### 15. welcomes the commission analysis on strategic dependencies and capacities; calls on the commission to finalise the analyses and technology roadmaps as soon as possible and propose actions to reduce dependence on the identified critical products and supplies; highlights the necessity of a strategy based on further in-depth analysis of mutual dependencies to strengthen the eu’s capacity in critical value chains; ### 15. welcomes the commission analysis on strategic dependencies and capacities; calls on the commission to finalise the analyses and technology roadmaps as soon as possible and propose actions to reduce dependence on the identified critical products and supplies; highlights the necessity of a strategy based on further in-depth analysis of mutual dependencies to strengthen the eu’s capacity in critical value chains; reminds the commission that a holistic value chain approach is needed when analysing strategic dependencies;


### 15. welcomes the commission analysis on strategic dependencies and capacities; calls on the commission to finalise the analyses and technology roadmaps as soon as possible and propose actions to reduce dependence on the identified critical products and supplies; highlights the necessity of a strategy based on further in-depth analysis of mutual dependencies to strengthen the eu’s capacity in critical value chains; ### 15. welcomes the commission analysis on strategic dependencies and capacities; calls on the commission to finalise the analyses and industrial technology roadmaps as soon as possible and propose actions to reduce dependence on the identified critical products and supplies; highlights the necessity of a strategy based on further in-depth analysis of mutual dependencies to strengthen the eu’s capacity in critical value chains;


### 17. is strongly concerned about unfair competition , investments and takeovers by non-eu state-financed companies on the single market , especially in strategic sectors; calls on the commission to analyse and prevent this interference; ### 17. is strongly concerned about unfair competition , investments and takeovers by non-eu state-financed companies on the single market , especially in strategic sectors; calls on the commission to analyse and prevent this interference. overall , the well-established framework of eu competition policy should not be undermined and fair competition should be promoted among non-eu and eu companies alike operating in the eu single market;


### 21. welcomes the european data spaces initiative; underlines the role that data spaces play for smart manufacturing; believes that the participation of non-eu companies in eu data space initiatives waters down the goal of strengthening the eu’s digital sovereignty; ### 21. welcomes the european data spaces initiative; underlines the role that data spaces play for smart manufacturing; notes that while interoperability of european and non-european data spaces is a prerequisite for international collaboration , the participation of non-eu companies in eu data space initiatives should not undermine the goal of strengthening the eu’s digital sovereignty;


### 21. welcomes the european data spaces initiative; underlines the role that data spaces play for smart manufacturing; believes that the participation of non-eu companies in eu data space initiatives waters down the goal of strengthening the eu’s digital sovereignty; ### 21. welcomes the european data spaces initiative; underlines the role that data spaces play for smart manufacturing;


### 21. welcomes the european data spaces initiative; underlines the role that data spaces play for smart manufacturing; believes that the participation of non-eu companies in eu data space initiatives waters down the goal of strengthening the eu’s digital sovereignty; ### 21. welcomes the european data spaces initiative; underlines the role that data spaces play for smart manufacturing; emphasizes the need for a differentiated approach that takes into account the characteristics of each sector; believes that the participation of non-eu companies in eu data space initiatives waters down the goal of strengthening the eu’s digital sovereignty;


### 21. welcomes the european data spaces initiative; underlines the role that data spaces play for smart manufacturing; believes that the participation of non-eu companies in eu data space initiatives waters down the goal of strengthening the eu’s digital sovereignty; ### 21. welcomes the european commission’s proposal on a data act and the european data spaces initiative; underlines the role that data spaces play for smart manufacturing; believes that the participation of non-eu companies in eu data space initiatives waters down the goal of strengthening the eu’s digital sovereignty;


### — having regard to the eu-seychelles , eu-cook islands and eu-mauritius sustainable fisheries partnership agreements , ### — having regard to the partnership agreements on sustainable fisheries in the indian and pacific oceans ,


### c. whereas the eu has only three sustainable fisheries partnership agreements in the region , the respective protocols for which are currently in force; ### c. whereas the eu has only three sustainable fisheries partnership agreements in the region , the respective protocols for which are currently in force (seychelles , cook islands and mauritius) and whereas the eu fishing fleet is present in both the indian ocean and the pacific ocean;


### 3. calls on the commission to step up its action for ocean governance in full compliance with international law and with the main objective of ensuring the sustainable management of ocean resources and the restoration of marine ecosystems , which are essential for fishing activities; ### 3. calls on the commission to step up its action for ocean governance , through the implementation of sustainable fisheries partnership agreements and its participation in rfmos , in full compliance with international law and with the main objective of ensuring the sustainable management of ocean resources and the restoration of marine ecosystems , which are essential for fishing activities;


### 4. considers that the eu should continue its commitment to sustainable fishing in the region and support fisheries control in order to combat illegal , unreported and unregulated fishing; ### 4. considers that the eu should continue its commitment to sustainable fishing in the region and support fisheries control in order to combat illegal , unreported and unregulated fishing; urges the eu to strengthen its cooperation with like-minded international partners to combat overfishing , overcapacity and iuu fishing in the indo-pacific;


### 5. stresses the importance of product traceability for banning imports of seafood products obtained from illegal fishing; calls on the commission to report on its exchanges with ‘yellow card’ states under regulation (ec) no 1005/2008 on illegal , unreported and unregulated fishing; ### 5. stresses the importance of product traceability for banning imports of seafood products obtained from illegal fishing; welcomes the creation of a database for the management of catch certificates (catch) to ensure traceability and reduce opportunities for fraudulent imports , as part of the reform of the fisheries control system proposed by the commission; calls on the commission to report on its exchanges with ‘yellow card’ states under regulation (ec) no 1005/2008 on illegal , unreported and unregulated fishing;


### (5) the modern interconnected world economy creates an increased risk of , and opportunity for , economic coercion , as it provides countries with enhanced , including hybrid , means to deploy such coercion. it is desirable that the union contribute to the creation , development and clarification of international frameworks for the prevention and elimination of situations of economic coercion. ### (5) the modern interconnected world economy creates an increased risk of , and opportunity for , economic coercion , as it provides countries with enhanced , including hybrid , means to deploy such coercion. it is desirable that the union contribute to the creation , development and clarification of international frameworks for the prevention and elimination of situations of economic coercion , taking into account the importance of the multilateral trading system within the world trade organization (wto). the union should also use wto mechanisms to resolve the economic coercion concerns , where possible.


### (7) this regulation aims to ensure an effective , efficient and swift union response to economic coercion , including deterrence of economic coercion of the union or a member state and , in the last resort , countermeasures. ### (7) this regulation aims to ensure an effective , efficient and swift union response to economic coercion , including deterrence of economic coercion of the union or a member state and , in the last resort , countermeasures. this regulation should be without prejudice to other existing union trade policy instruments and rights under the wto agreement.


### (8) the objectives of this regulation , in particular counteracting third countries’ economic coercion of the union or a member state , cannot be sufficiently achieved by member states acting on their own. this is because member states as distinct actors under international law may not be entitled under international law to respond to economic coercion directed against the union. additionally , because of the exclusive competence conferred on the union by article 207 of the treaty on the functioning of the european union , member states are prevented from taking common commercial policy measures as a response to economic coercion. therefore , those objectives can be achieved with greater effectiveness at union level. ### (8) the objectives of this regulation , in particular counteracting third countries’ economic coercion of the union or a member state , cannot be sufficiently achieved by member states acting on their own. this is because member states as distinct actors under international law may not be entitled under international law to respond to economic coercion directed against the union. additionally , because of the exclusive competence conferred on the union by article 207 of the treaty on the functioning of the european union , member states are prevented from taking common commercial policy measures as a response to economic coercion. therefore , it is necessary that the means for achieving those objectives are created at the union level.


### (9) in accordance with the principle of proportionality , it is necessary and appropriate , for creating an effective and comprehensive framework for union action against economic coercion , to lay down rules on the examination , determination and counteraction with regard to third countries’ measures of economic coercion. in particular , the union’s response measures should be preceded by an examination of the facts , a determination of the existence of economic coercion , and , wherever possible , efforts to find a solution in cooperation with the third country concerned. any measures imposed by the union should be commensurate with the injury caused by the third countries’ measures of economic coercion. the criteria for defining the union response measures should take into account in particular the need to avoid or minimise collateral effects , administrative burdens and costs imposed on union economic operators as well as the union’s interest. therefore , this regulation does not go beyond what is necessary in order to achieve the objectives pursued , in accordance with article 5(4) of the treaty on european union. ### (9) in accordance with the principle of proportionality , it is necessary and appropriate , for creating an effective and comprehensive framework for union action against economic coercion , to lay down rules on the examination , determination and counteraction with regard to third countries’ measures of economic coercion. in particular , the union’s response measures should be preceded by an examination of the facts , a determination of the existence of economic coercion , and , wherever possible , efforts to find a solution in cooperation with the third country concerned. any measures imposed by the union should be commensurate with the injury caused by the third countries’ measures of economic coercion. the criteria for defining the union response measures should take into account in particular the need to avoid or minimise collateral effects , administrative burdens and costs imposed on union economic operators as well as the union’s interest. any union response measures should primarily take into account their likelihood and ability to induce the third country to cease the coercive measures. therefore , this regulation does not go beyond what is necessary in order to achieve the objectives pursued , in accordance with article 5(4) of the treaty on european union.


### (10) any action undertaken by the union on the basis of this regulation should comply with the union’s obligations under international law. international law allows , under certain conditions , such as proportionality and prior notice , the imposition of countermeasures , that is to say of measures that would otherwise be contrary to the international obligations of an injured party vis-à-vis the country responsible for a breach of international law , and that are aimed at obtaining the cessation of the breach or reparation for it10. accordingly , response measures adopted under this regulation should take the form of either measures adhering to the union’s international obligations or measures constituting permitted countermeasures. under international law , and in accordance with the principle of proportionality , they should not exceed a level that is commensurate with the injury suffered by the union or a member state due to the third country’s measures of economic coercion , taking into account the gravity of the third country’s measures and the union’s rights and interests in question. in this respect , injury to the union or a member state is understood under international law to include injury to union economic operators. ### (10) any action undertaken by the union on the basis of this regulation should comply with the union’s obligations under international law. international law allows , under certain conditions , such as proportionality and prior notice , the imposition of countermeasures , that is to say of measures that would otherwise be contrary to the international obligations of an injured party vis-à-vis the country responsible for a breach of international law , and that are aimed at obtaining the cessation of the breach or reparation for it10. accordingly , response measures adopted under this regulation should take the form of either measures adhering to the union’s international obligations or measures constituting permitted countermeasures. under international law , and in accordance with the principle of proportionality , they should not exceed a level that is commensurate with the injury suffered by the union or a member state due to the third country’s measures of economic coercion , taking into account the gravity of the third country’s measures and the union’s rights and interests in question. in this respect , injury to the union or a member state is understood under international law to include injury to union economic operators. measures authorised under this regulation should be deemed to be ‘lawful’ , taking into account the role of the eu as the gatekeeper of the multilateral trading system , and the instrument should , above all , have a deterrence effect.


### (13) the commission should examine whether third-country measures are coercive , on its own initiative or following information received from any source , including legal and natural persons or a member state. following this examination , the commission should determine in a decision whether the third-country measure is coercive. the commission should communicate any affirmative determination to the third country concerned , together with a request that the economic coercion cease and a request , where appropriate , that any injury be repaired. ### (13) the commission should examine whether third-country measures are coercive , on its own initiative or following information received from any source , including legal and natural persons , the european parliament or a member state. following this examination , the commission should determine in a decision whether the third-country measure is coercive. the commission should publicly communicate the result of this examination. in the case of an affirmative determination , the commission should communicate to the third country concerned , together with a request that the economic coercion cease and a request , where appropriate , that any injury be repaired.


### (15) the union should only impose countermeasures when other means such as negotiations , mediation or adjudication do not lead to the prompt and effective cessation of the economic coercion and to reparation of the injury it has caused to the union or its member states , and where action is necessary to protect the interests and rights of the union and its member states and it is in the union’s interest. it is appropriate that the regulation sets out the applicable rules and procedures for the imposition and application of union response measures and permits expeditious action where necessary to preserve the effectiveness of any union response measures. ### (15) the union should only impose countermeasures when other means such as negotiations , mediation or adjudication do not lead to the prompt and effective cessation of the economic coercion and to reparation of the injury it has caused to the union or its member states , and where action is necessary to protect the interests and rights of the union and its member states and it is in the union’s interest. neither the interests of the union nor those of any individual member state should be put at a greater disadvantage than the interests of the country that is the focus of the anti-coercion instrument. it is appropriate that the regulation sets out the applicable rules and procedures for the imposition and application of union response measures and permits expeditious action where necessary to preserve the effectiveness of any union response measures.


### (16) union response measures adopted in accordance with this regulation should be selected and designed on the basis of objective criteria , including: the effectiveness of the measures in inducing the cessation of coercion by the third country; their potential to provide relief to economic operators within the union affected by the third-country measures of economic coercion; the aim of avoiding or minimising negative economic and other effects on the union; and the avoidance of disproportionate administrative complexity and costs. it is also essential that the selection and design of union response measures take account of the union’s interest. union response measures should be selected from a wide array of options in order to allow the adoption of the most suitable measures in any given case. ### (16) union response measures adopted in accordance with this regulation should be selected and designed on the basis of objective criteria , including: first and foremost , the effectiveness of the measures in inducing the cessation of coercion by the third country; their potential to provide relief to economic operators within the union affected by the third-country measures of economic coercion; the aim of avoiding or minimising negative economic and other effects on the union; and the avoidance of disproportionate administrative complexity and costs. it is also essential that the selection and design of union response measures take account of the union’s interest. union response measures should be selected from a wide array of options in order to allow the adoption of the most suitable measures in any given case.


### (21) it is important to ensure an effective communication and exchange of views and information between the commission on the one hand and the european parliament and the council on the other , in particular on efforts to engage with the third country concerned to explore options with a view to obtaining the cessation of the economic coercion and on matters that may lead to the adoption of union response measures under this regulation. ### (21) it is important to ensure an effective and regular communication and exchange of views and information between the commission on the one hand and the european parliament and the council on the other , in particular on efforts to engage with the third country concerned to explore options with a view to obtaining the cessation of the economic coercion and on matters that may lead to the adoption of union response measures under this regulation.


### (22) in order to allow the update of the range of union response measures under this regulation and the adjustment of the rules of origin or of other technical rules , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission to amend the list of union responses set out in annex i and technical rules necessary for the application of the regulation , including rules of origin laid down in annex ii. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law-making.12 in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states' experts , and their experts systematically should have access to meetings of commission expert groups dealing with the preparation of delegated acts. ### (22) in order to allow the update of the range of union response measures under this regulation and the adjustment of the rules of origin or of other technical rules , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission to amend the list of union responses set out in annex i and technical rules necessary for the application of the regulation , including rules of origin laid down in annex ii. the list of measures should be limited to avoid escalation and that the legislation could be used as a weapon in trade conflicts. it is of particular importance that the commission analyse if any additional types of measures should remain outside the realm of this instrument and carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law-making.12 the list of measures must be clear and transparent so the regulation does not cause more uncertainty for businesses than absolutely necessary. in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states' experts , and their experts systematically should have access to meetings of commission expert groups dealing with the preparation of delegated acts.


### (22) in order to allow the update of the range of union response measures under this regulation and the adjustment of the rules of origin or of other technical rules , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission to amend the list of union responses set out in annex i and technical rules necessary for the application of the regulation , including rules of origin laid down in annex ii. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law-making12. in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states' experts , and their experts systematically should have access to meetings of commission expert groups dealing with the preparation of delegated acts. ### (22) in order to allow the update of the range of union response measures under this regulation and the adjustment of the rules of origin or of other technical rules , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be aligned with the enforcement regulation and delegated to the commission to amend the list of union responses set out in annex i and technical rules necessary for the application of the regulation , including rules of origin laid down in annex ii. it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law-making12. in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states' experts , and their experts systematically should have access to meetings of commission expert groups dealing with the preparation of delegated acts.


### (26) the commission should evaluate measures adopted under this regulation as to their effectiveness and operation and as to possible conclusions for future measures. the commission should also review this regulation after gaining sufficient experience with the existence or application of this regulation. this review should cover the scope , functioning , efficiency and effectiveness of this regulation. the commission should report on its assessment to the european parliament and the council , ### (26) the commission should evaluate measures adopted under this regulation as to their effectiveness and operation and as to possible conclusions for future measures. the commission should also review this regulation after gaining sufficient experience with the existence or application of this regulation , as well as to take account of the review of the blocking statute.1a this review should cover the scope , functioning , efficiency and effectiveness of this regulation. the commission should report on its assessment to the european parliament and the council ,


### 1. this regulation applies where a third country: ### 1. this regulation applies where a third country , including individuals and entities acting on the behalf of this country:


### — by applying or threatening to apply measures affecting trade or investment. ### — by applying or threatening to apply measures affecting trade or investment or failing to implement existing agreements that are fully ratified with the european union or a member state affecting trade or investment;


### — by applying or threatening to apply measures affecting trade or investment. ### — by applying or threatening to apply measures affecting trade or investment , or the strategic interest of the union and its member states.


### whether the third country is acting based on a legitimate concern that is internationally recognised; ### whether the third country is acting in good faith based on a legitimate concern that is internationally recognised by the international trade regulatory framework;


### the commission may publish a notice in the official journal of the european union or through other suitable public communication means with an invitation to submit information within a specified time limit. in that event , the commission shall notify the third country concerned of the initiation of the examination. ### the commission shall publish a notice in the official journal of the european union or through other suitable public communication means of the launch of an examination procedure and may include an invitation to submit information within a specified time limit. in that event , the commission shall notify the third country concerned of the initiation of the examination.


### the commission shall be open to engage on behalf of the union with the third country concerned , to explore options with a view to obtaining the cessation of the economic coercion. such options may include: ### the commission shall proactively engage on behalf of the union with the third country concerned , to explore options with a view to obtaining the cessation of the economic coercion. such options may include:


### the commission shall keep the european parliament and the council informed of relevant developments. ### the commission shall keep the european parliament and the council regularly informed and shall notify them of any developments.


### the commission shall keep the european parliament and the council informed of relevant developments. ### the commission shall keep the european parliament and the council regularly informed and provide notice of any developments.


### the commission shall enter into consultations or cooperation , on behalf of the union , with any other country affected by the same or similar measures of economic coercion or with any interested third country , with a view to obtaining the cessation of the coercion. this may involve , where appropriate , coordination in relevant international fora and coordination in response to the coercion. ### the commission shall enter into consultations or cooperation , on behalf of the union , with any other country affected by the same or similar measures of economic coercion or with any interested third country , with a view to obtaining the cessation of the coercion. this may involve , where appropriate , coordination in relevant international fora and coordination in response to the coercion. the regulation must comply with union law , the wto and be consistent with commitments made under other trade and investment agreements to which the union or the member states are parties. this regulation is conceived as an autonomous instrument in the absence of progress within the multilateral fora such as the wto. in order to encourage the development of multilateral ways to address economic coercion , it is necessary to enable a third-country dialogue and prioritise a global , open and rule-based trading system.


### action pursuant to the articles 4 and 5 has not resulted in the cessation of the economic coercion and reparation of the injury it has caused to the union or a member state within a reasonable period of time; ### action pursuant to the articles 4 and 5 has not resulted in the cessation of the economic coercion and , where appropriate , reparation of the injury it has caused to the union or a member state within a reasonable period of time;


### in the implementing act , the commission shall also determine the appropriate union response from among the measures provided for in annex i. such measures may also apply with regard to natural or legal persons designated in accordance with article 8. the commission may also adopt measures which it can take pursuant to other legal instruments. ### in the implementing act , the commission shall also determine the appropriate union response from among the measures provided for in annex i , and it should be aligned with the enforcement regulation. such measures may also apply with regard to natural or legal persons designated in accordance with article 8. the commission may also adopt measures which it can take pursuant to other legal instruments.


### 2. the union response measures shall apply from a specified date after the adoption of the implementing act referred to in paragraph 1. the commission shall set this date of application , taking into account the circumstances , to allow for the notification of the third country concerned pursuant to paragraph 3 and for it to cease the economic coercion. ### 2. the union response measures shall apply from a specified date after the adoption of the implementing act referred to in paragraph 1. the commission shall set this date of application , taking into account the circumstances , to allow for the notification of the third country concerned pursuant to paragraph 3 and for it to cease the economic coercion , as well as to allow sufficient time for business to adequately prepare for any anticipated effects.


### 3. the commission shall , upon adoption of the implementing act , notify the third country concerned of the union response measures adopted pursuant to paragraph 1. in the notification , the commission shall , on behalf of the union , call on the third country concerned to promptly cease the economic coercion , offer to negotiate a solution , and inform the third country concerned that the union response measure will apply , unless the economic coercion ceases. ### 3. the commission shall , upon adoption of the implementing act , notify the third country concerned of the union response measures adopted pursuant to paragraph 1. in the notification , the commission shall , on behalf of the union , call on the third country concerned to promptly cease the economic coercion , offer to negotiate a solution including , where appropriate , the reparation of the injury caused by it to the union and its members states , and inform the third country concerned that the union response measure will apply , unless the economic coercion ceases.


### 4. the implementing act referred to in paragraph 1 shall state that the application of the union response measures shall be deferred for a period specified in that implementing act , where the commission has credible information that the third country has ceased the economic coercion before the start of application of the adopted union response measures. in that event , the commission shall publish a notice in the official journal of the european union indicating that there is such information and the date from which the deferral shall apply. if the third country ceases the economic coercion before the union response measures start to apply , the commission shall terminate the union response measures in accordance with article 10. ### 4. the implementing act referred to in paragraph 1 shall state that the application of the union response measures shall be deferred for a period specified in that implementing act , where the commission has credible information that the third country will cease the economic coercion before the start of application of the adopted union response measures. in that event , the commission shall publish a notice in the official journal of the european union indicating that there is such information and the date from which the deferral shall apply. if the third country ceases the economic coercion before the union response measures start to apply , the commission shall terminate the union response measures in accordance with article 10.


### 6. on duly justified imperative grounds of urgency to avoid irreparable damage to the union or its member states by the measures of economic coercion the commission shall adopt immediately applicable implementing acts imposing union response measures , in accordance with the procedure referred to in article 15(3). the requirements set out in paragraphs 2 to 5 shall apply. those acts shall remain in force for a period not exceeding three months. ### deleted


### 7. the commission is empowered to adopt delegated acts in accordance with article 14 to amend the list provided for in annex i in order to provide additional types of measures to respond to a third country’s measure. the commission may adopt such delegated acts where the types of response measures would: ### 7. the commission is empowered to adopt delegated acts in accordance with article 14 to amend the list provided for in annex i in order to provide additional types of measures to respond to a third country’s measure. the list of measures should be limited to avoid escalation and that the legislation could be used as a weapon in trade conflicts. the commission should analyse if any additional types of measures should remain outside the realm of this instrument; the list of measures must be clear and transparent so the regulation does not cause more uncertainty for businesses than absolutely necessary. the commission may adopt such delegated acts where the types of response measures would:


### 7. the commission is empowered to adopt delegated acts in accordance with article 14 to amend the list provided for in annex i in order to provide additional types of measures to respond to a third country’s measure. the commission may adopt such delegated acts where the types of response measures would: ### 7. the commission is empowered to adopt delegated acts in accordance with article 14 to amend the list provided for in annex i in order to provide additional types of measures to respond to a third country’s measure , after having informed the council and the european parliament. the commission may adopt such delegated acts where the types of response measures would:


### that such person is connected or linked to the government of the third country concerned; or , ### deleted


### 1. any union response measure shall not exceed the level that is commensurate with the injury suffered by the union or a member state due to the third country’s measures of economic coercion , taking into account the gravity of the third country’s measures and the rights in question. ### 1. any union response measure shall not exceed the level that is commensurate with the injury suffered by the union or a member state due to the third country’s measures of economic coercion , taking into account the gravity of the third country’s measures and the economic impact that the measures are having on the union or a member state.


### 1. any union response measure shall not exceed the level that is commensurate with the injury suffered by the union or a member state due to the third country’s measures of economic coercion , taking into account the gravity of the third country’s measures and the rights in question. ### 1. any union response measure shall not exceed the level that is commensurate with the injury suffered by the union or a member state due to the third country’s measures of economic coercion , taking into account the gravity of the third country’s measures and the economic impact of the measures on the union or the member states.


### the avoidance or minimisation of negative impacts on affected actors by union response measures , including the availability of alternatives for affected actors , for example alternative sources of supply for goods or services; ### the avoidance or minimisation of negative impacts on affected actors by union response measures , including the availability and cost differentiation of alternatives for affected actors , for example alternative sources of supply for goods or services;


### 1. the commission shall keep under review the measures of economic coercion deployed by a third country that have triggered the union response measures , the effectiveness of the union response measures adopted and their effects on the union’s interests and shall keep the european parliament and the council informed thereof. ### 1. the commission shall keep under review the measures of economic coercion deployed by a third country that have triggered the union response measures , the effectiveness of the union response measures adopted and their effects on the union’s interests and shall keep the european parliament and the council regularly informed thereof.


### 1. the commission shall keep under review the measures of economic coercion deployed by a third country that have triggered the union response measures , the effectiveness of the union response measures adopted and their effects on the union’s interests and shall keep the european parliament and the council informed thereof. ### 1. the commission shall keep under review the measures of economic coercion deployed by a third country that have triggered the union response measures , the effectiveness of the union response measures adopted and their effects on the union’s interests and shall regularly keep the european parliament and the council informed thereof.


### 2. the power to adopt delegated acts referred to in articles 7(7) and 13(2) shall be conferred on the commission for an indeterminate period of time from [date of entry into force]. ### 2. the power to adopt delegated acts referred to in articles 7(7) and 13(2) shall be conferred on the commission for an indeterminate period. a delegated act pursuant to articles 7(7) and 13(2) shall be adopted after having informed the european parliament and the council.


### the suspension of applicable international obligations , as necessary , and the introduction of restrictions on trade in goods made effective through measures applying to transiting goods or internal measures applying to goods. ### the suspension of applicable international obligations , as necessary , and the introduction of restrictions on trade in goods or internal measures applying to goods.


### the suspension of applicable international obligations with respect to trade-related aspects of intellectual property rights , as necessary , and the imposition of restrictions on the protection of such intellectual property rights or their commercial exploitation , in relation to right-holders who are nationals of the third country concerned; ### deleted


### the suspension of applicable international obligations with respect to the treatment of goods , as necessary , and the imposition of restrictions on registrations and authorisations under the chemicals legislation of the union; ### deleted


### the suspension of applicable international obligations with respect to the treatment of goods , as necessary , and the imposition of restrictions on registrations and authorisations related to the sanitary and phytosanitary legislation of the union; ### deleted


### (3) in its communication on a strong social europe for just transition75 , the commission committed to upgrading europe’s social market economy to achieve a just transition to sustainability. this directive will also contribute to the european pillar of social rights , which promotes rights ensuring fair working conditions. it forms part of the eu policies and strategies relating to the promotion of decent work worldwide , including in global value chains , as referred to in the commission communication on decent work worldwide76 . ### (3) in its communication on a strong social europe for just transition75 , the commission committed to upgrading europe’s social market economy to achieve a just transition to sustainability. this directive will also contribute to the european pillar of social rights , which promotes rights ensuring decent living and fair working conditions with the special focus on the most vulnerable groups. it forms part of the eu policies and strategies relating to the promotion of decent work worldwide , including in global supply and where relevant value chains , as referred to in the commission communication on fair and decent work worldwide76 .


### (3) in its communication on a strong social europe for just transition75 , the commission committed to upgrading europe’s social market economy to achieve a just transition to sustainability. this directive will also contribute to the european pillar of social rights , which promotes rights ensuring fair working conditions. it forms part of the eu policies and strategies relating to the promotion of decent work worldwide , including in global value chains , as referred to in the commission communication on decent work worldwide76. ### (3) in its communication on a strong social europe for just transition75 , the commission committed to upgrading europe’s social market economy to achieve a just transition to sustainability , ensuring that no regions were left behind. this directive will also contribute to the european pillar of social rights , which helps provide employment for the workforce and promotes rights ensuring fair working conditions. it forms part of the eu policies and strategies relating to the promotion of decent work worldwide , including in global value chains , as referred to in the commission communication on decent work worldwide76.


### (4) the behaviour of companies across all sectors of the economy is key to success in the union’s sustainability objectives as union companies , especially large ones , rely on global value chains. it is also in the interest of companies to protect human rights and the environment , in particular given the rising concern of consumers and investors regarding these topics. several initiatives fostering enterprises which support value-oriented transformation already exist on union77 , as well as national78 level. ### (4) the behaviour of companies across all sectors of the economy is key to success in the union’s sustainability objectives as union companies , especially large ones , rely on global supply and value chains. although combatting human rights violations worldwide is the prime responsibility of states and governments , companies should follow the principles and standards as set out by international law to protect human rights and the environment , in particular given the rising concern of consumers and investors regarding these topics. several initiatives fostering enterprises which support value-oriented transformation already exist on union77 , as well as national78 level.


### (4) the behaviour of companies across all sectors of the economy is key to success in the union’s sustainability objectives as union companies , especially large ones , rely on global value chains. it is also in the interest of companies to protect human rights and the environment , in particular given the rising concern of consumers and investors regarding these topics. several initiatives fostering enterprises which support value-oriented transformation already exist on union77 , as well as national level78. ### (4) the behaviour of companies across all sectors of the economy is key to success in the union’s sustainability objectives as union companies , especially large ones , rely on global value chains. it is also in the interest of companies to protect human rights and the environment , in particular given the need for long-term sustainability as a prerequisite for ensuring economic development for future generations and the rising concern of consumers and investors regarding these topics. several initiatives fostering enterprises which support value-oriented transformation already exist on union[1] , as well as national level[2].


### (4) the behaviour of companies across all sectors of the economy is key to success in the union’s sustainability objectives as union companies , especially large ones , rely on global value chains. it is also in the interest of companies to protect human rights and the environment , in particular given the rising concern of consumers and investors regarding these topics. several initiatives fostering enterprises which support value-oriented transformation already exist on union77 , as well as national78 level. ### (4) the behaviour of companies across all sectors of the economy is key to success in the union’s sustainability objectives as union companies , especially large ones , rely on global supply chains. it is also in the interest of companies to respect and protect human rights and the environment , in particular given the rising concern of consumers and investors regarding these topics. several initiatives fostering enterprises which support value-oriented transformation already exist on union77 , as well as national78 level. further , binding due diligence legislation has been implemented in several member states such as france and germany , which gives rise to the need for a level playing field for companies in order to avoid fragmentation and to provide legal certainty for businesses operating in the single market.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts , paying special attention to the actual and potential adverse impacts on groups or populations that may have a heightened risk of vulnerability or marginalisation , such as girls and women. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights[1] recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that companies should avoid infringing human rights and should address adverse human rights impacts that they themselves have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their established business relationships.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) well-established existing international standards on responsible business conduct such as the united nations guiding principles on business and human rights and the oecd guidelines for multinational enterprises clarified in the oecd due diligence guidance for responsible business conduct specify that companies should respect and protect human rights and set out how they should address the protection of the environment across their operations and supply chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. these international standards should be the basis for this directive.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. the children’s rights and business principles provide a comprehensive set of principles to guide companies on the full range of actions they can take in the workplace , marketplace and community to uphold and promote children’s rights. general comment no. 16 (2013) to the un convention on the rights of the child sets out state obligations regarding the impact of the business sector on children’s rights , which are further specified in general comment no. 25 (2021) as regards the digital environment.


### (5) existing international standards on responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct and indirect business relationships. ### (5) well-established existing international standards on responsible business conduct like the united nations guiding principles on business and human rights , the oecd guidelines for multinational enterprises , and the oecd due diligence guidance for responsible business conduct specify that companies should protect human rights and set out how they should address the protection of the environment across their operations and value chains. the united nations guiding principles on business and human rights79 recognise the responsibility of companies to exercise human rights due diligence by identifying , preventing and mitigating the adverse impacts of their operations on human rights and by accounting for how they address those impacts. those guiding principles state that businesses should avoid infringing human rights and should address adverse human rights impacts that they have caused , contributed to or are linked with in their own operations , subsidiaries and through their direct business relationships. these guidelines should be the basis for this directive.


### (6) the concept of human rights due diligence was specified and further developed in the oecd guidelines for multinational enterprises80 which extended the application of due diligence to environmental and governance topics. the oecd guidance on responsible business conduct and sectoral guidance81 are internationally recognised frameworks setting out practical due diligence steps to help companies identify , prevent , mitigate and account for how they address actual and potential impacts in their operations , value chains and other business relationships. the concept of due diligence is also embedded in the recommendations of the international labour organisation (ilo) tripartite declaration of principles concerning multinational enterprises and social policy.82 ### (6) the concept of human rights due diligence was specified and further developed in the oecd guidelines for multinational enterprises80 which extended the application of due diligence to environmental and governance topics. the oecd guidance on responsible business conduct and sectoral guidance81 are internationally recognised frameworks setting out practical due diligence steps to help companies identify , prevent , mitigate and account for how they address actual and potential impacts in their operations , supply chains and other business relationships , which should form the basis for this directive.


### (6) the concept of human rights due diligence was specified and further developed in the oecd guidelines for multinational enterprises80 which extended the application of due diligence to environmental and governance topics. the oecd guidance on responsible business conduct and sectoral guidance81 are internationally recognised frameworks setting out practical due diligence steps to help companies identify , prevent , mitigate and account for how they address actual and potential impacts in their operations , value chains and other business relationships. the concept of due diligence is also embedded in the recommendations of the international labour organisation (ilo) tripartite declaration of principles concerning multinational enterprises and social policy.82 ### (6) the concept of human rights due diligence was specified and further developed in the oecd guidelines for multinational enterprises80 which extended the application of due diligence to environmental and governance topics. the oecd guidance on responsible business conduct and sectoral guidance81 are internationally recognised frameworks setting out practical due diligence steps to help companies identify , prevent , mitigate and account for how they address actual and potential impacts in their operations , supply chains and direct business relationships.


### (6) the concept of human rights due diligence was specified and further developed in the oecd guidelines for multinational enterprises80 which extended the application of due diligence to environmental and governance topics. the oecd guidance on responsible business conduct and sectoral guidance81 are internationally recognised frameworks setting out practical due diligence steps to help companies identify , prevent , mitigate and account for how they address actual and potential impacts in their operations , value chains and other business relationships. the concept of due diligence is also embedded in the recommendations of the international labour organisation (ilo) tripartite declaration of principles concerning multinational enterprises and social policy.82 ### (6) the concept of human rights due diligence was specified and further developed in the oecd guidelines for multinational enterprises80 which extended the application of due diligence to environmental and governance topics. the oecd guidance on responsible business conduct and sectoral guidance81 are internationally recognised frameworks setting out practical due diligence steps to help companies identify , prevent , mitigate and account for how they address actual and potential impacts in their operations , value chains and other business relationships , including with recognition of international humanitarian law and a higher standard of conflict-sensitive due diligence in conflict-affected areas. the concept of due diligence is also embedded in the recommendations of the international labour organisation (ilo) tripartite declaration of principles concerning multinational enterprises and social policy.82


### (8) international agreements under the united nations framework convention on climate change , to which the union and the member states are parties , such as the paris agreement84 and the recent glasgow climate pact85 , set out precise avenues to address climate change and keep global warming within 1.5 c degrees. besides specific actions being expected from all signatory parties , the role of the private sector , in particular its investment strategies , is considered central to achieve these objectives. ### deleted


### (8) international agreements under the united nations framework convention on climate change , to which the union and the member states are parties , such as the paris agreement84 and the recent glasgow climate pact85 , set out precise avenues to address climate change and keep global warming within 1.5 c degrees. besides specific actions being expected from all signatory parties , the role of the private sector , in particular its investment strategies , is considered central to achieve these objectives. ### (8) international agreements under the united nations framework convention on climate change , to which the union and the member states are parties , such as the paris agreement84 and the recent glasgow climate pact85 , set out precise avenues to address climate change and keep global warming within 1.5 c degrees for states as signatory parties. besides specific actions being expected from all signatory parties , the role of the private sector , in particular its investment strategies , is also considered central to achieve these objectives.


### (12) this directive is in coherence with the eu action plan on human rights and democracy 2020-202499 . this action plan defines as a priority to strengthen the union’s engagement to actively promote the global implementation of the united nations guiding principles on business and human rights and other relevant international guidelines such as the oecd guidelines for multinational enterprises , including by advancing relevant due diligence standards. ### (12) (does not affect english version.)


### (12) this directive is in coherence with the eu action plan on human rights and democracy 2020-202499 . this action plan defines as a priority to strengthen the union’s engagement to actively promote the global implementation of the united nations guiding principles on business and human rights and other relevant international guidelines such as the oecd guidelines for multinational enterprises , including by advancing relevant due diligence standards. ### (12) this directive is in coherence with the eu action plan on human rights and democracy 2020-202499 . this action plan defines as a priority to strengthen the union’s engagement to actively promote the global implementation of the united nations guiding principles on business and human rights and the oecd guidelines for multinational enterprises as clarified in the oecd due diligence guidance for responsible business conduct as the relevant guidelines , including by advancing relevant due diligence standards. therefore , these international standards should form the basis for the obligations on due diligence for companies set out in this directive.


### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and value chains. ### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and upstream supply chain as well as relevant value chain.


### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and value chains. ### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and supply chains. this directive is without prejudice to the responsibility of member states to respect and protect human rights and the environment under international law.


### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and value chains. ### (14) this directive aims to ensure that companies active in the internal market contribute to sustainable development and the sustainability transition of economies and societies through the identification , prevention and mitigation , bringing to an end and minimisation of potential or actual adverse human rights and environmental impacts connected with companies’ own operations , subsidiaries and supply chains.


### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence. ### (15) companies should take appropriate steps within their means to set up and carry out risk-based due diligence measures , with respect to their own operations , their subsidiaries , as well as their direct business relationships outside the eu and in case of substantiated knowledge of risks , indirect business relationships outside the eu in their supply chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. moreover , administering information on a large number of business relationships is difficult. therefore , the main obligations in this directive should be ‘obligations of means’. in addition , while companies can be asked to prevent or mitigate adverse impacts that they caused or contributed to , it is still the responsibility of states to combat human rights violations worldwide. companies should take the appropriate proportionate and commensurate measures within their means which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the respective company’s supply chain , size , risk factors including the sector and geographical area of activity , the likelihood and severity of the company's potential or actual adverse impacts and its specific circumstances , the company’s power , resources and leverage to influence its business relationships , whether they caused or contributed to the adverse impact or are directly linked to it and whether the company could increase its leverage.


### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence. ### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their business relationships throughout their value chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence.


### (15) companies should take appropriate steps to set up and carry out due diligence measures , with respect to their own operations , their subsidiaries , as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. account should be taken of the specificities of the company’s value chain , sector or geographical area in which its value chain partners operate , the company’s power to influence its direct and indirect business relationships , and whether the company could increase its power of influence. ### (15) companies should take appropriate steps within their means to set up and carry out risk-based due diligence measures , with respect to their own operations , their subsidiaries , as well as their direct business relationships with entities from third countries throughout their supply chains in accordance with the provisions of this directive. this directive should not require companies to guarantee , in all circumstances , that adverse impacts will never occur or that they will be stopped. for example with respect to business relationships where the adverse impact results from state intervention , the company might not be in a position to arrive at such results. therefore , the main obligations in this directive should be ‘obligations of means’. while companies can be asked to prevent or mitigate adverse impacts through due diligence policies , it is still in the responsibility of states to actually combat human rights violations worldwide. the company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. the measures should be proportionate and commensurate to the likelihood and severity of the company's potential or actual adverse impacts and its specific circumstances , particularly its sector of activity , the size and length of its supply chain , the size of the company , its capacity , resources and leverage.


### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services , at the level of own operations , subsidiaries and in value chains. ### (17) adverse human rights and environmental aspects particularly occur at the level of raw material sourcing and manufacturing in the upstream supply chain operating outside the eu. in order for the due diligence to have a meaningful impact , it should cover the level of companies’ own operations , operations of their subsidiaries and their business relationships outside the eu in their upstream supply chains.


### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services , at the level of own operations , subsidiaries and in value chains. ### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts of operations in the value chains of companies within the scope.


### (17) adverse human rights and environmental impact occur in companies’ own operations , subsidiaries , products , and in their value chains , in particular at the level of raw material sourcing , manufacturing , or at the level of product or waste disposal. in order for the due diligence to have a meaningful impact , it should cover human rights and environmental adverse impacts generated throughout the life-cycle of production and use and disposal of product or provision of services , at the level of own operations , subsidiaries and in value chains. ### deleted


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the supply chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities.


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities.


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities.


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the supply chain should cover activities directly necessary for the production of a good or provision of services by a company , including the development of the product or the service as well as the related activities of direct business relationships of the company. it should encompass direct upstream business relationships with direct business partners from a third country that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are directly necessary to carry out the company’s activities.


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the supply chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service as well as the related activities of business relationships of the company. it should encompass upstream direct and , in cases of substantiated knowledge of adverse impacts , indirect business relationships , both outside the eu that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are directly necessary to carry out the company’s activities;


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the supply chain should cover activities related to the production of a good by a company , including the development of the product as well as the related activities of business relationships of the company. it should encompass upstream direct business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products


### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. it should encompass upstream established direct and indirect business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities , and also downstream relationships , including established direct and indirect business relationships , that use or receive products , parts of products or services from the company up to the end of life of the product , including inter alia the distribution of the product to retailers , the transport and storage of the product , dismantling of the product , its recycling , composting or landfilling. ### (18) the value chain should cover activities related to the production of a good or provision of services by a company , including the development of the product or the service and the use and disposal of the product as well as the related activities of business relationships of the company. it should encompass upstream business relationships that design , extract , manufacture , transport , store and supply raw material , products , parts of products , or provide services to the company that are necessary to carry out the company’s activities.


### (19) as regards regulated financial undertakings providing loan , credit , or other financial services , “value chain” with respect to the provision of such services should be limited to the activities of the clients receiving such services , and the subsidiaries thereof whose activities are linked to the contract in question. clients that are households and natural persons not acting in a professional or business capacity , as well as small and medium sized undertakings , should not be considered to be part of the value chain. the activities of the companies or other legal entities that are included in the value chain of that client should not be covered. ### deleted


### (19) as regards regulated financial undertakings providing loan , credit , or other financial services , “value chain” with respect to the provision of such services should be limited to the activities of the clients receiving such services , and the subsidiaries thereof whose activities are linked to the contract in question. clients that are households and natural persons not acting in a professional or business capacity , as well as small and medium sized undertakings , should not be considered to be part of the value chain. the activities of the companies or other legal entities that are included in the value chain of that client should not be covered. ### (19) as the financial services industry is already subject to several provisions and obligations under existing legislation such as the sustainable finance disclosure regulation (sfdr) or the capital requirements directive (crd) , the risk of overlap , lack of clarity and undue burden is evident. furthermore the risk of limited financing to the european economy should not be underestimated. a possible future inclusion should therefore be preceded by a proper impact assessment.


### (19) as regards regulated financial undertakings providing loan , credit , or other financial services , “value chain” with respect to the provision of such services should be limited to the activities of the clients receiving such services , and the subsidiaries thereof whose activities are linked to the contract in question. clients that are households and natural persons not acting in a professional or business capacity , as well as small and medium sized undertakings , should not be considered to be part of the value chain. the activities of the companies or other legal entities that are included in the value chain of that client should not be covered. ### (19) as regards regulated financial undertakings providing financing (loans and other forms of credit) , insurance or reinsurance , “value chain” with respect to the provision of such services should be limited to the activities of the clients receiving such services , and the subsidiaries thereof whose activities are linked to the contract in question. clients that are households and natural persons not acting in a professional or business capacity , as well as small and medium sized undertakings , should not be considered to be part of the value chain. the activities of the companies or other legal entities that are included in the value chain of that client should not be covered.


### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct and indirect business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months. if the direct business relationship of a company is established , then all linked indirect business relationships should also be considered as established regarding that company. ### (20) in order to allow companies to properly identify the adverse impacts in their supply and where relevant value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the supply chain. the nature of business relationships as “established” should be reassessed periodically.


### (20) in order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to established business relationships. for the purpose of this directive , established business relationships should mean such direct and indirect business relationships which are , or which are expected to be lasting , in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. the nature of business relationships as “established” should be reassessed periodically , and at least every 12 months. if the direct business relationship of a company is established , then all linked indirect business relationships should also be considered as established regarding that company. ### (20) in order to allow companies to properly identify the adverse impacts in their supply chain that it caused or contributed to and to make it possible for them to exercise appropriate leverage , the due diligence obligations should be limited in this directive to direct business relationships outside the eu. in cases when there is substantiated knowledge of adverse impacts and the company has the means and leverage to influence those , meaning being directly linked to the adverse impact , companies should include indirect business relationships outside the eu.