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


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


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


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


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


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


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


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


### (21) under this directive , eu companies with more than 500 employees on average and a worldwide net turnover exceeding eur 150 million in the financial year preceding the last financial year should be required to comply with due diligence. as regards companies which do not fulfil those criteria , but which had more than 250 employees on average and more than eur 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors , due diligence should apply 2 years after the end of the transposition period of this directive , in order to provide for a longer adaptation period. in order to ensure a proportionate burden , companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company. ### (21) under this directive , all eu companies with the exception of micro-undertakings as defined by article 3(1) of directive 2013/34/eu should be required to comply with due diligence. companies operating in high-impact sectors should be required to comply with more targeted due diligence temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company.


### (21) under this directive , eu companies with more than 500 employees on average and a worldwide net turnover exceeding eur 150 million in the financial year preceding the last financial year should be required to comply with due diligence. as regards companies which do not fulfil those criteria , but which had more than 250 employees on average and more than eur 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors , due diligence should apply 2 years after the end of the transposition period of this directive , in order to provide for a longer adaptation period. in order to ensure a proportionate burden , companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company. ### (21) under this directive , all eu companies , except for micro-enterprises as defined by article 3(1) of directive 2013/34/eu , should be required to comply with due diligence. companies operating in high-impact sectors and high risk areas should be required to comply with more targeted due diligence. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company.


### (21) under this directive , eu companies with more than 500 employees on average and a worldwide net turnover exceeding eur 150 million in the financial year preceding the last financial year should be required to comply with due diligence. as regards companies which do not fulfil those criteria , but which had more than 250 employees on average and more than eur 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors , due diligence should apply 2 years after the end of the transposition period of this directive , in order to provide for a longer adaptation period. in order to ensure a proportionate burden , companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company. ### (21) under this directive , all eu companies with the exception of micro-enterprises as defined by article3(1) of directive 2013/34/eu should be required to comply with due diligence. companies operating in high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company.


### (21) under this directive , eu companies with more than 500 employees on average and a worldwide net turnover exceeding eur 150 million in the financial year preceding the last financial year should be required to comply with due diligence. as regards companies which do not fulfil those criteria , but which had more than 250 employees on average and more than eur 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors , due diligence should apply 2 years after the end of the transposition period of this directive , in order to provide for a longer adaptation period. in order to ensure a proportionate burden , companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company. ### (21) under this directive , all eu undertakings with the exception of micro-enterprises as defined by article 3(1) of directive2013/34/eu should be required to comply with due diligence. undertakings operating in high-impact sectors and high-risk areas should be required to comply with more targeted due diligence. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 ,should be included in the calculation of the number of employees in the user undertaking. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending undertaking.


### (21) under this directive , eu companies with more than 500 employees on average and a worldwide net turnover exceeding eur 150 million in the financial year preceding the last financial year should be required to comply with due diligence. as regards companies which do not fulfil those criteria , but which had more than 250 employees on average and more than eur 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors , due diligence should apply 2 years after the end of the transposition period of this directive , in order to provide for a longer adaptation period. in order to ensure a proportionate burden , companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company. ### (21) under this directive , all eu companies , with the exception of micro-enterprises as defined by article 3(1) of directive 2013/34/eu should be required to comply with due diligence. companies operating in high-impact sectors should be required to comply with more targeted due diligence. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company.


### (21) under this directive , eu companies with more than 500 employees on average and a worldwide net turnover exceeding eur 150 million in the financial year preceding the last financial year should be required to comply with due diligence. as regards companies which do not fulfil those criteria , but which had more than 250 employees on average and more than eur 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors , due diligence should apply 2 years after the end of the transposition period of this directive , in order to provide for a longer adaptation period. in order to ensure a proportionate burden , companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company. ### (21) under this directive , all eu companies , except micro-enterprises , should be required to comply with due diligence. in order to ensure a proportionate burden , companies operating in high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company.


### (21) under this directive , eu companies with more than 500 employees on average and a worldwide net turnover exceeding eur 150 million in the financial year preceding the last financial year should be required to comply with due diligence. as regards companies which do not fulfil those criteria , but which had more than 250 employees on average and more than eur 40 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors , due diligence should apply 2 years after the end of the transposition period of this directive , in order to provide for a longer adaptation period. in order to ensure a proportionate burden , companies operating in such high-impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council103 , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company. ### (21) under this directive , all eu companies with the exception of micro-enterprises as defined by article 3(1) of directive 2013/34/eu should be required to comply with due diligence. companies operating in high-impact sectors should be required to comply with more targeted due. temporary agency workers , including those posted under article 1(3) , point (c) , of directive 96/71/ec , as amended by directive 2018/957/eu of the european parliament and of the council[1] , should be included in the calculation of the number of employees in the user company. posted workers under article 1(3) , points (a) and (b) , of directive 96/71/ec , as amended by directive 2018/957/eu , should only be included in the calculation of the number of employees of the sending company. [1] directive (eu) 2018/957 of the european parliament and of the council of 28 june 2018 amending directive 96/71/ec concerning the posting of workers in the framework of the provision of services (oj l 173 , 9.7.2018 , p. 16).


### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental issues , the selection of high-impact sectors for the purposes of this directive should be based on existing sectoral oecd due diligence guidance. the following sectors should be regarded as high-impact for the purposes of this directive: the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). as regards the financial sector , due to its specificities , in particular as regards the value chain and the services offered , even if it is covered by sector-specific oecd guidance , it should not form part of the high-impact sectors covered by this directive. at the same time , in this sector , the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings , even if they do not have a legal form with limited liability. ### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental issues , this directive should provide a list of high-impact sectors based among others , on existing sectoral oecd due diligence guidance. the sectors that should be regarded as high-impact for the purposes of this directive include: the energy sector including gas , nuclear , steam , electricity and other sources throughout their life cycle , from extraction , refining , production , combustion of fuels , transportation , storage and waste management including radioactive waste; the chemicals sector; : the manufacture of textiles , apparel , fur , leather and related products (including footwear) , and the wholesale trade and retail of textiles , clothing and footwear; plastic production , waste shipment and management; agriculture , forestry , fisheries (including aquaculture) , the 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 , animal products , wood , food , and beverages; construction sector and infrastructure building; transportation sector , logistics and storage; the extraction and refining of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). the production , use and waste management of electronic products; waste management sector; employment activities , health , social and elder care; cleaning and household services; hospitality; financial and insurance activities , technology , digital activities and online platforms; manufacture and trade of weapons and ammunition , including dual-use items , manufacture and trade of military fighting vehicles; private security activities and security systems service activities , including the development and operation of biometrics and surveillance technologies


### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental issues , the selection of high-impact sectors for the purposes of this directive should be based on existing sectoral oecd due diligence guidance. the following sectors should be regarded as high-impact for the purposes of this directive: the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). as regards the financial sector , due to its specificities , in particular as regards the value chain and the services offered , even if it is covered by sector-specific oecd guidance , it should not form part of the high-impact sectors covered by this directive. at the same time , in this sector , the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings , even if they do not have a legal form with limited liability. ### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental and climate issues , this directive should provide a list of high-impact sectors for the purposes of this directive should be based , amongst others , on existing sectoral oecd due diligence guidance. the sectors should be regarded as high-impact for the purposes of this directive: the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , apparel , fur , clothing and footwear; agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale retail and trade of agricultural raw materials , live animals , wood , food , and beverages; construction and infrastructure building; transportation sector; logistics and storage; ; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). the production , use and waste management of electronic products; waste management sector; employment activities , health , social and elder care; cleaning and household services; hospitality; financial services provided by regulated financial undertakings , according to article 3(a)(iv) , such as the provision of loan , credit , financing , investment , pensions , securitisation , insurance and reinsurance , market funding , risk management , payment services and other financial services; technology , digital activities and online platforms; manufacture and trade of weapons and ammunition , including dual-use items , manufacture and trade of military fighting vehicles; private security activities and security systems service activities , including the development and operation of biometrics and surveillance technologies.


### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental issues , the selection of high-impact sectors for the purposes of this directive should be based on existing sectoral oecd due diligence guidance. the following sectors should be regarded as high-impact for the purposes of this directive: the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). as regards the financial sector , due to its specificities , in particular as regards the value chain and the services offered , even if it is covered by sector-specific oecd guidance , it should not form part of the high-impact sectors covered by this directive. at the same time , in this sector , the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings , even if they do not have a legal form with limited liability. ### (22) in order to reflect the priority areas of international action aimed at tackling human rights , environmental and climate issues , this directive should provide a list of high-impact sectors based , among others , on existing sectoral oecd due diligence guidance. the sectors that should be regarded as high-impact for the purposes of this directive include: the energy sector including gas , nuclear , steam , electricity and other sources throughout their life cycle , from extraction , refining , production , combustion of fuels , transportation , storage and waste management including radioactive waste; the chemicals sector; the manufacture of textiles , fur , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; plastic production , waste shipment and management; agriculture , forestry , fisheries (including aquaculture) , the 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 , animal products , wood , food , and beverages; construction sector and building infrastructures; transportation sector , logistics and storage; the extraction and refining of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products); the production , use and waste management of electronic products; waste management sector; employment activities , health , social and elder care; cleaning and household services; hospitality; financial and insurance activities; technology , digital activities and online platforms.


### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental issues , the selection of high-impact sectors for the purposes of this directive should be based on existing sectoral oecd due diligence guidance. the following sectors should be regarded as high-impact for the purposes of this directive: the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). as regards the financial sector , due to its specificities , in particular as regards the value chain and the services offered , even if it is covered by sector-specific oecd guidance , it should not form part of the high-impact sectors covered by this directive. at the same time , in this sector , the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings , even if they do not have a legal form with limited liability. ### (22) in order to reflect the priority areas of international action aimed at tackling human rights , good governance , environmental and climate issues , this directive should provide a list of high-impact sectors based¸ among others , on existing sectoral oecd due diligence guidance as well as the ebrd high risk sectors list. the sectors that should be regarded as high-impact for the purposes of this directive include: the energy sector including gas , nuclear , steam , electricity and other sources throughout their life cycle , from extraction , refining , production , combustion of fuels , transportation , storage and waste management including radioactive waste; the chemicals sector; the manufacture of textiles , apparel , fur , leather and related products(including footwear) , and the wholesale trade and retail of textiles , clothing and footwear; plastic production , waste shipment and management; agriculture , forestry , fisheries (including aquaculture) , the 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 , animal products , wood , food , and beverages; construction sector and infrastructure building; transportation sector , logistics and storage; the extraction and refining of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products) the production , use and waste management of electronic products; waste management sector; employment activities , health , social and elder care; cleaning and household services; hospitality; financial services provided by regulated financial undertakings , according to article 3(a)(iv) , such as the provision of loan , credit , financing , investment , pensions , securitisation , insurance and reinsurance , market funding , risk management , payment services and other financial services; technology , digital activities and online platforms; manufacture and trade of weapons and ammunition , including dual-use items , manufacture and trade of military fighting vehicles; private security activities and security systems service activities , including the development and operation of biometrics and surveillance technologies.


### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental issues , the selection of high-impact sectors for the purposes of this directive should be based on existing sectoral oecd due diligence guidance. the following sectors should be regarded as high-impact for the purposes of this directive: the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). as regards the financial sector , due to its specificities , in particular as regards the value chain and the services offered , even if it is covered by sector-specific oecd guidance , it should not form part of the high-impact sectors covered by this directive. at the same time , in this sector , the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings , even if they do not have a legal form with limited liability. ### (22) in order to reflect the priority areas of international action aimed at tackling human rights , environmental and climate issues , this directive should provide a list of high-impact sectors based , among others , on existing sectoral oecd due diligence guidance. the sectors that should be regarded as high-impact for the purposes of this directive include: the energy sector , including gas , nuclear , steam , electricity and other sources throughout their life cycle from extraction , refining , production , combustion of fuels , transportation , storage and waste management , including radioactive waste; the chemical sector; the manufacture of textiles , apparel , fur , leather and related products (including footwear) , and the wholesale trade and retail of textiles , clothing and footwear; plastic production , waste shipment and management; agriculture , forestry , fisheries (including aquaculture); the 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 , animal products , wood , food , and beverages; the construction sector and infrastructure building; transportation sector , logistics and storage; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products); the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products); the production , use and waste management of electronic products; waste management sector; employment activities; health , social and elder care; cleaning and household services; hospitality; financial and insurance activities; technology , digital activities and online platforms; manufacture and trade of weapons and ammunition , including dual-use items , manufacture and trade of military fighting vehicles; private security activities and security systems service activities , including the development and operation of biometrics and surveillance technologies.


### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental issues , the selection of high-impact sectors for the purposes of this directive should be based on existing sectoral oecd due diligence guidance. the following sectors should be regarded as high-impact for the purposes of this directive: the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). as regards the financial sector , due to its specificities , in particular as regards the value chain and the services offered , even if it is covered by sector-specific oecd guidance , it should not form part of the high-impact sectors covered by this directive. at the same time , in this sector , the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings , even if they do not have a legal form with limited liability. ### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental issues , the selection of high-impact sectors for the purposes of this directive should build on existing sectoral oecd due diligence guidance while opting for a broader scope. hence , the sectors that should be regarded as high-impact for the purposes of this directive should include: the chemicals sector; the manufacture of textiles , leather , fur , and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; plastic production , waste shipment and management; agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , animal products , wood , food , beverages; construction sector and infrastructure building; the transportation sector , logistics and storage; the extraction and refining of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products); the energy sector including gas , nuclear , steam , electricity and other sources throughout their life cycle , from extraction , refining , production , combustion of fuels , transportation , storage and waste management including radioactive waste and; the financial and insurance sector.


### (22) in order to reflect the priority areas of international action aimed at tackling human rights and environmental issues , the selection of high-impact sectors for the purposes of this directive should be based on existing sectoral oecd due diligence guidance. the following sectors should be regarded as high-impact for the purposes of this directive: the manufacture of textiles , leather and related products (including footwear) , and the wholesale trade of textiles , clothing and footwear; agriculture , forestry , fisheries (including aquaculture) , the manufacture of food products , and the wholesale trade of agricultural raw materials , live animals , wood , food , and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , and the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products). as regards the financial sector , due to its specificities , in particular as regards the value chain and the services offered , even if it is covered by sector-specific oecd guidance , it should not form part of the high-impact sectors covered by this directive. at the same time , in this sector , the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings , even if they do not have a legal form with limited liability. ### (22) in order to reflect the priority areas of international action aimed at tackling human rights , and environmental and climate issues , this directive should provide a list of high-impact sectors based¸ among others , on existing sectoral oecd due diligence guidance. the sectors that should be regarded as high-impact for the purposes of this directive include: the energy sector including gas , nuclear , steam , electricity and other sources throughout their life cycle , from extraction , refining , production , combustion of fuels , in transportation , storage and waste management including radioactive waste; the chemicals sector; the manufacture of textiles , apparel , fur , leather and related products (including footwear) , and the wholesale trade and retail of textiles , clothing and footwear; plastic production , waste shipment and management; agriculture , forestry , fisheries (including aquaculture) , the 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 , animal products , wood , food , and beverages; construction sector and infrastructure building; transportation sector , logistics and storage; the extraction and refining of mineral resources regardless of where they are extracted from (including crude petroleum , natural gas , coal , lignite , metals and metal ores , as well as all other , non-metallic minerals and quarry products) , the manufacture of basic metal products , other non-metallic mineral products and fabricated metal products (except machinery and equipment) , the wholesale trade of mineral resources , basic and intermediate mineral products (including metals and metal ores , construction materials , fuels , chemicals and other intermediate products) the production , use and waste management of electronic products; waste management sector; employment activities , health , social and elder care; cleaning and household services; hospitality; financial and insurance activities; technology , digital activities and online platforms; manufacture and trade of weapons and ammunition , including dual-use items , manufacture and trade of military fighting vehicles; private security activities and security systems service activities , including the development and operation of biometrics and surveillance technologies.


### (23) in order to achieve fully the objectives of this directive addressing human rights and adverse environmental impacts with respect to companies’ operations , subsidiaries and value chains , third-country companies with significant operations in the eu should also be covered. more specifically , the directive should apply to third-country companies which generated a net turnover of at least eur 150 million in the union in the financial year preceding the last financial year or a net turnover of more than eur 40 million but less than eur 150 million in the financial year preceding the last financial year in one or more of the high-impact sectors , as of 2 years after the end of the transposition period of this directive. ### (23) in order to achieve fully the objectives of this directive addressing human rights , environmental and climate adverse impacts with respect to companies’ operations , products and services throughout their life cycle , subsidiaries and value chains , third-country companies with operations in the eu should also be covered. more specifically , the directive should apply to third-country companies which generated a net turnover of at least eur 8 million in the union in the financial year.


### (23) in order to achieve fully the objectives of this directive addressing human rights and adverse environmental impacts with respect to companies’ operations , subsidiaries and value chains , third-country companies with significant operations in the eu should also be covered. more specifically , the directive should apply to third-country companies which generated a net turnover of at least eur 150 million in the union in the financial year preceding the last financial year or a net turnover of more than eur 40 million but less than eur 150 million in the financial year preceding the last financial year in one or more of the high-impact sectors , as of 2 years after the end of the transposition period of this directive. ### (23) in order to achieve fully the objectives of this directive addressing human rights , good governance , adverse environmental and climate impacts with respect to undertakings’ operations produced goods and services throughout their life cycle , those of their subsidiaries and value chains , third-country undertakings with operations in the eu should also be covered. more specifically , the directive should apply to third-country undertakings which generated a net turnover of at least eur 8 million in the union in the financial year preceding the last financial year.


### (23) in order to achieve fully the objectives of this directive addressing human rights and adverse environmental impacts with respect to companies’ operations , subsidiaries and value chains , third-country companies with significant operations in the eu should also be covered. more specifically , the directive should apply to third-country companies which generated a net turnover of at least eur 150 million in the union in the financial year preceding the last financial year or a net turnover of more than eur 40 million but less than eur 150 million in the financial year preceding the last financial year in one or more of the high-impact sectors , as of 2 years after the end of the transposition period of this directive. ### (23) in order to achieve fully the objectives of this directive addressing human rights and adverse environmental impacts with respect to companies’ operations , subsidiaries and value chains , third-country companies with significant operations in the eu should also be covered. more specifically , the directive should apply to third-country companies which generated a net turnover of at least eur 8 million in the union in the financial year.


### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive , provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this directive , taking into account all relevant circumstances of their operations , such as the sector and operational context. due diligence should further encompass adverse environmental impacts resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex to this directive. ### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive , provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this directive , taking into account all relevant circumstances of their operations , such as the sector and operational context. due diligence should further encompass adverse environmental and climate impacts , meaning impacts contributing to the exceeding of planetary boundaries or an adverse impact on the following elements or functions of ecosystems and the interrelations between: climate , air and the atmosphere , water and access to water , soil , biodiversity , the transition to a circular economy , light , noise and vibration or human health including occupational health and safety. in particular , companies should also identify and assess actual and potential deterioration of working conditions due to climate change or the exceeding of planetary boundaries , such as the rise of temperatures to an unbearable level for their workers.


### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive , provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this directive , taking into account all relevant circumstances of their operations , such as the sector and operational context. due diligence should further encompass adverse environmental impacts resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex to this directive. ### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive , provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this directive , taking into account all relevant circumstances of their operations , such as the sector and operational context. due diligence should further encompass adverse environmental impacts resulting from the violation of one of the prohibitions and obligations established under eu and international environmental law , including , but not limited to the international environmental conventions listed in the annex , part ii of this directive.


### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive , provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this directive , taking into account all relevant circumstances of their operations , such as the sector and operational context. due diligence should further encompass adverse environmental impacts resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex to this directive. ### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of any internationally recognised human right , including but not limited to the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive , provided that the undertaking concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this directive , taking into account all relevant circumstances of their operations , such as the sector and operational context. due diligence should further encompass adverse environmental and climate impacts , meaning impacts contributing to the exceeding of planetary boundaries or an adverse impact on the following elements or functions of ecosystems and the interrelations between: climate , air and the atmosphere , water and access to water , soil , biodiversity , use of energy and hazardous substances , the transition to a circular economy , light , noise and vibration or human health including occupational health and safety as well as impacts resulting from the violation of one of the prohibitions and obligations established under eu and international environmental law , including , but not limited pursuant to the international environmental conventions listed in the annex to this directive. in particular , undertakings should also identify and assess actual and potential deterioration of working conditions due to climate change or the exceeding of planetary boundaries , such as the rise of temperatures to an unbearable level for their workers. next to the protection of human rights , the environment and climate , safeguarding good governance should also form an intrinsic part of due diligence under this directive and requires also a comprehensive approach including , but not limited to , the violation of one of the prohibitions and obligations covered by the international conventions listed in part iia of the annex to this directive.


### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive , provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this directive , taking into account all relevant circumstances of their operations , such as the sector and operational context. due diligence should further encompass adverse environmental impacts resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex to this directive. ### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive , provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this directive , taking into account all relevant circumstances of their operations , such as the sector and operational context. due diligence should further encompass adverse environmental and climate impacts on the main ecosystem elements (climate , air , water , soil , biodiversity , light , noise , vibration , human health) or on the interrelations between them , on the transition to a circular economy , including but not limited to impairment to reusability and recyclability , as well as impacts resulting from any violation of one of the international environmental standards enshrined , including but not limited to , in the international environmental conventions listed in the annex to this directive.


### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive , provided that the company concerned could have reasonably established the risk of such impairment and any appropriate measures to be taken in order to comply with the due diligence obligations under this directive , taking into account all relevant circumstances of their operations , such as the sector and operational context. due diligence should further encompass adverse environmental impacts resulting from the violation of one of the prohibitions and obligations pursuant to the international environmental conventions listed in the annex to this directive. ### (25) in order to achieve a meaningful contribution to the sustainability transition , due diligence under this directive should be carried out with respect to adverse human rights impact on protected persons resulting from the violation of one of the rights and prohibitions as enshrined in the international conventions as listed in the annex to this directive. in order to ensure a comprehensive coverage of human rights , a violation of a prohibition or right not specifically listed in that annex which directly impairs a legal interest protected in those conventions should also form part of the adverse human rights impact covered by this directive. due diligence should further encompass adverse environmental and climate impacts resulting from the violation of one of the prohibitions and obligations established under eu and international environmental law , including , but not limited to the international environmental conventions listed in the annex to this directive , in particular adverse impacts on air quality , air pollution and atmosphere , water pollution , water contamination , access to water and depletion of freshwater , soil , such as soil pollution , soil contamination , soil erosion , and land degradation , biodiversity , including damage to wildlife , seabed and marine environment , flora , fauna , natural habitats and ecosystems , human health in accordance with the 'one health' approach , climate , including through greenhouse gas emissions and the destruction or degradation of sinks.


### (27) in order to conduct appropriate human rights , and environmental due diligence with respect to their operations , their subsidiaries , and their value chains , companies covered by this directive should integrate due diligence into corporate policies , identify , prevent and mitigate as well as bring to an end and minimise the extent of potential and actual adverse human rights and environmental impacts , establish and maintain a complaints procedure , monitor the effectiveness of the taken measures in accordance with the requirements that are set up in this directive and communicate publicly on their due diligence. in order to ensure clarity for companies , in particular the steps of preventing and mitigating potential adverse impacts and of bringing to an end , or when this is not possible , minimising actual adverse impacts should be clearly distinguished in this directive. ### (27) in order to conduct appropriate human rights , environmental and climate due diligence with respect to their operations , products and services throughout their life-cycle , their subsidiaries , and their value chains , companies covered by this directive should , after consultation with stakeholders , integrate due diligence into corporate policies with short- , medium- and long-term , identify , prevent and mitigate as well as bring to an end and minimise the extent of potential and actual adverse human rights , environmental and climate impacts , establish and maintain a complaints procedure , track the implementation and monitor and assess the effectiveness of the taken measures in accordance with the requirements that are set up in this directive and communicate publicly on their due diligence. in order to ensure clarity for companies , in particular the steps of preventing and mitigating potential adverse impacts and of bringing to an end , or when this is not possible , minimising actual adverse impacts should be clearly distinguished in this directive.


### (27) in order to conduct appropriate human rights , and environmental due diligence with respect to their operations , their subsidiaries , and their value chains , companies covered by this directive should integrate due diligence into corporate policies , identify , prevent and mitigate as well as bring to an end and minimise the extent of potential and actual adverse human rights and environmental impacts , establish and maintain a complaints procedure , monitor the effectiveness of the taken measures in accordance with the requirements that are set up in this directive and communicate publicly on their due diligence. in order to ensure clarity for companies , in particular the steps of preventing and mitigating potential adverse impacts and of bringing to an end , or when this is not possible , minimising actual adverse impacts should be clearly distinguished in this directive. ### (27) in order to conduct appropriate human rights , good governance , climate and environmental due diligence with respect to their operations , produced goods and services throughout their life-cycle , and those their subsidiaries , and their value chains , undertakings covered by this directive should after consultation with stakeholders , integrate due diligence into corporate policies with short- , medium- and long-term measures , identify , prevent and mitigate , remediate as well as bring to an end and mitigate the extent of potential and actual adverse human rights , good governance , environmental and climate impacts , establish and maintain a complaints procedure , track , monitor and assess the effectiveness of the taken measures in accordance with the requirements that are set up in this directive and communicate publicly on their due diligence. in order to ensure clarity for undertakings , in particular the steps of preventing and mitigating potential adverse impacts and of bringing to an end , or when this is not possible , minimising actual adverse impacts should be clearly distinguished in this directive.


### (27) in order to conduct appropriate human rights , and environmental due diligence with respect to their operations , their subsidiaries , and their value chains , companies covered by this directive should integrate due diligence into corporate policies , identify , prevent and mitigate as well as bring to an end and minimise the extent of potential and actual adverse human rights and environmental impacts , establish and maintain a complaints procedure , monitor the effectiveness of the taken measures in accordance with the requirements that are set up in this directive and communicate publicly on their due diligence. in order to ensure clarity for companies , in particular the steps of preventing and mitigating potential adverse impacts and of bringing to an end , or when this is not possible , minimising actual adverse impacts should be clearly distinguished in this directive. ### (27) in order to conduct appropriate human rights , climate and environmental due diligence with respect to their operations , produced goods and services throughout their life-cycle , and those their subsidiaries , and their value chains , companies covered by this directive should , after meaningful consultation with stakeholders , integrate due diligence into corporate policies with short- , medium- and long-term measures , identify , prevent and mitigate as well as bring to an end and minimise the extent of potential and actual adverse human rights , environmental and climate impacts , establish and maintain a complaints procedure , monitor and assess the effectiveness of the taken measures in accordance with the requirements that are set up in this directive and communicate publicly on their due diligence. in order to ensure clarity for companies , in particular the steps of preventing and mitigating potential adverse impacts and of bringing to an end , or when this is not possible , minimising actual adverse impacts should be clearly distinguished in this directive.


### (29) to comply with due diligence obligations , companies need to take appropriate measures with respect to identification , prevention and bringing to an end adverse impacts. an ‘appropriate measure’ should mean a measure that is capable of achieving the objectives of due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , and reasonably available to the company , taking into account the circumstances of the specific case , including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof , and the need to ensure prioritisation of action. in this context , in line with international frameworks , the company’s influence over a business relationship should include , on the one hand its ability to persuade the business relationship to take action to bring to an end or prevent adverse impacts (for example through ownership or factual control , market power , pre-qualification requirements , linking business incentives to human rights and environmental performance , etc.) and , on the other hand , the degree of influence or leverage that the company could reasonably exercise , for example through cooperation with the business partner in question or engagement with another company which is the direct business partner of the business relationship associated with adverse impact. ### (29) to comply with due diligence obligations , companies need to take appropriate measures with respect to identification , prevention and bringing to an end adverse impacts. an ‘appropriate measures’ should mean a set of measures that is capable of achieving the objectives of due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , taking into account the circumstances of the specific case , such as the characteristics of the economic sector and the size of the company.


### (29) to comply with due diligence obligations , companies need to take appropriate measures with respect to identification , prevention and bringing to an end adverse impacts. an ‘appropriate measure’ should mean a measure that is capable of achieving the objectives of due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , and reasonably available to the company , taking into account the circumstances of the specific case , including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof , and the need to ensure prioritisation of action. in this context , in line with international frameworks , the company’s influence over a business relationship should include , on the one hand its ability to persuade the business relationship to take action to bring to an end or prevent adverse impacts (for example through ownership or factual control , market power , pre-qualification requirements , linking business incentives to human rights and environmental performance , etc.) and , on the other hand , the degree of influence or leverage that the company could reasonably exercise , for example through cooperation with the business partner in question or engagement with another company which is the direct business partner of the business relationship associated with adverse impact. ### (29) to comply with due diligence obligations , companies need to take appropriate measures with respect to identification , prevention and bringing to an end adverse impacts. an ‘appropriate measure’ should mean a set of measures that is capable of achieving the objectives of due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , taking into account the circumstances of the specific case.


### (29) to comply with due diligence obligations , companies need to take appropriate measures with respect to identification , prevention and bringing to an end adverse impacts. an ‘appropriate measure’ should mean a measure that is capable of achieving the objectives of due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , and reasonably available to the company , taking into account the circumstances of the specific case , including characteristics of the economic sector and of the specific business relationship and the company’s influence thereof , and the need to ensure prioritisation of action. in this context , in line with international frameworks , the company’s influence over a business relationship should include , on the one hand its ability to persuade the business relationship to take action to bring to an end or prevent adverse impacts (for example through ownership or factual control , market power , pre-qualification requirements , linking business incentives to human rights and environmental performance , etc.) and , on the other hand , the degree of influence or leverage that the company could reasonably exercise , for example through cooperation with the business partner in question or engagement with another company which is the direct business partner of the business relationship associated with adverse impact. ### (29) to comply with due diligence obligations , undertakings need to take appropriate measures with respect to identification , prevention and bringing to an end adverse impacts. ‘appropriate measures’ should mean a set of measures that is capable of achieving the objectives of due diligence , commensurate with the degree of severity and the likelihood of the adverse impact , taking into account the circumstances of the specific case such as the characteristics of the economic sector and the size of the undertaking.


### (30) under the due diligence obligations set out by this directive , a company should identify actual or potential adverse human rights and environmental impacts. in order to allow for a comprehensive identification of adverse impacts , such identification should be based on quantitative and qualitative information. for instance , as regards adverse environmental impacts , the company should obtain information about baseline conditions at higher risk sites or facilities in value chains. identification of adverse impacts should include assessing the human rights , and environmental context in a dynamic way and in regular intervals: prior to a new activity or relationship , prior to major decisions or changes in the operation; in response to or anticipation of changes in the operating environment; and periodically , at least every 12 months , throughout the life of an activity or relationship. regulated financial undertakings providing loan , credit , or other financial services should identify the adverse impacts only at the inception of the contract. when identifying adverse impacts , companies should also identify and assess the impact of a business relationship’s business model and strategies , including trading , procurement and pricing practices. where the company cannot prevent , bring to an end or minimize all its adverse impacts at the same time , it should be able to prioritize its action , provided it takes the measures reasonably available to the company , taking into account the specific circumstances. ### (30) under the due diligence obligations set out by this directive , a company should identify actual or potential adverse human rights and environmental impacts in order to allow for a comprehensive identification of adverse impacts , such identification should be based on quantitative and qualitative information. for instance , as regards adverse environmental impacts , the company should obtain information about baseline conditions at higher risk sites or facilities in value chains. identification of adverse impacts should include assessing the human rights , and environmental context in a dynamic way and in regular intervals: prior to a new activity or relationship , prior to major decisions or changes in the operation; in response to or anticipation of changes in the operating environment; and periodically , at least every 12 months , throughout the life of an activity or relationship. when identifying adverse impacts , companies should also identify and assess the impact of a business relationship’s business model and strategies , including trading , procurement and pricing practices. where the company cannot prevent , bring to an end or minimize all its adverse impacts at the same time , it should develop and implement a prioritisation strategy in consultation with stakeholders , which shall take into account the level of severity , likelihood , the duration , the spread and reversibility of the different potential adverse impacts on human rights , the environment and the climate.


### (30) under the due diligence obligations set out by this directive , a company should identify actual or potential adverse human rights and environmental impacts. in order to allow for a comprehensive identification of adverse impacts , such identification should be based on quantitative and qualitative information. for instance , as regards adverse environmental impacts , the company should obtain information about baseline conditions at higher risk sites or facilities in value chains. identification of adverse impacts should include assessing the human rights , and environmental context in a dynamic way and in regular intervals: prior to a new activity or relationship , prior to major decisions or changes in the operation; in response to or anticipation of changes in the operating environment; and periodically , at least every 12 months , throughout the life of an activity or relationship. regulated financial undertakings providing loan , credit , or other financial services should identify the adverse impacts only at the inception of the contract. when identifying adverse impacts , companies should also identify and assess the impact of a business relationship’s business model and strategies , including trading , procurement and pricing practices. where the company cannot prevent , bring to an end or minimize all its adverse impacts at the same time , it should be able to prioritize its action , provided it takes the measures reasonably available to the company , taking into account the specific circumstances. ### (30) under the due diligence obligations set out by this directive , a company should identify actual or potential adverse human rights , environmental and climate impacts. in order to allow for a comprehensive identification of adverse impacts , such identification should be based on quantitative and qualitative information. for instance , as regards adverse environmental and climate impacts , the company should obtain information about baseline conditions at higher risk sites or facilities in value chains. identification of adverse impacts should include assessing the human rights , and environmental context in a dynamic way and in regular intervals: prior to a new activity or relationship , prior to major decisions or changes in the operation; in response to or anticipation of changes in the operating environment; and periodically , at least every 12 months , throughout the life of an activity or relationship. where the company cannot prevent , bring to an end or minimize all its adverse impacts at the same time , it should develop and implement a prioritisation strategy in consultation with the social partners and civil society organisations , which shall take into account the level of severity , likelihood , the duration , the spread and reversibility of the potential adverse impact on human rights , the environment and climate.


### (30) under the due diligence obligations set out by this directive , a company should identify actual or potential adverse human rights and environmental impacts. in order to allow for a comprehensive identification of adverse impacts , such identification should be based on quantitative and qualitative information. for instance , as regards adverse environmental impacts , the company should obtain information about baseline conditions at higher risk sites or facilities in value chains. identification of adverse impacts should include assessing the human rights , and environmental context in a dynamic way and in regular intervals: prior to a new activity or relationship , prior to major decisions or changes in the operation; in response to or anticipation of changes in the operating environment; and periodically , at least every 12 months , throughout the life of an activity or relationship. regulated financial undertakings providing loan , credit , or other financial services should identify the adverse impacts only at the inception of the contract. when identifying adverse impacts , companies should also identify and assess the impact of a business relationship’s business model and strategies , including trading , procurement and pricing practices. where the company cannot prevent , bring to an end or minimize all its adverse impacts at the same time , it should be able to prioritize its action , provided it takes the measures reasonably available to the company , taking into account the specific circumstances. ### (30) under the due diligence obligations set out by this directive , a company should identify actual or potential adverse human rights , environmental and climate impacts. in order to allow for a comprehensive identification of adverse impacts , such identification should be based on quantitative and qualitative information. for instance , as regards adverse environmental and climate impacts , the company should obtain information about baseline conditions at higher risk sites or facilities in value chains. identification of adverse impacts should include assessing the human rights , and environmental and climate context in a dynamic way and in regular intervals: prior to a new activity or relationship , prior to major decisions or changes in the operation; in response to or anticipation of changes in the operating environment; and periodically , at least every 12 months , throughout the life of an activity or relationship. where the company cannot prevent , bring to an end or minimize all its adverse impacts at the same time , it should develop and implement a prioritisation strategy in consultation with stakeholders , which shall take into account the level of severity , likelihood and reversibility of the different potential adverse impacts on human rights , the environment and climate.