### 3. is of the view that the strategy must comprehensively address a broad spectrum of political , economic , cultural , sustainability and security dimensions based on the eu’s fundamental values and its shared interests; insists that the values of freedom , human rights , rule of law , democracy , solidarity , sustainability , inclusiveness , transparency , reciprocity and the adherence to multilateralism must guide the strategy; ### 3. is of the view that the strategy must comprehensively address a broad spectrum of political , economic , cultural , sustainability and security dimensions based on the eu’s fundamental values and its shared interests; insists that the values of freedom , human rights , rule of law , democracy , solidarity , social justice , sustainability , inclusiveness , transparency , reciprocity and the adherence to multilateralism must guide the strategy;


### 4. underlines the importance of the existing network of bilateral , regional and multilateral trade agreements and the bilateral cooperation between the eu and asian partners , with successful examples of strategic partnerships in japan , south korea and singapore; ### 4. underlines the importance of the existing network of bilateral , regional and multilateral trade agreements and the bilateral cooperation between the eu and asian partners , with successful examples of strategic partnerships in japan , south korea and singapore; welcomes the new gi agreement with china and the possibility to develop stronger cooperation in the future; urges to effectively implement the tsd chapters of these agreements;


### 5. calls on the commission to ensure the enforcement of trade agreements and make existing ones more ambitious , in particular by promoting sustainable eu norms and standards. ### 5. calls on the commission to ensure the enforcement of trade agreements and make existing ones more ambitious , in particular by promoting sustainable eu norms and standards; calls on the eu to use its commercial policy to promote the adoption and effective implementation of international labour standards and human rights law by its trading partners , in particular its asian partners such as south korea , the philippines and vietnam , using ilo conventions as a basis; stresses in this context that respecting the right to form and join a union and engage in collective bargaining is a key criterion for business accountability; deplores the fact that freedom of association is often denied in many production workplaces in our trading partner countries;


### 5. calls on the commission to ensure the enforcement of trade agreements and make existing ones more ambitious , in particular by promoting sustainable eu norms and standards. ### 5. calls on the commission to ensure the implementation of trade agreements and the enforcement of related commitments , and make existing ones more ambitious , in particular by promoting internationally agreed sustainability norms and standards.


### 5. highlights the importance of the ongoing work of the eu-china connectivity platform in its efforts to explore opportunities for cooperation in the area of transport between the eu’s ten-t network and china’s belt and road initiative (bri); acknowledges the importance of working towards greater transparency , reciprocity in market access and a level playing field for businesses in the area of transport infrastructure development with china. ### 5. highlights the importance of the ongoing work of the eu-china connectivity platform in its efforts to explore opportunities for cooperation in the area of transport between the eu’s ten-t network and china’s belt and road initiative (bri); acknowledges the importance of working towards greater transparency , reciprocity in market access only when respecting workers’ rights and environment preservation and a level playing field for businesses in the area of transport infrastructure development with china; recalls the constant and balanced position that should be maintained with the chinese authorities and their investments in the eu , forewarns the strategic risk to let our transport infrastructures built by other powers especially in opaque conditions;


### c. whereas the eu-japan connectivity partnership of 2019 gave additional relevance to this strategy; whereas partnerships with other asian partners should be established; whereas africa should be designated a connectivity priority region as much as asia; ### c. whereas the eu-japan connectivity partnership of 2019 gave additional relevance to this strategy; whereas partnerships with other asian partners should be established; whereas africa and latin america should be designated a connectivity priority region as much as asia;


### 6. gives greatest emphasis to the need for a fair partnership with respective countries; believes the strategy must create shared benefits , prevent one-sided dependencies or debt traps , empower self-determination , and be conducted with mutual respect; ### 6. gives greatest emphasis to the need for a fair partnership with respective countries; believes the strategy must create shared benefits , prevent one-sided dependencies or debt traps , empower self-determination , and be conducted with mutual respect; recalls the european parliament concerns about the chinese "16+1 initiative" creating large debts and few jobs in europe;


### 11. believes that the inclusion of relevant stakeholders is essential for the success of the strategy; recommends the creation of a high level expert group as an advisory body on international connectivity including business representatives , human rights , environmental and labour rights advocates , and international financial institutions; ### 11. believes that the inclusion of relevant stakeholders is essential for the success of the strategy; recommends the creation of a high level expert group as an advisory body on international connectivity including business representatives , human rights , environmental and labour rights advocates , following the criterion of gender parity;


### 13. believes that the fight against climate change , for the decarbonisation of economies , for the preservation of biodiversity and the environment should be an overarching priority of the strategy , in particular with regard to infrastructure development; calls for a systematic greening of all connectivity investments; attaches high priority to the greening of development cooperation , infrastructure investment across the board , and in particular the energy dimension; ### 13. believes that the fight against climate change , for the decarbonisation of economies , for the preservation of biodiversity and the environment , the promotion of a circular economy and the reduction of low greenhouse gas emissions should be an overarching priority of the strategy , in particular with regard to infrastructure development; calls for a systematic greening of all connectivity investments; notes that the green transition and the systematic greening of all connectivity investments should be socially just and sustainable; attaches high priority to the greening of development cooperation , infrastructure investment across the board , and in particular the energy dimension;


### 14. calls on the commission and the member states to step up their ambition for the digital transformation; expects the eu to become a competitive global actor in digitalisation on a par with the us and china; considers , in this context , the promotion of digital connectivity a high priority for the eu; believes that the development of open strategic autonomy in this sector must include digitalisation partnerships with third countries; underlines that the eu should aim at co-leadership in setting and defending international standards and practices; ### 14. calls on the commission and the member states to step up their ambition for the digital transformation; expects the eu to become a competitive global actor in digitalisation on a par with the us and china; considers , in this context , the promotion of digital connectivity and digital access as a high priority for the eu; believes that there must be emphasis on a sustainable , comprehensive and rules-based connectivity; believes that the development of open strategic autonomy in this sector must include digitalisation partnerships with third countries; underlines that the eu should aim at co-leadership in setting and defending international standards and practices;


### 15. believes that the people-to-people dimension is a fundamental pillar of the strategy requiring further prioritisation; puts great emphasis on the promotion of people-to-people contacts among students , vocational trainees , young professionals , academics and researchers as key to mutual understanding and respect; advocates such cooperation based on inclusiveness; calls in particular for the strengthening of the youth dimension through youth fora to mutually promote foreign language proficiency , student and academic exchanges , and the mutual recognition of diplomas; ### 15. believes that the people-to-people dimension is a fundamental pillar of the strategy requiring further prioritisation; puts great emphasis on the promotion of people-to-people contacts among students , vocational trainees , young professionals , academics and researchers as key to mutual understanding and respect; advocates such cooperation based on inclusiveness and gender equality; calls in particular for the strengthening of the youth dimension through youth fora to mutually promote foreign language proficiency , student and academic exchanges , and the mutual recognition of diplomas;


### 19. is convinced that the strategy’s security dimension must urgently be developed in order for the eu to keep abreast of new security challenges; highlights growing security concerns emanating from the eu’s eastern and southern neighbourhood; urges the eeas and the member states to play a more proactive role on these issues; ### 19. is convinced that the strategy’s security dimension must urgently be developed in order for the eu to keep abreast of new security challenges; highlights growing security concerns; urges the eeas and the member states to play a more proactive role on these issues;


### 23. is also willing to consider partnership with the chinese belt and road initiative in specific cases where this does not compromise core eu principles; ### 23. invites the eu member states to consider partnership with the chinese belt and road initiative in specific cases where this does not compromise core eu principles; underlines the importance of the regions and municipalities in the building a modern and interoperable road and strategic railway infrastructure along the silk road route; insists that the integration of the regions in the designing and programming of the connectivity infrastructures and initiatives is fundamental;


### 1. believes that the deep and comprehensive free trade area (dcfta) has contributed to the positive evolution of trade and to economic modernisation , has boosted foreign direct investments and has created new jobs on both sides; welcomes the continuous positive results achieved in bilateral trade and economic relations , with ukrainian imports growing by 12.3 % and exports by 9.7 % , amounting to eur 43.3 billion in 2019; ### 1. believes that the deep and comprehensive free trade area (dcfta) has contributed to the evolution of trade and to economic modernisation , has boosted foreign direct investments and has created new jobs on both sides; welcomes the continuous positive results achieved in bilateral trade and economic relations , with ukrainian imports growing by 12.3 % and exports by 9.7 % , amounting to eur 43.3 billion in 2019; notes that ukraine’s trade deficit with the eu has increased to 5.1 billion euro , with the largest imbalance occurring in trade with germany and poland;


### 1. recognises that the industrial strategy , prepared prior to the outbreak and published at an early stage of the pandemic in europe , will require substantial revision , to reflect the change in fundamentals and the new mission of the von der leyen commission: to return economies across the eu to growth and to strengthen all economies , both north and south and east and west , to the benefit of citizens and businesses; ### 1. recognises that the industrial strategy , prepared prior to the outbreak and published at an early stage of the pandemic in europe , will require substantial revision , to reflect the change in fundamentals and the new mission of the von der leyen commission: to return economies across the eu to sustainable and inclusive growth tackling inequalities between urban and rural areas , between well-paid jobs and working-poor jobs , between north and south and east and west , to the benefit of citizens and businesses;


### 1. recalls that the eu’s industrial future is linked to an alignment of the economy with the principles of the european green deal , a roadmap towards a new growth policy for the eu , bringing citizens , cities and regions together , and allowing for a just transition; ### 1. recalls that the eu’s industrial future is linked to an alignment of the economy with the principles of the european green deal , a roadmap towards a new growth policy for the eu which should ensure high environmental and social standards in particularly through compliance with collective agreements , workers' participation , and the eradication of energy poverty and energy isolation;


### a. whereas today eu industry employs around 35 million people and accounts for over 80 % of exports; whereas women still remain under-represented across industrial sectors , occupations and management levels; ### a. whereas europe needs a socially effective and environmentally sustainable industrial strategy prioritizing equal development; whereas today eu industry employs around 35 million people and accounts for over 80 % of exports; whereas women still remain under-represented across industrial sectors , occupations and management levels;


### b. whereas the eu industrial strategy must serve as a vector for creating more and better jobs and achieve an inclusive and balanced job market , accompanying the transition towards a digital and carbon-neutral industry; ### b. whereas the eu industrial strategy must guarantee quality jobs and achieve an inclusive and balanced job market that benefits the people , accompanying the transition towards a digital and carbon-neutral industry; whereas the eu industrial strategy must serve as a booster for social cohesion and in that way contribute to the fight against social dumping;


### b. whereas the eu’s smes have traditionally generated a high share of the eu’s employment , and in so doing have ensured social and economic well-being and prosperity; ### b. whereas the eu’s smes have traditionally been the backbone of many member state's economies in the eu and they should be supported both in a transition to environmental sustainability as well as the creation of new safe jobs with fully ensured labour rights;


### c. whereas digitalisation and artificial intelligence are crucial for all industry sectors , increasing competitiveness , creating job opportunities and economic prosperity; ### c. whereas digitalisation and artificial intelligence are crucial for all industry sectors;


### 2. notes that investment in innovative means of production should foster cohesion amongst all eu regions , allowing them to accomplish fair and inclusive economic growth; ### 2. notes that investment in innovative means of production should foster cohesion amongst all eu regions , allowing them to accomplish fair and inclusive economic growth and social cohesion;


### 2. notes that this crisis has demonstrated the need for the eu to adjust its industrial strategy by strengthening the defence of its strategic interests without abandoning international trade; ### 2. notes that this crisis has demonstrated the need for the eu to adjust its industrial strategy by strengthening the defence of its strategic interests without abandoning international trade; it should also amend its provisions , going beyond the opportunities provided , in particular , by the regulation on screening of foreign direct investments , making the acquisition of eu companies by foreign investors the exception and no longer the rule;


### 3. stresses that in supporting smes through the european structural and investment funds (esif) the goal should be , inter alia , an innovative and smart economic transformation , a greener and low carbon eu , as well as an eu which is more connected and aims to ensure long-term and sustainable employment; ### 3. stresses that in supporting smes through the european structural and investment funds (esif) the goal should be , inter alia , an innovative and smart economic transformation , a greener and low carbon eu committed to the goals of the paris agreement and the eu's goal of climate neutrality by 2040 , as well as an eu which is more connected and aims to ensure long-term , sustainable employment with guaranteed full labour rights;


### 4. reiterates that the public sector has an important new role to play in facilitating a just transition by promoting a green and fair energy transition , green and blue investments , the circular economy , as well as climate adaptation and risk prevention in all eu regions; ### 4. reiterates that the public sector has an important new role to play in facilitating a just transition by promoting a green and fair energy transition , green and blue investments , the circular economy , as well as climate adaptation and risk prevention in all eu regions; calls therefore for sustainable , long- term public investment on key sectors of the real economy on eu level in order to facilitate this just transition;


### 6. believes that the eu should be attentive to preserving and developing an industrial strategy and production which ensure european strategic autonomy , as well as the availability and delivery of essential products and equipment for citizens if the need arises in the single market; ### 6. believes that lessons should be learned by the covid-19 experience and the eu should be attentive to preserving and developing an industrial strategy and production which ensure european strategic autonomy , as well as the availability and delivery of essential products and equipment for citizens if the need arises in the single market;


### 7. considers that esif financial support should prioritise investments in new or transformed industrial production in carbon-intensive regions in order to facilitate achieving the goals of a just transition. ### 7. considers that esif financial support should prioritise investments in new or transformed industrial production in carbon-intensive regions in order to facilitate achieving the goals of a just transition , including the elimination of energy poverty and social dumping.


### 1. welcomes the commission’s communication of 23 july 2019 entitled ‘stepping up eu action to protect and restore the world’s forests’ (com(2019)0352); ### 1. notes the commission’s communication of 23 july 2019 entitled ‘stepping up eu action to protect and restore the world’s forests’ (com(2019)0352);


### 2. endorses the priorities for action set out in the communication and expresses its commitment to engage actively in implementing the actions described; ### 2. expresses its commitment to engage actively in the pursuit of policies to enhance the biological , social and cultural diversity of forests so as to protect ecosystems and habitats and encourage the social and economic development of local communities; rejects the purely mercantile view of raw materials and goods from forests that guide the free trade agreements;


### 3. calls on the eu to more closely cooperate with like-minded importing countries in the fight against deforestation and climate change while safeguarding avenues for legal trade; ### 3. calls on the eu to more closely cooperate with like-minded importing countries in the fight against deforestation and climate change while safeguarding avenues for legal trade; calls for additional efforts in the coordination of choices regarding which species to replant in order to safeguard forests' resilience , based , in particular , on the diversity of the replanted species;


### 3. deeply regrets that , despite the efforts of the eu and its member states , the eu’s objective of reducing gross tropical deforestation by 50 % by 2020 is unlikely to be met , and therefore strongly supports the commission in its proposal to step up action in protecting and restoring the world’s forests; ### 3. notes that the objective of reducing tropical deforestation by 50% by 2020 is proving to be a failure owing to eu insistence on promoting policies that tend to benefit private interests at the expense of public interests;


### 4. underlines the importance of measures ensuring that demand is in line with the stated goals , as the eu is a major importer of commodities associated with deforestation; ### 4. underlines the importance of measures ensuring that demand is in line with the stated goals , as the eu is a major importer of commodities associated with deforestation; calls for stiffer penalties to be introduced in order to reduce the import and marketing of illegal timber into the european union;


### 4. highlights the fact that horizon 2020 has already financed significant research and innovation in the transition towards more sustainable land-use practices and supply chains in order to halt deforestation and forest degradation; calls for horizon europe to continue providing support in these areas; ### 4. highlights the fact that horizon 2020 has already financed significant research and innovation in the transition towards more sustainable land-use practices and supply chains in order to halt deforestation and forest degradation; calls for increased funding to enable horizon europe to continue providing support in these areas;


### 5. stresses the importance of partnership with third countries in order to strengthen sustainable forest management , the wood-based circular economy and the strong relationship between them in combating deforestation; ### 5. stresses the importance of partnership with third countries in combating deforestation in order to strengthen sustainable food chains and counter global warming , loss of diversity , land grabbing and human rights infringements; supports the creation of a fund dedicated to forests within the framework of the new neighbourhood , development and international cooperation instrument (ndici);


### 5. stresses the importance of partnership with third countries in order to strengthen sustainable forest management , the wood-based circular economy and the strong relationship between them in combating deforestation; ### 5. stresses the importance of establishing and stepping up cross-border cooperation in order to strengthen sustainable forest management , the wood-based circular economy and the relationship between them in combating deforestation;


### — having regard to the draft feasibility study on options to step up eu action against deforestation , commissioned by the commission’s directorate general for environment (2017) , ### — having regard to the feasibility study on options to step up eu action against deforestation , commissioned by the commission’s directorate general for environment (2018) ,


### — having regard to the draft feasibility study on options to step up eu action against deforestation , commissioned by the commission’s directorate general for environment (2017) , ### — having regard to the draft feasibility study on options to step up eu action against deforestation , commissioned by the commission’s directorate general for environment (2018) ,


### a. whereas , despite all efforts so far , conservation and sustainable use of the world’s forests cannot be adequately ensured by current policies; ### a. whereas forests are essential to preserve the world’s biodiversity and climate , and directly sustain millions of people’s livelihoods; whereas , despite all efforts so far , conservation and sustainable use of the world’s forests and the protection of indigenous peoples and local communities cannot be adequately ensured by current policies; whereas other highly biodiverse and carbon rich ecosystems are also being destroyed;


### a. whereas , despite all efforts so far , conservation and sustainable use of the world’s forests cannot be adequately ensured by current policies; ### a. whereas , despite all efforts so far , conservation , sustainable use of the world’s forests and the protection of indigenous peoples and local communities cannot be adequately ensured by current policies;


### a. whereas effective forest policy requires reliable information on forest resources , their condition , and how they are managed and used , and also reliable information on land-use change; calls for the eu to support the monitoring of deforestation and forest degradation by using earth observation data from different sources; ### a. whereas a sustainable and effective forest policy requires reliable information on the state of forests (adaptation to climate change and the spread of parasite infestation) , and how they are managed and used , and also reliable information on land-use change; calls for the eu to support the monitoring of deforestation and forest degradation by using earth observation data from different sources; whereas , in the light of the covid-19 pandemic , a sustainable forestry policy is more than ever necessary; whereas deforestation , rampant urbanisation and industrialisation are now only leaving small areas of habitat for wild animal species , resulting in an increased probability of close and repeated contact with humans , and ultimately ‘passage across the species barrier’;


### b. whereas stepping up action to protect existing forests and actively and sustainably create new forest coverage has to play a crucial role in the eu’s sustainability policies; ### b. whereas stepping up action to protect existing forests and actively and sustainably create new forest coverage has to play a crucial role in the eu’s sustainability policies , and the principle of sustainability should be further strengthened at all levels from the local to the global in order to protect biodiversity , mitigate climate change and combat desertification;


### 6. calls for raising consumer awareness about the need to reduce our consumption footprint on land and encourages people to consume products from supply chains that are ‘deforestation-free’. ### 6. calls for raising consumer and corporate awareness about the need to reduce our consumption footprint on land and encourages people to consume products from supply chains that are ‘deforestation-free’ , for example by encouraging the consumption of less meat;


### 6. welcomes the commitment by the commission to increase supply chain sustainability and transparency; calls for the adoption of regulatory measures while ensuring a level playing field to avoid income loss in developing countries and unfair competition; ### 6. welcomes the commitment by the commission to increase supply chain sustainability and transparency; calls for the adoption of regulatory measures while ensuring a level playing field to avoid income loss in developing countries and unfair competition; reiterates its call for an eu legal framework based on corporate due diligence to prevent , address and mitigate deforestation and human rights violations in supply chains and provide access to justice for victims; such obligations should be cross-sectorial and apply in particular to the financial sector


### 7. calls on the eu to make sure that policies in all areas are coherent with its commitments to protect and restore forests; recalls that the sustainability chapters of trade agreements need to contain forest-specific and responsible business conduct provisions , as well as mechanisms to oversee the effective implementation of these provisions. ### 7. calls on the eu to make sure that policies in all areas are coherent with its commitments to protect and restore forests; recalls that the sustainability chapters of trade agreements need to contain forest-specific and responsible business conduct provisions , as well as binding mechanisms to oversee the effective implementation of these provisions.


### 3. recalls that parliament aims to reinforce the economic integration of the eap countries and that the common goal remains to create and make use of additional market opportunities such as business development , increased connectivity and the digital economy; calls on the eap countries to fund the necessary reforms and to further deepen their relations with the eu; ### 3. recalls that parliament aims to reinforce the social and economic integration of the eap countries and that the common goal remains an inclusive economic development; considers it important to this end , to create and make use of additional market opportunities such as development of a favourable business environment for smes , access to services , increased connectivity and the digital economy; calls on the eap countries and the union to cooperate in funding the necessary reforms , which can further deepen their mutual relations;


### 1. notes that preservation of forests is one of the biggest sustainability challenges of our times , without which the objectives of the paris agreement and the green deal cannot be achieved; stresses that the sustainable use of forests cannot be ensured with current policies; ### 1. notes that preservation of forests is one of the biggest challenges of our times in terms of sustainable development , combating climate change and safeguarding biodiversity and the environment , without which the objectives of the paris agreement and the green deal cannot be achieved; stresses that the sustainable use of forests cannot be ensured with current policies;


### 1. notes that despite the genuine attempts by companies to self-regulate through voluntary due diligence obligations , it is evident that complex , dynamic and non-transparent global value chains are often linked to deforestation; and consequently recommends that more efficient and broadly covering measures be developed , addressing the union-wide demand side; ### 1. notes that despite the genuine attempts by companies to self-regulate through voluntary due diligence obligations , it is evident that complex , dynamic and non-transparent global value chains are often linked to deforestation; and consequently recommends that more efficient , more binding and broadly covering measures be developed , addressing the union-wide demand side; calls on the eu to defend the rights of whistleblowers in their fight against deforestation;


### 1. underlines that approximately 80% of global deforestation is caused by the expansion of land used for agriculture; stresses in this context that the commission communication on stepping up eu action to protect and restore the world’s forests of july 2019 recognises that union demand for products such as palm oil , meat , soy , cocoa , maize , timber , rubber , including in the form of processed products or services , is a large driver of deforestation , ecosystem destruction and human rights violations across the globe; ### 1. underlines that approximately 80% of global deforestation is caused by the expansion of land used for agriculture; stresses in this context that the commission communication on stepping up eu action to protect and restore the world’s forests of july 2019 recognises that union demand for products such as palm oil , meat , soy , cocoa , maize , timber , rubber , including in the form of processed products or services , is a large driver of deforestation , forest degradation , ecosystem destruction and human rights violations across the globe;


### 1. recalls that the union addresses the risk of deforestation by means of eu timber regulation1(eutr) , communication of the commission ‘forest law enforcement , governance and trade- proposal for an eu action plan’ (flegt) and renewable energy directive2(red ii) , which include numerous rules the purpose of which is to minimise the risk of deforestation and illegal logging; ### 1. notes that the union has tools in the form of the eu timber regulation (eutr)1 , the communication from the commission ‘forest law enforcement , governance and trade - proposal for an eu action plan’ (flegt) and the renewable energy directive (red ii)2 , which include numerous rules the purpose of which is to prevent illegal exploitation of forests , which have proved inadequate in the context of the climate and environmental emergency and growing deforestation1 a;


### 1. calls on the union to adopt a legislative act requiring companies to conduct mandatory due diligence throughout their entire supply chains to ensure that forest risk commodities placed on the union market are sustainable , deforestation-free and comply with human rights obligations; stresses that such legislation should follow a cross-commodity approach , apply to all economic actors , including financial actors , and be accompanied by a robust enforcement mechanism , including effective , proportionate and dissuasive penalties for non-compliance; ### 1. calls on the union to adopt a legislative act requiring companies to conduct mandatory due diligence throughout their entire supply chains to ensure that forest risk commodities placed on the union market are sustainable , deforestation-free and comply with human rights obligations , labour and environmental international conventions; stresses that such legislation should follow a cross-commodity approach , apply to all economic actors , including financial actors , provide access to justice for victims and be accompanied by a robust enforcement mechanism , including effective , proportionate and dissuasive penalties for non-compliance;


### 1. calls for binding union law to be adopted that ensures that all supply chains of products imported into the union and also of those products and services supplied within the union do not involve deforestation and ecosystem degradation or conversion , or human rights violations , and that protects indigenous peoples and local communities; ### 1. calls for binding union law to be adopted that ensures that all supply chains of products imported into the union and also of those products and services supplied within the union do not involve deforestation and ecosystem degradation or conversion , including loss of biodiversity due to destruction and fragmentation of natural habitats , or human rights violations , and that protects indigenous peoples and local communities;


### 2. supports the commission in its efforts to strengthen standards and certification schemes that help to identify and promote deforestation-free commodities; ### 2. supports the commission in its efforts to strengthen standards and certification schemes that help to identify and promote deforestation-free commodities; stresses , however , that a ‘deforestation-free’ label , whether mandatory or not , is not sufficient; notes furthermore that the eu's current labelling requirements for meat other than from bovine animals do not include their place of origin , which permits products that are imported and then packaged in europe to be labelled as european1 a; observes more generally that initiatives involving self-regulation by industry have not had the desired results and that it is high time to adopt a binding legislative framework in order to effectively combat deforestation and illegal exploitation of forests;


### 2. supports the commission in its efforts to strengthen standards and certification schemes that help to identify and promote deforestation-free commodities; ### 2. calls on the commission to step up its efforts , jointly with the member states , to strengthen standards and certification schemes that help to identify and promote deforestation-free commodities;


### 2. notes that voluntary measures alone will not stop deforestation; ### 2. notes that voluntary measures alone will not stop deforestation , therefore calls on the commission to regulate union imports of high-risk agricultural commodities , such as palm oil , soya or beef , and thus promote global climate and biodiversity objectives , and sustainable food production and consumption;


### 3. recommends that all new trade agreements include provisions on the conservation and sustainable management of forests and the obligation to ensure multilateral environmental agreements , such as the paris agreement and the convention on biological diversity , are implemented effectively; ### 3. recommends that all new trade agreements include binding provisions on the conservation and sustainable management of forests and the obligation to ensure multilateral environmental agreements , such as the paris agreement and the convention on biological diversity , are implemented effectively;


### 3. recalls that the increasing union demand of wood for materials , energy and bioeconomy increases the risks of import-embodied deforestation , land grabbing , forced displacement and violation of indigenous people’s rights; stresses the need to ensure effective recognition and respect of customary land tenure rights of forest-dependent communities and of indigenous people; ### 3. recalls that the increasing union demand of wood for materials , energy and bioeconomy increases the risks of import-embodied deforestation , land grabbing , forced displacement and violation of indigenous people’s rights; stresses the need to ensure effective recognition and respect of customary land tenure rights of forest-dependent communities and of indigenous people; urges the commission and the member states to take full account of the impact that increased use of biofuels and bio mass could have on deforestation and to review eu renewable policies and legislation accordingly;


### 4. insists that mandatory requirements at union level need to be complemented by increased and reinforced global cooperation and consistent action to avoid the inverse effect of diverting unwanted deforestation marked supply chains to other regions in the world. ### 4. insists that mandatory requirements at union level need to be complemented by increased and reinforced global cooperation and consistent action to avoid the inverse effect of diverting unwanted deforestation marked supply chains to other regions in the world; calls for enhanced global cooperation in decision-making on the replanting of species with a view to protecting the future resilience of forests based , among other factors , on the diversity of the replanted variety;


### 4. asks the commission to explore strengthened use of the copernicus satellite system for forest monitoring and for forest fire and forest damage prevention; ### 4. asks the commission to explore strengthened use of the copernicus satellite system for forest monitoring and for forest fire and forest damage prevention , facilitating access for the relevant authorities in each member state;


### a. whereas deforestation can be in part tackled by securing the economic value of forests and by creating incentives for forest ownership; whereas , at the same time , it is crucial to maintain a balance between primary forests and regeneration of secondary forests; ### deleted


### a. whereas deforestation can be in part tackled by securing the economic value of forests and by creating incentives for forest ownership; whereas , at the same time , it is crucial to maintain a balance between primary forests and regeneration of secondary forests; ### a. whereas it is crucial to maintain a balance between primary forests and regeneration of secondary forests;


### b. whereas union consumption contributes to 10% of global deforestation; ### b. whereas union consumption is estimated to contributes to at least 10% of global deforestation;


### b. whereas union consumption contributes to 10% of global deforestation; ### b. whereas union consumption directly contributes to 10% of global deforestation;


### b. whereas according to union legislation woody raw material should emanate only from forests that are harvested in accordance with the principles of sustainable forest management that are developed under international forest processes such as forest europe; ### b. whereas according to union legislation woody raw material and products should emanate only from forests that are managed in accordance with the principles of sustainable forest management that are developed under international forest processes such as the un's sustainable development goals (particularly sdg 15) and forest europe;


### 5. invites the commission to consider the feasibility of an early alert mechanism to notify consumers , public authorities and companies about sourcing commodities from areas at risk of deforestation. ### 5. invites the commission to consider the feasibility of an early alert mechanism to notify consumers , public authorities and companies about sourcing commodities from areas at risk of deforestation , thereby providing an instrument that affords support and vigilance for a binding legal framework on due diligence.


### 5. calls on the union to comply with the principle of policy coherence for development and to ensure consistency between its development , trade , agriculture , energy and climate policies; ### 5. calls on the union to comply with the principle of policy coherence for development and to ensure consistency between its development , trade , agriculture , energy and climate policies; stresses that trade liberalisation , including eu epas and ftas with third countries , can increase deforestation; express its concern about the upcoming eu-mercosur agreement as contrary to the eu commitments on fight against climate change , zero deforestation and human rights defense;


### a. whereas , following the covid-19 outbreak in 2020 , global supply chains and production lines have been disrupted , bringing to the fore the fact that the european union is dependent on non-eu sources especially for some strategical sectors as the medical and the pharmaceutical one; ### a. whereas , during the covid-19 outbreak in 2020 , certain global supply chains and production lines have been temporarily disrupted , bringing to the fore the fact that in a globalised economy , the european union is dependent also on non-eu sources , including for a number of products and service providers in strategical sectors such as the medical and the pharmaceutical one; whereas this experience underlines the need to take good care of each other along the supply chains and production cooperation , and to respond jointly to global challenges like , for instance , a pandemic;


### b. whereas the european union is in a unique position to take the lead for a sustainable recovery; ### b. whereas the european union is in a unique position to cooperate globally for a sustainable recovery of the world economy , and to set an example by using the need to rebuild the economy to speed up the ecologically and socially sustainable transformation and modernisation of production schemes , services and infrastructure;


### 1. welcomes the timely launch of the review of the eu trade policy in 2020 , as a response to the covid-19 pandemic , and welcomes the concept of “open strategic autonomy” and invites the commission to provide further details on its content; for this purpose , considers crucial to coordinate and create synergies between trade policy and internal policies (e.g. industrial , digital , environmental policies); and insists that the eu trade strategy must increase the competitiveness of the eu industry including the agricultural sector , create quality jobs and protect workers , generate inclusive and sustainable economic growth in line with the european green deal and promote eu interests and values; highlights that the eu trade strategy must fully participate in the recovery process from the crisis with a broader reflexion on the vulnerabilities of the eu and its dependence on third markets and countries; ### 1. welcomes the timely launch of the review of the eu trade policy in 2020 , as a response to the covid-19 pandemic , and the stagnation in the development of a functioning international , multilateral , rules-based trading system with the wto at its core , and in close relationship with other institutions of international governance such as united nations conference on trade and development (unctad) and international labour organisation (ilo) , with the aim of making economic cooperation and trade fair , inclusive and sustainable; takes note of the concept of “open strategic autonomy” and invites the commission to provide further details on its content; for this purpose , considers crucial to coordinate and create synergies between trade policy and internal policies (e.g. industrial , digital , environmental , social policies); and insists that the success of our union's trade strategy must be measured by its contribution to achieving the united nations sustainable development goals by 2030; is convinced that a successful ecological and digital transition in the framework of the green deal will increase the competitiveness of the eu industry , create decent quality jobs and protect workers , generate inclusive and sustainable economic growth , and promote eu interests and values; underlines the demand in our societies for a sound european agricultural sector and its high quality and more and more often organic products , and stresses that our union's trade policy must not expose our farmers to unfair competition from unsustainable forms agricultural production outside the eu; highlights that the eu trade strategy must fully supportive to the global recovery process from the crisis with a broader reflexion on the vulnerabilities of local production , including in the eu , and the interdependence between markets and countries;


### 1. underlines that the covid-19 crisis has had an unprecedented socio-economic impact on smes , especially in the cultural and creative sectors , education , youth , sports and media; calls on the european commission to revise its sme strategy for sustainable and digital europe , ensuring that funds allocated to european smes are widely and readily accessible across member states , and reach these sectors in order to enable them to address current challenges , and maintain high levels of employment; ### 1. reiterates the importance of micro , small and medium size enterprises (smes) as the backbone of the eu economy , especeially for smaller member states; underlines that the covid-19 crisis has had an unprecedented socio-economic impact on smes , especially in the cultural and creative sectors , education , youth , sports and media which are high risk sectors; calls on the european commission to revise its sme strategy for sustainable and digital europe , ensuring that funds allocated to european smes are widely and readily accessible across member states , and reach these sectors in order to enable them to address current challenges , and maintain high levels of quality employment and put job retention schemes in place;


### 1. regrets the current low levels of supply chain due diligence; ### 1. regrets the current low levels of supply chain due diligence; stresses that in the field of international trade , due diligence and responsible sourcing are to become the standard business conduct for operators of all sizes; acknowledges the differences in size and complexity of cross-border business operations and positions in the supply chains , and the need to reflect this in formalised due diligence requirements;


### 1. considers that voluntary due diligence standards have severe limitations and that the union should urgently adopt minimum requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account , address and remediate human rights , environmental and governance risks in their entire value chain; believes that this would be beneficial for stakeholders , as well as for businesses in terms of harmonization , legal certainty and a level playing field; stresses that this would enhance the reputation of eu undertakings and of the union as a standard setter; ### 1. considers that voluntary due diligence standards have not achieved significant progress in protecting human rights and the environment from harm and that the union should urgently adopt minimum legally binding requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account for , address and remediate human rights , environmental and governance potential and actual adverse impacts in their entire value chain; believes that this is essential for the protection of stakeholders’ fundamental rights including the right to access justice , as well as for businesses in terms of harmonization , legal certainty and a level playing field; stresses that this would enhance the reputation of eu undertakings and of the union as a standard setter;


### 6. a more general approach was taken by the non-financial reporting directive5 , which imposes on some large undertakings the obligation to report on the policies they pursue in relation to environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters , including due diligence. however , the scope of that directive is limited and the obligation is based on a comply-or-explain principle. ### 6. a different , more general and complementary approach was taken by the non-financial reporting directive5 , which imposes on some large undertakings the obligation to report on the policies they pursue in relation to environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters , including due diligence. however , the scope of that directive is limited and the obligation is based on a comply-or-explain principle.


### 7. in some member states the need to make businesses more responsive to human rights and to environmental and governance concerns has led to the adoption of national due diligence legislation. in the netherlands , the child labour due diligence act requires undertakings operating in the dutch market to investigate whether there is a reasonable suspicion that the goods or services supplied have been produced using child labour and , in the event of reasonable suspicion , to adopt and implement an action plan. in france , the law on a duty of vigilance of parent and ordering companies requires from some large companies the adoption of a due diligence plan to identify and prevent human rights , health and safety and environmental risks caused by the undertaking , its subsidiaries or suppliers. in many other member states , debate is ongoing as to the introduction of mandatory due diligence requirements for undertakings. ### 7. in some member states the need to make businesses more responsive to human rights and to environmental and governance concerns has led to the adoption of national due diligence legislation. in the netherlands , the child labour due diligence act requires undertakings operating in the dutch market to investigate whether there is a reasonable suspicion that the goods or services supplied have been produced using child labour and , in the event of reasonable suspicion , to adopt and implement an action plan. in france , the law on a duty of vigilance of parent and ordering companies requires from some large companies the adoption , publication and implementation of a due diligence plan to identify and prevent human rights , health and safety and environmental risks caused by the undertaking , its subsidiaries , sub-contractors or suppliers. the french law establishes an administrative liability for the failure to abide by the due diligence requirements of the law , and a civil liability for the company to repair damages that could have been prevented by the proper exercise of due diligence. in many other member states , debate is ongoing as to the introduction of mandatory due diligence requirements for undertakings and some member states are currently considering the adoption of such legislations , including germany , norway , sweden , finland , denmark , and luxemburg;


### 8. in order to ensure a level playing field the responsibility for companies to respect human rights under international standards should be transformed into a legal duty at union level. by coordinating safeguards for the protection of human rights , the environment and good governance , this directive will ensure that all undertakings operating in the internal market are subject to harmonised minimum due diligence obligations , which will improve the functioning of that market. ### 8. in order to ensure a level playing field the responsibility for companies to respect human rights under international standards should be transformed into a legal duty at union level. by coordinating safeguards for the protection of human rights , the environment and good governance , this directive will ensure that all undertakings operating in the internal market are subject to harmonised minimum due diligence obligations based on civil , administrative and criminal liability , which will improve the functioning of that market.


### 10. this directive is aimed at preventing and mitigating adverse human rights , governance and environmental impacts throughout the value chain , as well as ensuring that undertakings can be held accountable for these risks and that anyone who has suffered harm in this regard can effectively exercise the right to obtain remedy. ### 10. this directive is aimed at preventing and mitigating adverse human rights , governance and environmental impacts throughout the value chain , as well as ensuring that undertakings can be held accountable for these risks and that anyone who has suffered harm in this regard can effectively exercise the right to a fair trial before a public court and the right to obtain remedy.


### 11. this directive should 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. this directive is not aimed at replacing eu due diligence legislation already in force or preclude further sector-specific eu legislation from being introduced , and , consequently , it should apply without prejudice to further due diligence requirements established in union sector-specific legislation , in particular regulation (eu) no 995/20106 and regulation (eu) 2017/8217 . this directive establishes in this regard a conflict of norms rule. in case of insurmountable incompatibility , the sector-specific legislation should apply. ### 11. this directive should 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. this directive is not aimed at replacing eu due diligence legislation already in force or preclude further sector-specific eu legislation from being introduced , and , consequently , it should apply without prejudice to further due diligence requirements established in union sector-specific legislation , in particular regulation (eu) no 995/20106 and regulation (eu) 2017/8217 . this directive establishes in this regard a conflict of norms rule. in case of insurmountable incompatibility , the legislation that provides the highest standards of protection with regards to human rights , the environment and good governance shall apply. companies should first and foremost ensure that they respect their substantive due diligence obligation , which is to take all reasonable measures in order to prevent and properly address human rights , environmental and governance adverse impacts in their value chains.


### 12. the implementation of this directive should in no way constitute grounds for justifying a reduction in the general level of protection of human rights or the environment. in particular , it should not affect other existing subcontracting , posting or supply chain liability frameworks. the fact that an undertaking has carried out its due diligence obligations under this directive does not exempt it from its obligations under other existing liability frameworks and therefore any legal proceedings brought against it based on other existing liability frameworks should not be dismissed on account of that circumstance. ### 12. the implementation of this directive should in no way constitute grounds for justifying a reduction in the general level of protection of human rights or the environment. in particular , it should not affect other existing subcontracting , posting or supply chain liability frameworks. the fact that an undertaking has carried out its due diligence obligations under this directive does not exclude nor weaken its obligations under other liability frameworks and therefore any legal proceedings brought against it based on other liability frameworks should not be dismissed on account of that circumstance.


### 13. the directive applies to all undertakings governed by the law of a member state or established in the territory of the union regardless of their size , sector , and whether they are private or state-owned. all economic sectors , including the financial sector , are covered by this directive. ### 13. the directive applies to all undertakings governed by the law of a member state , established in the territory of the union or active in the european single market , regardless of their size , sector , and whether they are private or state-owned. all economic sectors , including the financial sector , are covered by this directive.


### 14. a degree of proportionality is built into the due diligence process , as this process is contingent on the risks a company is exposed to. this would imply that many small and medium-size undertakings and micro-enterprises may need less extensive and formalised due diligence processes. an undertaking that , after carrying out a risk assessment , concludes that it does not identify any risks in its business relationships , would only need to fill in and communicate a statement , which should in any case be reviewed in case of changes to the undertakings’ operations or operating context. micro-enterprises in most sectors tend to encounter low risks in their business relationships and , consequently , it is considered appropriate to allow member states to decide whether micro-enterprises should be exempted from the application of the requirements in this directive. ### 14. a degree of proportionality is built into the due diligence process , as this process is contingent on the severity and likelihood of adverse impacts a company is exposed to. this would imply that many small and medium-size undertakings and micro-enterprises may need less extensive and formalised due diligence processes. some sectors , on the other hand , present inherent , severe and specific risks and it is considered appropriate that member states impose enhanced due diligence requirements as regards those sectors , including for small and medium enterprises


### 15. for undertakings owned or controlled by the state , the fulfilment of their due diligence obligations should require that they procure services from undertakings which have complied with due diligence obligations. member states are encouraged not to provide extraordinary state support to companies that do not comply with the objectives of this directive. ### 15. for undertakings owned or controlled by the state , the fulfilment of their due diligence obligations should require that they procure services from undertakings which have complied with due diligence obligations. member states are encouraged not to provide state support , including through state aid , public procurement , export credit agencies or government-backed loans , to companies that do not comply with the objectives of this directive.


### 16. due diligence is defined in this directive as the process put in place by an undertaking in order to identify , cease , prevent , mitigate , monitor , disclose , account for , address and remedy the risks posed to human rights , including social and labour rights , the environment , including climate change , and to governance , both by its own operations and its business relationships. ### 16. the obligation of due diligence is defined in this directive as the obligation for an undertaking to take all reasonable measures to prevent human rights and environmental adverse impacts from occurring in their value chains , and to address such impacts when they occur. in practice , due diligence consists in a process put in place by an undertaking in order to identify , assess , prevent , cease , mitigate , monitor , track , communicate , disclose , account for , address and remedy the potential or actual adverse impacts on human rights , including social and labour rights , the environment , including the contribution to climate change , and to governance , in their own operations , their value chain and other business relationships.


### 17. in relation to human rights risks , this directive lists a number of instruments undertakings should take into consideration when assessing their potential risks. the list is conceived as non-exhaustive , undertakings being strongly encouraged to take into consideration other human rights instruments that would enable them to carry out a complete due diligence process to prevent any risk for human rights. ### 17. in relation to human rights impacts , this directive lists a number of instruments undertakings should take into consideration when assessing their potential or actual adverse impacts. the list is conceived as non-exhaustive , undertakings being strongly encouraged to take into consideration other human rights instruments that would enable them to carry out a complete due diligence process , including those instruments that are most relevant to the risks of their activities , to prevent all human rights adverse impacts.


### 19. this directive establishes a non-exhaustive list of environmental risks. to contribute to the internal coherence of eu legislation and to provide legal certainty , this list is based on regulation (eu) 2020/852 on the establishment of a framework to facilitate sustainable investment in which undertakings may find guidance for assessing their risks. ### 19. this directive establishes a non-exhaustive list of environmental risks. to contribute to the internal coherence of eu legislation and to provide legal certainty , this list is based on regulation (eu) 2020/852 on the establishment of a framework to facilitate sustainable investment in which undertakings may find guidance for assessing their potential or actual adverse impacts.


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


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


### 23. due diligence is primarily a preventative mechanism that requires companies to identify potential or actual adverse impacts and to adopt policies and measures to cease , prevent , mitigate , monitor , disclose , address , remediate them , and account for how they address those impacts. undertakings should be required to produce a document in which they make explicit their due diligence strategy with reference to each of those stages. this due diligence strategy should be duly integrated into the company’s overall business strategy. ### 23. due diligence is primarily a preventative mechanism that requires companies to identify potential or actual adverse impacts and to adopt policies and measures to cease , prevent , mitigate , monitor , disclose , address , remediate them , and account for how they address those impacts. undertakings should be required to produce , after having consulted and with the participation of all relevant stakeholders , a document in which they publicly disclose their due diligence strategy with reference to each of those stages. this due diligence strategy should be duly integrated into the company’s overall business strategy. it should be reviewed and renewed annually following the same requirements of consultation and participation of stakeholders.


### 24. due diligence should not be a ‘box-ticking’ exercise but should consist of an ongoing assessment of risks , which are dynamic and may change on account of new business relationships or contextual developments. undertakings should therefore in an ongoing manner monitor and adapt their due diligence strategies accordingly. those strategies should cover every actual or potential adverse impact , although the severity of the risk should be considered if the establishment of a prioritisation policy is required. ### 24. due diligence should not be a ‘box-ticking’ exercise but should consist of an ongoing assessment of risks , which are dynamic and may change on account of new business relationships or contextual developments. undertakings should therefore in an ongoing manner monitor and adapt their due diligence strategies accordingly. those strategies should cover every actual or potential adverse impact , although the severity of the risk should be considered if the establishment of a prioritisation policy is required. undertakings shall be held responsible for human rights or environmental adverse impacts regardless of the saliency of the risk that has materialised , unless the undertaking can prove that it acted with due diligence and took all reasonable measures to prevent the harm from occurring


### 25. undertakings should first try to address and solve a potential or actual risk in consultation with stakeholders. should this attempt be unsuccessful , and the company’s responsible disengagement becomes an option , the company should also consider the potential adverse impacts of that decision and take appropriate measures to address them. ### 25. undertakings should first try to address and solve potential or actual human rights , environmental and governance adverse impacts in consultation with stakeholders. should this attempt be unsuccessful , and the company’s responsible disengagement becomes an option , the company should also consider the potential adverse impacts of that decision and take appropriate measures to address them.


### 26. sound due diligence requires that all stakeholders be consulted effectively and meaningfully , and that trade unions in particular be appropriately involved. the consultation and involvement of stakeholders can help companies to identify risks more precisely and to set up a more effective due diligence strategy. this directive therefore requires the consultation and involvement of stakeholders in all stages of the due diligence process. furthermore , their involvement and consultation may help to push back against pressure from financial markets and short-term investors and give voice to those with a strong interest in the long-term sustainability of the company. stakeholder participation may help improve the long-term performance and profitability of companies , as their increased sustainability would have positive aggregate economic effects. ### 26. sound due diligence requires that all stakeholders be consulted effectively and meaningfully , and that trade unions in particular be appropriately involved. the consultation and involvement of stakeholders can help companies to identify risks more precisely and to set up a more effective due diligence strategy. this directive therefore requires the consultation and involvement of stakeholders in all stages of the due diligence process , not only when designing the initial due diligence strategy. furthermore , their involvement and consultation may help to push back against pressure from financial markets and short-term investors and give voice to those with a strong interest in the long-term sustainability of the company. stakeholder participation may help improve the long-term performance and profitability of companies , as their increased sustainability would have positive aggregate economic effects.


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


### 34. member states should designate one or more national authorities to supervise the correct implementation by undertakings of their due diligence obligations and ensure the proper enforcement of this directive. those national authorities should be entitled to carry out appropriate checks , on their own initiative or based on complaints received from stakeholders and third parties , and impose penalties , in order to ensure that undertakings comply with the obligations set out in the legislation; at union level , a european committee of competent authorities should be set up by the european commission. ### 34. member states should designate one or more national authorities to monitor the correct implementation by undertakings of their due diligence obligations and ensure the proper enforcement of this directive. those national authorities should be independent and should have the appropriate powers and resources to carry out their tasks. they should be entitled to carry out appropriate checks , on their own initiative or based on complaints received from stakeholders and third parties , and impose administrative and criminal penalties , in order to ensure that undertakings comply with the obligations set out in the legislation; at union level , a european committee of competent authorities should be set up by the european commission.


### 35. repeated infringement by an undertaking of the national provisions adopted in accordance with this directive , intentionally or with serious negligence , should constitute a criminal offence. ### 35. a serious infringement by an undertaking of the national provisions adopted in accordance with this directive , in particular when committed intentionally or with serious negligence , shall constitute a criminal offence.


### 37. in line with the ungps , conducting human rights due diligence should not absolve undertakings per se from liability for causing or contributing to human rights abuses or environmental damage. however , having a robust due diligence process in place may help undertakings to avoid causing or contributing to harm. ### 37. in line with the ungps , conducting human rights due diligence should not absolve undertakings per se from liability for causing or contributing to human rights abuses or environmental damage. however , having a robust and adequate due diligence process in place may help undertakings to prevent the harm from occurring.


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


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


### 1. this directive is aimed at ensuring that undertakings operating in the internal market fulfil their duty to respect human rights , the environment and good governance and do not cause or contribute to risks to human rights , the environment and good governance in their activities and those of their business relationships. ### 1. this directive is aimed at ensuring that undertakings operating in the internal market fulfil their duty to respect human rights , the environment and good governance and do not cause or contribute to potential and actual adverse impacts on human rights , the environment and good governance in their own activities , their value chains and other business relationships , and prevent and mitigate those potential and actual adverse impacts.


### 2. undertakings shall communicate their due diligence strategy to their workers and business relationships and to one of the national competent authorities designated pursuant to article 14. ### 2. undertakings shall communicate their due diligence strategy to their workers , workers’ representatives , trade unions at national european and global levels and business relationships and to one of the national competent authorities designated pursuant to article 14.


### 1. undertakings shall evaluate the effectiveness and appropriateness of their due diligence strategy at least once a year , and review it accordingly when necessary. ### 1. undertakings shall evaluate the effectiveness and appropriateness of their due diligence strategy and of its implementation at least once a year , and review it accordingly when a change occurs in their value chain or when new risk has been identified through the early-warning risk-awareness.


### 2. the evaluation and review of the due diligence strategy shall be carried out in consultation with stakeholders and the involvement of trade unions in the same manner as when establishing the due diligence strategy. ### 2. the evaluation and review of the due diligence strategy shall be carried out in consultation with stakeholders , local communities and civil society organisations , and the involvement of trade unions and workers’ representatives in the same manner as when establishing the due diligence strategy.


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


### 4. undertakings shall publish concerns raised via their grievance mechanisms as well as remediation efforts and regularly report on progress made in those instances. ### 4. undertakings shall publish and report on concerns raised via their grievance mechanisms as well as remediation efforts and regularly report on progress made in those instances. all publication of information must guarantee stakeholders’ safety , including by resorting to anonymity.


### 5. grievance mechanisms shall be entitled to make proposals to the undertaking on how risks should be addressed. ### 5. grievance mechanisms shall be entitled to make proposals to the undertaking on how potential or actual adverse impacts should be addressed.


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


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


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


### 2. large undertakings shall set up an advisory committee tasked with advising the governing body of the undertakings on due diligence matters and propose measures to cease , monitor , disclose , address , prevent and mitigate risks. advisory committees shall include stakeholders and experts in their composition. ### 2. large undertakings shall set up an advisory committee tasked with advising the governing body of the undertakings on due diligence matters and propose measures to cease , monitor , disclose , address , prevent and mitigate potential or actual human rights , environmental and governance adverse impacts. advisory committees shall include stakeholders and experts in their composition.


### 1. member states may encourage the adoption by undertakings of sectoral due diligence action plans aimed at coordinating the due diligence strategies of undertakings within an economic sector. ### 1. member states may encourage the adoption by undertakings of sectoral due diligence action plans aimed at coordinating the due diligence strategies of undertakings within an economic sector. undertakings participating in sectoral due diligence action plans are not exempt from the obligations required in articles 4 to 8 of this directive


### 2. member states shall ensure that stakeholders , particularly trade unions , have the right to participate in the definition of sectoral due diligence action plans. ### 2. member states shall ensure that stakeholders , particularly trade unions and civil society organizations , have the right to participate in the definition of sectoral due diligence action plans without prejudice to the obligation for each undertaking to comply with the requirement of article 5.


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


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


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


### 7. member states shall provide for penalties in accordance with article 19 in for undertakings that do not take remedial action within the period of time granted. ### 7. member states and competent national authorities shall provide for penalties in accordance with article 19 in case the undertaking does not comply with this directive as transposed into national law.


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


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


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


### 1. the commission shall set up a european committee of competent authorities to facilitate the coordination and convergence of regulatory and supervisory practices , and monitor the performance of national competent authorities. ### 1. the commission shall set up a european committee of competent authorities to facilitate the coordination , sharing of information and convergence of regulatory , investigative and supervisory practices , and monitor the performance of national competent authorities. when necessary , including for the purpose of investigation , national competent authorities shall cooperate to enforce the obligations set out in this directive.


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


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


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


### the fact that an undertaking has carried out due diligence in compliance with the requirements set out in this directive shall not absolve the undertaking of any civil liability which it may incur pursuant to national law. ### the fact that an undertaking respects its due diligence obligations shall not absolve the undertaking of any other applicable liability frameworks , including subcontracting or supply chain liability frameworks.


### c. whereas the covid-19 crisis has exposed some of the severe drawbacks of global supply chains and the ease with which certain undertakings are able to shift negative impacts on their business activities to other jurisdictions; ### c. whereas the covid-19 crisis has exposed some of the severe flaws of global supply chains and the ease with which certain undertakings are able to shift negative impacts of their business activities and their hazards on workers and local communities down their value chains , particularly when they are located in third-countries' jurisdictions , without being held accountable for the ensuing human rights violations and environmental harms;


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


### e. whereas this alarming situation has prompted a debate as to how to make businesses more responsive to the adverse impacts they cause or contribute to; ### e. whereas this alarming situation has highlighted the urgency of making businesses more responsible , more responsive to and accountable for the adverse impacts they cause or contribute to;


### f. whereas that debate has led , among other things , to the adoption of due diligence frameworks and standards within the un , the oecd and the ilo; whereas these standards are however voluntary and , consequently , their uptake has been limited; ### f. whereas that long standing efforts to regulate transnational corporate activities with regards to human rights and the environment have led , among other things , to the adoption of due diligence frameworks and standards within the un , the ilo , the council of europe and the oecd; whereas these standards are however voluntary for companies , have led to uneven and insufficient efforts from businesses , and have consequently failed to achieve significant progress for the protection of human rights , of the environment and access to justice;


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


### i. whereas the union has already adopted legislation that pertains to due diligence , such as the conflict minerals regulation and the timber regulation; ### i. whereas the union has already adopted sectoral due diligence legislations , such as the conflict minerals regulation and the timber regulation;


### 2. recalls that due diligence is primarily a preventative mechanism and that companies should be first and foremost required to identify risks or adverse impacts and adopt policies and measures to address them; highlights that if an undertaking causes or contributes to an adverse impact it should provide for a remedy; ### 2. recalls that due diligence is primarily a preventative mechanism and that companies should be first and foremost required to identify risks or adverse impacts and adopt policies and measures to address them; highlights that if an undertaking causes or contributes to an adverse impact it should provide for a remedy; underlines , in this regard , the need for strict control of production chains in order to avoid any upstream harm;


### 2. recalls that due diligence is primarily a preventative mechanism and that companies should be first and foremost required to identify risks or adverse impacts and adopt policies and measures to address them; highlights that if an undertaking causes or contributes to an adverse impact it should provide for a remedy; ### 2. recalls that due diligence is primarily a preventative mechanism and that companies should be first and foremost required to identify risks or adverse impacts and adopt policies and measures to address them; highlights that if an undertaking causes or contributes to an adverse impact on human rights or the environment it should provide for a remedy;


### 2. notes that globalisation has created interdependencies between societies , where any product results from complex transnational supply and value chains and where decisions taken by european firms impact on peoples’ ability to enjoy human rights and fundamental freedoms worldwide; ### 2. notes that globalisation has created interdependencies between societies , where any product results from complex transnational supply and value chains and where decisions taken by european firms impact on peoples’ ability to enjoy human rights and fundamental freedoms worldwide; considers that business enterprises domiciled or based in the eu , or active on the eu market continue to cause , contribute to or be directly linked to human rights abuses (including forced labour , sexual abuse , and child exploitation) and environmental harms through their operations , value chains and business relations;