### 2. believes that there is strong need for a mandatory , harmonised framework at union level to ensure a level playing field for business and welcomes the commission’s ongoing work on legislation requiring that union companies conduct due diligence on respect for human rights and environmental obligations throughout their supply chains; ### 2. believes that there is strong need for a mandatory , harmonised framework at union level to ensure a level playing field for business and welcomes the commission’s ongoing work on legislation requiring that union companies conduct due diligence on respect for human rights and environmental obligations throughout their supply chains; believes that undertakings should have a due diligence obligation to take all reasonable measures to prevent adverse human rights and environmental impacts from occurring in their supply chain and to adequately address such impacts when they occur:


### 3. stresses that human rights abuses and breaches of social and environmental standards can be the result of a company’s own activities or of those of its business relationships; underlines therefore that due diligence should encompass the entire value chain; ### 3. stresses that human rights and environmental adverse impacts can be the result of an undertaking’s own activities or of the activities of its business relationships along the value chain that the undertaking ultimately benefits from; underlines therefore that due diligence should encompass the entire value chain and that when human rights or environmental adverse impacts occur , the undertaking should be held liable for the harm done , unless the undertaking can prove that it acted with due diligence and took all reasonable measures to prevent the harm;


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


### 4. considers that the scope of any future mandatory eu due diligence framework should be broad and cover all undertakings governed by the law of a member state or established in the territory of the union , including those providing financial products and services , regardless of their size or sector of activity and of whether they are publicly owned or controlled undertakings; ### 4. considers that the scope of any future mandatory eu due diligence framework should be broad and cover all undertakings governed by the law of a member state or established in the territory of the union , including those providing financial products and services , regardless of their size or sector of activity and of whether they are publicly owned or controlled undertakings; considers that the framework should also cover companies which are established outside the eu when they operate in the internal market selling goods or providing services;


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


### 4. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers and trade union rights , women , children or indigenous people; stresses that full alignment with existing legal obligations and standards at european and international level should be sought; is of the opinion that the legislation should address all types of human rights abuses; ### 4. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers and trade union rights , women , children or indigenous people; stresses that full alignment with existing legal obligations and standards at european and international level should be sought; is of the opinion that the legislation should address all types of human rights abuses; is of the opinion that the legislation should also cover adverse impacts to the environment , including when they do not constitute a clear and direct human rights abuse;


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


### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights and the environment , including the european green deal , and eu international policy; ### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights and the environment , including the european green deal , and eu international policy; considers that respect for the union’s fundamental values should be automatically incorporated in the rules governing trade;


### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights and the environment , including the european green deal , and eu international policy; ### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights , social justice and the environment , including the european green deal , and eu international policy;


### 6. is of the opinion that the new legislation should apply to all sectors , to all types of enterprises , whether public or private , and of all size across the union; considers that the focus should be placed on the risks; ### 6. is of the opinion that future union due diligences legislation should apply to all sectors , to all types of undertakings , whether public or private , and of all size across the union , including undertakings that are not established in the union and operate in the internal market; stresses that , if necessary , undertakings should prioritise their due diligence strategy taking into consideration the severity and the likelihood of human rights , environmental and governance risks; recalls that regardless of the prioritisation chosen by the undertaking , it should be held liable for adverse human rights and environmental impacts of its supply chain unless it proves that it has acted with due diligence;


### 7. stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks; considers that those strategies should cover every actual or potential adverse impact although the severity of the risk should be considered in the context of a prioritisation policy; ### 7. stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks; considers that those strategies should cover every actual or potential adverse human rights , environmental and governance impact although the severity and likelihood of the risk should be taken into consideration in order to adequately prioritise the exercise of due diligence; underlines that undertakings can be held liable for harm arising from human rights , environmental and governance adverse impacts regardless of the saliency of the risk that has materialised , unless the undertaking can prove that it acted with due diligence and had taken all reasonable measures to prevent such harm;


### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering companies’ activities and their business relationships , including their supply and subcontracting chains; ### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering companies’ activities and their business relationships , including their supply and subcontracting chains; stresses that breaches of due diligence obligations by undertakings should give rise to administrative and criminal sanctions; underlines the importance of a civil liability mechanism to provide access to justice and access to remedy for victims;


### 8. highlights that sound due diligence requires that all stakeholders be involved and consulted effectively and meaningfully; ### 8. highlights that sound due diligence requires that all potentially affected stakeholders , including workers and local communities , be involved and consulted effectively and meaningfully; stresses that an eu due diligence framework should ensure the full involvement of trade unions and workers’ representatives at the national , european and global levels in the whole due diligence process;


### 8. points out that oecd guidelines for multinational enterprises and due diligence guidance for responsible business conduct further describe how businesses can avoid and address adverse impacts related to workers , human rights , the environment , corruption , consumers and corporate governance that may be associated with their operations , supply chains and other business relationships; is of the view that union legislation should progressively and constructively build on the ungps and that guidance; ### 8. points out that oecd guidelines for multinational enterprises and due diligence guidance for responsible business conduct further describe how businesses can avoid and address adverse impacts related to workers , human rights , the environment , corruption , consumers and corporate governance that may be associated with their operations , supply chains and other business relationships; recalls that high-risk sectors will require specific procedures and obligations , which is in line with oecd’s approach publishing specific sectorial guidelines; is of the view that union legislation should progressively and constructively build on the ungps and that guidance;


### 9. notes that coordination at sectoral level could enhance the consistency and effectiveness of due diligence efforts; ### 9. notes that coordination at sectoral level could enhance the consistency and effectiveness of due diligence efforts , allow for the sharing of best practices and contribute to leveling the playing field


### 10. considers that , to enforce due diligence , member states should designate national authorities to share best practices as well as to supervise and impose sanctions , including criminal sanctions in severe cases; ### 10. considers that , to enforce due diligence , member states should designate national authorities to share best practices as well as to supervise and impose sanctions , including criminal sanctions in severe cases; emphasises that customs duties could be used as a means to oblige foreign companies to guarantee full application of this framework;


### 10. considers that , to enforce due diligence , member states should designate national authorities to share best practices as well as to supervise and impose sanctions , including criminal sanctions in severe cases; ### 10. considers that , to enforce due diligence requirements , member states should set up or designate independent national authorities to monitor companies’ due diligence exercises , investigate and enforce sanctions for alleged breaches of due diligence obligations;


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


### 10. stresses that access to effective remedy is crucial; considers that the legislation should oblige companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable; considers , in addition , that such mechanism should provide for effective judicial remedies to victims of human rights violations , environmental damage and corruption abuses , individually and through collective actions; believes that special protection should be provided to human rights defenders and its lawyers; ### 10. stresses that access to effective remedy is crucial; recalls that states have the primary duty to provide access to remedy; underlines that corporate grievance mechanisms are only meant to work as early-warning systems , allow for emergency relief and remedies for small damages; considers that the legislation could oblige companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable; stresses that such mechanisms must be certified by public authorities and that they should never prevent a claimant to access public courts;


### 11. considers that company-level grievance mechanisms can provide effective early-stage recourse , provided they are legitimate , accessible , predictable , equitable , transparent and human rights-compatible; ### 11. recalls that states have the primary duty to protect human rights and the environment; considers that company-level grievance mechanisms can provide effective early-stage recourse , provided they are legitimate , accessible , predictable , equitable , transparent and human rights-compatible; considers that such private mechanisms must be certified by public authorities and properly articulated with judicial mechanisms in order to guarantee the highest protection of fundamental rights including the right to a fair trial; stresses that such mechanisms should never undermine the right of a victim to file a complaint before competent authorities and to seek justice before a public court;


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


### 13. considers that conducting due diligence should not absolve undertakings from liability for the harm they have caused or have contributed to; further considers , however , that having a robust due diligence process in place may help undertakings to avoid causing harm; ### 13. considers that taking some due diligence measures , however elaborate , should not automatically absolve undertakings from liability for the harm they have caused or have contributed to; further considers , however , that having a robust and adequate due diligence process in place may help undertakings to prevent the harm from occurring;


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


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


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


### 16. requests that the commission submit without undue delay a legislative proposal on mandatory supply chain due diligence , following the recommendations set out in the annex hereto; considers that , without prejudice to detailed aspects of the future legislative proposal , articles 50 , 83(2) and 114 tfeu should be chosen as legal bases for the proposal; ### 16. requests that the commission submit without undue delay a legislative proposal on mandatory supply chain due diligence , following the recommendations set out in the annex hereto; considers that , without prejudice to detailed aspects of the future legislative proposal , articles 50 , 83(2) , 114 , 153(1)(e) and 191 tfeu should be chosen as legal bases for the proposal;


### 17. recommends that union mandatory due diligence legislation be adopted to require companies to identify and address their impacts with reference to all internationally recognised human rights including , as a minimum , those encompassed by the udhr , all nine core international human rights treaties , the ilo declaration on fundamental principles and rights at work and all fundamental ilo conventions , as well as the echr and icescr , which are binding on council of europe member states and also bind member states as a result of union law and the common constitutional traditions of the member states; ### 17. recommends that union mandatory due diligence legislation be adopted to require companies to identify and address their impacts with reference to all internationally recognised human rights including , as a minimum , those encompassed by the udhr , all nine core international human rights treaties , including united nations declaration on the rights of peasants and other people working in rural areas (undrop) , the ilo declaration on fundamental principles and rights at work , ilo convention 169 on indigenous and tribal peoples and all fundamental ilo conventions , as well as the echr , iccpr and icescr , which are binding on council of europe member states and also bind member states as a result of union law and the common constitutional traditions of the member states; is convinced that the future regulation should be based on un guiding principles and the oecd guidelines for multinational enterprises , and the oecd due diligence guidance for responsible business conduct;


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


### whereas: ### whereas:


### 1. the debate on the responsibilities of business in relation to human rights became prominent in the 1990s , when new offshoring practices in clothing and footwear production drew attention to the poor labour conditions that many workers in global value chains faced. at the same time , many oil , gas , and mining companies pushed into increasingly remote areas , often displacing indigenous communities without adequate consultation or compensation. ### 1. the awareness of the responsibilities of business with regards to the adverse impact of their value chains on human rights became prominent in the 1990s , when new offshoring practices in clothing and footwear production drew attention to the poor labour conditions that many workers in global value chains faced. at the same time , many oil , gas , and mining companies pushed into increasingly remote areas , often displacing indigenous communities without adequate consultation or compensation.


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


### 3. this framework was followed by the un human rights council’s endorsement in 2011 of the “guiding principles on business and human rights” (ungps). the ungps introduced the first global standard for “due diligence” and enabled companies to put their responsibility to respect human rights into practice. subsequently , other international organisations developed due diligence standards based on the ungps. the 2011 oecd guidelines for multinational enterprises refer extensively to due diligence and the oecd has developed guidance to help enterprises carry out due diligence in specific sectors and supply chains. in 2018 , the oecd adopted general due diligence guidance for responsible business conduct. similarly , the international labour organisation (ilo) adopted in 2017 the ilo tripartite declaration of principles concerning multinational enterprises and social policy , which encourages enterprises to put in place due diligence mechanisms to identify , prevent , mitigate and account for the manner in which they address their business’s actual and potential adverse impacts as regards internationally recognized human rights. ### 3. this framework was followed by the un human rights council’s endorsement in 2011 of the “guiding principles on business and human rights” (ungps). the ungps introduced the first global standard for “due diligence” and enabled companies to put their responsibility to respect human rights into practice. subsequently , other international organisations developed due diligence standards based on the ungps. the 2011 oecd guidelines for multinational enterprises refer extensively to due diligence and the oecd has developed guidance to help enterprises carry out due diligence in specific sectors and supply chains. in 2016 , the committee of ministers adopted a recommendation to member states on human rights and business calling for member states of the council of europe to adopt legislative and other measures to ensure that human rights violations in an undertaking’s value chain give rise to civil , administrative and criminal liability before european courts. in 2018 , the oecd adopted general due diligence guidance for responsible business conduct. similarly , the international labour organisation (ilo) adopted in 2017 the ilo tripartite declaration of principles concerning multinational enterprises and social policy , which encourages enterprises to put in place due diligence mechanisms to identify , prevent , mitigate and account for the manner in which they address their business’s actual and potential adverse impacts as regards internationally recognized human rights.


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


### to this end , it establishes minimum requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account , address and remediate the human rights , environmental and governance risks that those activities may pose. by coordinating safeguards for the protection of human rights , the environment and good governance , those due diligence requirements are aimed at improving the functioning of the internal market. ### to this end , it establishes minimum requirements for undertakings to identify , assess , prevent , cease , mitigate , monitor , track , communicate , disclose , account for , address and remediate the potential or actual adverse human rights , environmental and governance impacts that their own activities , those of their value chains and other business relationship may pose. by coordinating safeguards for the protection of human rights , the environment and good governance , those due diligence requirements are aimed at improving the functioning of the internal market.


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


### 3. this directive shall apply without prejudice to further due diligence requirements established in union sector-specific legislation , in particular regulation (eu) no 995/20108 and regulation (eu) 2017/8219 . ### 3. this directive establishes minimum and mandatory cross-sectoral due diligence obligations and requirements for undertakings. it shall apply without prejudice to further due diligence requirements established in union sector-specific legislation , in particular regulation (eu) no 995/20108 and regulation (eu) 2017/8219 .


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


### 4. this directive shall not prevent member states from maintaining or introducing further general or sector-specific due diligence requirements , provided that they do not hamper the effective application of the due diligence requirements as provided for in this directive. ### 4. this directive shall not prevent member states from maintaining or introducing further general or sector-specific due diligence requirements , provided that they do not weaken the due diligence obligation set out in this directive , nor hamper the effective application of the due diligence requirements as provided for in this directive.


### 5. the implementation of this directive shall in no way constitute grounds for justifying a reduction in the general level of protection of human rights or the environment. in particular , it shall be applied without prejudice to other existing subcontracting , posting or chain liability frameworks. ### 5. the implementation of this directive shall in no way constitute grounds for justifying a reduction in the general level of protection of human rights or the environment. in particular , it shall be applied without prejudice to other applicable subcontracting , posting or chain liability frameworks.


### 2. it shall also apply to limited liability undertakings governed by the law of a non-member state and not established in the territory of the union when they operate in the internal market selling goods or providing services. an undertaking governed by the law of a non-member state and not established in the territory of the union shall be considered in compliance with this directive if it fulfils the due diligence requirements established in this directive as transposed in the legislation of the member state in which it operates. ### 2. it shall also apply to undertakings governed by the law of a non-member state and not established in the territory of the union when they operate in the internal market selling goods or providing services. an undertaking governed by the law of a non-member state and not established in the territory of the union fulfil the due diligence requirements established in this directive as transposed in the legislation of the member state in which it operates. it should be subject to the civil , criminal and administrative liability regimes established by this directive as transposed in the legislation of the member state in which it operates.


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


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


### - ‘business relationships’ means the network of relationships of an undertaking with business partners and other entities along its entire value chain , and any other non-state or state entity directly linked to the undertaking’s business operations , products or services. ### - ‘business relationships’ means all the entities of an undertaking's entire value chain , including suppliers and subcontractors , that are directly or indirectly linked to the undertaking’s business operations , products or services.


### - ‘sub-contractor’ means all business relationships that perform a service or an activity necessary for the completion of another undertaking’s operations. ### - ‘sub-contractor’ means all business relationships that perform a service or an activity contributing to the completion of an undertaking’s operations.


### - ‘value chain’ means all activities , operations , business relationships and investment chains of an undertaking inside or outside the eu. value chain includes entities with which the undertaking has a direct or indirect business relationship , upstream and downstream , and which either (a) supply products or services that contribute to the undertaking’s own products or services , or (b) receive products or services from the undertaking. ### - ‘value chain’ means all activities , operations , including financial operations , business relationships and investment chains of an undertaking inside or outside the eu. value chain includes entities with which the undertaking has a direct or indirect business relationship , upstream and downstream , and which either (a) supply products or services that contribute to the undertaking’s own products or services , or (b) receive products or services from the undertaking.


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


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


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


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


### 1. member states shall lay down rules to ensure that undertakings carry out due diligence with respect to human rights , environmental and governance risks in their operations and business relationships. ### 1. member states shall lay down rules to ensure that undertakings respect their due diligence obligation with respect to human rights , environmental and governance potential or actual adverse impacts in their operations , those of their value chains and their business relationships.


### 2. undertakings shall in an ongoing manner identify and assess by means of an appropriate monitoring methodology whether their operations and business relationships cause or contribute to any human rights , environmental or governance risks. ### 2. undertakings shall in an ongoing manner identify and assess by means of an appropriate monitoring methodology whether their operations and business relationships cause , contribute or are directly linked to any potential or actual adverse human rights , environmental or governance impacts. this monitoring should draw on internal or external human rights expertise and involve meaningful consultation with potentially affected groups and other relevant stakeholders.


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


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


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


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


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


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


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


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


### 9. undertakings shall ensure by means of contractual clauses and the adoption of codes of conduct that their business relationships put in place and carry out human rights , environmental and governance policies that are in line with their due diligence strategy. ### 9. undertakings' exercise of their due diligence obligation may include the use of framework agreements , contractual clauses and the adoption of legally binding codes of conduct that their business relationships put in place and carry out human rights , environmental and governance policies that are in line with their due diligence strategy.


### 1. member states shall ensure that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that is appropriate to their size and the nature and context of their operations , and shall guarantee , in particular , the right for trade unions at the relevant level to be involved in the establishment and implementation of the due diligence strategy in good faith with their undertaking. ### 1. member states shall ensure that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that is appropriate to their size and the nature and context of their operations , and shall guarantee , in particular , the right for trade unions at the relevant level , including sectoral , national , european and global levels , to initiate and negotiate to be involved in the establishment and implementation of the due diligence strategy in good faith and without unjustified delays with their undertaking.


### 5. workers or their representatives shall be informed and consulted on the due diligence strategy of their undertaking in accordance with directive 2002/14/ec establishing a general framework for informing and consulting employees in the european community , directive 2009/38/ec on the establishment of a european works council and council directive 2001/86/ec supplementing the statute for a european undertaking with regard to the involvement of employees. ### 5. workers or their representatives shall be informed and consulted on the mapping of the potential and actual adverse impacts by the undertaking , on the due diligence strategy of their undertaking and on its implementation in accordance with directive 2002/14/ec establishing a general framework for informing and consulting employees in the european community , directive 2009/38/ec on the establishment of a european works council and council directive 2001/86/ec supplementing the statute for a european undertaking with regard to the involvement of employees.


### 6. member states shall ensure that where an undertaking refuses to carry out consultations with stakeholders , fails to involve trade unions in good faith , or does not adequately inform and consult workers or their representatives , stakeholders and trade unions may refer the matter to the competent national authority ### 6. without prejudice to legal actions and remedies , member states shall ensure that where an undertaking refuses to carry out consultations with stakeholders , fails to engage in good faith in effective , meaningful and informed negotiations with trade unions , or does not adequately inform and consult workers or their representatives , this constitutes a breach of the due diligence obligations and stakeholders and trade unions may refer the matter to the competent national authority. the competent authority shall be able to impose sanctions on the undertaking for this breach of its obligations.


### 1. member states shall ensure that undertakings make their due diligence strategy publicly available , accessible and free of charge , especially on the undertakings’ websites. ### 1. member states shall ensure that undertakings make their due diligence strategy mentioned in article 4(4) publicly available , accessible , comparable and free of charge , especially on the undertakings’ websites.


### 21. recalls that the united nations special rapporteur on human rights and the environment has stated that the rights to life , health , food , water and development , as well as the right to a safe , clean , healthy and sustainable environment , are necessary for the full enjoyment of human rights; points out that the united nations general assembly recognised , in its resolution 64/292 , the right to safe and clean drinking water and sanitation as a human right; recommends consequently that those rights be covered by the legislation; ### 21. recalls that the united nations special rapporteur on human rights and the environment has stated that the rights to life , health , food , water and development , as well as the right to a safe , clean , healthy and sustainable environment , are necessary for the full enjoyment of human rights; points out that the united nations general assembly recognised , in its resolution 64/292 , the right to safe and clean drinking water and sanitation as a human right; recommends consequently that those rights be covered by the legislation; considers that the legislation should include the directive 2008/99/ec on the protection of the environment through criminal law;


### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms; ### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses must not infringe human rights and should address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms;


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


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


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


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


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


### 36. in this context , underlines the importance of the freedom of association and right to collective bargaining , as well as free , prior and informed consent by indigenous communities; ### 36. in this context , underlines the importance of the freedom of association , the freedom of expression , the right of assembly and demonstration , the right to collective bargaining , the right to fair remuneration , decent working conditions and health and safety in the workplace as well as free , prior and informed consent by indigenous communities;


### 37. suggests that the companies establish effective alert mechanisms; through recourse to such mechanisms any interested party , including trade unions , consumers , journalists , civil society organisations , lawyers , and human rights and environmental defenders , or members of the public , should be able to warn the company of adverse impacts and human rights violations; ### 37. suggests that the companies establish effective alert mechanisms; through recourse to such mechanisms any interested party , including trade unions , consumers , journalists , civil society organisations , lawyers , and human rights and environmental defenders , or members of the public , should be able to warn the company of adverse impacts and human rights violations; calls on the commission to consult with the european ombudsman on accompanying measures needed to support this role;


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


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


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


### 1. stresses that trade policy is an essential tool for implementing the circular economy and the eu’s sustainability agenda globally; underlines that increased recycling can reduce the eu’s reliance on imports of raw materials , and points to the need to decouple economic growth from resource use in order to ensure the long-term sustainability of global value chains; ### 1. stresses that trade policy is an essential tool for implementing the circular economy and the eu’s and united nations' sustainable development agenda globally by 2030; underlines that increased recycling can reduce the eu’s reliance on imports of raw materials , and points to the need to decouple economic growth from resource use in order to ensure the long-term sustainability of global value chains , and reminds of the need for waste reduction;


### 1. highlights that the carbon and resource footprint of goods due to transport and packaging could be reduced through a circular economy approach; ### 1. highlights that the carbon and resource footprint of goods due to transport and packaging could be reduced through a circular economy approach , promoting , in particular , the optimisation and standardisation of packaging to increase vehicles’ fill rates;


### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is key to reducing the overall environmental footprint of european consumption and production , and to reaching the climate goals of the paris agreement; ### 1. welcomes the commission’s new circular economy action plan; highlights the fact that a true circular economy is key to reducing the overall environmental footprint of european consumption and production , to adapting our consumption and production patterns to the planetary boundaries and to reaching the climate goals of the paris agreement;


### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is key to reducing the overall environmental footprint of european consumption and production , and to reaching the climate goals of the paris agreement; ### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is key to reducing the material and overall environmental footprint of the eu's consumption and production , and the true circular economy in action can be a major contributor to goals of the paris agreement;


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


### 2. regrets the lack of international and european standards on waste quality as this hinders a viable trade policy that is conducive to the circular economy; calls on the commission to present harmonised standards on waste quality and a legal definition of recyclable waste , and to include these in future ftas; ### 2. calls on the commission for a strict implementation into eu law of the basel convention controlling transboundary movements of hazardous wastes and their disposal , including the 2019 amendments to the convention with regard to transboundary movements of plastic waste; regrets the lack of international and european standards on waste quality as this hinders a viable trade policy that is conducive to the circular economy; calls on the commission to present harmonised standards on waste quality , and to include these along with a legal definition of recyclable waste in future ftas;


### 2. calls on the union to increase the share of renewable energies in transport; ### 2. calls on the union to increase the share of renewable energies in transport and to invest heavily in scientific research on green , zero-carbon energies;


### 2. underlines that the circular economy can provide solutions to the new challenges caused and highlighted by the covid-19 crisis by reducing the vulnerability of value chains within the eu and globally; ### 2. underlines that the circular economy can provide solutions to the new challenges caused and highlighted by the covid-19 crisis by reducing the length and vulnerability of value chains within the eu and globally and calls on national authorities to systematically reflect circular economy in their stimulus packages;


### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; ### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; deplores the fact that electronic waste from the european union is often sorted by hand by human beings in developing countries , in conditions ruining their health; stresses that we cannot build our european circular economy at the expense of the health of workers in other parts of the world; calls for measures to eliminate hazardous forms of recycling in the supply chains of the circular economy; suggests to address this issue , inter alia , in the upcoming european directive on corporate due diligence and corporate accountability;


### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure; ### 3. believes that a circular economy is the way for the eu and european companies to promote real sustainability and contribute to the paris agreement goals; therefore urges the commission and the member states to direct investments in order to embed the application of sustainable circular practices and also scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) , just transition fund and horizon research funds should be used to promote and embed sustainable circular practices , including through conditionality , and put in place circular economy initiatives and infrastructure;


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


### 4. calls on the commission to identify and abolish barriers that prevent or restrict market access for circular products from outside the eu and to investigate the possibilities and benefits of reducing tariffs on certain products in order to encourage the development of the circular economy; ### 4. calls on the commission to identify and abolish barriers that prevent or restrict market access for circular products from outside the eu and to investigate the possibilities and benefits of reducing tariffs on certain products in order to encourage the development of the circular economy; in this regard , encourages the commission to return to the negotiation table to conclude the environmental goods agreement (ega) , and to add the circular economy dimension to the scope of the negotiations;


### 4. calls on the commission to identify and abolish barriers that prevent or restrict market access for circular products from outside the eu and to investigate the possibilities and benefits of reducing tariffs on certain products in order to encourage the development of the circular economy; ### 4. calls on the commission to identify and abolish barriers that prevent or restrict market access for circular products from outside the eu and to investigate the possibilities and benefits of reducing tariffs on certain products in order to encourage the development of the circular economy; stresses that product repair and processing must be carried out as locally as possible , and at least in europe;


### 4. calls on the commission to propose an eu target for a reduction in the use of primary raw materials; ### 4. calls on the commission to propose a binding eu target for a reduction of the eu's material footprint and of its consumption footprint of at least 50% for both by 2030 compared to 2015 levels; believes this should be the centrepiece of this action plan;


### 4. calls on the commission to propose an eu target for a reduction in the use of primary raw materials; ### 4. calls on the commission to propose binding eu targets for an ambitious overall reduction in the use of primary raw materials and overall resource use , accompanied by legislative proposals to achieve these targets;


### 5. urges the commission to ensure that ftas reflect the objectives of the circular economy by including strong , binding and enforceable sustainable development chapters; suggests that the circular economy should be addressed in a cross-cutting manner in all relevant fta chapters; ### 5. urges the commission to ensure that ftas reflect the objectives of the circular economy by including strong , binding and enforceable sustainable development chapters; suggests that the circular economy should be addressed in a cross-cutting manner in all relevant fta chapters; calls on the commission to engage with our partners in existing ftas in a dialogue on whether the agreements are supportive of the transition to a circular economy and , if need is established , on adapting the agreements;


### 5. notes that shared mobility services save resources in production; ### 5. notes that shared mobility services save resources in production , and calls for car-sharing platforms to be promoted , for car-sharing areas to be set up , and for inter-company journey plans to be established;


### 5. highlights the opportunities to combine circular economy solutions and digitalisation; calls on the commission and the member states to develop policies to support new sustainable business models based on product-as-a-service approaches; ### 5. highlights that there are opportunities and challenges that come with digitalisation and the circular economy; calls on the commission and the member states to develop policies to support new sustainable business models , including product-as-a-service approaches; calls on the commission to assess the material and climate impact of digitalisation , including the internet of things , 5g and the development of data centres , and to explore options for legislating to embed circular economy practices accordingly;


### 6. encourages the commission to engage with the eu’s trading partners to further support the objectives of the circular economy; stresses that particular attention must be given to how less developed partner countries can benefit from the circular economy; calls for an assessment of the impact of increased intra-eu recycling rates on countries strongly relying on waste imports. ### 6. encourages the commission to engage with the eu’s trading partners to further support the objectives of the circular economy; stresses that particular attention must be given to how less developed partner countries can benefit from the circular economy; supports accompanying measures to help our partners to speed up waste reduction and the transition to a circular economy;


### 6. notes that the environmental impacts caused by the extraction and processing of raw materials for vehicles can be reduced through material efficiency and improved recycling; ### 6. notes that the environmental impacts caused by the extraction and processing of raw materials for vehicles can be reduced through material efficiency and improved recycling , and calls for quotas to be established for the use of recyclable composite materials , and recycled and recyclable materials , in the manufacture of vehicles;


### 6. underlines the need to create economic incentives for innovation in circular solutions and calls for support for this in the new industrial strategy for europe and the sme strategy; emphasises the specific role that smes (small and medium-sized enterprises) and start-ups are playing in the transition to a circular economy; ### 6. underlines the need for binding measures to embed sustainable circular practices and to ensure the right regulatory environment for circular solutions and calls for support for this from actions flowing from the new industrial strategy for europe and the sme strategy; emphasises the specific role that smes (small and medium-sized enterprises) and start-ups can play in the transition to a circular economy , as well as , the role of social partners to accompany work-related and social aspects of the shift to a more circular economy;


### 6. underlines the need to create economic incentives for innovation in circular solutions and calls for support for this in the new industrial strategy for europe and the sme strategy; emphasises the specific role that smes (small and medium-sized enterprises) and start-ups are playing in the transition to a circular economy; ### 6. underlines the need to create regulatory measures and incentives for circular solutions and calls for support for this in the new industrial strategy for europe and the sme strategy; emphasises the specific role that smes (small and medium-sized enterprises) and start-ups are playing in the transition to a circular economy;


### a. whereas unless we reduce our use of resources , the world will be consuming resources as if there were three planets , and whereas a reduction in our overall use of natural resources and in waste is the overarching objective of the circular economy; ### a. whereas unless we reduce our use of resources speedily and significantly , the world will continue to be consuming resources as if there were three planets , and whereas a reduction in our overall use of natural resources and in waste is the overarching objective of the circular economy;


### a. whereas unless we reduce our use of resources , the world will be consuming resources as if there were three planets , and whereas a reduction in our overall use of natural resources and in waste is the overarching objective of the circular economy; ### a. whereas unless we reduce our use of resources , the eu will continue to consume resources as if there were three planets , and whereas a reduction in our overall use of resources and in waste is the overarching objective of the circular economy;


### c. whereas according to a recent study by cambridge econometrics , the circular economy has the potential to increase the eu’s gdp by an additional 0.5 % and create around 700 000 new jobs by 2030; ### deleted


### 7. urges the commission to introduce longer guarantee periods and a right to repair for vehicles; ### 7. urges the commission to introduce longer guarantee periods and a right to repair for vehicles , and to bring in a repairability index;


### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework; ### 7. underlines that sustainable and toxic-free products and services should become the norm everywhere , and that a reduction in resource use , non-toxic by design , waste prevention , the ‘designing out waste’ , the health , safety and wellbeing of workers , consumer benefits and consistent standards with exports should guide the new sustainable product policy framework and the industrial strategy;


### 9. calls on the commission to restrict exports of waste to third countries , as they increase the life–cycle emissions of products; ### 9. calls on the commission to restrict exports of waste to third countries , as they increase the life-cycle emissions of products , and calls for recycling sites to be relocated in order for there to be full control over the cycles of the circular economy;


### 1. insists that the commission urgently launches a multi-stakeholder consultation to identify key supply chain issues that directly cause or increase the risk of medicine shortages; calls on the commission to propose ambitious and concrete actions to address these issues in its planned pharmaceutical strategy; ### 1. insists that the commission urgently launches a multi-stakeholder consultation to identify key supply chain issues that directly cause or increase the risk of medicine shortages; calls on the commission to propose ambitious and concrete actions to address these issues in its planned pharmaceutical strategy with , among others , a mechanism to oblige the companies owning the patents to produce the needed medicines even if they are less profitable , and the possibility to impose compulsory licences in order to facilitate , without constraint , the increase of the production of the most needed drugs or vaccines;


### 6. urges the commission and the member states to introduce tax and financial incentives in return for appropriate commitments and to authorise state aid to encourage producers to locate their operations in europe , from compound manufacturing to packaging and distribution; emphasises the strategic significance of this sector and the importance of investing in european companies , in the interests of resource diversification; ### 6. urges the commission and the member states to introduce measures that would encourage producers to diversify their sources of supply , in particular raw materials , and to locate their operations in europe , from compound manufacturing to packaging and distribution; emphasises the strategic significance of this sector and the importance of investing in european companies , in the interests of resource diversification; all public funding being conditioned to the full transparency and traceability of investments , as well as to supply obligations on the european market and to accessible prices of medicine;


### a. whereas the coronavirus pandemic has exacerbated the growing problem of medicine shortages across the eu; whereas the ensuing disruption of the global supply chain has highlighted the eu’s dependency on third countries for medicines and active pharmaceutical ingredients; ### a. whereas the coronavirus pandemic has exacerbated the growing problem of medicine shortages across the eu; whereas the ensuing disruption of the global supply chain has highlighted the deficiencies of market mechanisms with research and development , production and trade controlled by multinational enterprises , and the eu’s dependency on these for medicines and active pharmaceutical ingredients;


### 3. stresses the urgent need for the eu to reduce its over-reliance on a small number of third countries for medicine manufacturing and as sources of active pharmaceutical ingredients; ### 3. stresses the urgent need for the eu to reduce its over-reliance on a small number of third countries for medicine manufacturing and as sources of active pharmaceutical ingredients; calls therefore the eu to enable the creation of a european public pharmaceutical hub which will have the responsibility to ensure the production of essential drugs and vaccines and make them available at cost price to the health departments of member states;


### 5. highlights the fact that horizon 2020 has already financed a significant number of health-related research and innovation activities; calls for more funding to be provided through horizon europe to create and support medicine-focused research ecosystems. ### 5. highlights the fact that horizon 2020 has already financed a significant number of health-related research and innovation activities; calls for more funding to be provided through horizon europe to create and support medicine-focused public-owned research;


### 2. welcomes and acknowledges the fact that , while it remains unclear whether any compensation has been foreseen , other wto members that export beef to the eu agreed to support this agreement by accepting that the vast majority of the quota would be allocated to the us; ### 2. notes and acknowledges the fact that other wto members that export beef to the eu , agreed to support this agreement by accepting that the vast majority of the quota would be allocated to the us;


### — having regard to its resolution of 14 december 2017 on freedom of expression in vietnam , notably the case of nguyen van hoa8 , ### — having regard to its resolution of 14 december2017 on freedom of expression in vietnam , notably the case condemning the sentencing nguyen van hoa8 to seven years in prison because of his "legitimate use of freedom of expression; expressing europe’s concern about the rise in the number of detentions" (which have risen even more rapidly since 2017); "calling on the vietnamese authorities to release all citizens detained for peacefully exercising their freedom of expression"; "expressing serious concerns about the extensive application of the national security provisions in vietnam’s penal code and urging the government of vietnam to amend it deeply" , "denouncing vietnam’s use of death penalty" , "recalling the importance of human rights dialogue between eu and vietnam as a key instrument to be used to encourage vietnam in the implementation of the necessary reforms" ;


### — having regard to its resolution of 15 november 2018 on vietnam , notably the situation of political prisoners9 , ### — having regard to its resolution of 15 november 2018 on vietnam , notably the situation of political prisoners9 , deploring that "vietnamese authorities continue to imprison , detain , harass and intimidate human rights defenders , journalists , bloggers , human rights lawyers and civil society activists in the country"; reiterating its previous year’s "call on the vietnamese authorities to end all restrictions and acts of harassments against human rights defenders"; and once again "calling on the authorities of vietnam to repeal , review or amend all repressive laws and releasing all political prisoners" without any tangible results other than silence and continued repression ;


### c. whereas vietnam is a vibrant economy with the fastest growing middle class in asean and has a young and dynamic workforce , a high literacy rate , high education levels , comparatively low wages , good transport connections and a central location within asean; ### c. whereas vietnam is a vibrant economy with the fastest growing middle class in asean and has a young and dynamic workforce , a high literacy rate , high education levels , comparatively low wages which will represent , combined to the end of all tariffs , a strong incentive for eu companies to outsource more european manufacturing jobs , good transport connections and a central location within asean;


### d. whereas in 2017 , vietnam received fdi worth 8 % of its gdp – more than double the rate received by economies of a similar scale in the region; ### d. whereas in 2017 , vietnam received fdi worth 8 % of its gdp – more than double the rate received by economies of a similar scale in the region – among of which china has now become first foreign investor , notably in the manufacturing sector , giving chinese companies even more capabilities of exporting to europe;


### e. welcoming the fact that the trade , business and investment environment has improved significantly in vietnam over the last few decades; ### e. notes the fact that contrary to human rights , rule of law and independence of civil society , the trade , business and investment environment has improved significantly in vietnam over the last few decades;


### 1. welcomes the parties’ commitment to enhance the contribution of trade and investment to the goal of sustainable development in its economic , social and environmental dimensions; acknowledges that the investment court system marks an improvement from the existing bilateral investment treaties between 21 eu member states and vietnam with regard to the independence of judges; ### 1. acknowledges that the investment court system will replace the existing bilateral investment treaties between 21 eu member states and vietnam with regard to isds mechanisms. recalls that the ics still remain an investment arbitration system and continues to give a privileged status to investors , and does not provide a sanction mechanism for investors non-compliance with social and environmental standard;


### 2. welcomes the use of the transparency rules of the united nations commission on international trade law (uncitral) for dispute settlement , but underlines that the use of substantive provisions of foreign investment protection , in particular the principles of ‘indirect expropriation’ and of ‘fair and equitable treatment’ , does not weaken the parties’ right to regulate and pursue legitimate public policy objectives , such as public health , safety and environmental protection; insists on regular monitoring and reporting back to the european parliament on the use of this provision by european investors; ### 2. acknowledges the use of the transparency rules of the united nations commission on international trade law (uncitral) for dispute settlement , but underlines that the use of substantive provisions of foreign investment protection , in particular the principles of ‘indirect expropriation’ and of ‘fair and equitable treatment’ , can weaken the parties’ right to regulate and pursue legitimate public policy objectives , such as public health , education , labour rights , safety and environmental protection; insists on regular monitoring and reporting back to the european parliament on the use of this provision by european investors;


### the committee on development calls on the committee on international trade , as the committee responsible , to recommend that parliament give its consent to the proposal for the investment protection agreement between the european union and its member states , of the one part , and the socialist republic of viet nam , of the other part. ### the committee on development calls on the committee on international trade , as the committee responsible , to recommend that parliament reject the draft council decision on the conclusion , on behalf of the union , of the investment protection agreement between the european union and its member states , of the one part , and the socialist republic of viet nam , of the other part.


### – having regard to its resolution of 14 december 2017 on freedom of expression in vietnam , notably the case of nguyen van hoa5 , ### – having regard to its resolution of 14 december 2017 on freedom of expression in vietnam , notably the case condemning the sentencing of nguyen van hoa5 to seven years in prison because of his "legitimate use of freedom of expression" , expressing europe’s "concern about the rise in the number of detentions" - which have risen even more rapidly since 2017 - , "calling on the vietnamese authorities to release all citizens detained for peacefully exercising their freedom of expression" , "expressing serious concerns about the extensive application of the national security provisions in vietnam’s penal code" and "urging the government of vietnam to amend it deeply" , denouncing "vietnam’s use of death penalty" , recalling "the importance of human rights dialogue between eu and vietnam as a key instrument to be used to encourage vietnam in the implementation of the necessary reforms" ;


### – having regard to its resolution of 15 november 2018 on vietnam , notably the situation of political prisoners6 , ### – having regard to its resolution of 15 november 2018 on vietnam , notably the situation of political prisoners6 , deploring that "vietnamese authorities continue to imprison , detain , harass and intimidate human rights defenders , journalists , bloggers , human rights lawyers and civil society activists in the country" , reiterating its previous year’s "call on the vietnamese authorities to end all restrictions and acts of harassments against human rights defenders" , and once again "calling on the authorities of vietnam to repeal , review or amend all repressive laws and releasing all political prisoners" , all of this without any tangible results other than silence and continued repression ;


### b. whereas this is the second bilateral trade agreement concluded between the eu and an asean member state and is an important stepping stone towards a region-to-region fta; whereas the agreement , along with free trade agreement between the eu and the republic of singapore to which parliament gave its consent on 13 february 2019 , will also serve as a benchmark for the agreements the eu is currently negotiating with the other main asean economies; ### b. whereas this is the second bilateral trade agreement concluded between the eu and an asean member state ; whereas the agreement , along with free trade agreement between the eu and the republic of singapore to which parliament gave its consent on 13 february 2019 , risks to serve as a benchmark for the agreements the eu is currently negotiating with the other main asean economies;


### 1. welcomes the inclusion of a comprehensive and binding chapter on trade and sustainable development (tsd) with explicit references to multilateral environmental agreements , the paris agreement and the 2030 agenda for sustainable development; ### 1. takes note of the inclusion of a comprehensive and binding chapter on trade and sustainable development (tsd) with explicit references to multilateral environmental agreements , the paris agreement and the 2030 agenda for sustainable development; regret the absence of effective monitoring and enforcement mechanisms;


### 3. congratulates viet nam on ratifying six of the ilo’s eight fundamental conventions , namely no 29 on forced labour , nos 100 and 111 on nondiscrimination , nos 138 and 182 on child labour and , most recently , no 98 on the right to organise and collective bargaining; urges the vietnamese government to quickly ratify outstanding convention no 105 on forced labour and no 87 on the freedom of association , and highlights the crucial importance of ensuring that all of these conventions are fully implemented; ### 3. congratulates viet nam on ratifying six of the ilo’s eight fundamental conventions , namely no 29 on forced labour , nos 100 and 111 on non-discrimination , nos 138 and 182 on child labour and , most recently , no 98 on the right to organise and collective bargaining; urges the vietnamese government to quickly ratify outstanding convention no 105 on forced labour and no87 on the freedom of association , and highlights the crucial importance of ensuring that all of these conventions are fully implemented; calls the vietnamese authorities to modify the penal code according with the ratification of these conventions;


### 4. welcomes viet nam’s commitment to revise and quickly ratify its labour code , highlighting the importance of the promotion and practical enforcement of gender equality and female empowerment; reiterates that gender inequality should no longer be seen as a purely social issue , but as an economic one that presents a key challenge to attaining inclusive and sustainable growth; calls on the commission to monitor developments closely and to keep parliament regularly updated on the situation. ### 4. welcomes viet nam’s commitment to revise and quickly ratify its labour code , highlighting the importance of the promotion and practical enforcement of gender equality and female empowerment; reiterates that gender inequality should no longer be seen as a purely social issue , but as an economic one that presents a key challenge to attaining inclusive and sustainable growth; encourages the vietnamese authorities to cut working time in the private sector from 48 hours per week to 40 hours per week; calls on the commission to monitor developments closely and to keep parliament regularly updated on the situation.