### neutralise the adverse impact or minimise its extent , including by the payment of damages to the affected persons and of financial compensation to the affected communities. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact; ### neutralise the adverse impact by appropriate measures. in the event these measures are accompanied by financial compensation paid by companies for adverse impacts resulting from business relationships , companies shall benefit from legal assurance to obtain compensation from the partners concerned;


### neutralise the adverse impact or minimise its extent , including by the payment of damages to the affected persons and of financial compensation to the affected communities. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact; ### neutralise the adverse impact through appropriate measures. in the event that these measures are accompanied by financial compensation paid by companies for adverse impacts resulting from business relationships , companies shall benefit from legal assurance to obtain compensation from the partners concerned.


### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with stakeholders; ### develop and implement a corrective action plan and measures with reasonable and clearly defined timelines for action , tools and qualitative and quantitative indicators for measuring improvement. the action plan shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. this is without prejudice to the possibility for member states to uphold or introduce joint and several liability for different companies with a shared responsibility for an adverse impact. the corrective action plan shall be developed in consultation with stakeholders and shall be publicly available;


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


### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with stakeholders; ### develop and implement a corrective action plan and measures with reasonable and clearly defined timelines for action , measures and qualitative and quantitative indicators for measuring improvement. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. this is without prejudice to the possibility for member states to uphold or introduce joint and several liability for different companies with a shared responsible for an adverse impact. the corrective action plan shall be developed in consultation with stakeholders and shall be publicly available;


### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with stakeholders; ### develop and implement a corrective action plan and measures with reasonable and clearly defined timelines for action , tools and qualitative and quantitative indicators for measuring improvement. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. this is without prejudice to the possibility for member states to uphold or introduce joint and several liability for different companies with a shared responsibility for an adverse impact. the corrective action plan shall be developed in consultation with stakeholders and shall be publicly available;


### where necessary due to the fact that the adverse impact cannot be immediately brought to an end , develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. where relevant , the corrective action plan shall be developed in consultation with stakeholders; ### develop and implement a corrective action plan and measures with reasonable and clearly defined timelines for action , tools and qualitative and quantitative indicators for measuring improvement. the action shall be proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. this is without prejudice to the possibility for member states to uphold or introduce joint and several liability for different companies with a shared responsible for an adverse impact. the corrective action plan shall be developed with the meaningful engagement of stakeholders including trade unions and workers’ representatives , and shall be made publicly available , and shall be publicly available;


### seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and , as necessary , a corrective action plan , including by seeking corresponding contractual assurances from its partners , to the extent that they are part of the value chain (contractual cascading). when such contractual assurances are obtained , paragraph 5 shall apply. ### ensure contractual and other assurances regarding its business relationships of compliance with the code of conduct and a corrective action plan. with regards to contractual assurances the terms shall be reasonable and non-discriminatory. in case the business relationship is active in one of the sectors referred to in article 3 point (ca) , the assurances shall also include details on ensuring compliance with regards to the risks that are specific to that sector;


### seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and , as necessary , a corrective action plan , including by seeking corresponding contractual assurances from its partners , to the extent that they are part of the value chain (contractual cascading). when such contractual assurances are obtained , paragraph 5 shall apply. ### obtain contractual and other assurances regarding its direct business partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and , as necessary , a corrective action plan. , in case the business relationship is active in one of the sectors referred to in article 3 , the assurances shall also include details on ensuring compliance with regards to the risks that are specific to that sector. with regards to contractual assurances the terms shall be reasonable and non-discriminatory. obtaining contractual assurances shall not exempt a company from its further obligations under this directive nor shall it as such exempt a company from its liability for adverse impacts;


### seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and , as necessary , a corrective action plan , including by seeking corresponding contractual assurances from its partners , to the extent that they are part of the value chain (contractual cascading). when such contractual assurances are obtained , paragraph 5 shall apply. ### obtain contractual and other assurances regarding it business relationships with respect to the implementation to a corrective action plan. with regards to contractual assurances , the terms shall be reasonable and non-discriminatory. in case the business relationship is active in one of the sectors referred to in article 3 point (ca) , the assurances shall also include details on ensuring compliance with regards to the risks that are specific to that sector;


### seek contractual assurances from a direct partner with whom it has an established business relationship that it will ensure compliance with the code of conduct and , as necessary , a corrective action plan , including by seeking corresponding contractual assurances from its partners , to the extent that they are part of the value chain (contractual cascading). when such contractual assurances are obtained , paragraph 5 shall apply. ### seek contractual assurances from a direct partner with whom it has a business relationship that it will ensure compliance with the code of conduct and , as necessary , a corrective action plan , including by seeking corresponding contractual assurances from its partners , to the extent that they are part of the value chain (contractual cascading). when such contractual assurances are obtained , paragraph 5 shall apply. in case the business partner belongs to one of the sectors referred to in article 3 , point (ea) , the assurances shall include details on ensuring compliance with regards to the risks that are specific to that sector.


### make necessary investments , such as into management or production processes and infrastructures to comply with paragraphs 1 , 2 and 3; ### make necessary investments , such as into management or production processes , capacity building , joint remediation and mitigation plans with value chain partners , pricing mechanisms that contribute to living wages and incomes for their suppliers and infrastructures to comply with paragraphs 1 , 2 and 3;


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


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


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


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


### 4. as regards actual adverse impacts that could not be brought to an end or adequately mitigated by the measures in paragraph 3 , the company may seek to conclude a contract with a partner with whom it has an indirect relationship , with a view to achieving compliance with the company’s code of conduct or a corrective action plan. when such a contract is concluded , paragraph 5 shall apply. ### 4. these measures and actions shall apply to a company’s own operations , products and services , subsidiaries as well as direct and indirect business relationships.


### 4. as regards actual adverse impacts that could not be brought to an end or adequately mitigated by the measures in paragraph 3 , the company may seek to conclude a contract with a partner with whom it has an indirect relationship , with a view to achieving compliance with the company’s code of conduct or a corrective action plan. when such a contract is concluded , paragraph 5 shall apply. ### deleted


### the contractual assurances or the contract shall be accompanied by the appropriate measures to verify compliance. for the purposes of verifying compliance , the company may refer to suitable industry initiatives or independent third-party verification. ### deleted


### the contractual assurances or the contract shall be accompanied by the appropriate measures to verify compliance. for the purposes of verifying compliance , the company may refer to suitable industry initiatives or independent third-party verification. ### the contractual assurances or the contract shall be accompanied by the appropriate measures to verify compliance.


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


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


### as regards actual adverse impacts within the meaning of paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures provided for in paragraphs 3 , 4 and 5 , the company shall refrain from entering into new or extending existing relations with the partner in connection to or in the value chain of which the impact has arisen and shall , where the law governing their relations so entitles them to , take one of the following actions: ### as regards actual adverse impacts within the meaning of paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures provided for in paragraphs 3 , 4 and 5 , bringing the impact to an end is not possible , or there is no reasonable prospect of change , the undertaking shall refrain from entering into new or extending existing relations with the partner in connection to or in the value chain of which the impact has arisen. undertakings shall , in consultation with stakeholders , identify and address the risks and impacts of their actions and:


### temporarily suspend commercial relationships with the partner in question , while pursuing efforts to bring to an end or minimise the extent of the adverse impact , or ### temporarily suspend commercial relationships with the partner in question , while pursuing efforts to bring to an end or mitigate the extent of the adverse impact , or


### terminate the business relationship with respect to the activities concerned , if the adverse impact is considered severe. ### terminate the business relationship with respect to the activities concerned , only as a last resort and if the adverse impact is considered severe , systematic or state-sponsored , as well as if the conditions for temporary suspension under point (a) are not met. the undertaking shall engage in a timely , efficient and meaningful manner with stakeholders impacted by the decision to disengage , in particular with the undertaking's workers and their legitimate representatives , before reaching this decision. when negative impacts of termination are assessed to be greater than the impact intended to be brought to an end or mitigated , the undertaking shall refrain from terminating the business relationship. the undertaking shall address the adverse impacts related to the decision to disengage and shall disclose , as part of its reporting obligations under article 11 , the number of instances where it decided to disengage , the reason for this disengagement and the location of the concerned business relationships without disclosing their identity.


### member states shall provide for the availability of an option to terminate the business relationship in contracts governed by their laws. ### member states shall provide for the availability of the same option to suspend terminate the business relationship in contracts governed by their laws.


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


### complaints procedure ### non-judicial grievance mechanism


### 1. member states shall ensure that companies provide the possibility for persons and organisations listed in paragraph 2 to submit complaints to them where they have legitimate concerns regarding actual or potential adverse human rights impacts and adverse environmental impacts with respect to their own operations , the operations of their subsidiaries and their value chains. ### 1. member states shall ensure that companies establish , in consultation with stakeholders , or participate in an effective grievance mechanisms at operational level , both as an early-warning risk-awareness and as a remediation system , that can be used by persons and organisations listed in paragraph 2 to raise grievances and request remedy where they have reasonable concerns regarding actual or potential adverse human rights , good governance and environmental and climate impacts with respect to their own operations products and services , the operations , products and services of their subsidiaries and their value chains.


### 1. member states shall ensure that companies provide the possibility for persons and organisations listed in paragraph 2 to submit complaints to them where they have legitimate concerns regarding actual or potential adverse human rights impacts and adverse environmental impacts with respect to their own operations , the operations of their subsidiaries and their value chains. ### 1. member states shall ensure that companies establish , in consultation with stakeholders , or participate in an effective grievance mechanisms at operational level , both as an early-warning risk-awareness and as a remediation system , that can be used by provide persons and organisations listed in paragraph 2 to submit complaints and request remedy to them where they have reasonable concerns regarding actual or potential adverse human rights impacts and adverse environmental impacts with respect to their own operations , the operations of their subsidiaries and their value chains.


### 1. member states shall ensure that companies provide the possibility for persons and organisations listed in paragraph 2 to submit complaints to them where they have legitimate concerns regarding actual or potential adverse human rights impacts and adverse environmental impacts with respect to their own operations , the operations of their subsidiaries and their value chains. ### 1. member states shall ensure that undertakings establish , in consultation with stakeholders , or participate in an effective grievance mechanisms at operational level , both as an early-warning risk-awareness and as a remediation system , that can be used by persons and organisations listed in paragraph 2 to raise grievances and request remedy where they have reasonable concerns regarding actual or potential adverse human rights , good governance and environmental and climate impacts with respect to their own operations products and services , the operations , products and services of their subsidiaries and their value chains.


### 2. member states shall ensure that the complaints may be submitted by: ### 2. member states shall ensure that the grievances may be submitted by all persons , groups , communities , entities and civil society organisations covered by article 3 points (n) , (ha) and (hb) as well as the natural and legal persons representing them , including in particular trade unions and other workers’ representatives.


### 2. member states shall ensure that the complaints may be submitted by: ### 2. member states shall ensure that the complaints may be submitted by all persons , groups , communities , entities and civil society organisations covered by article 3 points (n) , and in particular by:


### 2. member states shall ensure that the complaints may be submitted by: ### 2. member states shall ensure that the complaints or grievances may be submitted by all persons , groups , communities , entities and organisations covered by article 2 points (n) , (ha) and (hb) as well as the natural and legal persons representing them , including in particular trade unions and other workers’ representatives.


### 2. member states shall ensure that the complaints may be submitted by: ### 2. member states shall ensure that the grievances may be submitted by all persons , groups , communities , entities and civil society organisations covered by article 3points (n) , (na) , (nb) as well as the natural and legal persons representing them , including in particular trade unions and other workers’ representatives.


### 2. member states shall ensure that the complaints may be submitted by: ### 2. member states shall ensure that the complaints may be submitted by all persons , groups , communities , entities and civil society organisations covered by article 3 points (ga) , (gb) and (n) as well as the natural and legal persons representing them , including in particular trade unions and other workers’ representatives.


### persons who are affected or have reasonable grounds to believe that they might be affected by an adverse impact , ### deleted


### trade unions and other workers’ representatives representing individuals working in the value chain concerned , ### deleted


### trade unions and other workers’ representatives representing individuals working in the value chain concerned , ### trade unions and workers’ representatives ,


### civil society organisations active in the areas related to the value chain concerned. ### deleted


### 3. member states shall ensure that the companies establish a procedure for dealing with complaints referred to in paragraph 1 , including a procedure when the company considers the complaint to be unfounded , and inform the relevant workers and trade unions of those procedures. member states shall ensure that where the complaint is well-founded , the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of article 6. ### 3. member states shall ensure that the grievance mechanisms include a procedure for dealing with grievances referred to in paragraph 1 , including a procedure when the company or its internal grievance mechanism considers the grievance to be unfounded , and inform the relevant stakeholders , including workers and trade unions , of those procedures. member states shall ensure that where the grievance is well-founded , the adverse impact that is the subject matter of it is deemed to be identified within the meaning of article 6.


### 3. member states shall ensure that the companies establish a procedure for dealing with complaints referred to in paragraph 1 , including a procedure when the company considers the complaint to be unfounded , and inform the relevant workers and trade unions of those procedures. member states shall ensure that where the complaint is well-founded , the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of article 6. ### 3. member states shall ensure that the grievance mechanisms include a procedure for dealing with grievances referred to in paragraph 1 , including a procedure when the undertaking or its internal grievance mechanism considers the grievance to be unfounded , and inform the relevant stakeholders , including workers and trade unions , of those procedures. member states shall ensure that where the grievance is well-founded , the adverse impact that is the subject matter of it is deemed to be identified within the meaning of article 6.


### 3. member states shall ensure that the companies establish a procedure for dealing with complaints referred to in paragraph 1 , including a procedure when the company considers the complaint to be unfounded , and inform the relevant workers and trade unions of those procedures. member states shall ensure that where the complaint is well-founded , the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of article 6. ### 3. member states shall ensure that the grievance mechanisms include a procedure for dealing with grievances referred to in paragraph 1 , including a procedure when the company or its internal grievance mechanism considers the grievance to be unfounded , and inform the relevant stakeholders , including workers and trade unions of those procedures. member states shall ensure that where the grievance is well-founded , the adverse impact that is the subject matter of it is deemed to be identified within the meaning of article 6.


### to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. ### to engage with the company’s representatives at an appropriate level to discuss potential or actual adverse impacts that are the subject matter of the complaint.


### to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. ### to engage with the undertakings’ representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint.


### monitoring ### tracking and monitoring


### member states shall ensure that companies carry out periodic assessments of their own operations and measures , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , mitigation , bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. such assessments shall be based , where appropriate , on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. the due diligence policy shall be updated in accordance with the outcome of those assessments. ### member states shall ensure that companies carry out periodic assessments to track the implementation and monitor the effectiveness of the actions taken in accordance with article 4. such assessments shall be carried out in consultation with stakeholders , based on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. for companies operating in one of the sectors referred to in article 3 point (ca) , the assessments shall also provide detail with regards to the risks that are specific to that sector. the due diligence policy , the prevention action plan and the corrective action plan shall be updated in accordance with the outcome of those assessments.


### member states shall ensure that companies carry out periodic assessments of their own operations and measures , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , mitigation , bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. such assessments shall be based , where appropriate , on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. the due diligence policy shall be updated in accordance with the outcome of those assessments. ### member states shall ensure that undertakings carry out periodic assessments to track the implementation monitor the effectiveness of the actions taken in accordance with this directive. such assessments shall be carried out in consultation with all stakeholders , based on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. for undertakings operating in one of the sectors referred to in article 3 point (ca) , the assessments shall also provide detail with regards to the risks that are specific to that sector. the due diligence policy , the prevention action plan and the corrective action plan shall be updated in accordance with the outcome of those assessments.


### member states shall ensure that companies carry out periodic assessments of their own operations and measures , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , mitigation , bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. such assessments shall be based , where appropriate , on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. the due diligence policy shall be updated in accordance with the outcome of those assessments. ### member states shall ensure that companies carry out periodic assessments of their own operations and measures , those of their subsidiaries and , where related to the value chains of the company , those of their business relationships , to monitor the effectiveness of the identification , prevention , mitigation , bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. such assessments shall be based , where appropriate , on qualitative and quantitative indicators and be carried out at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. the due diligence policy shall be updated in accordance with the outcome of those assessments.


### communicating ### communication and access to information


### member states shall ensure that companies that are not subject to reporting requirements under articles 19a and 29a of directive 2013/34/eu report on the matters covered by this directive by publishing on their website an annual statement in a language customary in the sphere of international business. the statement shall be published by 30 april each year , covering the previous calendar year. ### member states shall ensure that companies that are not subject to reporting requirements under articles 19a and 29a of directive 2013/34/eu report on the matters covered by this directive by publishing on their website an annual statement that meets those requirements in a language customary in the sphere of international business. this reporting should be accessible , comparable and sufficiently detailed to demonstrate the adequacy of a company’s due diligence process as per this directive. for undertakings , and in particular small undertakings , that do not have a website , member states shall dedicate a publicly accessible website where the annual statement of the companies concerned shall be published. the statement shall be published by 30 april each year , covering the previous calendar year.


### member states shall ensure that companies that are not subject to reporting requirements under articles 19a and 29a of directive 2013/34/eu report on the matters covered by this directive by publishing on their website an annual statement in a language customary in the sphere of international business. the statement shall be published by 30 april each year , covering the previous calendar year. ### member states shall ensure that companies that are not subject to reporting requirements under articles 19a and 29a of directive 2013/34/eu report on the matters covered by this directive by publishing on their website an annual statement that meets those requirements in a language customary in the sphere of international business. this reporting should be accessible , comparable , and sufficiently detailed to demonstrate the adequacy of a company’s due diligence process as per this directive. the statement shall be published by 30 april each year , covering the previous calendar year.


### member states shall ensure that companies that are not subject to reporting requirements under articles 19a and 29a of directive 2013/34/eu report on the matters covered by this directive by publishing on their website an annual statement in a language customary in the sphere of international business. the statement shall be published by 30 april each year , covering the previous calendar year. ### member states shall ensure that undertakings that are not subject to reporting requirements under articles 19a and 29a of directive 2013/34/eu report on the matters covered by this directive by publishing on their website an annual statement that meets those requirements in a language customary in the sphere of international business. this reporting should be accessible , comparable and sufficiently detailed to demonstrate the adequacy of an undertaking’s due diligence process as per this directive. for undertakings , and in particular small undertakings , that do not have a website , member states shall dedicate a publicly accessible website where the annual statement of the undertakings concerned shall be published. the statement shall be published by 30 april each year , covering the previous calendar year.


### the commission shall adopt delegated acts in accordance with article 28 concerning the content and criteria for such reporting under paragraph 1 , specifying information on the description of due diligence , potential and actual adverse impacts and actions taken on those. ### the commission shall adopt delegated acts in accordance with article 28 concerning the content and criteria for such reporting under paragraph 1 , specifying information on the description of due diligence , potential and actual adverse impacts and actions taken on those.


### the commission shall adopt delegated acts in accordance with article 28 concerning the content and criteria for such reporting under paragraph 1 , specifying information on the description of due diligence , potential and actual adverse impacts and actions taken on those. ### the commission shall adopt delegated acts in accordance with article 28 concerning the content and criteria for such reporting under paragraph 1 , specifying information on the description of due diligence , potential and actual adverse impacts and actions taken on those , including:


### in order to provide support to companies to facilitate their compliance with article 7(2) , point (b) , and article 8(3) , point (c) , the commission shall adopt guidance about voluntary model contract clauses. ### in order to provide support to undertakings to facilitate their compliance with article 7(2) , point (b) , and article 8(3) , point (c) ,the commission shall , in consultation with stakeholders , adopt sector specific guidance , which is also to be fit for smes , about voluntary model contract clauses and in particular for the sectors referred to in article 3 point (ca). the use of such model contract clauses shall not negate , shift or diminish the obligations of an undertaking to prevent , mitigate adverse impacts or bring these to an end , nor shall it waive an undertaking’s liability under article 22.


### in order to provide support to companies to facilitate their compliance with article 7(2) , point (b) , and article 8(3) , point (c) , the commission shall adopt guidance about voluntary model contract clauses. ### in order to provide support to companies to facilitate their compliance with article 7(2) , point (b) , and article 8(3) , point (c) , the commission shall adopt guidance about voluntary model contract clauses , taking due consideration of the structurally more limited capacities and resources of smes.


### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , may issue guidelines , including for specific sectors or specific adverse impacts. ### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , shall issue general as well as sector-specific and impact-specific guidelines particular , in particular for the sectors referred to in article 3 point (ca). these guidelines shall be ready before the entry into force of this directive an regularly reviewed and updated.


### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , may issue guidelines , including for specific sectors or specific adverse impacts. ### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , including the european cross-industry and sectoral social partners , the european union agency for fundamental rights , the european labour authority , the european environment agency , and where appropriate with international bodies having expertise in due diligence , such as the un , ilo and council of europe , may issue guidelines , including for specific sectors or specific adverse impacts and guidance on identifying high-impact sectors and areas.


### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , may issue guidelines , including for specific sectors or specific adverse impacts. ### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , shall issue guidelines , including for specific sectors adverse impacts and in particular for the sectors referred to in article 3 point (ca). the issues to be addressed by the guidelines shall include the specific obligations under articles 5 to 11 of this directive as well as:


### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , may issue guidelines , including for specific sectors or specific adverse impacts. ### in order to provide support to undertakings or to member state authorities on how undertakings should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , including the european cross-industry and sectoral social partners , the european union agency for fundamental rights , the european environment agency , the european labour authority , and where appropriate with international bodies having expertise in due diligence , shall issue general as well as sector-specific and impact-specific guidelines , in particular for the high-impact sectors referred to in article 3 point (cb). these guidelines shall be ready before the entry into force of this directive and shall be regularly reviewed and updated.


### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , may issue guidelines , including for specific sectors or specific adverse impacts. ### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , shall issue guidelines , including for specific sectors or specific adverse impacts and in particular for the sectors referred to in article 3 point (ca). the issues to be addressed by the guidelines shall include the specific obligations under articles 5 to 11 of this directive as well as:


### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , may issue guidelines , including for specific sectors or specific adverse impacts. ### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , shall issue guidelines , including for specific sectors or specific adverse impacts , and for the compliance of smes taking due consideration of their structurally more limited capacities and resources.


### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , may issue guidelines , including for specific sectors or specific adverse impacts. ### in order to provide support to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , the european union agency for criminal justice cooperation (eurojust) , the european union agency for law enforcement cooperation (europol) , the european public prosecutor’s office , the european anti-fraud office (olaf) and where appropriate with international bodies having expertise in due diligence , may issue guidelines , concerning:


### 1. member states shall , in order to provide information and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this directive , set up and operate individually or jointly dedicated websites , platforms or portals. specific consideration shall be given , in that respect , to the smes that are present in the value chains of companies. ### 1. before the entry into force of this directive , member states shall develop and implement measures and toolboxes to provide information , advice and support to companies and the partners with whom they have business relationships in their value chains in their efforts to fulfil the obligations resulting from this directive. to this end , member states shall set up and operate individually or jointly dedicated interactive websites , platforms or portals. such information , advice and support shall be practical and tailored to the specific needs of smes in particular , and shall be accompanied by the appointment or establishment of an sme contact point.


### 1. member states shall , in order to provide information and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this directive , set up and operate individually or jointly dedicated websites , platforms or portals. specific consideration shall be given , in that respect , to the smes that are present in the value chains of companies. ### 1. before the entry into force of this directive , member states shall develop and implement measures and toolboxes to provide information , advice and support to undertakings and the partners with whom they have business relationships in their value chains in their efforts to fulfil the obligations resulting from this directive. to this end , member states shall set up and operate individually or jointly supporting materials such as dedicated interactive and accessible websites , platforms or portals. such information , advice and support shall be practical and tailored to the specific needs of smes in particular , and shall be accompanied by the appointment or establishment of an sme contact point.


### 1. member states shall , in order to provide information and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this directive , set up and operate individually or jointly dedicated websites , platforms or portals. specific consideration shall be given , in that respect , to the smes that are present in the value chains of companies. ### 1. member states shall , in order to provide information and support to companies and the partners with whom they have business relationships in their value chains in their efforts to fulfil the obligations resulting from this directive , set up and operate individually or jointly supporting materials such as dedicated websites , platforms or portals. specific consideration shall be given , in that respect , to the smes and notably microenterprises that are present in the value chains of companies.


### 2. without prejudice to applicable state aid rules , member states may financially support smes. ### 2. without prejudice to applicable state aid rules , member states may financially support smes , with a particular focus on microenterprises impacted by this directive.


### 3. the commission may complement member states’ support measures building on existing union action to support due diligence in the union and in third countries and may devise new measures , including facilitation of joint stakeholder initiatives to help companies fulfil their obligations. ### 3. the commission shall , including in view of ensuring consistency , complement member states’ support measures building on existing union action to support due diligence in the union and in third countries and may devise new measures , including facilitation of joint stakeholder initiatives to help companies fulfil their obligations.


### 3. the commission may complement member states’ support measures building on existing union action to support due diligence in the union and in third countries and may devise new measures , including facilitation of joint stakeholder initiatives to help companies fulfil their obligations. ### 3. the commission may complement member states’ support measures building on existing union action to support due diligence in the union and in third countries and may devise new measures , including facilitation of joint stakeholder initiatives to help companies fulfil their obligations.


### 3. the commission may complement member states’ support measures building on existing union action to support due diligence in the union and in third countries and may devise new measures , including facilitation of joint stakeholder initiatives to help companies fulfil their obligations. ### 3. the commission shall establish due diligence advisors under the scope of the enterprise europe network and shall , including in view of ensuring consistency , complement member states’ support measures building on existing union action to support due diligence in the union and in third countries and may devise new measures , including facilitation of joint stakeholder initiatives to help undertakings fulfil their obligations.


### 3. the commission may complement member states’ support measures building on existing union action to support due diligence in the union and in third countries and may devise new measures , including facilitation of joint stakeholder initiatives to help companies fulfil their obligations. ### 3. the commission shall establish due diligence advisors under the scope of the enterprise europe network and shall complement member states’ support measures building on existing union action to support due diligence in the union and in third countries and may devise new measures , including facilitation of joint stakeholder initiatives to help companies fulfil their obligations.


### 3. the commission may complement member states’ support measures building on existing union action to support due diligence in the union and in third countries and may devise new measures , including facilitation of joint stakeholder initiatives to help companies fulfil their obligations. ### 3. the commission and member states shall develop cooperation and partnership mechanisms with third countries to address the root causes of human rights violations and environmental harms , devise new measures , including facilitation of joint stakeholder initiatives , to build the capacity of upstream economic actors to help companies fulfil their obligations.


### 4. companies may rely on industry schemes and multi-stakeholder initiatives to support the implementation of their obligations referred to in articles 5 to 11 of this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. the commission and the member states may facilitate the dissemination of information on such schemes or initiatives and their outcome. the commission , in collaboration with member states , may issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives. ### 4. companies may rely on industry schemes and multi-stakeholder initiatives to support the implementation of their obligations referred to in articles 5 to 11 of this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. the commission and the member states shall facilitate the dissemination of information on such schemes or initiatives and their outcome. the commission , in collaboration with member states , shall issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives. the criteria for assessing the fitness of an industry scheme shall include the inclusion of the perspectives of civil society in audits and the steering of the standards and grievance mechanisms. reliance on industry schemes and multi-stakeholder initiatives shall not absolve the company of its individual responsibility and obligations to perform due diligence and prevent it from being held liable under article 22 of this directive.


### 4. companies may rely on industry schemes and multi-stakeholder initiatives to support the implementation of their obligations referred to in articles 5 to 11 of this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. the commission and the member states may facilitate the dissemination of information on such schemes or initiatives and their outcome. the commission , in collaboration with member states , may issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives. ### 4. undertakings may use industry schemes and multi-stakeholder initiatives to support the implementation of their obligations referred to in articles 5 to 11 of this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. the fitness of such schemes and initiatives to support the fulfilment of those obligations shall be assessed by the member states through accreditation in accordance with regulation (ec) 768/2008.the commission and the member states may/shall facilitate the dissemination of information on such schemes or initiatives and their outcome. the commission is empowered to adopt a delegated act on industry schemes and multi-stakeholder initiatives that undertakings may use. the criteria for assessing the fitness of an industry scheme shall include the perspectives of civil society in audits and the steering of the standards and complaint mechanisms according to the effectiveness criteria of the ungps. reliance on industry schemes and multi-stakeholder initiatives shall not absolve the undertaking of its individual responsibility and obligations to perform due diligence and prevent it from being held liable under article 22 of this directive.


### 1. member states shall ensure that companies referred to in article 2(1) , point (a) , and article 2(2) , point (a) , shall adopt a plan to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement. this plan shall , in particular , identify , on the basis of information reasonably available to the company , the extent to which climate change is a risk for , or an impact of , the company’s operations. ### 1. member states shall ensure that companies referred to in article 2 , shall adopt a transition plan , whose disclosure is foreseen in regulation (eu) 2021/0104 (csrd) , that include the plans of the undertaking , including implementing actions and related financial and investment plans , to ensure that its business model and strategy are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement and the objective of achieving climate neutrality by 2050 as established in regulation (eu) 2021/1119 (european climate law) , and where relevant , the exposure of the undertaking to coal , oil and gas-related activities.


### 1. member states shall ensure that companies referred to in article 2(1) , point (a) , and article 2(2) , point (a) , shall adopt a plan to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement. this plan shall , in particular , identify , on the basis of information reasonably available to the company , the extent to which climate change is a risk for , or an impact of , the company’s operations. ### 1. member states shall ensure that companies referred to in article 2 shall , in consultation with stakeholders , adopt , develop and implement a plan to ensure that the business model and strategy of the company are aligned with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement and with the objective of achieving climate neutrality by 2050 at the latest , as established in regulation eu 2021/1119 (european climate law) , pursuant to the latest recommendations of the ipcc and the european scientific advisory board on climate change.


### 1. member states shall ensure that companies referred to in article 2(1) , point (a) , and article 2(2) , point (a) , shall adopt a plan to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement. this plan shall , in particular , identify , on the basis of information reasonably available to the company , the extent to which climate change is a risk for , or an impact of , the company’s operations. ### 1. member states shall ensure that undertakings referred to in article 2shallinconsultation with stakeholders , adopt , develop and implement a plan to ensure that the business model and strategy of the undertaking are aligned with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement and with the objective of achieving climate neutrality by 2050 at the latest , as established in regulation eu 2021/1119 (european climate law) , pursuant to the latest recommendations of the ipcc and the european scientific advisory board on climate change.


### 1. member states shall ensure that companies referred to in article 2(1) , point (a) , and article 2(2) , point (a) , shall adopt a plan to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement. this plan shall , in particular , identify , on the basis of information reasonably available to the company , the extent to which climate change is a risk for , or an impact of , the company’s operations. ### 1. member states shall ensure that companies referred to in article 2 , shall develop , adopt , and implement a transition plan to ensure that the business model and strategy of the company are aligned with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement , and with the eu climate objectives by 2030 and 2050 , as established in the eu regulation 2021/1119 , pursuant to the latest recommendations of the ipcc and the european scientific advisory board on climate change.


### 2. member states shall ensure that , in case climate change is or should have been identified as a principal risk for , or a principal impact of , the company’s operations , the company includes emission reduction objectives in its plan. ### deleted


### 2. member states shall ensure that , in case climate change is or should have been identified as a principal risk for , or a principal impact of , the company’s operations , the company includes emission reduction objectives in its plan. ### 2. member states shall ensure that companies referred to in article 2 shall develop a clear , transparent , accurate , total , comparable and consistent plan , following the best practices. this plan shall in particular take into account , and seek to prevent and mitigate , adverse impacts of implementing actions on potentially affected groups including workers , local communities and other stakeholders.


### 2. member states shall ensure that , in case climate change is or should have been identified as a principal risk for , or a principal impact of , the company’s operations , the company includes emission reduction objectives in its plan. ### 2. member states shall ensure that undertakings referred to in article 2 shall develop a clear , transparent , accurate , total , comparable and consistent plan , following the best practices. this plan shall in particular take into account , and seek to prevent and mitigate , adverse impacts of implementing actions on potentially affected groups including workers , local communities and other stakeholders.


### 2. member states shall ensure that , in case climate change is or should have been identified as a principal risk for , or a principal impact of , the company’s operations , the company includes emission reduction objectives in its plan. ### 2. member states shall ensure that companies referred to in article 2 integrate the climate targets and transition plan referred to in this article into the companies' strategy. member states shall ensure that boards have an obligation to ensure that environmental and climate risks and impacts are addressed in the company’s strategy.


### 3. member states shall ensure that companies duly take into account the fulfilment of the obligations referred to in paragraphs 1 and 2 when setting variable remuneration , if variable remuneration is linked to the contribution of a director to the company’s business strategy and long-term interests and sustainability. ### 3. member states shall ensure that companies referred to in article 2 shall integrate these targets and implementing actions into the business strategy and backed up by clear governance processes , including the involvement of stakeholders. member states shall ensure that boards have an obligation to ensure that environmental and climate risks and impacts are addressed in the company’s strategy.


### 3. member states shall ensure that companies duly take into account the fulfilment of the obligations referred to in paragraphs 1 and 2 when setting variable remuneration , if variable remuneration is linked to the contribution of a director to the company’s business strategy and long-term interests and sustainability. ### 3. member states shall ensure that companies align at least 20% of directors’ variable remuneration with the achievement of their transition plans and in particular the climate targets and greenhouse gases emissions reduction;


### 3. member states shall ensure that companies duly take into account the fulfilment of the obligations referred to in paragraphs 1 and 2 when setting variable remuneration , if variable remuneration is linked to the contribution of a director to the company’s business strategy and long-term interests and sustainability. ### 3. member states shall ensure that undertakings article 2 shall integrate these targets and implementing actions into the business strategy and backed up by clear governance processes , including the involvement of stakeholders. member states shall ensure that boards have an obligation to ensure that environmental and climate risks and impacts are addressed in the undertaking’s strategy.


### 3. member states shall ensure that companies duly take into account the fulfilment of the obligations referred to in paragraphs 1 and 2 when setting variable remuneration , if variable remuneration is linked to the contribution of a director to the company’s business strategy and long-term interests and sustainability. ### 3. member states shall ensure that companies align a significant part of directors' variable remuneration with the proper implementation of the transition plan and the achievement of their climate targets and plan , in particular absolute greenhouse gas emission reduction targets for scope 1 , 2 and 3referred to in this article. directors shall be liable for achieving climate objectives and thus for overseeing the obligations set out in paragraphs 1 and 1a of this article.


### 6. by the date indicated in article 30(1) , point (a) , member states shall inform the commission of the names and contact details of the supervisory authorities designated pursuant to this article , as well as of their respective competence where there are several designated supervisory authorities. they shall inform the commission of any changes thereto. ### 6. by the date indicated in article 30(1) , point (a) , member states shall inform the commission of the names and contact details of the supervisory authorities and , when applicable , the respective competences of those authorities designated pursuant to this article , as well as of their respective competence where there are several designated supervisory authorities. they shall inform the commission of any changes thereto.


### 1. member states shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this directive , including the power to request information and carry out investigations related to compliance with the obligations set out in this directive. ### 1. member states shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this directive , including the power to require undertakings to provide all necessary information and carry out investigations , which can include where appropriate on site inspections related to compliance with the obligations set out in this directive


### taking remedial action does not preclude the imposition of administrative sanctions or the triggering of civil liability in case of damages , in accordance with articles 20 and 22 , respectively. ### taking remedial action does not preclude the imposition of administrative sanctions or the triggering of civil liability including in case of damages orin accordance with articles 20 and 22 , respectively.


### to adopt interim measures to avoid the risk of severe and irreparable harm. ### to adopt interim measures to avoid the risk of severe or irreparable harm.


### 2. where the substantiated concern falls under the competence of another supervisory authority , the authority receiving the concern shall transmit it to that authority. ### 2. where the substantiated concern falls under the competence of another supervisory authority , the authority receiving the concern shall transmit it to that authority and inform the person referred to in paragraph 1.


### 3. member states shall ensure that supervisory authorities assess the substantiated concerns and , where appropriate , exercise their powers as referred to in article 18. ### 3. member states shall ensure the independence and impartiality of supervisory authorities and that they thoroughly assess the substantiated concerns and , where appropriate , exercise their powers as referred to in article 18.


### 4. the supervisory authority shall , as soon as possible and in accordance with the relevant provisions of national law and in compliance with union law , inform the person referred to in paragraph 1 of the result of the assessment of their substantiated concern and shall provide the reasoning for it. ### 4. the supervisory authority shall , as soon as possible and in accordance with the relevant provisions of national law and in compliance with union law , inform the person referred to in paragraph 1 of the result of the assessment of their substantiated concern and of its decisions to accede to or refuse the request for action , and shall provide the reasoning for it and the results of any investigative steps subsequently taken.


### 2. in deciding whether to impose sanctions and , if so , in determining their nature and appropriate level , due account shall be taken of the company’s efforts to comply with any remedial action required of them by a supervisory authority , any investments made and any targeted support provided pursuant to articles 7 and 8 , as well as collaboration with other entities to address adverse impacts in its value chains , as the case may be. ### 2. in deciding whether to impose sanctions and , if so , in determining their nature and appropriate level , due account shall be taken of:


### 3. when pecuniary sanctions are imposed , they shall be based on the company’s turnover. ### 3. when pecuniary sanctions are imposed , they shall be based on the company’s turnover. the minimum limit of pecuniary sanctions shall be 5% of the total world wide turnover of the company in the business year preceding the decision on the pecuniary sanctions.


### 4. member states shall ensure that any decision of the supervisory authorities containing sanctions related to the breach of the provisions of this directive is published. ### 4. member states shall ensure that any decision of the supervisory authorities containing sanctions related to the breach of the provisions of this directive is made publicly available no later than a month after the decision on the sanction is taken. this should include the methodology and criteria adopted for applying sanctions.


### the commission shall set up a european network of supervisory authorities , composed of representatives of the supervisory authorities. the network shall facilitate the cooperation of the supervisory authorities and the coordination and alignment of regulatory , investigative , sanctioning and supervisory practices of the supervisory authorities and , as appropriate , sharing of information among them. ### the commission shall set up a european network of supervisory authorities , composed of representatives of the supervisory authorities. the network shall facilitate the cooperation of the supervisory authorities and the coordination and alignment of regulatory , investigative , sanctioning and supervisory practices of the supervisory authorities and , as appropriate , sharing of information among them.as well as ensuring the regular public disclosure of the activities of the network.


### they failed to comply with the obligations laid down in articles 7 and 8 and; ### they failed to comply with the obligations laid down in this directive and;


### as a result of this failure an adverse impact that should have been identified , prevented , mitigated , brought to an end or its extent minimised through the appropriate measures laid down in articles 7 and 8 occurred and led to damage. ### an adverse impact that should have been identified , prevented , mitigated , brought to an end or its extent minimised through the appropriate measures laid down in this directive occurred and led to damage.


### notwithstanding paragraph 1 , member states shall ensure that where a company has taken the actions referred to in article 7(2) , point (b) and article 7(4) , or article 8(3) , point (c) , and article 8(5) , it shall not be liable for damages caused by an adverse impact arising as a result of the activities of an indirect partner with whom it has an established business relationship , unless it was unreasonable , in the circumstances of the case , to expect that the action actually taken , including as regards verifying compliance , would be adequate to prevent , mitigate , bring to an end or minimise the extent of the adverse impact. ### notwithstanding paragraph1 , member states shall ensure that a company shall be liable for damages that result from an adverse impact arising as a result of the activities of an indirect partner with whom it has a business relationship , unless they can prove they took appropriate measures capable of preventing , mitigating or bringing to an end or minimise the extent of the adverse impact. in the assessment of the existence and extent of liability under this paragraph , due account shall betaken of the company’s efforts , insofar as they relate directly to the damage in question , to comply with any remedial action required of them by a supervisory authority , any investments made and any targeted support provided pursuant to articles 7 and 8 , as well as any collaboration with other entities to address adverse impacts in its value chains.


### notwithstanding paragraph 1 , member states shall ensure that where a company has taken the actions referred to in article 7(2) , point (b) and article 7(4) , or article 8(3) , point (c) , and article 8(5) , it shall not be liable for damages caused by an adverse impact arising as a result of the activities of an indirect partner with whom it has an established business relationship , unless it was unreasonable , in the circumstances of the case , to expect that the action actually taken , including as regards verifying compliance , would be adequate to prevent , mitigate , bring to an end or minimise the extent of the adverse impact. ### notwithstanding paragraph 1 , member states shall ensure that a company shall be liable for damages that result from an adverse impact arising as a result of the activities of an indirect partner with whom it has a business relationship , unless they can prove they took appropriate measures capable of preventing , mitigating or bringing to an end or minimising the extent of the adverse impact.


### notwithstanding paragraph 1 , member states shall ensure that where a company has taken the actions referred to in article 7(2) , point (b) and article 7(4) , or article 8(3) , point (c) , and article 8(5) , it shall not be liable for damages caused by an adverse impact arising as a result of the activities of an indirect partner with whom it has an established business relationship , unless it was unreasonable , in the circumstances of the case , to expect that the action actually taken , including as regards verifying compliance , would be adequate to prevent , mitigate , bring to an end or minimise the extent of the adverse impact. ### notwithstanding paragraph 1 , member states shall ensure that where a company has taken the actions referred to in article 7(2) , point (b) and article 7(4) , or article 8(3) , point (c) , and article 8(5) , it shall not be liable for damages caused by an adverse impact arising as a result of the activities of an indirect partner with whom it has a business relationship , unless it was unreasonable , in the circumstances of the case , to expect that the action actually taken , including as regards verifying compliance , would be adequate to prevent , mitigate , bring to an end or minimise the extent of the adverse impact.


### 4. the civil liability rules under this directive shall be without prejudice to union or national rules on civil liability related to adverse human rights impacts or to adverse environmental impacts that provide for liability in situations not covered by or providing for stricter liability than this directive. ### 4. the civil liability rules under this directive shall neither exclude nor limit companies' liability under union or national rules regarding civil liability.


### 5. member states shall ensure that the liability provided for in provisions of national law transposing this article is of overriding mandatory application in cases where the law applicable to claims to that effect is not the law of a member state. ### 5. member states shall ensure that the liability provided for in provisions of national law transposing this article is of overriding mandatory application in cases where the law applicable to claims to that effect is not the law of a member state.


### 5. member states shall ensure that the liability provided for in provisions of national law transposing this article is of overriding mandatory application in cases where the law applicable to claims to that effect is not the law of a member state. ### 5. member states shall ensure that the provisions of national law transposing this directive shall apply irrespective of the law otherwise applicable to companies , to contractual obligations and to non-contractual obligations.


### 24 public support ### 24 public support and public procurement


### 26 setting up and overseeing due diligence ### 26 setting up and overseeing due diligence obligations and plans


### setting up and overseeing due diligence ### setting up and overseeing due diligence obligations and plans


### 1. member states shall ensure that directors of companies referred to in article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in article 4 and in particular the due diligence policy referred to in article 5 , with due consideration for relevant input from stakeholders and civil society organisations. the directors shall report to the board of directors in that respect. ### 1. member states shall ensure that directors of companies referred to in article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in article 4 and in particular the due diligence policy referred to in article 5 and implementing actions under article 15 , with due consideration for relevant input from stakeholders and civil society organisations. the directors shall regularly report to the board of directors and discuss progress in mitigating adverse human rights , environmental and climate adverse impacts


### 1. member states shall ensure that directors of companies referred to in article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in article 4 and in particular the due diligence policy referred to in article 5 , with due consideration for relevant input from stakeholders and civil society organisations. the directors shall report to the board of directors in that respect. ### 1. member states shall ensure that directors of companies referred to in article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in article 4 and in particular the due diligence policy referred to in article 5 and implementing actions under article 15 , with due consideration for relevant input from stakeholders and civil society organisations. the directors shall regularly report to the board of directors and discuss progress in mitigating adverse human rights , environmental and climate adverse impacts.


### 1. member states shall ensure that directors of companies referred to in article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in article 4 and in particular the due diligence policy referred to in article 5 , with due consideration for relevant input from stakeholders and civil society organisations. the directors shall report to the board of directors in that respect. ### 1. member states shall ensure that directors of companies referred to in article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in article 4 and in particular the due diligence policy referred to in article 5 and the implementing actions under article 15 , with due consideration for relevant input from stakeholders and civil society organisations. the directors shall report to the board of directors in that respect.


### 2. member states shall ensure that directors take steps to adapt the corporate strategy to take into account the actual and potential adverse impacts identified pursuant to article 6 and any measures taken pursuant to articles 7 to 9. ### 2. member states shall ensure that directors take steps to adapt the corporate strategy and their business model to take into account the actual and potential adverse impacts identified pursuant to article 6 and any measures taken pursuant to articles 7 to 9 and article 15.


### 2. member states shall ensure that directors take steps to adapt the corporate strategy to take into account the actual and potential adverse impacts identified pursuant to article 6 and any measures taken pursuant to articles 7 to 9. ### 2. member states shall ensure that directors take steps to adapt the corporate strategy to take into account the actual and potential adverse impacts identified pursuant to article 6 and any measures taken pursuant to articles 7 to 9 and article 15.


### review ### review and report


### no later than … [op please insert the date = 7 years after the date of entry into force of this directive] , the commission shall submit a report to the european parliament and to the council on the implementation of this directive. the report shall evaluate the effectiveness of this directive in reaching its objectives and assess the following issues: ### no later than … [op please insert the date = 5 years after the date of entry into force of this directive] and every 3 years thereafter , the commission shall submit a report to the european parliament and to the council on the implementation of this directive. this report shall be accompanied , if appropriate , by legislative proposals. the report shall evaluate the effectiveness of this directive in reaching its objectives and assess the following issues:


### no later than … [op please insert the date = 7 years after the date of entry into force of this directive] , the commission shall submit a report to the european parliament and to the council on the implementation of this directive. the report shall evaluate the effectiveness of this directive in reaching its objectives and assess the following issues: ### no later than … [op please insert the date = 5 years after the date of entry into force of this directive] and every 3 years thereafter , the commission shall submit a report to the european parliament and to the council on the implementation of this directive. this report shall be accompanied , if appropriate , by a legislative proposals. the report shall evaluate the effectiveness of this directive in reaching its objectives and assess the following issues:


### whether the thresholds regarding the number of employees and net turnover laid down in article 2(1) need to be lowered; ### the impact of this directive on smes , accompanied by an account and assessment of the effectiveness of the different measures and tools for support provided to smes by the commission and member states


### whether the thresholds regarding the number of employees and net turnover laid down in article 2(1) need to be lowered; ### the impact of this directive on smes , accompanied by an account and assessment of the effectiveness of the different measures and tools for support provided to smes by the commission and member states;


### whether the list of sectors in article 2(1) , point (b) , needs to be changed , including in order to align it to guidance from the organisation for economic cooperation and development; ### whether the list of sectors in article 3 , point (ca) , needs to be expanded , including in order to align it to guidance from the organisation for economic cooperation and development;


### whether the list of sectors in article 2(1) , point (b) , needs to be changed , including in order to align it to guidance from the organisation for economic cooperation and development; ### whether the list of sectors in article 3 point (ca) , needs to be expanded , including in order to align it to guidance from the organisation for economic cooperation and development;


### whether the annex needs to be modified , including in light of international developments ### whether the annex needs to be expanded or updated , including in light of international developments


### whether articles 4 to 14 should be extended to adverse climate impacts. ### whether articles 4 to 14 should be extended to additional adverse impacts.


### whether articles 4 to 14 should be extended to adverse climate impacts. ### deleted


### (9) in the european climate law86 , the union also legally committed to becoming climate-neutral by 2050 and to reducing emissions by at least 55% by 2030. both these commitments require changing the way in which companies produce and procure. the commission’s 2030 climate target plan87 models various degrees of emission reductions required from different economic sectors , though all need to see considerable reductions under all scenarios for the union to meet its climate objectives. the plan also underlines that “changes in corporate governance rules and practices , including on sustainable finance , will make company owners and managers prioritise sustainability objectives in their actions and strategies.” the 2019 communication on the european green deal88 sets out that all union actions and policies should pull together to help the union achieve a successful and just transition towards a sustainable future. it also sets out that sustainability should be further embedded into the corporate governance framework. ### (9) in the european climate law86 , the union also legally committed to becoming climate-neutral by 2050 and to reducing emissions by at least 55% by 2030. both these commitments require changing the way in which companies produce and procure. the commission’s 2030 climate target plan87 models various degrees of emission reductions required from different economic sectors , though all need to see considerable reductions under all scenarios for the union to meet its climate objectives. the plan also underlines that “changes in corporate governance rules and practices , including on sustainable finance , will make company owners and managers prioritise sustainability objectives in their actions and strategies.” the general union environmental action programme to 2030 (‘8th eap’)3a , the framework for union action in the field of the environment and climate , aims to accelerate the green transition to a climate-neutral , sustainable , non-toxic , resource-efficient , renewable energy-based , resilient and competitive circular economy in a just , equitable and inclusive way , and to protect , restore and improve the state of the environment by , inter alia , halting and reversing biodiversity loss. the 2019 communication on the european green deal88 sets out that all union actions and policies should pull together to help the union achieve a successful and just transition towards a sustainable future. it also sets out that sustainability should be further embedded into the corporate governance framework.


### (9) in the european climate law86 , the union also legally committed to becoming climate-neutral by 2050 and to reducing emissions by at least 55% by 2030. both these commitments require changing the way in which companies produce and procure. the commission’s 2030 climate target plan87 models various degrees of emission reductions required from different economic sectors , though all need to see considerable reductions under all scenarios for the union to meet its climate objectives. the plan also underlines that “changes in corporate governance rules and practices , including on sustainable finance , will make company owners and managers prioritise sustainability objectives in their actions and strategies.” the 2019 communication on the european green deal88 sets out that all union actions and policies should pull together to help the union achieve a successful and just transition towards a sustainable future. it also sets out that sustainability should be further embedded into the corporate governance framework. ### (9) in the european climate law86 , the union also legally committed to becoming climate-neutral by 2050 and to reducing emissions by at least 55% by 2030. both these commitments require changing the way in which undertakings produce and procure. the commission’s 2030 climate target plan87 models various degrees of emission reductions required from different economic sectors , though all need to see considerable reductions under all scenarios for the union to meet its climate objectives. the plan also underlines that “changes in corporate governance rules and practices , including on sustainable finance , will make company owners and managers prioritise sustainability objectives in their actions and strategies.” the general union environmental action programme to20309a (‘8th eap’) , the framework for union action in the field of the environment and climate , aims to accelerate the green transition to a climate-neutral , sustainable , non-toxic , resource-efficient , renewable energy-based , resilient and competitive circular economy in a just , equitable and inclusive way , and to protect , restore and improve the state of the environment by , inter alia , halting and reversing biodiversity loss. the 2019 communication on the european green deal88 sets out that all union actions and policies should pull together to help the union achieve a successful and just transition towards a sustainable future. it also sets out that sustainability should be further embedded into the corporate governance framework.


### (16) the due diligence process set out in this directive should cover the six steps defined by the oecd due diligence guidance for responsible business conduct , which include due diligence measures for companies to identify and address adverse human rights and environmental impacts. this encompasses the following steps: (1) integrating due diligence into policies and management systems , (2) identifying and assessing adverse human rights and environmental impacts , (3) preventing , ceasing or minimising actual and potential adverse human rights , and environmental impacts , (4) assessing the effectiveness of measures , (5) communicating , (6) providing remediation. ### (16) the due diligence process set out in this directive should cover the six steps defined by the oecd due diligence guidance for responsible business conduct , which include due diligence measures for companies to identify and address adverse human rights , environmental and climate impacts. this encompasses the following steps: (1) integrating due diligence into policies and management systems , (2) identifying and assessing adverse human rights , environmental and climate impacts , (3) preventing , ceasing or minimising actual and potential adverse human rights , environmental and climate impacts , (4) assessing the effectiveness of measures , (5) communicating , (6) providing remediation.


### (70) the commission should assess and report whether new sectors should be added to the list of high-impact sectors covered by this directive , in order to align it to guidance from the organisation for economic cooperation and development or in light of clear evidence on labour exploitation , human rights violations or newly emerging environmental threats , whether the list of relevant international conventions referred to in this directive should be amended , in particular in the light of international developments , or whether the provisions on due diligence under this directive should be extended to adverse climate impacts. ### (70) the commission should assess and report on a regular basis whether new sectors should be added to the list of high-impact sectors covered by this directive in light of clear evidence on labour exploitation , human rights violations or newly emerging environmental and climate threats , whether the list of relevant international conventions referred to in this directive should be amended , in particular in the light of international developments.


### (70) the commission should assess and report whether new sectors should be added to the list of high-impact sectors covered by this directive , in order to align it to guidance from the organisation for economic cooperation and development or in light of clear evidence on labour exploitation , human rights violations or newly emerging environmental threats , whether the list of relevant international conventions referred to in this directive should be amended , in particular in the light of international developments , or whether the provisions on due diligence under this directive should be extended to adverse climate impacts. ### (70) the commission should assess and report on a regular basis whether new sectors should be added to the list of high-impact sectors covered by this directive , i guidance from the organisation for economic cooperation and development or in light of clear evidence on labour exploitation , human rights violations , bad governance , or newly emerging environmental and climate threats , whether the list of relevant international conventions referred to in this directive should be amended , in particular in the light of international developments.


### (70) the commission should assess and report whether new sectors should be added to the list of high-impact sectors covered by this directive , in order to align it to guidance from the organisation for economic cooperation and development or in light of clear evidence on labour exploitation , human rights violations or newly emerging environmental threats , whether the list of relevant international conventions referred to in this directive should be amended , in particular in the light of international developments , or whether the provisions on due diligence under this directive should be extended to adverse climate impacts. ### (70) the commission should assess and report on a regular basis whether new sectors should be added to the list of high-impact sectors covered by this directive , including in accordance with guidance from the organisation for economic cooperation and development or in light of clear evidence on labour exploitation , human rights violations or newly emerging environmental and climate threats , whether the list of relevant international conventions referred to in this directive should be amended , in particular in the light of international developments.


### (70) the commission should assess and report whether new sectors should be added to the list of high-impact sectors covered by this directive , in order to align it to guidance from the organisation for economic cooperation and development or in light of clear evidence on labour exploitation , human rights violations or newly emerging environmental threats , whether the list of relevant international conventions referred to in this directive should be amended , in particular in the light of international developments , or whether the provisions on due diligence under this directive should be extended to adverse climate impacts. ### (70) the commission should assess and report on a regular basis whether new sectors should be added to the list of high-impact sectors covered by this directive , in order to align it to guidance from the organisation for economic cooperation and development or in light of clear evidence on labour exploitation , human rights violations or newly emerging environmental threats , whether the list of relevant international conventions referred to in this directive should be amended , in particular in the light of international developments.


### the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; ### deleted


### the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; ### the manufacture of textiles , fur , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear;


### (ii) agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; ### deleted


### (ii) agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; ### (ii) agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , animal products , wood , food , and beverages;


### (ii) agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; ### (ii) agriculture , forestry , fisheries (including aquaculture) , management of land and resources (including in relation to nature conservation or other related activities) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; and sale to consumers;


### 4. member states shall ensure that complainants are entitled ### 4. member states shall ensure that complainants and their representatives are entitled