore the situation prevailing prior to the impact; ### ‘severe adverse impact’ means an adverse environmental or climatic impact or an adverse human rights impact that is especially significant by its nature , or affects a large number of persons or a large area of the environment or affects the territory of two or more states , or which is irreversible , or is difficult to remedy as a result of the measures necessary to restore the situation prevailing prior to the impact;


### ‘stakeholders’ means the company’s employees , the employees of its subsidiaries , and other individuals , groups , communities or entities whose rights or interests are or could be affected by the products , services and operations of that company , its subsidiaries and its business relationships; ### ‘stakeholders’ means the company’s employees , the employees of its subsidiaries , employees within its value chain and other individuals , groups , communities or entities whose rights or interests are or could be directly affected by the potential and actual adverse environmental and human rights impacts connected to the products , services and operations of that company , its subsidiaries and its business relationships;


### ‘stakeholders’ means the company’s employees , the employees of its subsidiaries , and other individuals , groups , communities or entities whose rights or interests are or could be affected by the products , services and operations of that company , its subsidiaries and its business relationships; ### ‘stakeholders’ means individuals , groups , communities or entities who have specific attributes peculiar to them or are by reason of circumstances that differentiate them from all other persons and who have specific and actual rights or interests that are or could be affected by the products , services and operations of that company , its subsidiaries and its direct business relationships;


### ‘stakeholders’ means the company’s employees , the employees of its subsidiaries , and other individuals , groups , communities or entities whose rights or interests are or could be affected by the products , services and operations of that company , its subsidiaries and its business relationships; ### ‘stakeholders’ means the company’s employees , the employees of its subsidiaries , and other individuals , groups , communities or entities whose rights or interests are affected by adverse human rights impacts and adverse environmental impacts arising from the products , services and operations of that company , its subsidiaries and its business relationships;


### ‘stakeholders’ means the company’s employees , the employees of its subsidiaries , and other individuals , groups , communities or entities whose rights or interests are or could be affected by the products , services and operations of that company , its subsidiaries and its business relationships; ### ‘stakeholders’ means the company’s employees , the employees of its subsidiaries , and other individuals , groups , communities or entities whose rights or interests are affected by the products , services and operations of that company , its subsidiaries and its business relationships;


### ‘stakeholders’ means the company’s employees , the employees of its subsidiaries , and other individuals , groups , communities or entities whose rights or interests are or could be affected by the products , services and operations of that company , its subsidiaries and its business relationships; ### ‘stakeholders’ means the company’s employees , the employees of its subsidiaries , employees within its supply chain and other individuals , groups , communities or entities whose rights or interests are directly affected by the potential and actual adverse human rights and environmental impacts connected to the products , services and operations of that company , its subsidiaries and its direct business relationships;


### ‘director’ means: ### deleted


### ‘board of directors’ means the administrative or supervisory body responsible for supervising the executive management of the company , or , if no such body exists , the person or persons performing equivalent functions; ### deleted


### ‘appropriate measure’ means a measure that is capable of achieving the objectives of due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , and reasonably available to the company , taking into account the circumstances of the specific case , including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof , and the need to ensure prioritisation of action. ### ‘appropriate measure’ means a measure that is capable of achieving the objectives of risk-based due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , and reasonably available to the company , taking into account the circumstances of the specific case , including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof , and the need to ensure prioritisation of action.


### ‘appropriate measure’ means a measure that is capable of achieving the objectives of due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , and reasonably available to the company , taking into account the circumstances of the specific case , including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof , and the need to ensure prioritisation of action. ### ‘appropriate measure’ means a measure that are capable of achieving the objectives of due diligence , and effectively addressing the adverse impact , commensurate with the degree of severity and the likelihood of the adverse impact , and reasonably available to the company , taking into account the circumstances of the specific case , including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof , and the need to ensure prioritisation of action.


### ‘appropriate measure’ means a measure that is capable of achieving the objectives of due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , and reasonably available to the company , taking into account the circumstances of the specific case , including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof , and the need to ensure prioritisation of action. ### ‘appropriate measure’ means a measure that is capable of achieving the objectives of risk-based due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , and reasonably available to the company , taking into account the circumstances of the specific case , including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof , and the need to ensure prioritisation of action as well as the size of the company , its capacity , resources and leverage. severity means the scale , scope and irremediably character of the adverse impact , taking into account the gravity of the impact on the rights holder , the number of individuals that could be affected and the possibility of occurrence;


### 1. member states shall ensure that companies conduct human rights and environmental due diligence as laid down in articles 5 to 11 (‘due diligence’) by carrying out the following actions: ### 1. member states shall ensure that companies conduct human rights and environmental due diligence on the basis of a risk approach as laid down in articles 5 to 11 (‘due diligence’) by carrying out the following actions:


### identifying actual or potential adverse impacts in accordance with article 6; ### identifying and prioritising actual or potential adverse impacts in accordance with article 6;


### preventing and mitigating potential adverse impacts , and bringing actual adverse impacts to an end and minimising their extent in accordance with articles 7 and 8; ### preventing or mitigating potential adverse impacts , and , if possible , bringing actual adverse impacts to an end or minimising their extent in accordance with articles 7 and 8;


### establishing and maintaining a complaints procedure in accordance with article 9; ### establishing and maintaining a notification procedure in accordance with article 9;


### 1. member states shall ensure that companies integrate due diligence into all their corporate policies and have in place a due diligence policy. the due diligence policy shall contain all of the following: ### 1. member states shall ensure that companies have in place a due diligence policy. the due diligence policy shall be proportionate and risk-based and shall contain all of the following:


### 1. member states shall ensure that companies integrate due diligence into all their corporate policies and have in place a due diligence policy. the due diligence policy shall contain all of the following: ### 1. member states shall ensure that companies integrate due diligence into their corporate policies where necessary and have in place a risk-based due diligence policy. the risk-based due diligence policy shall contain the following:


### a code of conduct describing rules and principles to be followed by the company’s employees and subsidiaries; ### a code of conduct based on a standardized european set of principles describing rules and principles to be followed by the company’s employees and subsidiaries;


### a description of the processes put in place to implement due diligence , including the measures taken to verify compliance with the code of conduct and to extend its application to established business relationships. ### a description of the processes put in place to implement due diligence , including the measures taken to verify compliance with the code of conduct.


### 2. member states shall ensure that the companies update their due diligence policy annually. ### 2. member states shall ensure that the companies update their due diligence policy regularly when a significant change occurs.


### 2. member states shall ensure that the companies update their due diligence policy annually. ### 2. member states shall ensure that the companies review and , if needed , update their due diligence policy annually.


### 2. member states shall ensure that the companies update their due diligence policy annually. ### 2. member states shall ensure that the companies review and update their due diligence policy regularly , taking a risk-based approach in accordance with the oecd due diligence guidance for responsible business conduct , the oecd guidelines for multinational enterprises and the un guiding principles on business and human rights , but at least every five years.


### identifying actual and potential adverse impacts ### identifying and prioritising actual and potential adverse impacts


### 1. member states shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and , where related to their value chains , from their established business relationships , in accordance with paragraph 2 , 3 and 4. ### 1. member states shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and , where related to their supply chains , from their established business relationships , in accordance with paragraph 2 , 3 and 4.


### 1. member states shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and , where related to their value chains , from their established business relationships , in accordance with paragraph 2 , 3 and 4. ### 1. member states shall ensure that companies take appropriate measures to identify , by means of a risk-based monitoring methodology , actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and , where related to their supply chains , from their established business relationships , in accordance with paragraph 2 , 3 and 4.


### 1. member states shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and , where related to their value chains , from their established business relationships , in accordance with paragraph 2 , 3 and 4. ### 1. member states shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and severe adverse environmental impacts arising from their own operations or those of their subsidiaries and , where related to their value chains , from their established business relationships , in accordance with paragraph 2 , 3 and 4.


### 1. member states shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and , where related to their value chains , from their established business relationships , in accordance with paragraph 2 , 3 and 4. ### 1. member states shall ensure that companies take appropriate measures within their means to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations and , where related to their supply chains , from their direct business relationships with third country entities , in accordance with paragraph 2 , 3 and 4.


### 1. member states shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and , where related to their value chains , from their established business relationships , in accordance with paragraph 2 , 3 and 4. ### 1. member states shall ensure that companies take appropriate measures to identify actual and potential severe adverse human rights impacts and adverse environmental impacts arising from their own operations or those of their subsidiaries and , where related to their value chains , from their established business relationships , according to a risk-based approach , in accordance with paragraph 2 , 3 and 4.


### 2. by way of derogation from paragraph 1 , companies referred to in article 2(1) , point (b) , and article 2(2) , point (b) , shall only be required to identify actual and potential severe adverse impacts relevant to the respective sector mentioned in article 2(1) , point (b). ### 2. by way of derogation from paragraph 1 , companies referred to in article 2(1) , point (b) , and article 2(2) , point (b) , shall only be required to identify actual and potential severe adverse impacts relevant to the respective sector mentioned in article 2(1) , point (b) or the respective high-risk geographical area as defined in article 2 (1) , point (ba).


### 2. by way of derogation from paragraph 1 , companies referred to in article 2(1) , point (b) , and article 2(2) , point (b) , shall only be required to identify actual and potential severe adverse impacts relevant to the respective sector mentioned in article 2(1) , point (b). ### deleted


### 3. when companies referred to in article 3 , point (a)(iv) , provide credit , loan or other financial services , identification of actual and potential adverse human rights impacts and adverse environmental impacts shall be carried out only before providing that service. ### 3. when companies referred to in article 3 , point (a)(iv) , provide credit , loan or other financial services , identification of actual and potential adverse human rights impacts and adverse environmental impacts shall be carried out both before providing that service , and repeatedly during the provision of the service , depending on the nature of the service , but at least once every 12 calendar months. .


### 3. when companies referred to in article 3 , point (a)(iv) , provide credit , loan or other financial services , identification of actual and potential adverse human rights impacts and adverse environmental impacts shall be carried out only before providing that service.. ### 3. when companies referred to in article 3 , point (a)(iv) , provide credit , loan or other financial services , identification of adverse human rights impacts and adverse environmental impacts shall be carried out only before providing that service.


### 3. when companies referred to in article 3 , point (a)(iv) , provide credit , loan or other financial services , identification of actual and potential adverse human rights impacts and adverse environmental impacts shall be carried out only before providing that service.. ### deleted


### 3. when companies referred to in article 3 , point (a)(iv) , provide credit , loan or other financial services , identification of actual and potential adverse human rights impacts and adverse environmental impacts shall be carried out only before providing that service.. ### 3. when companies referred to in article 3 , point (a)(iv) , provide credit , loan or other financial services , identification of actual and potential adverse human rights impacts and adverse environmental impacts shall be carried out according to appropriate risk based measures only before providing that service.


### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. ### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the notification procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and their representatives as well as other relevant stakeholders to gather information on actual or potential adverse impacts. in order to effectively conduct stakeholders consultations , companies should be entitled to prioritize the stakeholder categories to engage with according to the level of relevance of different groups of stakeholders for a particular type of a business or the level these groups will be affected by potential adverse impacts in question with a special focus on high-risk sectors or high-risk geographical areas.


### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. ### 4. member states shall ensure that , for the purposes of identifying and prioritising the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the notification procedure provided for in article 9. companies shall engage with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.


### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. ### 4. member states shall ensure that appropriate resources , for the purposes of identifying the adverse impacts referred to in paragraph 1 , are made available to companies in order to enable compliance with the directive. member states may work with the commission to prepare appropriate resources such as lists that officially assess risk (black-/whitelists) , helpdesks etc. companies shall be entitled to make use of independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.


### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. ### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information made available by the member states , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the notification procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.


### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. ### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. supervisory authorities as defined by article 17 shall have the power to carry out promotional and educational activities in this regard , including directed at smaller companies not subject to the obligations under this directive. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.


### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. ### 4. member states shall ensure that , for the purposes of identifying and assessing the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts and implementation of appropriate preventive measures.


### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. ### 4. member states shall ensure that appropriate resources , for the purposes of identifying the adverse impacts referred to in paragraph 1 , are made available to companies in order to enable compliance with the directive. member states may work with the commission to prepare appropriate resources and shall be entitled to make use of independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.


### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. ### 4. member states shall ensure that appropriate resources , for the purposes of identifying the adverse impacts referred to in paragraph 1 , are made available to companies in order to enable compliance with the directive. member states may work with the commission to prepare appropriate resources such as lists that officially assess risk (black-/whitelists) , helpdesks etc. companies shall be entitled to make use of independent reports and information gathered through the procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts.


### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. ### 4. member states shall ensure that , for the purposes of identifying the adverse impacts referred to in paragraph 1 based on , where appropriate , quantitative and qualitative information , companies are entitled to make use of appropriate resources , including independent reports and information gathered through the complaints procedure provided for in article 9. companies shall , where relevant , also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. this approach in the financial services sector will be informed by clear financial sector guidelines.


### 1. member states shall ensure that companies take appropriate measures to prevent , or where prevention is not possible or not immediately possible , adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been , or should have been , identified pursuant to article 6 , in accordance with paragraphs 2 , 3 , 4 and 5 of this article. ### 1. member states shall ensure that companies take appropriate measures to address risks identified pursuant to article 6 , in accordance with paragraphs 2 , 3 , 4 and 5 of this article , taking into account the level of companies' involvement in the potential adverse impacts;


### 1. member states shall ensure that companies take appropriate measures to prevent , or where prevention is not possible or not immediately possible , adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been , or should have been , identified pursuant to article 6 , in accordance with paragraphs 2 , 3 , 4 and 5 of this article. ### 1. member states shall ensure that companies take appropriate measures to prevent , or where prevention is not possible or not immediately possible , mitigate to the maximum extent possible potential adverse human rights impacts and adverse environmental impacts that have been , or should have been , identified pursuant to article 6 , in accordance with paragraphs 2 , 3 , 4 and 5 of this article.


### 1. member states shall ensure that companies take appropriate measures to prevent , or where prevention is not possible or not immediately possible , adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been , or should have been , identified pursuant to article 6 , in accordance with paragraphs 2 , 3 , 4 and 5 of this article. ### 1. member states shall ensure that companies take appropriate measures to address risks , identified pursuant to article 6 , in accordance with paragraphs 2 , 3 , 4 and 5 of this article , taking into account the level of companies' involvement in the potential adverse impacts.


### 1. member states shall ensure that companies take appropriate measures to prevent , or where prevention is not possible or not immediately possible , adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been , or should have been , identified pursuant to article 6 , in accordance with paragraphs 2 , 3 , 4 and 5 of this article. ### 1. member states shall ensure that companies take appropriate and commensurate measures within their means to prevent , or where prevention is not possible or not immediately possible , adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been identified pursuant to article 6 , in accordance with paragraphs 2 , 3 , 4 and 5 of this article.


### 1. member states shall ensure that companies take appropriate measures to prevent , or where prevention is not possible or not immediately possible , adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been , or should have been , identified pursuant to article 6 , in accordance with paragraphs 2 , 3 , 4 and 5 of this article. ### 1. member states shall ensure that companies take appropriate measures to prevent , or where prevention is not possible or not immediately possible , adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been , or should have been , identified pursuant to article 6 , using a risk-based approach , in accordance with paragraphs 2 , 3 , 4 and 5 of this article.


### 2. companies shall be required to take the following actions , where relevant: ### 2. companies shall be required to take the following actions , where relevant with respect to the size , resources and capacity of the company in question:


### 2. companies shall be required to take the following actions , where relevant: ### 2. in order to comply with paragraph 1 of this article , companies shall be required to take the following actions:


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan with reasonable timelines for action and indicators for monitoring improvement. the prevention action plan shall be developed in meaningful engagement with affected stakeholders where relevant; companies are encouraged to develop their action plans in cooperation with industry initiatives;


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with relevant stakeholders;


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### where necessary due to the nature or complexity of the measures required for prevention and mitigation , develop and implement a prevention or mitigation action plan , with reasonable timelines for action and indicators for monitoring improvement. the prevention or mitigation action plan shall be developed in consultation with affected stakeholders where relevant; companies are encouraged to develop their action plans in cooperation with sectoral initiatives and industry schemes;


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### develop and implement a prevention action plan , with reasonable and clearly defined timelines for appropriate measures action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders. the appropriate measures should apply , where applicable , to a company’s own operations , subsidiaries as well as direct and indirect business relationships.


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### where necessary due to the nature or complexity of the measures required for prevention , develop and implement an action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement.


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders;


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders , when appropriate;


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for appropriate measures and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with stakeholders;


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### where necessary due to the nature or complexity of the measures required for prevention or mitigation , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and indicators for monitoring improvement. the prevention or mitigation action plan shall be developed in consultation with affected stakeholders where relevant; companies are encouraged to develop their action plans in cooperation with sectoral initiatives and industry schemes;


### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with affected stakeholders; ### where necessary due to the nature or complexity of the measures required for prevention , develop and implement a prevention action plan , with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the prevention action plan shall be developed in consultation with stakeholders the company identifies as affected by its products , services and operations , its subsidiaries and its business relationships;


### seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and , as necessary , a prevention action plan , including by seeking corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s value chain (contractual cascading). when such contractual assurances are obtained , paragraph 4 shall apply; ### seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and , as necessary , a prevention action plan , including by seeking corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s supply chain (contractual cascading). when such contractual assurances are obtained , paragraph 4 shall apply;


### seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and , as necessary , a prevention action plan , including by seeking corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s value chain (contractual cascading). when such contractual assurances are obtained , paragraph 4 shall apply; ### seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and a prevention action plan , including , where appropriate , by requiring corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s value chain (contractual cascading). when such contractual assurances are obtained , paragraph 4 shall apply;


### seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and , as necessary , a prevention action plan , including by seeking corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s value chain (contractual cascading). when such contractual assurances are obtained , paragraph 4 shall apply; ### seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and , as necessary , an action plan , including by seeking corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s supply chain (contractual cascading). when such contractual assurances are obtained , paragraph 4 shall apply;


### seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and , as necessary , a prevention action plan , including by seeking corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s value chain (contractual cascading). when such contractual assurances are obtained , paragraph 4 shall apply; ### seek contractual assurances from a business partner with whom it has a direct business relationship that it will ensure compliance with the company’s code of conduct and , as necessary , a prevention or mitigation action plan , including by seeking corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s value chain (contractual cascading). when such contractual assurances are obtained , paragraph 4 shall apply;


### provide targeted and proportionate support for an sme with which the company has an established business relationship , where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the sme; ### provide targeted and proportionate support for an sme which , despite being exempt , decides to comply with the obligations under this directive and with which the company has an established business relationship , to ensure compliance with the code of conduct or the action plan;


### provide targeted and proportionate support for an sme with which the company has an established business relationship , where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the sme; ### provide targeted and proportionate support for an sme which , despite being exempt , decides to comply with the obligations under this directive and with which the company has an established business relationship , to ensure compliance with the code of conduct or the prevention action plan would jeopardise the viability of the sme;


### provide targeted and proportionate support for an sme with which the company has an established business relationship , where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the sme; ### provide targeted and proportionate support for an sme with which the company has a direct business relationship , where compliance with the code of conduct or the prevention or mitigation action plan would jeopardise the viability of the sme;


### provide targeted and proportionate support for an sme with which the company has an established business relationship , where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the sme; ### consider providing targeted and proportionate support for an sme with which the company has an established business relationship , where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the sme;


### in compliance with union law including competition law , collaborate with other entities , including , where relevant , to increase the company’s ability to bring the adverse impact to an end , in particular where no other action is suitable or effective. ### in compliance with union law including competition law , collaborate with other entities , sectoral approaches or industry schemes , including , where relevant , to increase the company’s ability to prevent or mitigate the adverse impact , in particular where no other action is suitable or effective.


### 3. as regards potential adverse impacts that could not be prevented or adequately mitigated by the measures in paragraph 2 , the company may seek to conclude a contract with a partner with whom it has an indirect relationship , with a view to achieving compliance with the company’s code of conduct or a prevention action plan. when such a contract is concluded , paragraph 4 shall apply. ### 3. as regards potential adverse impacts that could not be prevented or adequately mitigated by the measures in paragraph 2 , article 8 shall apply.


### 3. as regards potential adverse impacts that could not be prevented or adequately mitigated by the measures in paragraph 2 , the company may seek to conclude a contract with a partner with whom it has an indirect relationship , with a view to achieving compliance with the company’s code of conduct or a prevention action plan. when such a contract is concluded , paragraph 4 shall apply. ### deleted


### 3. as regards potential adverse impacts that could not be prevented or adequately mitigated by the measures in paragraph 2 , the company may seek to conclude a contract with a partner with whom it has an indirect relationship , with a view to achieving compliance with the company’s code of conduct or a prevention action plan. when such a contract is concluded , paragraph 4 shall apply. ### 3. as regards potential adverse impacts that could not be prevented or mitigated to the maximum extent possible by the measures in paragraph 2 , the company should seek to conclude a contract with a partner with whom it has an indirect relationship , with a view to achieving compliance with the company’s code of conduct or a prevention action plan. when such a contract is concluded , paragraph 4 shall apply.


### when contractual assurances are obtained from , or a contract is entered into , with an sme , the terms used shall be fair , reasonable and non-discriminatory. where measures to verify compliance are carried out in relation to smes , the company shall bear the cost of the independent third-party verification. ### when contractual assurances are obtained from , or a contract is entered into , with an sme , the terms used shall be fair , reasonable and non-discriminatory.


### when contractual assurances are obtained from , or a contract is entered into , with an sme , the terms used shall be fair , reasonable and non-discriminatory. where measures to verify compliance are carried out in relation to smes , the company shall bear the cost of the independent third-party verification. ### when contractual assurances are obtained from , or a contract is entered into , with an sme , the terms used shall be fair , reasonable and non-discriminatory. disproportionate passing on of liability to smes is prohibited. where measures to verify compliance are carried out in relation to smes , the company shall bear the cost of the independent third-party verification.


### when contractual assurances are obtained from , or a contract is entered into , with an sme , the terms used shall be fair , reasonable and non-discriminatory. where measures to verify compliance are carried out in relation to smes , the company shall bear the cost of the independent third-party verification. ### terms and conditions of contractual assurances and contracts shall be fair , reasonable and non-discriminatory. where measures to verify compliance are carried out in relation to smes , the company shall bear the cost of the independent third-party verification.


### as regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2 , 3 and 4 , the company shall be required to refrain from entering into new or extending existing relations with the partner in connection with or in the value chain of which the impact has arisen and shall , where the law governing their relations so entitles them to , take the following actions: ### as regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2 , 3 and 4 , the company shall be required to refrain from entering into new or extending existing relations with the partner in connection with or in the supply chain of which the impact has arisen and shall , where the law governing their relations so entitles them to , take the following actions , in the case of severe or repeated breaches of obligations under this directive and after repeated attempts at measures of risk mitigation have failed:


### as regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2 , 3 and 4 , the company shall be required to refrain from entering into new or extending existing relations with the partner in connection with or in the value chain of which the impact has arisen and shall , where the law governing their relations so entitles them to , take the following actions: ### as regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or mitigated to the maximum extent possible by the measures in paragraphs 2 , 3 and 4 , the company shall be required to refrain from entering into new or extending existing relations with the partner in connection with or in the value chain of which the impact has arisen and shall , where the law governing their relations so entitles them to , take the following actions:


### as regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2 , 3 and 4 , the company shall be required to refrain from entering into new or extending existing relations with the partner in connection with or in the value chain of which the impact has arisen and shall , where the law governing their relations so entitles them to , take the following actions: ### as regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2 , 3 and 4 , the company may decide as a last resort to refrain from entering into new or extending existing relations with the partner in connection with or in the supply chain of which the impact has arisen and may , where the law governing their relations so entitles them to , take the following actions if they are in the best interest of the potential victims of the potential adverse human rights and adverse environmental impacts , in line with responsible disengagement , also taking into account proportionality and the consequences of disrupting supply chains:


### terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe. ### terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe or if there is no reasonable expectation that efforts to prevent or mitigate impacts will be successful in the short term.


### member states shall provide for the availability of an option to terminate the business relationship in contracts governed by their laws. ### member states shall provide for the availability of an option to terminate the business relationship in contracts governed by their laws in light of potential adverse human rights or environmental impacts that cannot be avoided or mitigated to the maximum extent possible.


### member states shall provide for the availability of an option to terminate the business relationship in contracts governed by their laws. ### member states shall provide for the availability of an option to temporarily suspend and terminate the business relationship in contracts governed by their laws in accordance with the first subparagraph , except for contracts where the parties are obliged by law to enter into them.


### 6. by way of derogation from paragraph 5 , point (b) , when companies referred to in article 3 , point (a)(iv) , provide credit , loan or other financial services , they shall not be required to terminate the credit , loan or other financial service contract when this can be reasonably expected to cause substantial prejudice to the entity to whom that service is being provided. ### deleted


### 6. by way of derogation from paragraph 5 , point (b) , when companies referred to in article 3 , point (a)(iv) , provide credit , loan or other financial services , they shall not be required to terminate the credit , loan or other financial service contract when this can be reasonably expected to cause substantial prejudice to the entity to whom that service is being provided. ### 6. by way of derogation from paragraph 5 , point (b) , when companies referred to in article 3 , point (a)(iv) , provide credit , loan , statutory insurance cover , or other financial services , they shall not be required to terminate the credit , loan or other financial service contract when this can be reasonably expected to cause substantial prejudice to the entity to whom that service is being provided.


### 1. member states shall ensure that companies take appropriate measures to bring actual adverse impacts that have been , or should have been , identified pursuant to article 6 to an end , in accordance with paragraphs 2 to 6 of this article. ### 1. member states shall ensure that companies take appropriate measures with respect to the size , resources and capacity of the company in question in order to bring actual adverse impacts that have been , or should have been , identified pursuant to article 6 to an end , in accordance with paragraphs 2 to 6 of this article.


### 1. member states shall ensure that companies take appropriate measures to bring actual adverse impacts that have been , or should have been , identified pursuant to article 6 to an end , in accordance with paragraphs 2 to 6 of this article. ### 1. member states shall ensure that companies take appropriate measures to bring actual adverse impacts that have been identified pursuant to article 6 to an end , in accordance with paragraphs 2 to 6 of this article , taking into account the level of companies’ involvement in the actual adverse impacts.


### 1. member states shall ensure that companies take appropriate measures to bring actual adverse impacts that have been , or should have been , identified pursuant to article 6 to an end , in accordance with paragraphs 2 to 6 of this article. ### 1. member states shall ensure that companies take appropriate and commensurate measures within their means to try to bring actual adverse impacts that have been identified pursuant to article 6 to an end , in accordance with paragraphs 2 to 6 of this article. those measures should be reasonable in the context of the involvement of the company in the actual adverse impact and the significance of the adverse impact itself.


### 1. member states shall ensure that companies take appropriate measures to bring actual adverse impacts that have been , or should have been , identified pursuant to article 6 to an end , in accordance with paragraphs 2 to 6 of this article. ### 1. member states shall ensure that companies take appropriate measures to bring actual adverse impacts that have been , or should have been , identified pursuant to article 6 to an end , using a risk-based approach , in accordance with paragraphs 2 to 6 of this article.


### 3. companies shall be required to take the following actions , where relevant: ### 3. companies shall be required to take the following actions , where relevant and with respect to the size , resources and capacity of the company in question:


### neutralise the adverse impact or minimise its extent , including by the payment of damages to the affected persons and of financial compensation to the affected communities. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact; ### neutralise the adverse impact or minimise its extent , including , where reasonable and applicable , by the payment of damages to the affected persons and of financial compensation to the affected communities. the action shall be proportionate and commensurate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact , as well as to its resources and leverage;


### neutralise the adverse impact or minimise its extent , including by the payment of damages to the affected persons and of financial compensation to the affected communities. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact; ### neutralise the adverse impact or minimise its extent , including , where reasonable and applicable , by the payment of damages to the affected persons and of financial compensation to the affected communities. the action shall be proportionate and commensurate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact as well as to its resources and leverage;


### neutralise the adverse impact or minimise its extent , including by the payment of damages to the affected persons and of financial compensation to the affected communities. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact; ### neutralise the adverse impact or minimise its extent. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact;


### neutralise the adverse impact or minimise its extent , including by the payment of damages to the affected persons and of financial compensation to the affected communities. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact; ### neutralise the adverse impact or minimise its extent , in a proportionate manner to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact;


### neutralise the adverse impact or minimise its extent , including by the payment of damages to the affected persons and of financial compensation to the affected communities. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact; ### neutralise the adverse impact , minimise its extent and when possible eliminate including by the payment of damages to the affected persons and of financial adequate compensation to the affected communities. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact;


### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with stakeholders; ### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable timelines for action and indicators for monitoring improvement. the corrective action plan shall be developed through meaningful engagement with stakeholders;


### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with stakeholders; ### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with relevant stakeholders;


### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with stakeholders; ### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable timelines for action and indicators for monitoring improvement. where relevant , the corrective action plan shall be developed in consultation with relevant stakeholders;


### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with stakeholders; ### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with affected stakeholders;


### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with stakeholders; ### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. the corrective action plan shall be developed in consultation with all stakeholders;


### seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and , as necessary , a corrective action plan , including by seeking corresponding contractual assurances from its partners , to the extent that they are part of the value chain (contractual cascading). when such contractual assurances are obtained , paragraph 5 shall apply. ### seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and , as necessary , a corrective action plan , including by seeking corresponding contractual assurances from its partners , to the extent that they are part of the supply chain (contractual cascading). when such contractual assurances are obtained , paragraph 5 shall apply.


### seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and , as necessary , a corrective action plan , including by seeking corresponding contractual assurances from its partners , to the extent that they are part of the value chain (contractual cascading). when such contractual assurances are obtained , paragraph 5 shall apply. ### seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and a corrective action plan , if one has been drafted , including , where appropriate , by requiring corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s value chain (contractual cascading). when such contractual assurances are obtained , paragraph 5 shall apply.


### make necessary investments , such as into management or production processes and infrastructures to comply with paragraphs 1 , 2 and 3; ### make necessary and in light of economic circumstances reasonable and prudent investments , such as into management or production processes and infrastructures to comply with paragraphs 1 , 2 and 3;


### make necessary investments , such as into management or production processes and infrastructures to comply with paragraphs 1 , 2 and 3; ### make , where appropriate , investments , such as into management or production processes and infrastructures to comply with paragraphs 1 , 2 and 3;


### make necessary investments , such as into management or production processes and infrastructures to comply with paragraphs 1 , 2 and 3; ### make , where necessary and applicable , investments such as into management or production processes and infrastructures to comply with paragraphs 1 , 2 and 3;


### provide targeted and proportionate support for an sme with which the company has an established business relationship , where compliance with the code of conduct or the corrective action plan would jeopardise the viability of the sme; ### provide targeted and proportionate support for an sme with which the company has an established business relationship , in particular where compliance with the code of conduct or the corrective action plan would jeopardise the viability of the sme;


### provide targeted and proportionate support for an sme with which the company has an established business relationship , where compliance with the code of conduct or the corrective action plan would jeopardise the viability of the sme; ### provide targeted and proportionate financial and administrative support , especially for an sme with which the company has a direct business relationship outside the eu;


### provide targeted and proportionate support for an sme with which the company has an established business relationship , where compliance with the code of conduct or the corrective action plan would jeopardise the viability of the sme; ### provide targeted and proportionate support for an sme with which the company has a direct business relationship , where compliance with the code of conduct or the corrective action plan would jeopardise the viability of the sme;