### (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 , an undertaking should identify actual or potential adverse human rights , good governance , 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 undertaking 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 , good governance , 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. when identifying adverse impacts , undertakings should also identify and assess the impact of a business relationship’s business model and strategies , including trading , procurement and pricing practices. where the undertaking cannot prevent , bring to an end or minimize all its adverse impacts at the same time , it should develop , implement and regularly review a prioritisation strategy in consultation with stakeholders , which should be based on an objective assessment and take into account the level of severity , likelihood , the duration , the spread and reversibility of the different potential adverse impacts on human rights , good governance , 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 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 , 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 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. 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.


### (31) in order to avoid undue burden on the smaller companies operating in high-impact sectors which are covered by this directive , those companies should only be obliged to identify those actual or potential severe adverse impacts that are relevant to the respective sector. ### (31) in order to avoid undue burden on the smes covered by this directive , those companies should be supported with adequate and targeted measures and tools.


### (31) in order to avoid undue burden on the smaller companies operating in high-impact sectors which are covered by this directive , those companies should only be obliged to identify those actual or potential severe adverse impacts that are relevant to the respective sector. ### (31) in order to avoid undue burden on smes covered by this directive , those companies should be supported with adequate and targeted measures and tools.


### (31) in order to avoid undue burden on the smaller companies operating in high-impact sectors which are covered by this directive , those companies should only be obliged to identify those actual or potential severe adverse impacts that are relevant to the respective sector. ### (31) in order to avoid undue burden on smes covered by this directive , those undertakings should be supported with adequate and targeted measures and tools .


### (32) in line with international standards , prevention and mitigation as well as bringing to an end and minimisation of adverse impacts should take into account the interests of those adversely impacted. in order to enable continuous engagement with the value chain business partner instead of termination of business relations (disengagement) and possibly exacerbating adverse impacts , this directive should ensure that disengagement is a last-resort action , in line with the union`s policy of zero-tolerance on child labour. terminating a business relationship in which child labour was found could expose the child to even more severe adverse human rights impacts. this should therefore be taken into account when deciding on the appropriate action to take. ### (32) in line with international standards , prevention mitigation and remediation as well as bringing to an end and minimisation of adverse impacts should fully take into account the interests of those adversely impacted and should be designed and determined on the basis of meaningful engagement with them. companies should engage in a timely manner , efficiently and meaningfully with stakeholders impacted by the decision to suspend or terminate the adverse impacts before reaching that decision , and shall address the adverse impacts derived from those actions. in particular , contributions to ending the child labour should include adjusting pricing practices to ensure a decent living of families and farmers , supporting children’s access to education and require the supplier to avoid child labour.


### (34) so as to comply with the prevention and mitigation obligation under this directive , companies should be required to take the following actions , where relevant. where necessary due to the complexity of prevention measures , companies should develop and implement a prevention action plan. companies should seek to obtain contractual assurances from a direct partner with whom they have an established business relationship that it will ensure compliance with the code of conduct or the prevention action plan , including by seeking corresponding contractual assurances from its partners to the extent that their activities are part of the companies’ value chain. the contractual assurances should be accompanied by appropriate measures to verify compliance. to ensure comprehensive prevention of actual and potential adverse impacts , companies should also make investments which aim to prevent adverse impacts , provide targeted and proportionate support for an sme with which they have an established business relationship such as financing , for example , through direct financing , low-interest loans , guarantees of continued sourcing , and assistance in securing financing , to help implement the code of conduct or prevention action plan , or technical guidance such as in the form of training , management systems upgrading , and collaborate with other companies. ### (34) so as to comply with the prevention and mitigation obligation under this directive , companies should be required to take the following actions: companies should develop and implement a prevention action plan. companies should obtain contractual and other assurances from business relationship that it will ensure compliance with the code of conduct or the prevention action plan , the contractual assurances should be reasonable , non-discriminatory and accompanied by appropriate measures to verify compliance. to ensure comprehensive prevention of actual and potential adverse impacts , companies should also make investments which aim to prevent adverse impacts , provide targeted and proportionate support for smes in their value chain , for example , through direct financing , low-interest loans , guarantees of continued sourcing , and assistance in securing financing , to help implement the code of conduct or prevention action plan , or technical guidance such as in the form of capacity-building via activities such as training , management systems upgrading , and collaborate with other companies to develop guidance and sectoral supporting materials , with a particular focus on smes .


### (34) so as to comply with the prevention and mitigation obligation under this directive , companies should be required to take the following actions , where relevant. where necessary due to the complexity of prevention measures , companies should develop and implement a prevention action plan. companies should seek to obtain contractual assurances from a direct partner with whom they have an established business relationship that it will ensure compliance with the code of conduct or the prevention action plan , including by seeking corresponding contractual assurances from its partners to the extent that their activities are part of the companies’ value chain. the contractual assurances should be accompanied by appropriate measures to verify compliance. to ensure comprehensive prevention of actual and potential adverse impacts , companies should also make investments which aim to prevent adverse impacts , provide targeted and proportionate support for an sme with which they have an established business relationship such as financing , for example , through direct financing , low-interest loans , guarantees of continued sourcing , and assistance in securing financing , to help implement the code of conduct or prevention action plan , or technical guidance such as in the form of training , management systems upgrading , and collaborate with other companies. ### (34) so as to comply with the prevention and mitigation obligation under this directive , companies should be required to take the following actions. companies should develop and implement a prevention action plan. companies should obtain contractual and other assurances from business relationship that it will ensure compliance with the code of conduct or the prevention action plan. the contractual assurances should be reasonable and non-discriminatory , accompanied by appropriate measures to verify compliance. to ensure comprehensive prevention of actual and potential adverse impacts , companies should also make investments which aim to prevent adverse impacts , provide targeted and proportionate support for smes in their value chain , for example , through direct financing , low-interest loans , guarantees of continued sourcing , and assistance in securing financing , to help implement the code of conduct or prevention action plan , or technical guidance such as in the form of training , management systems upgrading , and collaborate with other companies.


### (34) so as to comply with the prevention and mitigation obligation under this directive , companies should be required to take the following actions , where relevant. where necessary due to the complexity of prevention measures , companies should develop and implement a prevention action plan. companies should seek to obtain contractual assurances from a direct partner with whom they have an established business relationship that it will ensure compliance with the code of conduct or the prevention action plan , including by seeking corresponding contractual assurances from its partners to the extent that their activities are part of the companies’ value chain. the contractual assurances should be accompanied by appropriate measures to verify compliance. to ensure comprehensive prevention of actual and potential adverse impacts , companies should also make investments which aim to prevent adverse impacts , provide targeted and proportionate support for an sme with which they have an established business relationship such as financing , for example , through direct financing , low-interest loans , guarantees of continued sourcing , and assistance in securing financing , to help implement the code of conduct or prevention action plan , or technical guidance such as in the form of training , management systems upgrading , and collaborate with other companies. ### (34) so as to comply with the prevention and mitigation obligation under this directive , undertakings should be required to take the following actions. undertakings should develop and implement a prevention action plan. undertakings should obtain contractual and other assurances from a business relationship that it will ensure compliance with the code of conduct or the prevention action plan. the contractual assurances should be reasonable , non-discriminatory and accompanied by appropriate measures to verify compliance. to ensure comprehensive prevention of actual and potential adverse impacts , undertakings should also make investments which aim to prevent adverse impacts , provide targeted and proportionate support for smes in their value chain , for example , through direct financing , low-interest loans , guarantees of continued sourcing , and assistance in securing financing , to help implement the code of conduct or prevention action plan , or technical guidance such as in the form of capacity-building via activities such as training , management systems upgrading , and collaborate with other undertakings to develop guidance and sectoral supporting materials , with a particular focus on smes.


### (34) so as to comply with the prevention and mitigation obligation under this directive , companies should be required to take the following actions , where relevant. where necessary due to the complexity of prevention measures , companies should develop and implement a prevention action plan. companies should seek to obtain contractual assurances from a direct partner with whom they have an established business relationship that it will ensure compliance with the code of conduct or the prevention action plan , including by seeking corresponding contractual assurances from its partners to the extent that their activities are part of the companies’ value chain. the contractual assurances should be accompanied by appropriate measures to verify compliance. to ensure comprehensive prevention of actual and potential adverse impacts , companies should also make investments which aim to prevent adverse impacts , provide targeted and proportionate support for an sme with which they have an established business relationship such as financing , for example , through direct financing , low-interest loans , guarantees of continued sourcing , and assistance in securing financing , to help implement the code of conduct or prevention action plan , or technical guidance such as in the form of training , management systems upgrading , and collaborate with other companies. ### (34) so as to comply with the prevention and mitigation obligation under this directive , companies should be required to take the following actions , where relevant. where necessary due to the complexity of prevention measures , companies should develop and implement a prevention action plan. companies should seek to obtain contractual assurances from a direct partner with whom they have a business relationship that it will ensure compliance with the code of conduct or the prevention action plan , including by seeking corresponding contractual assurances from its partners to the extent that their activities are part of the companies’ value chain. the contractual assurances should be accompanied by appropriate measures to verify compliance. to ensure comprehensive prevention of actual and potential adverse impacts , companies should also make investments which aim to prevent adverse impacts , provide targeted and proportionate support for an sme with which they have a business relationship such as financing , for example , through direct financing , low-interest loans , guarantees of continued sourcing , and assistance in securing financing , to help implement the code of conduct or prevention action plan , or technical guidance such as in the form of capacity-building via activities such as training , management systems upgrading , and collaborate with other companies to develop guidance and sectoral supporting materials , with a particular focus on limiting the potential burden on microenterprises.


### (36) in order to ensure that prevention and mitigation of potential adverse impacts is effective , companies should prioritize engagement with business relationships in the value chain , instead of terminating the business relationship , as a last resort action after attempting at preventing and mitigating adverse potential impacts without success. however , the directive should also , for cases where potential adverse impacts could not be addressed by the described prevention or mitigation measures , refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question and , where the law governing their relations so entitles them to , to either temporarily suspend commercial relationships with the partner in question , while pursuing prevention and minimisation efforts , if there is reasonable expectation that these efforts are to succeed in the short-term; or to terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe. in order to allow companies to fulfil that obligation , member states should provide for the availability of an option to terminate the business relationship in contracts governed by their laws. it is possible that prevention of adverse impacts at the level of indirect business relationships requires collaboration with another company , for example a company which has a direct contractual relationship with the supplier. in some instances , such collaboration could be the only realistic way of preventing adverse impacts , in particular , where the indirect business relationship is not ready to enter into a contract with the company. in these instances , the company should collaborate with the entity which can most effectively prevent or mitigate adverse impacts at the level of the indirect business relationship while respecting competition law. ### (36) in order to ensure that prevention and mitigation of potential adverse impacts is effective , companies should prioritize engagement with business relationships in the value chain , instead of terminating the business relationship , as a last resort action after attempting at preventing and mitigating adverse potential impacts without success. however , the directive should also , for cases where potential adverse impacts could not be addressed by the described prevention or mitigation measures , refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question and , where the law governing their relations so entitles them to , to either temporarily suspend commercial relationships with the partner in question , while pursuing prevention and mitigation efforts , if there is reasonable expectation that these efforts are to succeed in the short-term; or to terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe as well as if the conditions for temporary suspension are not met. in order to allow companies to fulfil that obligation , member states should provide for the availability of an option to terminate the business relationship in contracts governed by their laws. it is possible that prevention of adverse impacts at the level of indirect business relationships requires collaboration with another company , for example a company which has a direct contractual relationship with the supplier. in some instances , such collaboration could be the only realistic way of preventing adverse impacts , in particular , where the indirect business relationship is not ready to enter into a contract with the company. in these instances , the company should collaborate with the entity which can most effectively prevent or mitigate adverse impacts at the level of the indirect business relationship while respecting competition law.


### (36) in order to ensure that prevention and mitigation of potential adverse impacts is effective , companies should prioritize engagement with business relationships in the value chain , instead of terminating the business relationship , as a last resort action after attempting at preventing and mitigating adverse potential impacts without success. however , the directive should also , for cases where potential adverse impacts could not be addressed by the described prevention or mitigation measures , refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question and , where the law governing their relations so entitles them to , to either temporarily suspend commercial relationships with the partner in question , while pursuing prevention and minimisation efforts , if there is reasonable expectation that these efforts are to succeed in the short-term; or to terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe. in order to allow companies to fulfil that obligation , member states should provide for the availability of an option to terminate the business relationship in contracts governed by their laws. it is possible that prevention of adverse impacts at the level of indirect business relationships requires collaboration with another company , for example a company which has a direct contractual relationship with the supplier. in some instances , such collaboration could be the only realistic way of preventing adverse impacts , in particular , where the indirect business relationship is not ready to enter into a contract with the company. in these instances , the company should collaborate with the entity which can most effectively prevent or mitigate adverse impacts at the level of the indirect business relationship while respecting competition law. ### (36) in order to ensure that prevention and mitigation of potential adverse impacts is effective , companies should prioritize engagement with business relationships in the value chain , instead of terminating the business relationship , as a last resort action after attempting at preventing and mitigating adverse potential impacts without success. however , the directive should also , for cases where potential adverse impacts could not be addressed by the described prevention or mitigation measures , refer to the obligation for companies to refrain from entering into new or extending existing relations with the partner in question and , where the law governing their relations so entitles them to , to either temporarily suspend commercial relationships with the partner in question , while pursuing prevention , minimisation and remediation efforts where appropriate , if there is reasonable expectation that these efforts are to succeed in accordance with a joint time-bound plan; or to terminate the business relationship with respect to the activities concerned if the potential adverse impact is severe. companies shall engage meaningfully with stakeholders impacted by the decision to disengage before reaching this decision , and shall address the adverse impacts related to the decision to disengage and pursue remediation of past adverse impacts where appropriate. in order to allow companies to fulfil that obligation , member states should provide for the availability of an option to terminate the business relationship in contracts governed by their laws. it is possible that prevention of adverse impacts at the level of indirect business relationships requires collaboration with another company , for example a company which has a direct contractual relationship with the supplier. in some instances , such collaboration could be the only realistic way of preventing adverse impacts , in particular , where the indirect business relationship is not ready to enter into a contract with the company. in these instances , the company should collaborate with the entity which can most effectively prevent or mitigate adverse impacts at the level of the indirect business relationship while respecting competition law.


### (37) as regards direct and indirect business relationships , industry cooperation , industry schemes and multi-stakeholder initiatives can help create additional leverage to identify , mitigate , and prevent adverse impacts. therefore it should be possible for companies to rely on such initiatives to support the implementation of their due diligence obligations laid down in this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. companies could assess , at their own initiative , the alignment of these schemes and initiatives with the obligations under this directive. in order to ensure full information on such initiatives , the directive should also refer to the possibility for the commission and the member states to facilitate the dissemination of information on such schemes or initiatives and their outcomes. the commission , in collaboration with member states , may issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives. ### (37) as regards direct and indirect business relationships , industry cooperation , industry schemes and multi-stakeholder initiatives can help create additional leverage to identify , mitigate , and prevent adverse impacts. therefore it should be possible for companies to rely on such initiatives to support the implementation of their due diligence obligations laid down in this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. companies could assess , at their own initiative , the alignment of these schemes and initiatives with the obligations under this directive. in order to ensure full information on such initiatives , the directive should also refer to the possibility for the commission and the member states to facilitate the dissemination of information on such schemes or initiatives and their outcomes. the commission , in collaboration with member states , should issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives.


### (37) as regards direct and indirect business relationships , industry cooperation , industry schemes and multi-stakeholder initiatives can help create additional leverage to identify , mitigate , and prevent adverse impacts. therefore it should be possible for companies to rely on such initiatives to support the implementation of their due diligence obligations laid down in this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. companies could assess , at their own initiative , the alignment of these schemes and initiatives with the obligations under this directive. in order to ensure full information on such initiatives , the directive should also refer to the possibility for the commission and the member states to facilitate the dissemination of information on such schemes or initiatives and their outcomes. the commission , in collaboration with member states , may issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives. ### (37) as regards direct and indirect business relationships , industry cooperation , industry schemes and multi-stakeholder initiatives can help create additional leverage to identify , mitigate , and prevent adverse impacts. therefore it should be possible for undertakings to rely on such initiatives to support the implementation of their due diligence obligations laid down in this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. to assess the alignment of these schemes and initiatives with the obligations under this directive , the commission and the member states should refer to the framework laid down by the accreditation directive(regulation (ec) no 765/2008) , before allowing them to play a role in the implementation of these obligations. in order to ensure full information on such initiatives , the commission and the member states should facilitate the dissemination of information on such schemes or initiatives and their outcomes. the commission , in collaboration with member states , should issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives.


### (37) as regards direct and indirect business relationships , industry cooperation , industry schemes and multi-stakeholder initiatives can help create additional leverage to identify , mitigate , and prevent adverse impacts. therefore it should be possible for companies to rely on such initiatives to support the implementation of their due diligence obligations laid down in this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. companies could assess , at their own initiative , the alignment of these schemes and initiatives with the obligations under this directive. in order to ensure full information on such initiatives , the directive should also refer to the possibility for the commission and the member states to facilitate the dissemination of information on such schemes or initiatives and their outcomes. the commission , in collaboration with member states , may issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives. ### (37) as regards direct and indirect business relationships , industry cooperation , industry schemes and multi-stakeholder initiatives can help create additional leverage to identify , mitigate , and prevent adverse impacts. therefore it should be possible for companies to rely on such initiatives to support the implementation of their due diligence obligations laid down in this directive to the extent that such schemes and initiatives are appropriate to support the fulfilment of those obligations. companies could assess , at their own initiative , the alignment of these schemes and initiatives with the obligations under this directive. in order to ensure full information on such initiatives , the commission and the member states should facilitate the dissemination of information on such schemes or initiatives and their outcomes. the commission , in collaboration with member states , should issue guidance for assessing the fitness of industry schemes and multi-stakeholder initiatives.


### (38) under the due diligence obligations set out by this directive , if a company identifies actual human rights or environmental adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. however , it should be clarified that , as regards established business relationships , where adverse impacts cannot be brought to an end , companies should minimise the extent of such impacts. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide companies with legal clarity and certainty , this directive should define which actions companies should be required to take for bringing actual human rights and environmental adverse impacts to an end and minimisation of their extent , where relevant depending on the circumstances. ### (38) under the due diligence obligations set out by this directive , if a company identifies actual human rights or environmental adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. however , it should be clarified that , as regards business relationships , where adverse impacts cannot be brought to an end , companies should minimise the extent of such impacts. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide companies with legal clarity and certainty , this directive should define which actions companies should be required to take for bringing actual human rights and environmental adverse impacts to an end and minimisation of their extent , where relevant depending on the circumstances.


### (38) under the due diligence obligations set out by this directive , if a company identifies actual human rights or environmental adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. however , it should be clarified that , as regards established business relationships , where adverse impacts cannot be brought to an end , companies should minimise the extent of such impacts. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide companies with legal clarity and certainty , this directive should define which actions companies should be required to take for bringing actual human rights and environmental adverse impacts to an end and minimisation of their extent , where relevant depending on the circumstances. ### (38) under the due diligence obligations set out by this directive , if a company identifies actual human rights , environmental and climate adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. however , it should be clarified that , as regards business relationships , where adverse impacts cannot be brought to an end , companies should minimise the extent of such impacts. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide companies with legal clarity and certainty , this directive should define which actions companies should be required to take for bringing actual human rights , environmental and climate adverse impacts to an end and minimisation of their extent.


### (38) under the due diligence obligations set out by this directive , if a company identifies actual human rights or environmental adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. however , it should be clarified that , as regards established business relationships , where adverse impacts cannot be brought to an end , companies should minimise the extent of such impacts. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide companies with legal clarity and certainty , this directive should define which actions companies should be required to take for bringing actual human rights and environmental adverse impacts to an end and minimisation of their extent , where relevant depending on the circumstances. ### (38) under the due diligence obligations set out by this directive , if an undertaking identifies actual human rights , good governance , environmental or climate adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that an undertaking is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. however , it should be clarified that , as regards business relationships , where adverse impacts cannot be brought to an end , undertakings should minimise the extent of such impacts. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide undertakings with legal clarity and certainty , this directive should define which actions undertakings should be required to take for bringing actual human rights , good governance , environmental and climate adverse impacts to an end and minimisation of their extent.


### (38) under the due diligence obligations set out by this directive , if a company identifies actual human rights or environmental adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. however , it should be clarified that , as regards established business relationships , where adverse impacts cannot be brought to an end , companies should minimise the extent of such impacts. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide companies with legal clarity and certainty , this directive should define which actions companies should be required to take for bringing actual human rights and environmental adverse impacts to an end and minimisation of their extent , where relevant depending on the circumstances. ### (38) under the due diligence obligations set out by this directive , if a company identifies actual human rights or environmental adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. however , it should be clarified that , where adverse impacts cannot be brought to an end , companies should minimise the extent of such impacts. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide companies with legal clarity and certainty , this directive should define which actions companies should be required to take for bringing actual human rights and environmental adverse impacts to an end and minimisation of their extent , where relevant depending on the circumstances.


### (38) under the due diligence obligations set out by this directive , if a company identifies actual human rights or environmental adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries. however , it should be clarified that , as regards established business relationships , where adverse impacts cannot be brought to an end , companies should minimise the extent of such impacts. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide companies with legal clarity and certainty , this directive should define which actions companies should be required to take for bringing actual human rights and environmental adverse impacts to an end and minimisation of their extent , where relevant depending on the circumstances. ### (38) under the due diligence obligations set out by this directive , if a company identifies actual human rights , environmental , climate , rule of law and good governance adverse impacts , it should take appropriate measures to bring those to an end. it can be expected that a company is able to bring to an end actual adverse impacts in their own operations and in subsidiaries and to require partners to do so. however , it should be clarified that , as regards business relationships , where adverse impacts cannot be brought to an end , companies should minimise such impacts , to the greatest extent possible. minimisation of the extent of adverse impacts should require an outcome that is the closest possible to bringing the adverse impact to an end. to provide companies with legal clarity and certainty , this directive should define which actions companies should be required to take for bringing actual adverse human rights and environmental , climate , rule of law and good governance adverse impacts to an end and minimisation of their extent.


### (39) so as to comply with the obligation of bringing to an end and minimising the extent of actual adverse impacts under this directive , companies should be required to take the following actions , where relevant. they should neutralise the adverse impact or minimise its extent , with an action proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. where necessary due to the fact that the adverse impact cannot be immediately brought to an end , companies should develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. companies should also seek to obtain contractual assurances from a direct business partner with whom they have an established business relationship that they will ensure compliance with the company’s code of conduct and , as necessary , a prevention action plan , including by seeking corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s value chain. the contractual assurances should be accompanied by the appropriate measures to verify compliance. finally , companies should also make investments aiming at ceasing or minimising the extent of adverse impact , provide targeted and proportionate support for an smes with which they have an established business relationship and collaborate with other entities , including , where relevant , to increase the company’s ability to bring the adverse impact to an end. ### (39) so as to comply with the obligation of bringing to an end and minimising the extent of actual adverse impacts under this directive , companies should be required to take the following actions , where relevant. they should neutralise the adverse impact or minimise its extent , with an action proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. where necessary due to the fact that the adverse impact cannot be immediately brought to an end , companies should develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. companies should also seek to obtain contractual assurances from a direct business partner that they will ensure compliance with the company’s code of conduct and , as necessary , a prevention action plan , including by seeking corresponding contractual assurances from its partners , to the extent that their activities are part of the company’s value chain. the contractual assurances should be accompanied by the appropriate measures to verify compliance. finally , companies should also make investments aiming at ceasing or minimising the extent of adverse impact , provide targeted and proportionate support for smes and notably microenterprises with which they have business relationships and collaborate with other entities , including , where relevant , to increase the company’s ability to bring the adverse impact to an end.


### (42) companies should provide the possibility for persons and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impact. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies. ### (42) companies should provide the possibility for persons , groups , communities , entities and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impact. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies.


### (42) companies should provide the possibility for persons and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impact. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies. ### (42) companies should provide the possibility for persons , groups , communities , entities and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights , environmental and climate adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations , human rights and environmental rights defenders , or other legal or natural persons who have as a statutory purpose the defence of human rights , climate , the environment or good governance. companies should establish ha procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies.


### (42) companies should provide the possibility for persons and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impact. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies. ### (42) companies should provide the possibility for persons , groups , communities , entities and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights , environmental and climate adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned , organisations or other legal or natural persons who have as a statutory purpose the defence of human rights , climate , the environment and good governance. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies.


### (42) companies should provide the possibility for persons and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impact. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies. ### (42) undertakings should provide the possibility for persons , groups , communities , entities and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights , good governance , environmental and climate adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations , human rights and environmental rights defenders , or other legal or natural persons who have as a statutory purpose the defence of human rights , climate , the environment or good governance . undertakings should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the undertaking appropriate follow-up on the complaint and to meet with the undertaking’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of undertakings.


### (42) companies should provide the possibility for persons and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impact. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies. ### (42) companies should provide the possibility for persons , groups , communities , entities and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights , environmental and climate adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations , human rights and environmental rights defenders , or other legal or natural persons who have as a statutory purpose the defence of human rights , climate and the environment. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies.


### (42) companies should provide the possibility for persons and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impact. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies. ### (42) companies should provide the possibility for persons , groups , communities , entities and organisations to submit complaints directly to them in case of legitimate concerns regarding actual or potential human rights , environmental and climate adverse impacts. organisations who could submit such complaints should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and civil society organisations , human rights and environmental rights defenders , or other legal or natural persons who have as a statutory purpose the defence of human rights , climate , the environment or good governance. companies should establish a procedure for dealing with those complaints and inform workers , trade unions and other workers’ representatives , where relevant , about such processes. recourse to the complaints and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. in accordance with international standards , complaints should be entitled to request from the company appropriate follow-up on the complaint and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. this access should not lead to unreasonable solicitations of companies.


### (43) companies should monitor the implementation and effectiveness of their due diligence measures. they should carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen. ### (43) companies should track the implementation and monitor the effectiveness of their due diligence measures. they should , in consultation with stakeholders , carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.


### (43) companies should monitor the implementation and effectiveness of their due diligence measures. they should carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen. ### (43) companies should track the implementation and monitor the effectiveness of their due diligence measures. they should carry out periodic assessments , in consultation with stakeholders , of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.


### (43) companies should monitor the implementation and effectiveness of their due diligence measures. they should carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen. ### (43) undertakings should track the implementation and monitor the effectiveness of their due diligence measures. they should , in consultation with stakeholders , carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the undertaking , those of their business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights , good governance , and environmental and climate adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.


### (43) companies should monitor the implementation and effectiveness of their due diligence measures. they should carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen. ### (43) companies should monitor the implementation and effectiveness of their due diligence measures. they should , in consultation with stakeholders , carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.


### (43) companies should monitor the implementation and effectiveness of their due diligence measures. they should carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen. ### (43) companies should monitor the implementation and effectiveness of their due diligence measures. they should carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.


### (43) companies should monitor the implementation and effectiveness of their due diligence measures. they should carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their established business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights and environmental adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen. ### (43) companies should monitor the implementation and effectiveness of their due diligence measures. they should , in consultation with stakeholders , carry out periodic assessments of their own operations , those of their subsidiaries and , where related to the value chains of the company , those of their business relationships , to monitor the effectiveness of the identification , prevention , minimisation , bringing to an end and mitigation of human rights , environmental and climate adverse impacts. such assessments should verify that adverse impacts are properly identified , due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. in order to ensure that such assessments are up-to-date , they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.


### (44) like in the existing international standards set by the united nations guiding principles on business and human rights and the oecd framework , it forms part of the due diligence requirement to communicate externally relevant information on due diligence policies , processes and activities conducted to identify and address actual or potential adverse impacts , including the findings and outcomes of those activities. the proposal to amend directive 2013/34/eu as regards corporate sustainability reporting sets out relevant reporting obligations for the companies covered by this directive. in order to avoid duplicating reporting obligations , this directive should therefore not introduce any new reporting obligations in addition to those under directive 2013/34/eu for the companies covered by that directive as well as the reporting standards that should be developed under it. as regards companies that are within the scope of this directive , but do not fall under directive 2013/34/eu , in order to comply with their obligation of communicating as part of the due diligence under this directive , they should publish on their website an annual statement in a language customary in the sphere of international business. ### (44) like in the existing international standards set by the united nations guiding principles on business and human rights and the oecd framework , it forms part of the due diligence requirement to communicate externally relevant information on due diligence policies , processes and activities conducted to identify and address actual or potential adverse impacts , including the findings and outcomes of those activities. the proposal to amend directive 2013/34/eu as regards corporate sustainability reporting sets out relevant reporting obligations for the companies covered by this directive. in order to avoid duplicating reporting obligations , this directive should therefore not introduce any new reporting obligations in addition to those under directive 2013/34/eu for the companies covered by that directive as well as the reporting standards that should be developed under it. as regards companies that are within the scope of this directive , but do not fall under directive 2013/34/eu , in order to comply with their obligation of communicating as part of the due diligence under this directive , they should publish on their website an annual statement in a language customary in the sphere of international business. this reporting should be accessible , comparable , and sufficiently detailed to demonstrate the adequacy of a company’s due diligence process.


### (44) like in the existing international standards set by the united nations guiding principles on business and human rights and the oecd framework , it forms part of the due diligence requirement to communicate externally relevant information on due diligence policies , processes and activities conducted to identify and address actual or potential adverse impacts , including the findings and outcomes of those activities. the proposal to amend directive 2013/34/eu as regards corporate sustainability reporting sets out relevant reporting obligations for the companies covered by this directive. in order to avoid duplicating reporting obligations , this directive should therefore not introduce any new reporting obligations in addition to those under directive 2013/34/eu for the companies covered by that directive as well as the reporting standards that should be developed under it. as regards companies that are within the scope of this directive , but do not fall under directive 2013/34/eu , in order to comply with their obligation of communicating as part of the due diligence under this directive , they should publish on their website an annual statement in a language customary in the sphere of international business. ### (44) like in the existing international standards set by the united nations guiding principles on business and human rights and the oecd framework , it forms part of the due diligence requirement to communicate externally relevant information on due diligence policies , processes and activities conducted to identify and address actual or potential adverse impacts , including the findings and outcomes of those activities. the proposal to amend directive 2013/34/eu as regards corporate sustainability reporting sets out relevant reporting obligations for the undertakings covered by this directive. in order to avoid duplicating reporting obligations , this directive should therefore not introduce any new reporting obligations in addition to those under directive 2013/34/eu for the undertakings covered by that directive as well as the reporting standards that should be developed under it. as regards undertakings that are within the scope of this directive , but do not fall under directive 2013/34/eu , in order to comply with their obligation of communicating as part of the due diligence under this directive , they should publish on their website an annual statement in a language customary in the sphere of international business. this reporting should be accessible , comparable , and sufficiently detailed to demonstrate the adequacy of a company in undertaking’s due diligence process.


### (45) in order to facilitate companies’ compliance with their due diligence requirements through their value chain and limiting shifting compliance burden on sme business partners , the commission should provide guidance on model contractual clauses. ### (45) in order to facilitate companies’ compliance with their due diligence requirements through their value chain and limiting shifting compliance burden on business partners , the commission should provide guidance on model contractual clauses , including with a focus on smes , and microenterprises that could be impacted by this directive.


### (46) in order to provide support and practical tools to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , using relevant international guidelines and standards as a reference , and in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , should have the possibility to issue guidelines , including for specific sectors or specific adverse impacts. ### (46) in order to provide support and practical tools to companies or to member state authorities on how companies should fulfil their due diligence obligations , the commission , using relevant international guidelines and standards as a reference , and in consultation with member states and stakeholders , the european union agency for fundamental rights , the european environment agency , and where appropriate with international bodies having expertise in due diligence , should issue guidelines and other support materials , including for specific sectors or specific adverse impacts , as well as for the compliance of smes.


### (47) although smes are not included in the scope of this directive , they could be impacted by its provisions as contractors or subcontractors to the companies which are in the scope. the aim is nevertheless to mitigate financial or administrative burden on smes , many of which are already struggling in the context of the global economic and sanitary crisis. in order to support smes , member states should set up and operate , either individually or jointly , dedicated websites , portals or platforms , and member states could also financially support smes and help them build capacity. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. companies whose business partner is an sme , are also encouraged to support them to comply with due diligence measures , in case such requirements would jeopardize the viability of the sme and use fair , reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes. ### (47) the aim is to mitigate financial or administrative burden on smes , while conducting due diligence pursuant to this directive. in order to support smes , member states should set up and operate , either individually or jointly , dedicated websites , portals or platforms , and member states could also financially support smes and help them build capacity. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. companies whose business partner is an sme , are also encouraged to support them to comply with due diligence measures , and use , reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes.


### (47) although smes are not included in the scope of this directive , they could be impacted by its provisions as contractors or subcontractors to the companies which are in the scope. the aim is nevertheless to mitigate financial or administrative burden on smes , many of which are already struggling in the context of the global economic and sanitary crisis. in order to support smes , member states should set up and operate , either individually or jointly , dedicated websites , portals or platforms , and member states could also financially support smes and help them build capacity. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. companies whose business partner is an sme , are also encouraged to support them to comply with due diligence measures , in case such requirements would jeopardize the viability of the sme and use fair , reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes. ### (47) the aim is to mitigate financial or administrative burden on smes , many of which are already struggling in the context of the global economic and sanitary crisis. in order to support smes , member states should set up and operate , either individually or jointly , dedicated websites , portals or platforms , and member states could also financially support smes and help them build capacity. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. companies whose business partner is an sme , are also encouraged to support them to comply with due diligence measures and use reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes.


### (47) although smes are not included in the scope of this directive , they could be impacted by its provisions as contractors or subcontractors to the companies which are in the scope. the aim is nevertheless to mitigate financial or administrative burden on smes , many of which are already struggling in the context of the global economic and sanitary crisis. in order to support smes , member states should set up and operate , either individually or jointly , dedicated websites , portals or platforms , and member states could also financially support smes and help them build capacity. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. companies whose business partner is an sme , are also encouraged to support them to comply with due diligence measures , in case such requirements would jeopardize the viability of the sme and use fair , reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes. ### (47) the aim is to mitigate financial or administrative burden on smes while conducting due diligence pursuant to this directive. in order to support smes , member states should set up and operate , either individually or jointly , dedicated websites , portals or platforms , and member states could also financially support smes and help them build capacity. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. companies whose business partner is an sme , are also encouraged to support them to comply with due diligence measures and use reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes.


### (47) although smes are not included in the scope of this directive , they could be impacted by its provisions as contractors or subcontractors to the companies which are in the scope. the aim is nevertheless to mitigate financial or administrative burden on smes , many of which are already struggling in the context of the global economic and sanitary crisis. in order to support smes , member states should set up and operate , either individually or jointly , dedicated websites , portals or platforms , and member states could also financially support smes and help them build capacity. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. companies whose business partner is an sme , are also encouraged to support them to comply with due diligence measures , in case such requirements would jeopardize the viability of the sme and use fair , reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes. ### (47) the aim is to mitigate financial or administrative burden on smes , while conducting due diligence pursuant to this directive. in order to support smes , member states should set up and operate , either individually or jointly , dedicated and accessible websites , portals or platforms , and member states could also financially support smes and help them build capacity. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. undertakings whose business partner is an sme , are also encouraged to support them to comply with due diligence measures and use reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes.


### (47) although smes are not included in the scope of this directive , they could be impacted by its provisions as contractors or subcontractors to the companies which are in the scope. the aim is nevertheless to mitigate financial or administrative burden on smes , many of which are already struggling in the context of the global economic and sanitary crisis. in order to support smes , member states should set up and operate , either individually or jointly , dedicated websites , portals or platforms , and member states could also financially support smes and help them build capacity. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. companies whose business partner is an sme , are also encouraged to support them to comply with due diligence measures , in case such requirements would jeopardize the viability of the sme and use fair , reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes. ### (47) although microenterprises are not included in the scope of this directive , they could be impacted by its provisions as contractors or subcontractors to the companies which are in the scope. the aim is nevertheless to mitigate financial or administrative burden on smes and in particular of microenterprises , many of which are already struggling in the context of the global economic and sanitary crisis. in order to support smes and notably microenterprises , member states should set up and operate supporting materials , either individually or jointly , such as dedicated websites , toolkits , portals or platforms , and member states should also financially support smes and help them build capacity to comply with this directive. such support should also be made accessible , and where necessary adapted and extended to upstream economic operators in third countries. companies whose business partner is an sme and in particular a microenterprise , are also encouraged to support them to comply with due diligence measures , in case such requirements would jeopardize the viability of the sme and use fair , reasonable , non-discriminatory and proportionate requirements vis-a-vis the smes.


### (48) in order to complement member state support to smes , the commission may build on existing eu tools , projects and other actions helping with the due diligence implementation in the eu and in third countries. it may set up new support measures that provide help to companies , including smes on due diligence requirements , including an observatory for value chain transparency and the facilitation of joint stakeholder initiatives. ### (48) in order to complement member state support to smes , the commission should build on existing eu tools , projects and other actions helping with the due diligence implementation in the eu and in third countries. it should set up new support measures that provide help to undertakings , in particular smes on due diligence requirements , including an observatory for value chain transparency and the facilitation of joint stakeholder initiatives.


### (48) in order to complement member state support to smes , the commission may build on existing eu tools , projects and other actions helping with the due diligence implementation in the eu and in third countries. it may set up new support measures that provide help to companies , including smes on due diligence requirements , including an observatory for value chain transparency and the facilitation of joint stakeholder initiatives. ### (48) in order to complement member state support to smes and notably microenterprises that might be indirectly impacted by this directive , the commission should build on existing eu tools , projects and other actions helping with the due diligence implementation in the eu and in third countries , and set up new support measures that provide help to companies , including measures focussing specifically on compliance of smes with due diligence requirements , including an observatory for value chain transparency and the facilitation of joint stakeholder initiatives.


### (49) the commission and member states should continue to work in partnership with third countries to support upstream economic operators build the capacity to effectively prevent and mitigate adverse human rights and environmental impacts of their operations and business relationships , paying specific attention to the challenges faced by smallholders. they should use their neighbourhood , development and international cooperation instruments to support third country governments and upstream economic operators in third countries addressing adverse human rights and environmental impacts of their operations and upstream business relationships. this could include working with partner country governments , the local private sector and stakeholders on addressing the root causes of adverse human rights and environmental impacts. ### (49) the commission and member states should continue to work in partnership with third countries to support upstream economic operators build the capacity to effectively prevent and mitigate adverse human rights and environmental impacts of their operations and business relationships , paying specific attention to the challenges faced by smallholders. they should use their neighbourhood , development and international cooperation instruments to support third country governments and upstream economic operators in third countries addressing adverse human rights , environmental and climate impacts of their operations and upstream business relationships. this could include working with partner country governments , the local private sector and stakeholders on addressing the root causes of adverse human rights , environmental and climate impacts.


### (49) the commission and member states should continue to work in partnership with third countries to support upstream economic operators build the capacity to effectively prevent and mitigate adverse human rights and environmental impacts of their operations and business relationships , paying specific attention to the challenges faced by smallholders. they should use their neighbourhood , development and international cooperation instruments to support third country governments and upstream economic operators in third countries addressing adverse human rights and environmental impacts of their operations and upstream business relationships. this could include working with partner country governments , the local private sector and stakeholders on addressing the root causes of adverse human rights and environmental impacts. ### (49) the commission and member states should continue to work in partnership with third countries to support upstream economic operators build the capacity to effectively prevent and mitigate adverse human rights , environmental , climate , rule of law and good governance impacts of their operations and business relationships , paying specific attention to the challenges faced by smallholders , who are some of the most marginalised actors in the global value chains. if smallholders do not meet their needs , then they cannot afford the social (e.g. no child labour) and environmental improvements (e.g. no deforestation or sustainable diversification) that they buyers , governments and consumers expect from them. henceforth , the commission and member states should use their neighbourhood , development and international cooperation instruments to support third country governments and upstream economic operators in third countries addressing adverse human rights , environmental , climate , rule of law and good governance impacts of their operations and upstream business relationships. this could include working with partner country governments , the local private sector and stakeholders on addressing the root causes of adverse human rights and environmental , climate , rule of law and good governance impacts. in the same line , the commission and member states should provide targeted support to stakeholders in developing countries , in order to ensure their meaningful engagement in all due diligence processes. in particular , support should be provided to national and local civil society organisations to monitor corporate practices and hold companies accountable and dedicated measures and funds should ease access to justice.