### 16. due diligence is defined in this directive as the process put in place by an undertaking in order to identify , cease , prevent , mitigate , monitor , disclose , account for , address and remedy the risks posed to human rights , including social and labour rights , the environment , including climate change , and to governance , both by its own operations and its business relationships. ### 16. due diligence is defined in this directive as the process put in place by an undertaking in order to identify , cease , prevent , mitigate , monitor , disclose , account for , address and remedy the risks posed to human rights and the environment , including climate change in its direct contractual business relationships.


### 17. in relation to human rights risks , this directive lists a number of instruments undertakings should take into consideration when assessing their potential risks. the list is conceived as non-exhaustive , undertakings being strongly encouraged to take into consideration other human rights instruments that would enable them to carry out a complete due diligence process to prevent any risk for human rights. ### 17. in relation to human rights risks , annex i to this directive lists the instruments undertakings should take into consideration when assessing their potential risks. the list is exhaustive and can be reviewed by the commission by means of a delegated act where necessary to include the reference to human rights instruments that may be adopted in the future.


### 17. in relation to human rights risks , this directive lists a number of instruments undertakings should take into consideration when assessing their potential risks. the list is conceived as non-exhaustive , undertakings being strongly encouraged to take into consideration other human rights instruments that would enable them to carry out a complete due diligence process to prevent any risk for human rights. ### 17. in relation to human rights risks , annex i to this directive lists the instruments undertakings should take into consideration when assessing their potential risks. the list is exhaustive and can be reviewed by the commission by means of a delegated act where necessary to include the reference to internationally legally binding human rights instruments that may be adopted in the future.


### 18. environmental risks are often closely linked to human rights risks. the united nations special rapporteur on human rights and the environment has stated that the rights to life , health , food , water and development , as well as the right to a safe , clean , healthy and sustainable environment , are necessary for the full enjoyment of human rights; furthermore , the united nations general assembly has recognised , in resolution 64/292 , the right to safe and clean drinking water and sanitation as a human right. the covid-19 pandemic has underlined not only the importance of safe and healthy working environments , but also that of undertakings ensuring they do not cause or contribute to health risks in their value chains. consequently , those rights should be covered by the legislation. ### deleted


### 19. this directive establishes a non-exhaustive list of environmental risks. to contribute to the internal coherence of eu legislation and to provide legal certainty , this list is based on regulation (eu) 2020/852 on the establishment of a framework to facilitate sustainable investment in which undertakings may find guidance for assessing their risks. ### 19. this directive establishes an exhaustive list of environmental risks by means of a reference to a list of relevant union acts set out in annex ii to this directive.


### 20. this directive also requires undertakings to carry out due diligence in order to prevent any adverse impact on the good governance of the countries , regions or territories in which they carry out their business activities. in particular , undertakings should comply with the oecd anti-bribery convention and take measures to prevent any undue influence being exercised on public officials with a view to obtaining privileges or unfair favourable treatment that is in breach of the law. undertakings should also abstain from improperly influencing local political activities and should strictly comply with the applicable tax legislation. ### deleted


### 21. environmental , governance and human right risks are not gender-neutral. undertakings should be encouraged to integrate the gender perspective into their due diligence processes. they can find guidance in the un booklet gender dimensions of the guiding principles on business and human rights. ### deleted


### 21. environmental , governance and human right risks are not gender-neutral. undertakings should be encouraged to integrate the gender perspective into their due diligence processes. they can find guidance in the un booklet gender dimensions of the guiding principles on business and human rights. ### 21. environmental and human right risks are not gender-neutral. undertakings should be encouraged to integrate the gender perspective into their due diligence processes. they can find guidance in the un booklet gender dimensions of the guiding principles on business and human rights.


### 22. adverse impacts or violations of human rights and social and environmental standards by undertakings can be the result of their own activities or of those of their business relationships , in particular suppliers , sub-contractors and investee undertakings. in order to be effective , undertakings’ due diligence should encompass the entire value chain. ### 22. the adverse impacts or violations of human rights and environmental standards by undertakings can be the result of their own activities or of those of their direct contractual business relationships , in particular suppliers , sub-contractors and investee undertakings.


### 23. due diligence is primarily a preventative mechanism that requires companies to identify potential or actual adverse impacts and to adopt policies and measures to cease , prevent , mitigate , monitor , disclose , address , remediate them , and account for how they address those impacts. undertakings should be required to produce a document in which they make explicit their due diligence strategy with reference to each of those stages. this due diligence strategy should be duly integrated into the company’s overall business strategy. ### 23. due diligence is a preventative mechanism that requires companies to identify potential or actual adverse impacts and to adopt policies and measures to mitigate and monitor how they address these. undertakings may produce a document in which they make explicit their due diligence strategy. any due diligence framework should be based on an obligation of means rather than an obligation of results.


### 23. due diligence is primarily a preventative mechanism that requires companies to identify potential or actual adverse impacts and to adopt policies and measures to cease , prevent , mitigate , monitor , disclose , address , remediate them , and account for how they address those impacts. undertakings should be required to produce a document in which they make explicit their due diligence strategy with reference to each of those stages. this due diligence strategy should be duly integrated into the company’s overall business strategy. ### 23. due diligence is a preventative mechanism that requires companies to identify potential or actual adverse impacts and to adopt policies and measures to mitigate and monitor how they address these. undertakings may be required to produce a document in which they make explicit their due diligence strategy. any due diligence framework should be based on an obligation of means rather than an obligation of results.


### 24. due diligence should not be a ‘box-ticking’ exercise but should consist of an ongoing assessment of risks , which are dynamic and may change on account of new business relationships or contextual developments. undertakings should therefore in an ongoing manner monitor and adapt their due diligence strategies accordingly. those strategies should cover every actual or potential adverse impact , although the severity of the risk should be considered if the establishment of a prioritisation policy is required. ### deleted


### 24. due diligence should not be a ‘box-ticking’ exercise but should consist of an ongoing assessment of risks , which are dynamic and may change on account of new business relationships or contextual developments. undertakings should therefore in an ongoing manner monitor and adapt their due diligence strategies accordingly. those strategies should cover every actual or potential adverse impact , although the severity of the risk should be considered if the establishment of a prioritisation policy is required. ### 24. due diligence should not be a ‘box-ticking’ exercise but may consist of an ongoing assessment of risks , which are dynamic and may change on account of new business relationships. undertakings should therefore in an ongoing manner monitor and adapt their due diligence strategies accordingly. those strategies should cover actual or potential adverse impacts , although the severity of the risk must be considered.


### 26. sound due diligence requires that all stakeholders be consulted effectively and meaningfully , and that trade unions in particular be appropriately involved. the consultation and involvement of stakeholders can help companies to identify risks more precisely and to set up a more effective due diligence strategy. this directive therefore requires the consultation and involvement of stakeholders in all stages of the due diligence process. furthermore , their involvement and consultation may help to push back against pressure from financial markets and short-term investors and give voice to those with a strong interest in the long-term sustainability of the company. stakeholder participation may help improve the long-term performance and profitability of companies , as their increased sustainability would have positive aggregate economic effects. ### 26. sound due diligence requires that relevant stakeholders may be consulted effectively and meaningfully. stakeholder participation may help improve the long-term performance and profitability of companies as their increased sustainability would have positive aggregate economic effects.


### 26. sound due diligence requires that all stakeholders be consulted effectively and meaningfully , and that trade unions in particular be appropriately involved. the consultation and involvement of stakeholders can help companies to identify risks more precisely and to set up a more effective due diligence strategy. this directive therefore requires the consultation and involvement of stakeholders in all stages of the due diligence process. furthermore , their involvement and consultation may help to push back against pressure from financial markets and short-term investors and give voice to those with a strong interest in the long-term sustainability of the company. stakeholder participation may help improve the long-term performance and profitability of companies , as their increased sustainability would have positive aggregate economic effects. ### 26. sound due diligence requires that stakeholders may be consulted effectively and meaningfully. the consultation and involvement of stakeholders can help companies to identify risks more precisely and to set up a more effective due diligence strategy. furthermore , their involvement and consultation may help to push back against pressure from financial markets and short-term investors and give voice to those with a strong interest in the long-term sustainability of the company. stakeholder participation may help improve the long-term performance and profitability of companies , as their increased sustainability would have positive aggregate economic effects.


### 27. the concept of stakeholder should be broadly interpreted and include all persons whose rights and interests may be affected by the decisions of the company , which includes , but is not limited to , workers , local communities , indigenous peoples , citizens’ associations and shareholders , and organisations whose statutory purpose is to ensure that human and social rights , environmental and good governance standards are respected , such as trade unions and civil society organisations. ### deleted


### 27. the concept of stakeholder should be broadly interpreted and include all persons whose rights and interests may be affected by the decisions of the company , which includes , but is not limited to , workers , local communities , indigenous peoples , citizens’ associations and shareholders , and organisations whose statutory purpose is to ensure that human and social rights , environmental and good governance standards are respected , such as trade unions and civil society organisations. ### 27. the concept of stakeholder should be broadly interpreted and include all persons whose rights and interests may be affected by the decisions of the company , which includes , but is not limited to , workers , local communities , children , indigenous peoples , citizens’ associations and shareholders , and organisations whose statutory purpose is to ensure that human and social rights , environmental and good governance standards are respected , such as trade unions and civil society organisations.


### 28. to avoid the risk of critical stakeholder voices remaining unheard or marginalised in the due diligence process , the directive grants stakeholders the right to safe and meaningful consultation as regards the company’s due diligence strategy , and ensure the appropriate involvement of trade unions. ### deleted


### 29. complaint procedures should ensure that the anonymity , safety , physical and legal integrity of whistle-blowers is protected , in line with directive (eu) 2019/1937 of the european parliament and of the council. ### 29. complaint procedures must be in line with directive (eu) 2019/1937 of the european parliament and of the council;


### 29. complaint procedures should ensure that the anonymity , safety , physical and legal integrity of whistle-blowers is protected , in line with directive (eu) 2019/1937 of the european parliament and of the council. ### 29. complaint procedures must be in line with directive (eu) 2019/1937 of the european parliament and of the council and other relevant existing legislation.


### 30. this directive requires undertakings to make all necessary efforts to identify all their suppliers. in order to be fully effective , due diligence should not be limited to the first tier downstream and upstream in the supply chain but should encompass all suppliers and sub-contractors , particularly those that , during the due diligence process , might have been identified by the undertaking as posing major risks. this directive , however , recognises that not all undertakings have the same resources or capabilities to identify all their suppliers and therefore makes that obligation subject to the principles of reasonableness and proportionality , which in no case should be interpreted by undertakings as a pretext not to comply with their obligation to make all necessary efforts in that regard. ### 30. this directive requires undertakings to make all necessary efforts to identify their suppliers in the first tier of the supply chain outside the eu. this directive , however , does not lose sight of the fact that not all undertakings have the same resources or capabilities to identify all their suppliers and therefore subjects this obligation to the principles of reasonableness and proportionality , taking into account the severity and repeated nature of the infringements , which in no case should be interpreted by undertakings as a pretext not to comply with their obligation to make necessary efforts in that regard;


### 30. this directive requires undertakings to make all necessary efforts to identify all their suppliers. in order to be fully effective , due diligence should not be limited to the first tier downstream and upstream in the supply chain but should encompass all suppliers and sub-contractors , particularly those that , during the due diligence process , might have been identified by the undertaking as posing major risks. this directive , however , recognises that not all undertakings have the same resources or capabilities to identify all their suppliers and therefore makes that obligation subject to the principles of reasonableness and proportionality , which in no case should be interpreted by undertakings as a pretext not to comply with their obligation to make all necessary efforts in that regard. ### 30. this directive requires undertakings to make all necessary efforts to identify their suppliers in the first tier of the supply chain outside the eu. this directive , however , does not lose sight of the fact that not all undertakings have the same resources or capabilities to identify all their suppliers and therefore subjects this obligation to the principles of reasonableness , subsidiarity and proportionality , taking into account the severity and repeated nature of the infringements , which in no case should be interpreted by undertakings as a pretext not to comply with their obligation to make necessary efforts in that regard;


### 31. for due diligence to be embedded in the culture and structure of a company , it is necessary that the members of the administrative , management and supervisory bodies of the company be responsible for the adoption and implementation of the due diligence strategy. the board of directors should have the appropriate knowledge , training and experience in due diligence matters. the directive requires that large companies have an advisory committee from whose expertise on due diligence matters the undertaking should benefit. this directive also requires that remuneration policies be brought in line with the objectives of this directive. ### 31. for due diligence to be embedded in the culture and structure of a company it is necessary that the members of the administrative , management and supervisory bodies of the company follow the due diligence strategy in the case the company has adopted one.


### 31. for due diligence to be embedded in the culture and structure of a company , it is necessary that the members of the administrative , management and supervisory bodies of the company be responsible for the adoption and implementation of the due diligence strategy. the board of directors should have the appropriate knowledge , training and experience in due diligence matters. the directive requires that large companies have an advisory committee from whose expertise on due diligence matters the undertaking should benefit. this directive also requires that remuneration policies be brought in line with the objectives of this directive. ### 31. for due diligence to be embedded in the culture and structure of a company it is necessary that the members of the administrative , management and supervisory bodies of the company be responsible for the adoption and implementation of the due diligence strategy.


### 32. coordination of undertakings’ due diligence efforts at sectoral level could enhance the consistency and effectiveness of their due diligence strategies. to this end , this directive provides that member states could encourage the adoption of due diligence action plans at sectoral level. to avoid stakeholders’ views being ignored , the directive requires that stakeholders participate in the definition of these plans. ### 32. coordination of undertakings’ due diligence efforts at sectoral level could enhance the consistency and effectiveness of their due diligence strategies. to this end , this directive provides that member states could encourage the adoption of due diligence action plans at sectoral level. stakeholders are encouraged to participate in the definition of these plans.


### 33. in order to be effective , a due diligence framework should include grievance mechanisms at company or sector level and in order to ensure that such mechanisms are effective the participation of stakeholders should be ensured. . those mechanisms should allow stakeholders to raise concerns and should function as early-warning risk-awareness systems. grievance mechanisms should be entitled to make suggestions as to how risks should be addressed by the undertaking. they should also be entitled to propose an appropriate remedy when it is brought to their attention that the undertaking has caused or contributed to harm. ### 33. in order to be effective , a due diligence framework can include grievance mechanisms at company or sector level for the effectiveness of which the participation of stakeholders should be encouraged. these mechanisms could allow stakeholders to raise concerns and function as early-warning risk-awareness systems.


### 33. in order to be effective , a due diligence framework should include grievance mechanisms at company or sector level and in order to ensure that such mechanisms are effective the participation of stakeholders should be ensured. . those mechanisms should allow stakeholders to raise concerns and should function as early-warning risk-awareness systems. grievance mechanisms should be entitled to make suggestions as to how risks should be addressed by the undertaking. they should also be entitled to propose an appropriate remedy when it is brought to their attention that the undertaking has caused or contributed to harm. ### 33. in order to be effective , a due diligence framework might include grievance mechanisms at company or sector level for the effectiveness of which the participation of relevant stakeholders should be encouraged. these mechanisms could allow stakeholders to raise concerns and function as early-warning risk-awareness systems.


### 34. member states should designate one or more national authorities to supervise the correct implementation by undertakings of their due diligence obligations and ensure the proper enforcement of this directive. those national authorities should be entitled to carry out appropriate checks , on their own initiative or based on complaints received from stakeholders and third parties , and impose penalties , in order to ensure that undertakings comply with the obligations set out in the legislation; at union level , a european committee of competent authorities should be set up by the european commission. ### 34. member states should designate one or more national authorities to supervise the correct implementation by undertakings of their due diligence obligations and ensure the proper enforcement of this directive. these national authorities should be entitled to carry out appropriate checks , on their own initiative or based on complaints received from stakeholders , and impose proportionate sanctions , taking into account the severity and repetition of infringements , in order to ensure that undertakings comply with the obligations set out in the legislation; at union level , a european due diligence network competent authorities should be set up by the european commission to ensure cooperation with the national competent authorities.


### 34. member states should designate one or more national authorities to supervise the correct implementation by undertakings of their due diligence obligations and ensure the proper enforcement of this directive. those national authorities should be entitled to carry out appropriate checks , on their own initiative or based on complaints received from stakeholders and third parties , and impose penalties , in order to ensure that undertakings comply with the obligations set out in the legislation; at union level , a european committee of competent authorities should be set up by the european commission. ### 34. member states should designate one or more national authorities to supervise the correct implementation by undertakings of their due diligence obligations and ensure the proper enforcement of this directive. these national authorities should be entitled to carry out appropriate checks , on their own initiative or based on complaints received from stakeholders , and impose proportionate legal consequences , taking into account the severity and repetition of infringements , in order to ensure that undertakings comply with the obligations set out in the legislation; at union level , a european due diligence network together with the national competent authorities should be set up by the european commission.


### 38. the right to an effective remedy is an internationally recognised human right , enshrined in article 8 udhr and in article 2(3) iccpr , and is also a union fundamental right (article 47 of the charter). as recalled by the ungps , states have the duty to ensure , through judicial , administrative , legislative or other appropriate means , that those affected by business-related human rights abuses have access to an effective remedy. therefore , this directive makes specific reference to this obligation in line with the united nations basic principles and guidelines on the rights to remedy and reparation for victims of gross violations of international human rights law and serious violations of international humanitarian law. ### deleted


### 39. member states should introduce further legislation to ensure that undertakings can be held liable for damage caused by undertakings under their control where they have , in the course of business , committed violations of internationally recognized human rights or international environmental standards. they should not be held liable however if they can prove that they took all due care to avoid the loss or damage , or that the damage would have occurred even if all due care had been taken. when introducing liability regimes , member states should consider adopting appropriate limitation periods and introducing the loser pays principle. ### deleted


### 40. in order to create clarity and certainty and consistency among the practices of undertakings , in particular small , medium-sized and micro-enterprises , this directive requires the commission to prepare guidelines in consultation with member states and the oecd and with the assistance of a number of specialised agencies. a number of guidelines on due diligence produced by international organisations already exist which could be used as a reference for the commission when developing guidelines under this directive specifically for eu companies. in addition to general guidelines which could guide smes in the application of due diligence in their operations , the commission should envisage producing sector-specific guidelines and provide a regularly updated list of country fact-sheets in order to help companies assess the risks of their business operations in a given area. those fact-sheets should indicate in particular which list of conventions and treaties among those listed in article 3 of the directive have been ratified by a given country. ### 40. in order to create clarity and certainty and consistency among the practices of undertakings , this directive requires the commission to prepare an exhaustive list of guidelines in consultation with member states and the oecd and with the assistance of a number of specialised agencies. a number of guidelines on due diligence produced by international organisations already exist which could be used as a reference for the commission when developing guidelines under this directive specifically for eu companies. the directive should aim for full harmonization of standards among member states. other than general guidelines which should guide all affected undertakings in the application of due diligence in their operations , the commission should envisage producing sector-specific guidelines and provide a regularly updated list of country fact-sheets in order to help companies assess the risks of their business operations in a given area. those fact-sheets should indicate in particular which list of conventions and treaties among those listed in annex i to this directive have been ratified by a given country.


### 40. in order to create clarity and certainty and consistency among the practices of undertakings , in particular small , medium-sized and micro-enterprises , this directive requires the commission to prepare guidelines in consultation with member states and the oecd and with the assistance of a number of specialised agencies. a number of guidelines on due diligence produced by international organisations already exist which could be used as a reference for the commission when developing guidelines under this directive specifically for eu companies. in addition to general guidelines which could guide smes in the application of due diligence in their operations , the commission should envisage producing sector-specific guidelines and provide a regularly updated list of country fact-sheets in order to help companies assess the risks of their business operations in a given area. those fact-sheets should indicate in particular which list of conventions and treaties among those listed in article 3 of the directive have been ratified by a given country. ### 40. in order to create clarity and certainty and consistency among the practices of undertakings , this directive requires the commission to prepare an exhaustive list of guidelines in consultation with member states and the oecd and with the assistance of a number of specialised agencies. there already exist a number of guidelines on due diligence produced by international organisations which could be used as a reference for the commission when developing guidelines under this directive specifically for eu companies. other than general guidelines which should guide all affected undertakings in the application of due diligence in their operations , the commission should envisage producing sector-specific guidelines and provide a regularly updated list of country fact-sheets in order to help companies assess the risks of their business operations in a given area. those fact-sheets should indicate in particular which list of conventions and treaties among those listed in article 3 of the directive have been ratified by a given country.


### 1. this directive is aimed at ensuring that undertakings operating in the internal market fulfil their duty to respect human rights , the environment and good governance and do not cause or contribute to risks to human rights , the environment and good governance in their activities and those of their business relationships. ### 1. this directive is aimed at ensuring that by adhering to reasonable due diligence policies and procedures , undertakings operating in the internal market fulfil their duty to respect human rights and the environment and do not cause or contribute to risks to human rights and the environment in their activities and those of their direct contractual business relationships.


### 1. this directive is aimed at ensuring that undertakings operating in the internal market fulfil their duty to respect human rights , the environment and good governance and do not cause or contribute to risks to human rights , the environment and good governance in their activities and those of their business relationships. ### 1. this directive is aimed at ensuring that undertakings operating in the internal market fulfil their duty to respect human rights and the environment and do not cause or contribute to risks to human rights and the environment in their activities and those of their business relationships.


### article 7 ### deleted


### this directive is without prejudice to the obligations imposed on certain undertakings by directive 2013/34/eu to include in their management report a non-financial statement including a description of the policies pursued by the undertaking in relation to , as a minimum , environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters , and the due diligence processes implemented. ### this directive is without prejudice to the obligations imposed on certain undertakings by directive 2013/34/eu.


### 1. undertakings shall evaluate the effectiveness and appropriateness of their due diligence strategy at least once a year , and review it accordingly when necessary. ### 1. undertakings shall review the effectiveness and appropriateness of their due diligence strategy when necessary.


### 2. the evaluation and review of the due diligence strategy shall be carried out in consultation with stakeholders and the involvement of trade unions in the same manner as when establishing the due diligence strategy. ### deleted


### 3. in large companies , the advisory committee referred to in article 12 shall be consulted in the evaluation and review of the due diligence strategy. ### deleted


### 1. undertakings shall establish a grievance mechanism , both as an early-warning risk-awareness and as a remediation system , allowing any stakeholder to voice concerns regarding the existence of a human rights , environmental or governance risks. member states shall ensure that undertakings are enabled to provide for such a mechanism through collaborative arrangements with other undertakings or organisations. ### 1. undertakings can voluntarily establish a grievance mechanism , both as an early-warning risk-awareness and as are mediation system , allowing relevant stakeholders to voice concerns regarding the existence of a human rights , environmental or governance risks member states shall ensure that undertakings are enabled to provide for such a mechanism through collaborative arrangements with other undertakings or organisations.


### 1. undertakings shall establish a grievance mechanism , both as an early-warning risk-awareness and as a remediation system , allowing any stakeholder to voice concerns regarding the existence of a human rights , environmental or governance risks. member states shall ensure that undertakings are enabled to provide for such a mechanism through collaborative arrangements with other undertakings or organisations. ### 1. undertakings can establish a grievance mechanism , both as an early-warning risk-awareness and as a remediation system , allowing stakeholders to voice concerns regarding the existence of a human rights , environmental or governance risks. member states shall ensure that undertakings are enabled to provide for such a mechanism through collaborative arrangements with other undertakings or organisations.


### 2. grievance mechanisms shall be legitimate , accessible , predictable , safe , equitable , transparent , rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in principle 31 of the united nations guiding principles on business and human rights. they shall provide for anonymous complaints. ### 2. grievance mechanisms shall be legitimate , accessible , predictable , safe , equitable , transparent , rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in principle 31 of the united nations guiding principles on business and human rights and the united nations crc general comment no 16. they shall provide for anonymous complaints.


### 2. grievance mechanisms shall be legitimate , accessible , predictable , safe , equitable , transparent , rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in principle 31 of the united nations guiding principles on business and human rights. they shall provide for anonymous complaints. ### 2. grievance mechanisms shall be legitimate , accessible , predictable , safe , equitable , transparent , rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in principle 31 of the united nations guiding principles on business and human rights.


### 4. undertakings shall publish concerns raised via their grievance mechanisms as well as remediation efforts and regularly report on progress made in those instances. ### deleted


### 5. grievance mechanisms shall be entitled to make proposals to the undertaking on how risks should be addressed. ### 5. grievance mechanisms could be entitled to make proposals to the undertaking on how risks should be addressed.


### 6. grievance mechanisms shall be developed in partnership with stakeholders , in particular workers representatives , and be managed in cooperation with them. workers representatives shall be given the necessary resources to carry out their responsibilities in this area , including in order to establish connections with trade unions and workers in the undertakings with which the main undertaking has business relationships. ### 6. grievance mechanisms shall be encouraged to be developed in partnership with stakeholders.


### article 10 ### deleted


### 5. member states shall ensure that proposal of a remedy by an undertaking does not prevent affected stakeholders from bringing civil proceedings in accordance with national law. ### 5. member states shall ensure that proposal of a remedy by an undertaking does not prevent affected stakeholders from bringing judicial proceedings in accordance with the law. in particular:


### 2. member states shall ensure that their laws , regulations and administrative provisions on liability , at least towards the undertaking , apply to the members of the administrative , management and supervisory bodies of the undertakings , as regards breach of the duties referred to in paragraph 1. ### deleted


### article 12 ### deleted


### 1. member states may encourage the adoption by undertakings of sectoral due diligence action plans aimed at coordinating the due diligence strategies of undertakings within an economic sector. ### 1. member states may encourage the adoption of sectoral due diligence action plans aimed at coordinating the due diligence strategies of undertakings within an economic sector. companies that join and implement an officially recognized (sectoral) standard , a safe harbour , can limit their risk for legal consequences . the standard must consider all core elements of due diligence and have been developed in a multi-stakeholder process. the company's compliance with the standard should be audited. the safe harbour provides positive incentives for exemplary conduct.


### 2. member states shall ensure that stakeholders , particularly trade unions , have the right to participate in the definition of sectoral due diligence action plans. ### deleted


### 5. trade unions shall be given the necessary resources to carry out their responsibilities in this area , including in order to establish connections with trade unions and workers in the undertakings with which the main undertaking has business relationships. ### deleted


### 1. member state competent authorities shall have the power to carry out investigations to ensure that undertakings comply with the obligations set out in this directive. competent authorities shall be authorised to carry out checks on undertakings and interviews with affected or potentially affected stakeholders or their representatives. ### 1. member state competent authorities shall have the power to impose implementing measures on undertakings and to carry out investigations to ensure that undertakings comply with the obligations set out in this directive. competent authorities shall be authorised to carry out checks on undertakings and interviews with affected or potentially affected stakeholders or their representatives.


### 1. member state competent authorities shall have the power to carry out investigations to ensure that undertakings comply with the obligations set out in this directive. competent authorities shall be authorised to carry out checks on undertakings and interviews with affected or potentially affected stakeholders or their representatives. ### 1. member state competent authorities referred to in article 14 shall have the power to carry out appropriate checks within the framework of investigations to ensure that undertakings comply with the obligations set out in this directive.


### 2. investigations referred to in paragraph 1 shall either be conducted by taking a risk-based approach or in the event a competent authority is in possession of relevant information , including on the basis of substantiated complaints provided by any third party. ### 2. investigations referred to in paragraph 1 shall be conducted in the event a competent authority is in possession of relevant information regarding possible breaches of internationally legally binding human rights and environmental standards , including on the basis of substantiated complaints.


### 2. investigations referred to in paragraph 1 shall either be conducted by taking a risk-based approach or in the event a competent authority is in possession of relevant information , including on the basis of substantiated complaints provided by any third party. ### 2. investigations referred to in paragraph 1 shall be conducted in the event a competent authority is in possession of relevant information regarding possible breaches of human rights and environmental standards , including on the basis of substantiated complaints.


### 3. member states shall facilitate the submission by third parties of complaints referred to in paragraph 2 by measures such as complaint submission forms and ensuring that complaints remain anonymous upon the request of the complainant. member states shall ensure that that form can also be completed electronically. ### 3. member states competent authorities referred to in article 14 shall facilitate the submission by third parties of complaints referred to in paragraph 2 by measures such as a complaint submission forms. member states competent authorities referred to in article 14 shall ensure that that form is completed electronically.


### 5. if as a result of the actions taken pursuant to paragraph 1 , a competent authority identifies a failure to comply with this directive , it shall grant the undertaking concerned an appropriate period of time to take remedial action. ### deleted


### 6. member states shall ensure that if the failure to comply with this directive could lead to irreparable harm , a competent authority may order the adoption of interim measures by the undertaking concerned , or order the temporary suspension of activities. ### 6. member states shall ensure that if the failure to comply with this directive directly leads to irreparable harm , a competent authority may order the adoption of interim measures by the undertaking concerned , or - if no other measure is available and ensuring strict compliance with the principle of proportionality - order the temporary suspension of activities.


### 8. member states shall ensure that the national competent authorities keep records of the checks referred to in paragraph 1 , indicating , in particular , their nature and result , as well as records of any notice of remedial action issued under paragraph 5. ### deleted


### 9. records of the checks referred to in paragraph 1 shall be kept for at least five years. ### deleted


### 1. in order to create clarity and certainty for undertakings , in particular small , medium-sized and micro undertakings , as well as ensure consistency among their practices , the commission , in consultation with member states and the oecd , and with the assistance of the fundamental rights agency , the european environment agency and the european agency for small and medium enterprises , shall publish general non-binding guidelines for undertakings on how best to fulfil the due diligence obligations set out in this directive. those guidelines shall provide practical guidance on how proportionality may be applied to due diligence obligations depending on the size and sector of the undertaking. the guidelines shall be made available no later than 18 months after the date of entry into force of this directive. ### 1. in order to create clarity and certainty for undertakings , as well as ensure consistency among their practices , the commission , in consultation with member states and the oecd , shall publish general non-binding guidelines for undertakings on how best to fulfil the due diligence obligations set out in this directive. these guidelines shall provide practical guidance on how proportionality may be applied to due diligence obligations depending on the size and sector of the undertaking. the guidelines shall be available no later than 18 months after the date of entry into force of this directive.


### 1. in order to create clarity and certainty for undertakings , in particular small , medium-sized and micro undertakings , as well as ensure consistency among their practices , the commission , in consultation with member states and the oecd , and with the assistance of the fundamental rights agency , the european environment agency and the european agency for small and medium enterprises , shall publish general non-binding guidelines for undertakings on how best to fulfil the due diligence obligations set out in this directive. those guidelines shall provide practical guidance on how proportionality may be applied to due diligence obligations depending on the size and sector of the undertaking. the guidelines shall be made available no later than 18 months after the date of entry into force of this directive. ### 1. in order to create clarity and certainty for undertakings , as well as ensure consistency among their practices , the commission , in consultation with member states and the oecd , and with the assistance of the european union fundamental rights agency and the european environment agency , shall publish general non-binding guidelines for undertakings on how best to fulfil the due diligence obligations set out in this directive. these guidelines shall provide practical guidance on how proportionality may be applied to due diligence obligations depending on the size and sector of the undertaking. the guidelines shall be available no later than 18 months after the date of entry into force of this directive.


### 2. the commission , in consultation with member states and the oecd , and with the assistance of the fundamental rights agency , the european environment agency and the european agency for small and medium enterprises , may prepare specific non-binding guidelines for undertakings operating in certain sectors. ### 2. the commission , in consultation with member states and the oecd may prepare specific non-binding guidelines for undertakings operating in certain sectors.


### 2. the commission , in consultation with member states and the oecd , and with the assistance of the fundamental rights agency , the european environment agency and the european agency for small and medium enterprises , may prepare specific non-binding guidelines for undertakings operating in certain sectors. ### 2. the commission , in consultation with member states and the oecd , and with the assistance of the fundamental rights agency and the european environment agency may prepare specific non-binding guidelines for undertakings operating in certain sectors.


### 3. in preparing the non-binding guidelines referred to in paragraphs 1 and 2 above , due account shall be taken of the united nations guiding principles on business and human rights , the ilo tripartite declaration of principles concerning multinational enterprises and social policy , the oecd due diligence guidance for responsible business conduct , the oecd guidelines for multinational enterprises , the oecd guidance for responsible mineral supply chains , the oecd due diligence guidance for responsible supply chains in the garment and footwear sector , the oecd guidance for responsible business conduct for institutional investors , and the oecd-fao guidance for responsible agricultural supply chains. ### 3. in preparing the non-binding guidelines referred to in paragraphs 1 and 2 above , due account shall be taken of the united nations guiding principles on business and human rights , the ilo tripartite declaration of principles concerning multinational enterprises and social policy , the oecd due diligence guidance for responsible business conduct , the oecd guidelines for multinational enterprises , the oecd guidance for responsible mineral supply chains , the oecd due diligence guidance for responsible supply chains in the garment and footwear sector , the oecd guidance for responsible business conduct for institutional investors , and the oecd-fao guidance for responsible agricultural supply chains , the united national committee on the rights of the child general comment 16 on state obligations regarding the impact of the business sector on children’s rights and the unicef children’s rights and business principles.


### 3. in preparing the non-binding guidelines referred to in paragraphs 1 and 2 above , due account shall be taken of the united nations guiding principles on business and human rights , the ilo tripartite declaration of principles concerning multinational enterprises and social policy , the oecd due diligence guidance for responsible business conduct , the oecd guidelines for multinational enterprises , the oecd guidance for responsible mineral supply chains , the oecd due diligence guidance for responsible supply chains in the garment and footwear sector , the oecd guidance for responsible business conduct for institutional investors , and the oecd-fao guidance for responsible agricultural supply chains. ### 3. in preparing the non-binding guidelines referred to in paragraphs 1 and 2 above , due account shall be taken of the united nations guiding principles on business and human rights , the oecd due diligence guidance for responsible business conduct , the oecd guidelines for multinational enterprises , the oecd guidance for responsible mineral supply chains , the oecd due diligence guidance for responsible supply chains in the garment and footwear sector , the oecd guidance for responsible business conduct for institutional investors , and the oecd-fao guidance for responsible agricultural supply chains.


### article 17 ### deleted


### 1. the commission shall set up a european committee of competent authorities to facilitate the coordination and convergence of regulatory and supervisory practices , and monitor the performance of national competent authorities. ### 1. the commission shall set up a european due diligence network of competent authorities to ensure , together with the national competent authorities referred to in article 14 , the coordination and convergence of regulatory and supervisory practices , and monitor the performance of national competent authorities.


### 2. the commission , assisted by the european union agency for fundamental rights , the european environmental agency , and the european agency for small and medium enterprises shall publish , based on the information shared by national competent authorities and in cooperation with other public sector experts and stakeholders , an annual due diligence score-board. ### deleted


### 1. member states shall provide for penalties applicable to infringements of the national provisions adopted in accordance with this directive and shall take all the measures necessary to ensure that those penalties are enforced. the penalties provided for shall be effective , proportionate and dissuasive. ### 1. member states shall provide for administrative penalties applicable to infringements of the national provisions adopted in accordance with this directive and shall take all the measures necessary to ensure that those penalties are enforced. the penalties provided for shall be effective , proportionate and dissuasive.


### 1. member states shall provide for penalties applicable to infringements of the national provisions adopted in accordance with this directive and shall take all the measures necessary to ensure that those penalties are enforced. the penalties provided for shall be effective , proportionate and dissuasive. ### 1. member states shall provide for sanctions applicable to infringements of the national provisions adopted in accordance with this directive and shall take all the measures necessary to ensure that those sanctions are enforced. the sanctions provided for shall take into account the severity and repeated nature of the infringements committed and be effective , proportionate and dissuasive.


### 1. member states shall provide for penalties applicable to infringements of the national provisions adopted in accordance with this directive and shall take all the measures necessary to ensure that those penalties are enforced. the penalties provided for shall be effective , proportionate and dissuasive. ### 1. member states shall provide for legal consequences applicable to infringements of the national provisions adopted in accordance with this directive and shall take all the measures necessary to ensure that those consequences are enforced. legal consequences should be applied where appropriate and be effective , proportionate and dissuasive.


### 2. member states shall ensure that a repeated infringement by an undertaking of the national provisions adopted in accordance with this directive constitutes a criminal offence , when committed intentionally or with serious negligence. member states shall take the necessary measures to ensure that these offences are punishable by effective , proportionate and dissuasive criminal penalties. ### deleted


### 2. member states shall ensure that a repeated infringement by an undertaking of the national provisions adopted in accordance with this directive constitutes a criminal offence , when committed intentionally or with serious negligence. member states shall take the necessary measures to ensure that these offences are punishable by effective , proportionate and dissuasive criminal penalties. ### 2. member states shall ensure that a serious infringement by an undertaking of the national provisions adopted in accordance with this directive constitutes a criminal offence , in particular when committed intentionally or with serious negligence. member states shall take the necessary measures to ensure that these offences are punishable by effective , proportionate and dissuasive criminal penalties.


### [...] ### deleted


### a. whereas the globalisation of economic activity has in many instances given rise to and aggravated adverse impacts on human rights , including social and labour rights , the environment and the good governance of states; ### a. whereas the globalisation of economic activity has in many instances given rise to and aggravated adverse impacts on human rights and the environment;


### b. whereas companies should respect human rights , the environment and good governance and should not cause or contribute to causing any adverse impacts in this regard; ### b. whereas companies should respect internationally binding human rights and the environment and should not cause or contribute to causing any adverse impacts in this regard;


### b. whereas companies should respect human rights , the environment and good governance and should not cause or contribute to causing any adverse impacts in this regard; ### b. whereas companies should respect human rights and the environment and should not cause or contribute to causing any adverse impacts in this regard;


### c. whereas the covid-19 crisis has exposed some of the severe drawbacks of global supply chains and the ease with which certain undertakings are able to shift negative impacts on their business activities to other jurisdictions; ### c. whereas the covid-19 crisis has exposed some of the severe drawbacks of global supply chains and the ease with which certain undertakings are able to shift , both directly and indirectly , negative impacts on their business activities to other jurisdictions;


### d. whereas according to ilo statistics around the globe there are around 25 million victims of forced labour , 152 million victims of child labour , 2 ,78 million deaths due to work-related diseases per year and 374 million non-fatal work-related injuries per year; whereas the ilo has developed several conventions to protect workers , but their enforcement is still lacking , especially with reference to the labour markets of developing countries; ### deleted


### e. whereas this alarming situation has prompted a debate as to how to make businesses more responsive to the adverse impacts they cause or contribute to; ### e. whereas this alarming situation has prompted a debate as to how to make businesses more responsive to the adverse impacts they cause or contribute to , while highlighting the need for a harmonised eu-wide approach to these matters;


### f. whereas that debate has led , among other things , to the adoption of due diligence frameworks and standards within the un , the oecd and the ilo; whereas these standards are however voluntary and , consequently , their uptake has been limited; ### f. whereas that debate has led , among other things , to the adoption of due diligence frameworks and standards within the un and the oecd; whereas these standards are however voluntary and , consequently , their uptake has been limited;


### g. whereas , according to a commission study , only 37% of business respondents currently conduct environmental and human rights due diligence , and only 16% cover the entire supply chain; ### g. whereas , according to a commission study , only 37% of business respondents currently conduct environmental and human rights due diligence;


### h. whereas some member states , such as france and the netherlands , have adopted legislation to enhance corporate accountability and have introduced mandatory due diligence frameworks; ### deleted


### 2. recalls that due diligence is primarily a preventative mechanism and that companies should be first and foremost required to identify risks or adverse impacts and adopt policies and measures to address them; highlights that if an undertaking causes or contributes to an adverse impact it should provide for a remedy; ### 2. stresses that it is the responsibility of states and governments to safeguard human rights in their countries and that this responsibility shall not be transferred to private actors; recalls that due diligence is primarily a preventative mechanism and that companies should be first and foremost required to identify risks or adverse impacts and adopt policies and measures to mitigate them;


### 2. notes that globalisation has created interdependencies between societies , where any product results from complex transnational supply and value chains and where decisions taken by european firms impact on peoples’ ability to enjoy human rights and fundamental freedoms worldwide; ### 2. notes that one of the advantages of globalisation has been the development of the economic sector , which has created interdependencies between societies , which at times interlink through complex transnational supply and value chains where decisions taken by transnational firms impact on peoples’ ability to enjoy their human rights and fundamental freedoms worldwide;


### 2. notes that globalisation has created interdependencies between societies , where any product results from complex transnational supply and value chains and where decisions taken by european firms impact on peoples’ ability to enjoy human rights and fundamental freedoms worldwide; ### 2. notes that globalisation has created interdependencies between societies , where any product results from complex transnational supply and value chains;


### 2. believes that there is strong need for a mandatory , harmonised framework at union level to ensure a level playing field for business and welcomes the commission’s ongoing work on legislation requiring that union companies conduct due diligence on respect for human rights and environmental obligations throughout their supply chains; ### 2. believes that there is a need for a mandatory , harmonised framework at union level to ensure a level playing field for business based on an impact assessment and a careful evaluation which has concluded that it is functional and applicable to all actors on the market with more than 500 employees and welcomes the commission’s ongoing work on legislation requiring that union companies conduct due diligence on respect for human rights and environmental obligations; draws attention to the risk that companies might withdraw from third countries - which will result in job losses and in loss of cooperation partners for smallholders in developing countries - if new requirements prove to impose excessive administrative burdens and uncontrollable risks; considers nevertheless that a multilateral framework is preferable and asks the commission to participate in negotiations on a un treaty;


### 3. stresses that human rights abuses and breaches of social and environmental standards can be the result of a company’s own activities or of those of its business relationships; underlines therefore that due diligence should encompass the entire value chain; ### 3. stresses that human rights violations and breaches of environmental standards can be the result of a company’s own activities or of those of its business relationships; underlines therefore that due diligence should encompass direct suppliers in the first tier of the supply chain outside the european union;


### 3. stresses that human rights abuses and breaches of social and environmental standards can be the result of a company’s own activities or of those of its business relationships; underlines therefore that due diligence should encompass the entire value chain; ### 3. stresses that human rights abuses and breaches of environmental standards can be the result of a company’s own activities or of those of its business relationships; underlines therefore that due diligence should encompass direct suppliers in the first tier of the supply chain outside the european union.


### 3. regrets that many businesses’ decisions are primarily guided by lower costs and higher profits with inadequate consideration of adverse impacts on human rights and the environment down their global value chains , while severe human rights violations often occur at primary production level , in particular when sourcing raw material and manufacturing products; ### 3. recalls that in any market economy companies are driven by the motivation of making a profit , meaning reaching a situation where total revenues outnumber total costs , which is the basis for their capacity to employ staff and pay out decent salaries , which in return also permits state authorities to collect taxes , and hence the gathering of an economic profit can be seen as the origin of our social market economy , social wealth and economic progress; notes however that business decisions of certain companies may not pay adequate attention to the long-term costs of their short-term profit gathering , such as working conditions and environmental standards , which can impact human rights and the environment down their global value chains , whereas human rights violations often occur at primary production level , in particular when sourcing raw material and manufacturing products;


### 3. regrets that many businesses’ decisions are primarily guided by lower costs and higher profits with inadequate consideration of adverse impacts on human rights and the environment down their global value chains , while severe human rights violations often occur at primary production level , in particular when sourcing raw material and manufacturing products; ### 3. regrets that many businesses’ decisions are primarily guided by lower costs and higher profits with inadequate consideration of adverse impacts on human rights and the environment down their global value chains , while severe human rights violations often occur at primary production level , in particular when sourcing raw material and manufacturing products in wide range of industries , especially in textile industry;


### 3. regrets that many businesses’ decisions are primarily guided by lower costs and higher profits with inadequate consideration of adverse impacts on human rights and the environment down their global value chains , while severe human rights violations often occur at primary production level , in particular when sourcing raw material and manufacturing products; ### 3. regrets that some businesses’ decisions are primarily guided by lower costs and higher profits with inadequate consideration of adverse impacts on human rights and the environment down their global value chains , while severe human rights violations often occur at primary production level , in particular when sourcing raw material and manufacturing products;


### 3. calls on the commission to apply a human rights-based approach to the future legislation which shall be designed , implemented , monitored and evaluated respecting the core human rights principles of transparency and access to information , inclusion and non-discrimination with a special focus on the most vulnerable; ### 3. calls on the commission to apply a human rights-based approach to the future legislation which shall be designed , implemented , monitored and evaluated with high transparency and respecting the core human rights principles of transparency and access to information , inclusion and non-discrimination with a special focus on the most vulnerable;


### 3. calls on the commission to apply a human rights-based approach to the future legislation which shall be designed , implemented , monitored and evaluated respecting the core human rights principles of transparency and access to information , inclusion and non-discrimination with a special focus on the most vulnerable; ### 3. calls on the commission to apply a human rights-based approach to the future legislation which shall be designed , implemented , monitored and evaluated respecting the principles of transparency and access to information , inclusion and non-discrimination with a special focus on the most vulnerable;


### 4. considers that the scope of any future mandatory eu due diligence framework should be broad and cover all undertakings governed by the law of a member state or established in the territory of the union , including those providing financial products and services , regardless of their size or sector of activity and of whether they are publicly owned or controlled undertakings; ### 4. considers that the future eu due diligence framework should cover undertakings governed by the law of a member state or established in the territory of the union with more than 5000 employees;


### 4. considers that the scope of any future mandatory eu due diligence framework should be broad and cover all undertakings governed by the law of a member state or established in the territory of the union , including those providing financial products and services , regardless of their size or sector of activity and of whether they are publicly owned or controlled undertakings; ### 4. considers that the scope of any future mandatory eu due diligence framework should cover undertakings governed by the law of a member state or established in the territory of the union with more than 5000 employees;


### 4. considers that the scope of any future mandatory eu due diligence framework should be broad and cover all undertakings governed by the law of a member state or established in the territory of the union , including those providing financial products and services , regardless of their size or sector of activity and of whether they are publicly owned or controlled undertakings; ### 4. considers that the scope of any future joint eu due diligence framework should focus on reducing risk at the first level of the supply chains outside the eu and cover all undertakings with more than 5 000 employees , with the exception of those providing financial products and services;


### 4. is gravely concerned by the persistent exploitation and degradation of human beings through forced labour systems affecting 25 million people and from which the private economy extracted profits of 150 billion dollars globally in 2019; notes with concern that there are currently an estimated 152 million children in child labour , 72 million of whom work in hazardous conditions; ### 4. is gravely concerned by the persistent exploitation and degradation of human beings through forced labour systems affecting millions; points in this light also to the unacceptable situation of child labour , which according to un sources affects millions of children below the age of 18 around the world; points to the special responsibility of companies to protect in particular children and prevent any form of child labour;


### 4. is gravely concerned by the persistent exploitation and degradation of human beings through forced labour systems affecting 25 million people and from which the private economy extracted profits of 150 billion dollars globally in 2019; notes with concern that there are currently an estimated 152 million children in child labour , 72 million of whom work in hazardous conditions; ### 4. is gravely concerned by the persistent exploitation and degradation of human beings through forced labour systems affecting 25 million people and from which the private economy extracted profits of 150 billion dollars globally in 2019; notes with concern that there are currently an estimated 152 million children in child labour , 72 million of whom work in hazardous conditions and many of them are forced to work through violence , psychological violence , blackmail and other unlawful means used against them;


### 4. is gravely concerned by the persistent exploitation and degradation of human beings through forced labour systems affecting 25 million people and from which the private economy extracted profits of 150 billion dollars globally in 2019; notes with concern that there are currently an estimated 152 million children in child labour , 72 million of whom work in hazardous conditions; ### 4. is gravely concerned by the persistent exploitation and degradation of human beings through forced labour systems affecting millions of people and from which certain undertakings , entities and/or persons , be they public or private , have benefited globally in 2019; notes with concern that there are currently an estimated 152 million children in child labour , 72 million of whom work in hazardous conditions;


### 4. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers and trade union rights , women , children or indigenous people; stresses that full alignment with existing legal obligations and standards at european and international level should be sought; is of the opinion that the legislation should address all types of human rights abuses; ### 4. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers and trade union rights , women , children , indigenous people and minority rights; stresses that full alignment with existing legal obligations and standards at european and international level should be sought; is of the opinion that the legislation should address all business-related violations of internationally legally binding human rights rooted in human dignity;


### 4. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers and trade union rights , women , children or indigenous people; stresses that full alignment with existing legal obligations and standards at european and international level should be sought; is of the opinion that the legislation should address all types of human rights abuses; ### 4. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers and trade union rights , women , children or indigenous people; stresses that any new legislation should be based on existing legal obligations and standards at european and international level;


### 5. considers that small , medium-sized and micro-enterprises may need less extensive and formalised due diligence processes , and that a proportional approach could take into account , amongst other elements , the sector of activity , the size of the undertaking , the context of its operations , its business model , its position in value chains and the nature of its products and services; ### deleted


### 5. considers that small , medium-sized and micro-enterprises may need less extensive and formalised due diligence processes , and that a proportional approach could take into account , amongst other elements , the sector of activity , the size of the undertaking , the context of its operations , its business model , its position in value chains and the nature of its products and services; ### 5. underlines due diligence processes would cause unnecessary burden for small , medium-sized and micro-enterprises therefore they should be exempted from the scope of the future due diligence legislation;


### 5. highlights that the obligation to respect and protect human rights , the environment and to avoid the risk of corruption should be embedded throughout whole global value chains , products , services and business relationships; ### 5. highlights that the obligation to respect and protect human rights and the environment should focus on the first tier of the supply chain outside of the union and on direct contractual business relationships; calls for better legal frameworks and better implementation and monitoring of human rights and environmental standards and protection of human rights and environmental protection defenders in developing countries and affirms the union’s readiness to support developing countries in institution-building and training of legal and administrative experts through development aid as well as through political dialogue;


### 6. stresses that the rights to an effective remedy and fair trial are basic human rights enshrined in article 8 of the universal declaration of human rights (udhr) , article 2(3) of the international covenant on civil and political rights (iccpr) , as well as in articles 6 and 13 of the echr and article 47 of the charter; stresses that the union , as part of its commitment to promote , protect and fulfil human rights worldwide , must promote the rights of victims of business-related human rights violations and abuses that amount to criminal offences in third countries , in line with directives 2011/36/eu1 , and 2012/29/eu2 of the european parliament and of the council; ### 6. stresses that the rights to an effective remedy and fair trial are basic human rights enshrined in article 8 of the universal declaration of human rights (udhr) , article 2(3) of the international covenant on civil and political rights (iccpr) , as well as in articles 6 and 13 of the echr and article 47 of the charter; stresses that the union , as part of its commitment to promote , protect and fulfil human rights worldwide , should help to promote the rights of victims of business-related human rights violations and abuses that amount to criminal offences in third countries , in line with directives 2011/36/eu1 , and 2012/29/eu2 of the european parliament and of the council;


### 6. stresses that the rights to an effective remedy and fair trial are basic human rights enshrined in article 8 of the universal declaration of human rights (udhr) , article 2(3) of the international covenant on civil and political rights (iccpr) , as well as in articles 6 and 13 of the echr and article 47 of the charter; stresses that the union , as part of its commitment to promote , protect and fulfil human rights worldwide , must promote the rights of victims of business-related human rights violations and abuses that amount to criminal offences in third countries , in line with directives 2011/36/eu1 , and 2012/29/eu2 of the european parliament and of the council; ### 6. stresses that the rights to an effective remedy and fair trial are basic human rights enshrined in article 8 of the universal declaration of human rights (udhr) , article 2(3) of the international covenant on civil and political rights (iccpr) , as well as in articles 6 and 13 of the echr and article 47 of the charter; stresses that the union , as part of its commitment to promote , protect and fulfil human rights worldwide , must promote the rights of victims of business-related violations of internationally legally binding human rights rooted in human dignity that amount to criminal offences in third countries , in line with directives 2011/36/eu1 , and 2012/29/eu2 of the european parliament and of the council;


### 6. is of the opinion that the new legislation should apply to all sectors , to all types of enterprises , whether public or private , and of all size across the union; considers that the focus should be placed on the risks; ### deleted


### 6. is of the opinion that the new legislation should apply to all sectors , to all types of enterprises , whether public or private , and of all size across the union; considers that the focus should be placed on the risks; ### 6. is of the opinion that any new legislation should firstly apply to sectors with larger risks for abuses , learning from the experience of implementation of the regulation (eu) 2017/821 of the european parliament and of the council1a; notes in this regard that that regulation has yet to come into full force; considers that obligations under any new legislation must reflect the size of companies and the nature of their type of operations; stresses that the focus should be placed on the risks;


### 6. is of the opinion that the new legislation should apply to all sectors , to all types of enterprises , whether public or private , and of all size across the union; considers that the focus should be placed on the risks; ### 6. is of the opinion that the new legislation should apply to all sectors , without jeopardising the competitiveness of union enterprises , with special regard to small and medium-sized enterprises; considers that the focus should be placed on the risks;


### 7. stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks; considers that those strategies should cover every actual or potential adverse impact although the severity of the risk should be considered in the context of a prioritisation policy; ### 7. stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks; considers that those strategies should cover actual or potential adverse impacts although the severity of the risk must be considered in the context of a prioritisation policy; requires that , before any initiative is proposed , a robust impact assessment is carried out focusing on the administrative burden on businesses , the value added by eu companies , the employment by eu companies and the engagement of eu companies in international markets.


### 7. stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks; considers that those strategies should cover every actual or potential adverse impact although the severity of the risk should be considered in the context of a prioritisation policy; ### 7. stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks and comply with the principle of proportionality; considers that those strategies should cover every actual or potential adverse impact although the severity of the risk should be considered in the context of a prioritisation policy;


### 7. stresses that the united nations guiding principles on business and human rights (ungps) highlight the duty of states to protect against human rights abuses within their territories , jurisdictions , or both , by third parties , including businesses; further emphasises that , independently of the ability and willingness of states to fulfil their human rights obligations , businesses have the responsibility to respect human rights wherever they operate and to address adverse human rights impacts with which they are connected , including by enabling providing remedies to victims; ### 7. stresses that the united nations guiding principles on business and human rights (ungps) highlight the duty of states to protect against human rights abuses within their territories , jurisdictions , or both , by third parties , including businesses; regrets that some states have failed to fulfil their respective human rights obligations; further emphasises that , independently of the ability and willingness of states to fulfil their human rights obligations , businesses have the responsibility to respect human rights wherever they operate and to address adverse human rights impacts with which they are connected , including by enabling providing remedies to victims;


### 7. stresses that the united nations guiding principles on business and human rights (ungps) highlight the duty of states to protect against human rights abuses within their territories , jurisdictions , or both , by third parties , including businesses; further emphasises that , independently of the ability and willingness of states to fulfil their human rights obligations , businesses have the responsibility to respect human rights wherever they operate and to address adverse human rights impacts with which they are connected , including by enabling providing remedies to victims; ### 7. stresses that the united nations guiding principles on business and human rights (ungps) highlight the duty of states to protect against human rights violations within their territories , jurisdictions , or both , by third parties , including businesses; further emphasises that , independently of the ability and willingness of states to fulfil their human rights obligations , businesses have the responsibility to respect internationally legally binding human rights wherever they operate and to address adverse human rights violations with which they have committed , including by enabling providing remedies to victims;


### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering companies’ activities and their business relationships , including their supply and subcontracting chains; ### deleted


### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering companies’ activities and their business relationships , including their supply and subcontracting chains; ### 7. is of the opinion that any future legislation should lay down standards for effective corporate due diligence processes covering companies’ activities and their business relationships , including their supply and subcontracting chains; considers that oecd guidelines for multinational enterprises should serve as the basis for such standards;


### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering companies’ activities and their business relationships , including their supply and subcontracting chains; ### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes reserving competitive advantage for european companies , covering companies’ activities and their business relationships , including their supply chains;


### 8. highlights that sound due diligence requires that all stakeholders be involved and consulted effectively and meaningfully; ### 8. highlights that sound due diligence requires that relevant stakeholders be involved and consulted effectively and meaningfully;


### 8. highlights that sound due diligence requires that all stakeholders be involved and consulted effectively and meaningfully; ### 8. highlights that sound due diligence requires that stakeholders be involved and consulted effectively and meaningfully;


### 8. underlines the need to design a sound monitoring system and to provide competent authorities (at union and at national level) with effective instruments to monitor the compliance with the legislation , in particular at local level; ### 8. underlines the need to design a sound monitoring system and to provide competent authorities (at union and at national level) with effective instruments to monitor and enforce compliance with such legislation , in particular at local level; stresses the importance of harmonised monitoring and enforcement across the union to establish a level-playing field between member states;


### 9. expresses the opinion that the future legislation should establish a comprehensive system of liability that includes administrative , civil and criminal liability , and a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement , including through penalties and sanctions of all nature; ### deleted


### 9. expresses the opinion that the future legislation should establish a comprehensive system of liability that includes administrative , civil and criminal liability , and a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement , including through penalties and sanctions of all nature; ### 9. expresses the opinion that the future legislation should establish a comprehensive , transparent , coherent system of liability that includes administrative , civil and criminal liability , and a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement , including through penalties and sanctions of all nature and stresses that regulatory requirements need to be sufficiently clear for companies to be able to comply with those requirements and know how to avoid sanctions;


### 9. expresses the opinion that the future legislation should establish a comprehensive system of liability that includes administrative , civil and criminal liability , and a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement , including through penalties and sanctions of all nature; ### 9. expresses the opinion that the future legislation should establish a system of liability that could include administrative , civil and criminal liability , as appropriate , while respecting differences in legal system of member states , including through a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement;


### 10. considers that , to enforce due diligence , member states should designate national authorities to share best practices as well as to supervise and impose sanctions , including criminal sanctions in severe cases; ### 10. considers that , to enforce due diligence , member states should designate national authorities to share best practices as well as to supervise and impose sanctions , taking into account the severity and repeated nature of the infringements; considers that the commission shall set up a european due diligence network to ensure , together with the national competent authorities , the coordination and convergence of regulatory and supervisory practices , and monitor the performance of national competent authorities;


### 10. considers that , to enforce due diligence , member states should designate national authorities to share best practices as well as to supervise and impose sanctions , including criminal sanctions in severe cases; ### 10. considers that , to enforce due diligence , member states should designate national authorities to share best practices as well as to supervise and impose legal consequences where appropriate;


### 10. points out that corruption in the context of judicial proceedings can have a devastating effect on the lawful administration of justice and judicial integrity , and intrinsically violate the fundamental right to a fair trial , the right to due process and the victim’s right to effective redress; stresses that corruption generally leads to systematic abuse of human rights in the business context , for example , by preventing individuals from accessing goods and services that states are obliged to provide to meet their human rights obligations , by encouraging wrongful acquisition or appropriation by businesses of land , or by granting licences or concessions to businesses in the extractive sector; ### 10. points out that corruption in the context of judicial proceedings can have a devastating effect on the lawful administration of justice and judicial integrity , and intrinsically violate the fundamental right to a fair trial , the right to due process and the victim’s right to effective redress; stresses that corruption can potentially lead to cases of systematic abuse of human rights in the business context , for example , by preventing individuals from accessing goods and services that states are obliged to provide to meet their human rights obligations , by encouraging wrongful acquisition or appropriation by businesses of land , or by granting licences or concessions to businesses in the extractive sector;


### 10. points out that corruption in the context of judicial proceedings can have a devastating effect on the lawful administration of justice and judicial integrity , and intrinsically violate the fundamental right to a fair trial , the right to due process and the victim’s right to effective redress; stresses that corruption generally leads to systematic abuse of human rights in the business context , for example , by preventing individuals from accessing goods and services that states are obliged to provide to meet their human rights obligations , by encouraging wrongful acquisition or appropriation by businesses of land , or by granting licences or concessions to businesses in the extractive sector; ### 10. points out that corruption in the context of judicial proceedings can have a devastating effect on the lawful administration of justice and judicial integrity , and intrinsically violate the fundamental right to a fair trial , the right to due process and the victim’s right to effective redress; stresses that corruption generally leads to systematic violation of human rights in the business context , for example , by preventing individuals from fairly accessing goods and services that states are obliged to ensure in order to meet their human rights obligations , by encouraging wrongful acquisition or appropriation by businesses of land , or by granting licences or concessions to businesses in the extractive sector;


### 10. points out that corruption in the context of judicial proceedings can have a devastating effect on the lawful administration of justice and judicial integrity , and intrinsically violate the fundamental right to a fair trial , the right to due process and the victim’s right to effective redress; stresses that corruption generally leads to systematic abuse of human rights in the business context , for example , by preventing individuals from accessing goods and services that states are obliged to provide to meet their human rights obligations , by encouraging wrongful acquisition or appropriation by businesses of land , or by granting licences or concessions to businesses in the extractive sector; ### 10. points out that corruption in the context of judicial proceedings can have a devastating effect on the lawful administration of justice and judicial integrity , and intrinsically violate the fundamental right to a fair trial , the right to due process and the victim’s right to effective redress; stresses that corruption generally leads to systematic abuse of human rights , for example , by preventing individuals from accessing goods and services that states are obliged to provide to meet their human rights obligations and/or increasing the price of such goods and services , by encouraging wrongful acquisition or appropriation by businesses of land , or by granting licences or concessions to businesses in the extractive sector;


### 10. stresses that access to effective remedy is crucial; considers that the legislation should oblige companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable; considers , in addition , that such mechanism should provide for effective judicial remedies to victims of human rights violations , environmental damage and corruption abuses , individually and through collective actions; believes that special protection should be provided to human rights defenders and its lawyers; ### 10. stresses that provisions on effective remedy should be included; considers that the legislation should set appropriate standards for companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable;


### 10. stresses that access to effective remedy is crucial; considers that the legislation should oblige companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable; considers , in addition , that such mechanism should provide for effective judicial remedies to victims of human rights violations , environmental damage and corruption abuses , individually and through collective actions; believes that special protection should be provided to human rights defenders and its lawyers; ### 10. stresses that due diligence legislation should ensure competitive advantage for union companies in the short and medium term; considers that the legislation should oblige companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable; considers , in addition , that such mechanism should provide for effective judicial remedies to victims of human rights violations , environmental damage and corruption abuses , individually and through collective actions; believes that fair legal procedures should be provided to human rights defenders and its lawyers;


### 11. regrets that despite attempts by european companies to implement their corporate responsibility policies to respect human rights , and various polices and laws in place to encourage or require due diligence across different member states , only 37% of businesses are currently undertaking due diligence in their supply chains and only 16% cover the entire value chain; stresses that protection of human rights and prevention of business-related abuses and violations cannot be achieved with current policies and that binding union legislation is necessary to bridge this gap; ### 11. notes that european companies are attempting to implement their corporate responsibility policies to respect human rights , and various polices and laws in place to encourage or require due diligence across different member states , however only 37% of businesses are currently undertaking due diligence in their supply chains and only 16% cover the entire value chain; stresses that protection of human rights and prevention of business-related abuses and violations cannot be achieved with current policies and that binding union legislation is necessary to bridge this gap;


### 11. regrets that despite attempts by european companies to implement their corporate responsibility policies to respect human rights , and various polices and laws in place to encourage or require due diligence across different member states , only 37% of businesses are currently undertaking due diligence in their supply chains and only 16% cover the entire value chain; stresses that protection of human rights and prevention of business-related abuses and violations cannot be achieved with current policies and that binding union legislation is necessary to bridge this gap; ### 11. welcomes the attempts taken by a number of european companies to implement their corporate responsibility policies to respect human rights , and various polices and laws in place to encourage or require due diligence across different member states , stresses that in order to advance the protection of human rights and prevent business-related abuses and violations a better legal framework is needed;


### 11. regrets that despite attempts by european companies to implement their corporate responsibility policies to respect human rights , and various polices and laws in place to encourage or require due diligence across different member states , only 37% of businesses are currently undertaking due diligence in their supply chains and only 16% cover the entire value chain; stresses that protection of human rights and prevention of business-related abuses and violations cannot be achieved with current policies and that binding union legislation is necessary to bridge this gap; ### 11. regrets that despite attempts by european companies to implement their corporate responsibility policies to respect human rights , and various polices and laws in place to encourage or require due diligence across different member states , only 37% of businesses are currently undertaking due diligence in their supply chains and only 16% cover the entire value chain; stresses that protection of internationally legally binding human rights and prevention of business-related violations cannot be achieved with current policies and that binding union legislation is necessary to bridge this gap;


### 11. is convinced that it is crucial to make the sustainable development chapters of free trade agreements more enforceable and that the new legislation should explore ways of integrating the due diligence requirements into those chapters. ### 11. is convinced that it is crucial that the sustainable development chapters of free trade agreements should remain enforceable and that the commission should explore ways of integrating the due diligence provisions in free trade agreements.


### 12. further considers that in order to enable victims to obtain remedy , undertakings should be held liable for the damage the undertakings under their control have caused or contributed to where the latter have , in the course of their business relationships with the former , committed violations of internationally recognized human rights or have caused environmental harm; ### deleted


### 12. notes that corporations and investors are calling for mandatory human rights due diligence at union level , to harmonise standards , and secure a global level playing field and greater legal and business certainty; ### 12. notes that diverse groups of stakeholders , businesses and investors are calling for mandatory human rights due diligence legislation at union level , to harmonise standards inside the eu single market , and secure a global level playing field and greater legal and business certainty;