### (25) articles 19a and 29a of directive 2013/34/eu require reporting not only on information ‘to the extent necessary for an understanding of the undertaking's development , performance , position’ , but also on information necessary for an understanding of the impact of the undertaking’s activities on environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters. those articles therefore require undertakings to report both on how various sustainability matters affect the undertaking , and on the impacts of the activities of the undertaking on people and the environment. that is referred to as the double-materiality perspective , in which the risks to the undertaking and the impacts of the undertaking each represent one materiality perspective. the fitness check on corporate reporting shows that those two perspectives are often not well understood or applied. it is therefore necessary to clarify that undertakings should consider each materiality perspective in its own right , and should disclose information that is material from both perspectives as well as information that is material from only one perspective. ### (25) articles 19a and 29a of directive 2013/34/eu require reporting not only on information ‘to the extent necessary for an understanding of the undertaking's development , performance , position’ , but also on information necessary for an understanding of the impact of the undertaking’s activities on environmental , climate-related , social and workers’ rights , gender equality , respect for human rights , anti-corruption and bribery matters. those articles therefore require undertakings to report both on how various sustainability matters affect the undertaking , and on the impacts of the activities of the undertaking on people and the environment. that is referred to as the double-materiality perspective , in which the risks to the undertaking and the impacts of the undertaking each represent one materiality perspective. the fitness check on corporate reporting shows that those two perspectives are often not well understood or applied. it is therefore necessary to clarify that undertakings should consider each materiality perspective in its own right , and should disclose information that is material from both perspectives as well as information that is material from only one perspective.


### (25) articles 19a and 29a of directive 2013/34/eu require reporting not only on information ‘to the extent necessary for an understanding of the undertaking's development , performance , position’ , but also on information necessary for an understanding of the impact of the undertaking’s activities on environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters. those articles therefore require undertakings to report both on how various sustainability matters affect the undertaking , and on the impacts of the activities of the undertaking on people and the environment. that is referred to as the double-materiality perspective , in which the risks to the undertaking and the impacts of the undertaking each represent one materiality perspective. the fitness check on corporate reporting shows that those two perspectives are often not well understood or applied. it is therefore necessary to clarify that undertakings should consider each materiality perspective in its own right , and should disclose information that is material from both perspectives as well as information that is material from only one perspective. ### (25) articles 19a and 29a of directive 2013/34/eu require reporting not only on information ‘to the extent necessary for an understanding of the undertaking's development , performance , position’ , but also on information necessary for an understanding of the impact of the undertaking’s activities on environmental , climate , social and workers' rights , gender equality , respect for human rights , anti-corruption and bribery matters. those articles therefore require undertakings to report both on how various sustainability matters affect the undertaking , and on the impacts of the activities of the undertaking on people and the environment. that is referred to as the double-materiality perspective , in which the risks to the undertaking and the impacts of the undertaking each represent one materiality perspective. the fitness check on corporate reporting shows that those two perspectives are often not well understood or applied. it is therefore necessary to clarify that undertakings should consider each materiality perspective in its own right , and should disclose information that is material from both perspectives as well as information that is material from only one perspective.


### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52 . in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53 . the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu. the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability of information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards to ensure that information is comparable and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit and digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information. ### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52 . in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53 . the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu. the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability , reliability and sincerity of the information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards to ensure that information is comparable , reliable and sincere and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit and digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information.


### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52 . in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53 . the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu. the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability of information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards to ensure that information is comparable and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit and digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information. ### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52 . in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53 . the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu. the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability , reliability and sincerity of the of information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards to ensure that information is comparable , reliable and sincere and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit an digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information.


### (2) in its action plan: financing sustainable growth the commission set out measures to achieve the following objectives: reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth , manage financial risks stemming from climate change , resource depletion , environmental degradation and social issues , and foster transparency and long-termism in financial and economic activity33 . the disclosure by undertakings of relevant , comparable and reliable sustainability information is a prerequisite for meeting those objectives. the european parliament and the council adopted a number of legislative acts as part of the implementation of the action plan on financing sustainable growth. regulation (eu) 2019/2088 of the european parliament and of the council34 governs how financial market participants and financial advisers are to disclose sustainability information to end investors and asset owners. regulation (eu) 2020/852 of the european parliament and of the council35 creates a classification system of environmentally sustainable economic activities with the aim of scaling up sustainable investments and combatting greenwashing of financial products that unduly claim to be sustainable. regulation (eu) 2019/2089 of the european parliament and of the council36 , complemented by commission delegated regulations (eu) 2020/181637 , (eu) 2020/181738 and (eu) 2020/181839 , introduces environmental , social and governance (‘esg’) disclosure requirements for benchmarks administrators and minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks. regulation (eu) no 575/2013 of the european parliament and of the council40 requires large institutions which have issued securities that are admitted to trading on a regulated market to disclose information on esg risks from 28 june 2022. the new prudential framework for investment firms set by regulation (eu) 2019/2033 of the european parliament and of the council41 and directive (eu) 2019/2034 of the european parliament and of the council42 contains provisions concerning the introduction of an esg risk dimension in the supervisory review and evaluation process (srep) by competent authorities , and contains esg risks disclosure requirements for investment firms , applicable from 26 december 2022. the commission has also announced a proposal on a european green bond standard in its work programme for 2021 , following up on the action plan on financing sustainable growth. ### (2) in its action plan: financing sustainable growth the commission set out measures to achieve the following objectives: reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth , manage financial risks stemming from climate change , resource depletion , environmental degradation and social issues , and foster transparency and long-termism in financial and economic activity33 . the disclosure by undertakings of relevant , comparable and reliable sustainability information is a prerequisite for meeting those objectives. in its guidelines on reporting climate-related information , the european commission highlighted the benefits for companies to report on climate related information particularly by increasing awareness and understanding of climate related risks and opportunities within the company , diversifying investor base , creating a lower cost of capital and by improving constructive dialogue with all stakeholders. the european parliament and the council adopted a number of legislative acts as part of the implementation of the action plan on financing sustainable growth. regulation (eu) 2019/2088 of the european parliament and of the council34 governs how financial market participants and financial advisers are to disclose sustainability information to end investors and asset owners. regulation (eu) 2020/852 of the european parliament and of the council35 creates a classification system of environmentally sustainable economic activities with the aim of scaling up sustainable investments and combatting greenwashing of financial products that unduly claim to be sustainable. regulation (eu) 2019/2089 of the european parliament and of the council36 , complemented by commission delegated regulations (eu) 2020/181637 , (eu) 2020/181738 and (eu) 2020/181839 , introduces environmental , social and governance (‘esg’) disclosure requirements for benchmarks administrators and minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks. regulation (eu) no 575/2013 of the european parliament and of the council40 requires large institutions which have issued securities that are admitted to trading on a regulated market to disclose information on esg risks from 28 june 2022. the new prudential framework for investment firms set by regulation (eu) 2019/2033 of the european parliament and of the council41 and directive (eu) 2019/2034 of the european parliament and of the council42 contains provisions concerning the introduction of an esg risk dimension in the supervisory review and evaluation process (srep) by competent authorities , and contains esg risks disclosure requirements for investment firms , applicable from 26 december 2022. the commission has also announced a proposal on a european green bond standard in its work programme for 2021 , following up on the action plan on financing sustainable growth.


### (4) in its resolution on sustainable finance of 29 may 201843 , the european parliament called for the further development of non-financial reporting requirements in the framework of directive 2013/34/eu. in its resolution on sustainable corporate governance of 17 december 202044 , the european parliament welcomed the commission’s commitment to review directive 2013/34/eu and expressed the need to set up a comprehensive union framework on non-financial reporting that contains mandatory union non-financial reporting standards. the european parliament called for the expansion of the scope of the reporting requirements to additional categories of undertakings and for the introduction of an audit requirement. ### (4) in its resolution on sustainable finance of 29 may 201843 , the european parliament called for the further development of non-financial reporting requirements in the framework of directive 2013/34/eu. in its resolution on sustainable corporate governance of 17 december 202044 , the european parliament welcomed the commission’s commitment to review directive 2013/34/eu and expressed the need to set up a comprehensive union framework on non-financial reporting that contains mandatory union non-financial reporting standards. the european parliament called for the expansion of the scope of the reporting requirements to additional categories of undertakings , for the identification of high-risk sectors of economic activity with a significant impact on sustainability matters that could justify the inclusion of small and medium sized enterprises (smes) , and for the introduction of an audit requirement. furthermore , the resolution called for a sustainability approach that would imply that companies should give due consideration and respect for the planetary boundaries , in order to address the most pressing risks posed by their activities.


### (4) in its resolution on sustainable finance of 29 may 201843 , the european parliament called for the further development of non-financial reporting requirements in the framework of directive 2013/34/eu. in its resolution on sustainable corporate governance of 17 december 202044 , the european parliament welcomed the commission’s commitment to review directive 2013/34/eu and expressed the need to set up a comprehensive union framework on non-financial reporting that contains mandatory union non-financial reporting standards. the european parliament called for the expansion of the scope of the reporting requirements to additional categories of undertakings and for the introduction of an audit requirement. ### (4) in its resolution on sustainable finance of 29 may 201843 , the european parliament called for the further development of non-financial reporting requirements in the framework of directive 2013/34/eu. in its resolution on sustainable corporate governance of 17 december 202044 , the european parliament welcomed the commission’s commitment to review directive 2013/34/eu and expressed the need to set up a comprehensive union framework on non-financial reporting that contains mandatory union non-financial reporting standards. the european parliament called for the expansion of the scope of the reporting requirements to additional categories of undertakings for the identification of high-risk sectors of economic activity with a significant impact on sustainability matters that could justify the inclusion of small and medium sized enterprises (smes) , and for the introduction of an audit requirement. furthermore , the resolution called for a sustainability approach that would imply that companies should give due consideration and respect for the planetary boundaries , in order to address the most pressing risks posed by their activities.


### (4) in its resolution on sustainable finance of 29 may 201843 , the european parliament called for the further development of non-financial reporting requirements in the framework of directive 2013/34/eu. in its resolution on sustainable corporate governance of 17 december 202044 , the european parliament welcomed the commission’s commitment to review directive 2013/34/eu and expressed the need to set up a comprehensive union framework on non-financial reporting that contains mandatory union non-financial reporting standards. the european parliament called for the expansion of the scope of the reporting requirements to additional categories of undertakings and for the introduction of an audit requirement. ### (4) in its resolution on sustainable finance of 29 may 201843 , the european parliament called for the further development of non-financial reporting requirements in the framework of directive 2013/34/eu. in its resolution on sustainable corporate governance of 17 december 202044 , the european parliament welcomed the commission’s commitment to review directive 2013/34/eu and expressed the need to set up a comprehensive union framework on non-financial reporting that contains mandatory union non-financial reporting standards. the european parliament called for the expansion of the scope of the reporting requirements to additional categories of undertakings for the identification of high-risk sectors of economic activity with a significant impact on sustainability matters that could justify the inclusion of small and medium sized enterprises (smes) , and for the introduction of an audit requirement.


### (17) the requirement that undertakings not established in the union but with securities listed on regulated markets should also disclose information on sustainability matters responds to the needs of financial market participants for information from such undertakings in order to understand the risks and impacts of their investments , and to comply with the disclosure requirements laid down in regulation (eu) 2019/2088. ### (17) the requirement that undertakings not established in the union but with securities listed on regulated markets or undertakings that are established in the union but listed on markets outside the eu should also disclose information on sustainability matters responds to the needs of financial market participants for information from such undertakings in order to understand the risks and impacts of their investments , and to comply with the disclosure requirements laid down in regulation (eu) 2019/2088.


### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated markets. in order to ensure that all undertakings with securities listed on regulated markets , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report. ### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated and smes growth markets. in order to ensure that all undertakings with securities listed on regulated markets , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report.


### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated markets. in order to ensure that all undertakings with securities listed on regulated markets , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report. ### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated markets and sme growth markets. in order to ensure that all undertakings with securities listed on regulated markets , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report.


### (41) with regard to climate-related information , users are interested in knowing about undertakings’ physical and transition risks , and about their resilience to different climate scenarios. they are also interested in the level and scope of greenhouse gas emissions and removals attributed to the undertaking , including the extent to which the undertaking uses offsets and the source of those offsets. achieving a climate neutral economy requires the alignment of greenhouse gas accounting and offset standards. users need reliable information regarding offsets that addresses concerns regarding possible double-counting and overestimations , given the risks to the achievement of climate-related targets that double-counting and overestimations can create. the reporting standards should therefore specify the information undertakings should report with regard to those matters. ### (41) with regard to climate-related information , users and consumers are interested in knowing about undertakings’ physical and transitional risks , and opportunities about their resilience to different climate scenarios. they are also interested in the level and scope of greenhouse gas emissions and removals attributed to the undertaking , including the extent to which the undertaking uses offsets and the source of those offsets. these parties are also interested to know the efforts made by companies to effectively reduce absolute ghg emissions as part of their climate mitigation and adaption strategies. the reporting standards should therefore specify the information undertakings should report with regard to those matters.


### (41) with regard to climate-related information , users are interested in knowing about undertakings’ physical and transition risks , and about their resilience to different climate scenarios. they are also interested in the level and scope of greenhouse gas emissions and removals attributed to the undertaking , including the extent to which the undertaking uses offsets and the source of those offsets. achieving a climate neutral economy requires the alignment of greenhouse gas accounting and offset standards. users need reliable information regarding offsets that addresses concerns regarding possible double-counting and overestimations , given the risks to the achievement of climate-related targets that double-counting and overestimations can create. the reporting standards should therefore specify the information undertakings should report with regard to those matters. ### (41) with regard to climate-related information , users , including consumers , are interested in knowing about undertakings’ physical and transition risks , and about their resilience to different climate scenarios. they are also interested in the level and scope of greenhouse gas emissions and removals attributed to the undertaking , including the extent to which the undertaking uses offsets and the source of those offsets. these parties are also interested to know the efforts made by companies to effectively reduced absolute ghg emissions as part of their climate mitigation and adaption strategies. the reporting standards should therefore specify the information undertakings should report with regard to those matters.


### (42) achieving a climate neutral and circular economy and a toxic-free environment requires the full mobilisation of all economic sectors. reducing energy use and increasing energy efficiency is key in this respect as energy is used across supply chains. energy aspects should therefore be duly considered in sustainability reporting standards , in particular in relation to environmental matters. ### (42) achieving a climate neutral and circular economy and a toxic-free environment , without any diffuse pollution requires the full mobilisation of all economic sectors. reducing energy use and increasing energy efficiency is key in this respect as energy is used across supply chains. energy aspects should therefore be duly considered in sustainability reporting standards , in particular in relation to environmental and climate related matters.


### (42) achieving a climate neutral and circular economy and a toxic-free environment requires the full mobilisation of all economic sectors. reducing energy use and increasing energy efficiency is key in this respect as energy is used across supply chains. energy aspects should therefore be duly considered in sustainability reporting standards , in particular in relation to environmental matters. ### (42) achieving a climate neutral and circular economy and a toxic-free environment without any diffuse pollution , requires the full mobilisation of all economic sectors. reducing energy use and increasing energy efficiency is key in this respect as energy is used across supply chains. energy aspects should therefore be duly considered in sustainability reporting standards , in particular in relation to environmental and climate related matters.


### (46) undertakings in the same sector are often exposed to similar sustainability-related risks , and they often have similar impacts on society and the environment. comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. sustainability reporting standards adopted by the commission should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. standards should also take account of the difficulties that undertakings may encounter in gathering information from actors throughout their value chain , especially from sme suppliers and from suppliers in emerging markets and economies. ### (46) undertakings in the same sector are often exposed to similar sustainability-related risks , and they often have similar impacts on society and the environment. comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. sustainability reporting standards adopted by the commission should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. standards applicable to undertakings active in the extractive industry and the logging of forests should be consistent with reporting requirements of chapter 10 of directive 2013/34/eu and require sustainability disclosures to be made at project-level. project-level disclosures are crucial for investors who need consistent and detailed information on projects to fully understand the impact of climate-related financial risk on the economic producibility of reserves in the fossil fuels sector and also to understand the resilience of supply of critical transition minerals. project-level disclosure is equally crucial for communities affected by the extractive and logging industries and civil society organisations of resource-rich countries , to understand and scrutinize the benefits of the oil , gas , mining and logging industries and their environmental , social and governance impacts. standards should also take account of the difficulties that undertakings may encounter in gathering information from actors throughout their value chain , especially from sme suppliers and from suppliers in emerging markets and economies.


### (46) undertakings in the same sector are often exposed to similar sustainability-related risks , and they often have similar impacts on society and the environment. comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. sustainability reporting standards adopted by the commission should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. standards should also take account of the difficulties that undertakings may encounter in gathering information from actors throughout their value chain , especially from sme suppliers and from suppliers in emerging markets and economies. ### (46) undertakings in the same sector are often exposed to similar sustainability-related risks , and they often have similar impacts on society and the environment. comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. sustainability reporting standards adopted by the commission should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. standards applicable to undertakings active , e.g. in the extractive industry and the logging of forests , should be consistent with reporting requirements of chapter 10 of directive 2013/34/eu and require sustainability disclosures to be made at project-level. project-level disclosures are crucial for investors who need consistent and detailed information on projects to fully understand the impact of climate-related financial risk in the fossil fuels sector and regarding the supply of critical transition minerals. project-level disclosure is equally crucial for communities affected by the extractive and logging industries and civil society organisations of resource-rich countries , to understand and scrutinize the benefits of the oil , gas , mining and logging industries and their environmental , social and governance impacts. standards should also take account of the difficulties that undertakings may encounter in gathering information from actors throughout their value chain , especially from sme suppliers and from suppliers in emerging markets and economies.


### 2. the power to adopt delegated acts referred to in article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c shall be conferred on the commission for an indeterminate period of time. ### 2. the power to adopt delegated acts referred to in article 1(2) , article 3(13) and article 46(2) , shall be conferred on the commission for an indeterminate period of time.


### 3. the delegation of power referred to in article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c may be revoked at any time by the european parliament or by the council. a decision to revoke shall put an end to the delegation of the power specified in that decision. it shall take effect the day following the publication of that decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force.; ### 3. the delegation of power referred to in article 1(2) , article 3(13) and article 46(2) may be revoked at any time by the european parliament or by the council. a decision to revoke shall put an end to the delegation of the power specified in that decision. it shall take effect the day following the publication of that decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force.


### (1) in article 1 , the following paragraph 3 is added: ### (1) in article 1 , the following paragraph 3 and 3a are added:


### (2) in article 2 , the following points (17) to (20) are added: ### (2) in article 2 , the following points (17) to (20e) are added:


### the following paragraph 3a is inserted: ### the following paragraph -3a and 3a is inserted:


### 3. recalls that the yearly exchange of views in the empl committees regarding the annual work programmes and the multiannual strategies of the agencies is instrumental in ensuring that the programmes and strategies are aligned to the actual political priorities , especially in the context of the implementation of the principles enshrined in the european pillar of social rights; ### 3. recalls that the yearly exchange of views in the empl committees regarding the annual work programmes and the multiannual strategies of the agencies is instrumental in ensuring that the programmes and strategies are aligned to the actual political priorities , especially in the context of the implementation of the principles enshrined in the european pillar of social rights; recalls that the agencies are the most qualified at assessing the use of resources and play a crucial role in supporting the right sustainable projects in line with the european green deal; calls on the commission to ensure funding supporting the eu agencies in securing the social dialogue; notes that eu agencies have a crucial role in securing social dialogue with the eu institutions;


### 2. stresses that the court found that the payments underlying the accounts were legal and regular for all agencies except for eu-lisa , for which a qualified opinion was issued because of two payments that were not compliant with the provisions of framework contracts , amounting in total to eur 10 405 074 , representing 4 ,1 % of the total payment appropriations available in 2020; acknowledges eu-lisa's reply that the largest irregular payment was connected to an administrative omission concerning the acquisition of a different software from the one offered by the contractor in the tender for the associated framework contract; notes , furthermore , that the need to change one of the auxiliary software products used in the operation of the shared biometric matching system (sbms) was of a pure operational nature , with the purpose of reducing the duplication of training and support efforts , ultimately reducing the overall operational costs for eu-lisa; underlines that following the issuance of the court observation , eu-lisa responded promptly , signing an amendment to the framework contract in order to rectify the initial omission; ### 2. stresses that the court found that the payments underlying the accounts were legal and regular for all agencies except for eu-lisa , for which a qualified opinion was issued because of two payments that were not compliant with the provisions of framework contracts , amounting in total to eur 10 405 074 , representing 4 ,1 % of the total payment appropriations available in 2020;


### b. whereas associations and npos are fundamental to representing the interests of citizens and civil society; ### b. whereas associations and npos are fundamental to representing the interests of citizens and civil society , and often make use of , and promote the freedom of expression , in particular in relation to promoting the public interest;


### c. whereas european democracy depends on civil society being able to function freely and across borders; ### c. whereas european democracy depends on civil society being able to function freely and across borders , as recognised also in article 11 teu supporting an open , transparent and structured dialogue with civil society and representative associations;


### k. whereas associations and npos play a key role in supporting individuals to actively participate in the democratic life; ### k. whereas associations and npos play a key role in supporting individuals to actively participate in the democratic and social life;


### 4. stresses that , in light of the growing number of threats which transcend national boundaries such as environmental damages , pandemics or the misuse of digital technologies , the potential of cross-border npo activities should be unlocked; emphasises that cross-border activities should both mean activities or cooperation carried out in more than one member state and activities furthering the union’s objectives or contributing to the promotion and safeguarding of its values; ### 4. stresses that , in light of the growing number of threats which transcend national boundaries such as the climate emergency , environmental damages , pandemics or the misuse of digital technologies , but also with regards to the many successful cross-border projects , the potential of cross-border npo activities should be unlocked; emphasises that cross-border activities should both mean activities or cooperation carried out in more than one member state and activities furthering the union’s objectives or contributing to the promotion and safeguarding of its values;


### 4. stresses that the fundamental right of association is still not fully supported under various jurisdictions of the member states because of the lack of appropriate organisational forms and lack of equal treatment of existing forms throughout the union , hindering cross-national projects and mobility of civil society , and causing legal uncertainty; ### 4. stresses that even though the freedom of movement and establishment is embedded in the treaties , the fundamental right of association is still not fully supported under various jurisdictions of the member states because of the lack of appropriate organisational forms and lack of equal treatment of existing forms throughout the union , hindering cross-national projects and mobility of civil society , and causing legal uncertainty;


### 5. regrets the lack of an instrument to further facilitate the free movement of associations and npos , regardless of where in the union they have been established , or their members reside; ### 5. regrets the lack of an instrument to further facilitate the freedom of movement for associations and npos , regardless of where in the union they have been established , or their members reside , in particular by removing legal and administrative hurdles;


### 6. considers that npos cannot thrive at union level if the space in which they operate is being restricted in a number of member states; considers therefore that the setting of common minimum standards will also help to provide a minimum level of protection throughout the union and to spread best practices; ### 6. considers that npos cannot thrive at union level if the space in which they operate is being restricted in any number of member states; emphasizes that public interest advocacy and political activism should be recognised as in the public interest , as long as it is not systematically and directly aimed to benefit the structures of a specific political party; considers therefore that the setting of common minimum standards will also help to provide a minimum level of protection throughout the union and to spread best practices;


### 6. stresses that due to the lack of harmonisation , npos that operate across europe often face fees , formalities , and administrative and other hurdles , in particular when they rely on cross-border financing; ### 6. stresses that due to the lack of harmonisation , npos that operate across europe often face fees , formalities , and administrative and other hurdles , in particular when they rely on cross-border financing , and when relocating to a different member state; underlines that these hurdles also lead to a multiplication of workload when needing to follow multiple different administrative procedures in more than one member state;


### 7. suggests that where relevant , the commission should complement the legislative acts called for in this report with guidelines to assist member states in their implementation; ### 7. urges the commission to develop a dedicated , comprehensive strategy to strengthen civil society in europe , including by introducing measures to facilitate the operations of associations and non-profit organisations on all levels; suggests that where relevant , the commission should complement the legislative acts called for in this report with guidelines to assist member states in their implementation;


### 7. stresses that the lack of harmonisation also leads to an uneven playing field due to the different market conditions and other obstacles that npos face in different member states , for example when opening bank accounts , or hiring staff; ### 7. stresses that the lack of harmonisation also leads to an uneven playing field due to the different market conditions and other obstacles that npos face in different member states , for example when opening bank accounts , raising and accounting for foreign funds , or hiring staff , in particular when hiring cross-border which should be facilitated in line with the principle of free movement of workers;


### 8. points out that associations and npos contribute to innovation , research , economic development , and job creation; ### 8. points out that associations and npos contribute to innovation , research , economic development , and job creation , in particular , but not limited to , the social , entrepreneurial , technology , and cultural sectors;


### 9. asks the commission to create reliable and frequently updated statistical resources , to be included in eurostat; ### 9. asks the commission to create reliable and frequently updated statistical resources , based on established methodology ensuring transparency and comparability , and to allow for these data to be included in eurostat; regrets that data are scarcely available or outdated , while the 2017 study commissioned by the eesc , “recent evolutions of the social economy in the european union” , states that out of a total of “13.6 million paid employments in cooperatives , mutual societies , associations , foundations and similar entities in the european union (2014-15)” , 9 million stemmed from employments in associations and foundations1a , making them the number one in employment in the sector before “cooperatives and similar” , and mutual societies , thus highlighting the importance of the availability of more data with a wider aim than at the social economy;


### 10. regrets that the commission and the member states have not brought forward legislation to harmonise the situation of associations and npos throughout the eu nor established a statute for a european association despite several attempts , and numerous calls by civil society; ### 10. regrets that despite the importance of associations and non-profit organisations for society , the commission and the member states have not brought forward legislation to harmonise their situation throughout the eu , and to promote the freedom of association for civil society , nor established a statute for a european association despite several attempts , and numerous calls by civil society , and the parliament;


### 12. considers that , due to their particular character , the proposed legal instruments are to refrain from regulating political parties; furthermore , recalls that the union respects the status of churches , religious organisations or communities , as well as philosophical or non-confessional organisations under national law; underlines that this does not preclude organisations that only draw from a religious , philosophical or non-confessional inspiration such as faith-based charitable npos , from benefitting from the scope of these proposals; points out that trade unions in several member states are given a special beneficial status and should therefore be given a choice to make use of the provisions under the proposed instruments; ### 12. considers that , due to their particular character , the proposed legal instruments are to refrain from regulating political parties; furthermore , recalls that the union respects the status of churches , religious organisations or communities , as well as philosophical or non-confessional organisations under national law; underlines that this does not preclude organisations that only draw from a religious , philosophical or non-confessional inspiration such as faith-based charitable npos , from benefitting from the scope of these proposals; points out that trade unions and other associations with a trade union aim in several member states are given a special beneficial status and should therefore be given a choice to make use of the provisions under the proposed instruments;


### l. whereas cross-border associations and npos in particular contribute greatly to the achievement of the union’s objectives and develop many and various activities of general interest with a transnational relevance; ### l. whereas cross-border associations and npos in particular contribute greatly to the achievement of the union’s objectives and develop many and various activities of a transnational relevance which benefit the general interest in fields such as the protection and promotion of fundamental rights and values , environmental protection , education , culture , social work or development aid;


### n. whereas the terms “association” and “npo” should , for the purpose of this report , be understood to reflect the multitude of forms of organisation in the union , and encompass not only associations , npos , but also philanthropical organisations such as foundations , and other , similar organisations; ### n. whereas the terms “association” and “npo” should , for the purpose of this report , be understood to reflect the multitude of forms of non-profit organisations in the union , and encompass not only associations , npos , but also philanthropical organisations such as foundations , and other , similar organisations;


### 13. is alarmed by the increasing hindrances faced by associations and npos across the union deriving from national laws , regulations or administrative practices or policies , ### 13. is alarmed by the increasing hindrances faced by associations and npos across the union deriving from national laws , regulations or administrative practices or policies , which negatively affect civil society and unduly restrict the fundamental rights of citizens , especially that of freedom of association , of expression , and of information;


### 14. takes well into account the possibilities digitalisation and the internet provide to facilitate the exercise of the right to freedom of association; ### 14. takes well into account the possibilities digitalisation and the internet provide to facilitate the exercise of the right to freedom of association , for example making registration and forming of associations and non-profit organisations easier and readily available online ;


### 15. emphasizes that npos are instrumental for democracy and policy making at all levels; condemns attempts to depoliticise npos , such as by refusing or challenging their status as public benefit organisation where their activities are not meant to benefit one particular party; ### 15. emphasizes that npos are instrumental for democracy and policy making at all levels; welcomes civil society engagement in public interest advocacy , political activism , and active social life; condemns attempts to depoliticise npos , such as by refusing or challenging their status as public benefit organisation based on perceived or real political activity , where their activities are not meant to benefit , or substitute party politics of one particular party;


### 16. maintains that regulation will only benefit european civil society if npos can make use of adequate and easily accessible funding both at national and at european level; points out that public financing of npos , is important since they have less access to income from profit-making activities; points out that the own funds requirement should be limited and non-monetary contributions of npos counted as such. ### 16. maintains that regulation will only benefit european civil society if npos can make use of adequate and easily accessible funding both at national and at european level; points out that public financing of npos , is important since they have less access to income from profit-making activities; points out that the own funds requirement should be limited and non-monetary contributions of npos counted as such; notes that often funds available for non-profit organisations require co-financing , which means that often eu funds available for non-profit organisations require co-financing , which in turn means that the beneficiary needs to raise a share of the required funds from other sources; points out that requiring too high a share of own resources would be detrimental to the organisation , which may not be able to raise this , leading to some organisations being excluded; therefore believes that the share of co-financing should be limited and that different means need to be taken into account which could be monetarised such as volunteer time or contributions in kind;


### 19. requests the commission to submit , on the basis of article 114 of the treaty on the functioning of the european union , a proposal for a directive on common measures for npos in the eu , creating a level playing field for associations and npos by establishing minimum standards , following the recommendations set out in this motion , and annex i hereto; ### 19. requests the commission to submit , on the basis of article 114 of the treaty on the functioning of the european union , a proposal for a directive on common minimum standards for non-profit organisations in the union , creating a level playing field for associations and npos by establishing minimum standards , enabling civil society to benefit from freedoms , fundamental rights , as well as to contribute to strengthening european democracy , following the recommendations set out in this motion , and annex part ii hereto;


### 20. requests the commission to submit on the basis of article 352 of the treaty on the functioning of the european union , a regulation establishing a statute for a european association , following the recommendations set out in this motion , and annex ii hereto; ### 20. requests the commission to submit on the basis of article 352 of the treaty on the functioning of the european union , a regulation establishing a statute for a european association , following the recommendations set out in this motion , and annex part i hereto;


### (5) associations play a key role in helping and encouraging individuals to actively participate in the democratic life of the union. ### (5) associations play a key role in helping and encouraging individuals to actively participate in the democratic and social life of the union.


### (12) it is therefore necessary to establish at union level appropriate and rules which will permit the creation of european associations. ### (12) it is therefore necessary to establish at union level appropriate and rules which will permit the creation of european associations with an own legal personality.


### 2. ‘independent’ means free from any undue state interference and not part of a government or administrative structure. in this respect , receiving governmental funding shall not preclude an association from being deemed independent , as long as the autonomy of the association’s functioning and decision making is not affected by such funding; ### 2. ‘independent’ means free from any undue state interference and not part of a government or administrative structure. in this respect , neither receiving governmental funding nor participating in a consultative body to the government shall preclude an association from being deemed independent , as long as the autonomy of the association’s functioning and decision making is not affected;


### take binding decisions as provided for by articles 10 , 11 , 19 , 24 and 25 of this regulation; ### take binding decisions as provided for by articles 10 , 11 , 19 , 24 and 27 of this regulation;


### 2. in the event of formation of a european association by conversion pursuant to paragraph 2(a) of article 10 , members shall decide whether the european association’s registered office is to remain in the member state where the original entity was registered , or rather is to be moved to another member state. ### 2. in the event of formation of a european association by conversion pursuant to paragraph 2(a) of article 6 , members shall decide whether the european association’s registered office is to remain in the member state where the original entity was registered , or rather is to be moved to another member state.


### 3. in the event of formation of a european association by merger pursuant to paragraph 2(b) of article 10 , the members shall decide in which of the member states in which the merging entities are registered the registered office of the european association is to be located. ### 3. in the event of formation of a european association by merger pursuant to paragraph 2(b) of article 6 , the members shall decide in which of the member states in which the merging entities are registered the registered office of the european association is to be located.


### 2. registration shall occur via a standardised registration procedure to be developed and set up by the european associations authority. the registration procedure shall be electronic and free of charge and shall allow applicants to use the official language or one of the official languages of the member state where the european association has its registered office. the european associations authority and national supervisory authorities shall make it possible to register by non-digital means for the citizens who wish to do so. ### 2. registration shall occur via a standardised registration procedure to be developed and set up by the european associations authority. the registration procedure shall be electronic , accessible as well as free of charge and shall allow applicants to use the official language or one of the official languages of the member state where the european association has its registered office. the european associations authority and national supervisory authorities shall make it possible to register by non-digital means for the citizens who wish to do so.


### 5. the meetings of the general assembly may be held online without that affecting their validity , or the validity of the decisions adopted. ### 5. the meetings of the general assembly may be held in presence , online , or as a combination of both , without that affecting their validity , or the validity of the decisions adopted.


### the organisation’s purpose and actual activities pursue a public benefit objective which serves the welfare of society or of part of it , and is thus beneficial for the public good , including charitable , purposes , or political activism , except where this is systematically and directly aimed to benefit the structures of a specific political party. the following purposes shall be considered as oriented towards public benefit. although the list shall not be considered as exclusive: ### the organisation’s purpose and actual activities pursue a public benefit objective which serves the welfare of society or of part of it , and is thus beneficial for the public good , including charitable , purposes , public interest advocacy , or political activism , except where this is systematically and directly aimed to benefit the structures of a specific political party. the following purposes shall be considered as oriented towards public benefit. although the list shall not be considered as exclusive:


### the promotion and protection of fundamental rights and union values , including the elimination of any discrimination based on gender , race , ethnicity , religion , disability , sexual orientation or any other grounds; ### the promotion and protection of fundamental rights and union values , including democracy , the rule of law , the elimination of any discrimination based on gender , race , ethnicity , religion , disability , sexual orientation or any other grounds;


### the information referred to in the first subparagraph shall accompany the annual report on the activities and foreseeable prospects of the european association’s affairs that the board shall transmit to the national supervisory authority and the european associations authority pursuant to article 14(7) of this regulation. ### the information on annual accounts referred to in the first subparagraph shall accompany the annual report on the activities and foreseeable prospects of the european association’s affairs that the board shall transmit to the national supervisory authority and the european associations authority pursuant to article 14(7) of this regulation.


### 5. european associations shall not be required to disclose information on their members , in particular with regards to the objectives and activities of the association. disclosing information on members shall not be required unless necessary for the purpose of a criminal investigation concerning criminal offences punishable by a custodial sentence of a maximum of at least one year. ### 5. european associations shall not be required to disclose information on their members , in particular with regards to the objectives and activities of the association. disclosing information on members shall not be required unless necessary for the purpose of a criminal investigation concerning criminal offences punishable by a custodial sentence of a maximum of at least three years.


### 1. a european association may be dissolved by binding decision of the european associations authority , taken on its own initiative or at the request of the supervisory authority of the member state in which the european association has its registered office , if: ### 1. a european association shall only be dissolved by binding decision of the european associations authority , taken on its own initiative or at the request of the supervisory authority of the member state in which the european association has its registered office , if:


### proposal for a directive of the european parliament and of the council of the european union on common minimum standards for non-profit organisations in the eu (minimum standards directive) ### proposal for a directive of the european parliament and of the council of the european union on common minimum standards for non-profit organisations in the union (minimum standards directive)


### (3) non-profit organizations make a key contribution to the achievement of goals that are in the public interest and to achieve the union’s objectives , including by promoting active participation in the economic and democratic life of our societies. ### (3) non-profit organizations make a key contribution to the achievement of goals that are in the public interest and to achieve the union’s objectives , including by promoting active participation in the economic , democratic , and social life of our societies.


### (11) it is necessary at union level to build on existing standards and guidance to establish minimum standards for non-profit organisations , aimed at ensuring a uniform level of protection and a level playing field for all non-profit organisations established in the union , in order to secure an enabling environment in which these organisations can contribute without hindrances to the functioning of the internal market. ### (11) it is necessary at union level to build on existing standards and guidance to establish minimum standards for non-profit organisations , aimed at ensuring a level playing field and a uniform level of protection for all non-profit organisations established in the union , in order to secure an enabling environment in which these organisations can contribute without hindrances to the functioning of the internal market.


### (17) trade unions and foundations , associations or other non- profit bodies with a trade union aim should be excluded from the application. this exclusion should not in anyway be used by member states to justify a limitation of trade union prerogatives and rights recognised in national , eu , european or international law or human rights instruments; ### (17) trade unions , organisations that are associations of trade unions , and foundations , associations or other non- profit bodies with a trade union aim should be excluded from the application. this exclusion should not in anyway be used by member states to justify a limitation of trade union prerogatives and rights recognised in national , eu , european or international law or human rights instruments;


### (30) non-profit organisations should be consulted in a meaningful way about the introduction and implementation of any legislation , policies and practices that affect their operations. member states should consult in a timely , transparent and meaningful manner non-profit organisations already established , registered or operating in their territories on the transposition and implementation of the directive’s provisions. ### (30) non-profit organisations should be consulted in a meaningful way about the introduction , review and implementation of any legislation , policies and practices that affect their operations. a regular and transparent dialogue should be established at all governmental levels. member states should consult in a timely , transparent and meaningful manner non-profit organisations already established , registered or operating in their territories on the transposition and implementation of the directive’s provisions.


### pursue a primary aim which is not that of generating a profit , meaning that if any profits are earned from the organisation’s activities , they cannot be distributed as such among its members , founders or any other private parties , but shall be invested for the pursuit of its objectives; ### pursue a primary aim which is not that of generating a profit , meaning that if any profits are earned from the organisation’s activities , profits cannot be distributed as such among its members , founders or any other private parties , but shall be invested for the pursuit of its objectives;


### 3. this directive applies to non-profit organisations meeting the criteria set out in paragraph 2 irrespective of whether or not they are membership-based and , of whether or not they are granted legal personality under the law of the member state in which they are based. ### 3. this directive applies to non-profit organisations meeting the criteria set out in paragraph 2 irrespective of whether or not they are membership-based and , of whether or not they are registered or granted legal personality under the law of the member state in which they are based.


### 5. trade unions or foundations , associations or other non-profit bodies with a trade union aim , shall be excluded from the scope of this directive. however , when implementing this directive , member states shall ensure that trade unions or foundations , associations or other non-profit bodies with a trade union aim , may decide to fall under the application of parts of the directive or of the directive as a whole , if they so wish. ### 5. trade unions , organisations that are associations of trade unions , or foundations , associations or other non-profit bodies with a trade union aim , shall be excluded from the scope of this directive. however , when implementing this directive , member states shall ensure that trade unions or foundations , associations or other non-profit bodies with a trade union aim , may decide to fall under the application of parts of the directive or of the directive as a whole , if they so wish.


### 2. member states shall ensure that national laws , regulations or administrative practices regulating non-profit organisations , including their formation , registration , operations , financing and cross-border activities , do not discriminate against any group or individual on any grounds , such as age , birth , colour , gender , sexual orientation , gender identity , health condition , immigration or residency status , language , national , ethnic or social origin , political or other opinion , physical or mental disability , property , race , religion or belief or other status. ### 2. member states shall ensure that national laws , regulations or administrative practices regulating non-profit organisations , including their formation , registration , operations , financing and cross-border activities , do not discriminate against any group or individual on any grounds , such as age , birth , colour , gender , sexual orientation , gender identity , health condition , immigration or residency status , language , national , ethnic or social origin , political or other opinion , disability , property , race , religion or belief or other status.


### 1. member states shall establish a presumption in favour of the objectives and activities of non-profit organisations , which may be rebutted insofar as they pose a serious threat to public policy , public security or public order. ### 1. member states shall ensure that the lawfulness of their objectives and activities of non-profit organisations , which may only be rebutted insofar as they pose a serious threat to public policy , public security or public order.


### 3. notwithstanding paragraph 2 , non-profit organisations may be required to disclose and make public , in their statutes or by other means , further information on their operations , functioning or financing , insofar as this is necessary to genuinely meet an objective of general interest , subject to the principle of proportionality in particular with regards to the objectives and activities of the organisation. disclosing the members lists of membership-based non-profit organizations shall not be required by state authorities , unless required for the purpose of a criminal investigation concerning criminal offences punishable by a custodial sentence of a maximum of at least one year. ### 3. notwithstanding paragraph 2 , non-profit organisations may be required to disclose and make public , in their statutes or by other means , further information on their operations , functioning or financing , insofar as this is necessary to genuinely meet an objective of general interest , subject to the principle of proportionality in particular with regards to the objectives and activities of the organisation. disclosing the members lists of membership-based non-profit organizations shall not be required by state authorities , unless required for the purpose of a criminal investigation concerning criminal offences punishable by a custodial sentence of a maximum of at least three years.


### 5. member states shall ensure that cooperation between natural or legal persons that did not seek to acquire legal personality are not deemed to constitute a non-profit organisation with legal personality for the sole purpose of subjecting them to national laws , regulations or administrative practices and so regulate or affect their operations , financing and cross-border activities , unless there are grounds to maintain that the non-profit organisation is a criminal organisation pursuant to national law or this is necessary for the purpose of the investigation or prosecution of criminal offences punishable by a custodial sentence of a maximum of responsibility punished by at least 3 years. ### 5. member states shall ensure that cooperation between natural or legal persons that did not seek to acquire legal personality are not deemed to constitute a non-profit organisation with legal personality for the sole purpose of subjecting them to national laws , regulations or administrative practices and so regulate or affect their operations , financing and cross-border activities , unless there are grounds to maintain that the non-profit organisation is a criminal organisation pursuant to national law or this is necessary for the purpose of the investigation or prosecution of criminal offences punishable by a custodial sentence of a maximum of at least three years.


### the organisation’s purpose and actual activities pursue a public benefit objective which serves the welfare of society or of part of it and is thus beneficial for public good , including charitable purposes or political activism , except where this is systematically and directly aimed to benefit the structures of a specific political party. the following purposes shall be considered as oriented towards public benefit , although the list shall not be considered as exclusive: ### the organisation’s purpose and actual activities pursue a public benefit objective which serves the welfare of society or of part of it and is thus beneficial for public good , including charitable purposes , public interest advocacy , or political activism , except where this is systematically and directly aimed to benefit the structures of a specific political party. the following purposes shall be considered as oriented towards public benefit , although the list shall not be considered as exclusive:


### the promotion and protection of fundamental rights and union values , including the elimination of any discrimination based on gender , race , ethnicity , religion , disability , sexual orientation or any other grounds; ### the promotion and protection of fundamental rights and union values , including democracy , the rule of law , the elimination of any discrimination based on gender , race , ethnicity , religion , disability , sexual orientation or any other grounds;


### 2. member states shall ensure that involuntary termination , prohibition or dissolution of a non-profit organisation can only the consequence of infringements of national law that cannot be rectified or remedied. ### 2. member states shall ensure that involuntary termination , prohibition or dissolution of a non-profit organisation can only be the consequence of infringements of national law that cannot be rectified or remedied.


### have access to a simplified registration procedure which will include recognize the information and documentation already provided by the non-profit organisation to the member state in which it was previously registered. ### have access to a simplified registration procedure which will recognize the information and documentation already provided by the non-profit organisation to the member state in which it was previously registered.


### 3. member states shall establish the legal form the converted or merged organisation shall take based on the principle of equivalence. ### 3. member states shall establish the legal form the converted or merged organisation shall take , based on the principle of equivalence.


### 3. takes note that there is still ongoing action concerning the irregular payments related to the irregular procurement procedures for the supply of electricity and the refurbishment of toilet facilities in the financial year 2019 , which amounted to eur 62 470 for the electricity contract and eur 174 730 for the refurbishment contract; ### 3. takes note that there is still ongoing action concerning the irregular payments related to the irregular procurement procedures for the supply of electricity and the refurbishment of toilet facilities in the financial year 2019 , which amounted to eur 62 470 for the electricity contract and eur 174 730 for the refurbishment contract; notes from the foundation’s reply that it has accepted the observations of the eca and that two payments had to be made in conjunction with two irregular procurement procedures as a direct consequence of the original tender procedures;


### 6. commends that , when the covid crisis started , teleworking arrangements had already been in place since october 2017 , with staff being equipped with laptops , and with online collaborative working tools and paperless procedures at their disposal , thus allowing the staff to continue working after 17 march 2020 , when all operations began to be carried out remotely; ### 6. commends that , when the covid crisis started , teleworking arrangements had already been in place since october 2017 , with staff being equipped with laptops , and with online collaborative working tools and paperless procedures at their disposal , thus allowing the staff to continue working after 17 march 2020 , when all operations began to be carried out remotely; congratulates the centre for its resilience and agility and its outperformance of the 2020 work programme despite the challenges posed by the pandemic;


### b. whereas the covid-19 outbreak has reversed the positive trend of the employment rate of the last six years in the eu-27 , resulting in a reduction of the number of persons in work of about 6.1 million in the second quarter of 2020 and a predicted decrease of 4.5 % over the year 202014 ; whereas workers who remain in the labour market have faced a considerable reduction in hours worked and , consequently , loss of income; ### b. whereas the covid-19 outbreak has reversed the positive trend of the employment rate of the last six years in the eu-27 , resulting in a reduction of the number of persons in work of about 6.1 million in the second quarter of 2020 and a predicted decrease of 4.5 % over the year 202014 ; whereas workers who remain employed in the labour market have faced a considerable reduction in hours worked and , consequently , loss of income; whereas many more have become unemployed; whereas subsidies and compensations from the states have been insufficient and not gone to everybody in need , leaving people behind and in more vulnerable positions , at risk of falling into poverty;


### c. whereas hours worked are set to increase faster than headcount employment and employment may also fall further when short-time work schemes are discontinued; whereas the reallocation of workers is usually a lengthy process and employment is therefore expected to decline slightly in 2021; ### c. whereas hours worked are set to increase faster than headcount employment and employment may also fall further when short-time work schemes are discontinued; whereas the reallocation of workers is usually a lengthy process and employment is therefore expected to decline in 2021;


### 1. asserts that the recovery and resilience facility is reshaping the european semester process; underlines that the two processes should be fully coordinated towards building resilience and supporting the recovery from the impact of the covid-19 crisis; ### 1. asserts that the recovery and resilience facility (rrf) is reshaping the european semester process; underlines that the two processes should be fully coordinated towards building resilience and supporting a sustainable , fair and inclusive recovery from the covid-19 crisis; reminds that the crisis further widened social inequalities , as labour market shocks triggered by the sanitary crisis have a stronger impact for those categories of workers that are already in a position of disadvantage1a; highlights the importance of wage compensation schemes that contributed to mitigating lay-offs and reduced working time , which have been impacting millions of workers in the eu; reminds also that the provision of public services has been put under high levels of strain due to the pandemic and that stresses that ensuring access to affordable and high quality services is a key element of a just recovery;


### 2. notes that in the area of social and employment policies , next generation eu (ngeu) and the eu budget can play a subsidiary but instrumental role in triggering , bundling and directing investments towards social development and resilience; appreciates that this role will be enhanced by better coordination of national policies towards overarching eu objectives such as the european green deal , the digital transition and the implementation of the european pillar of social rights , the un sustainable development goals and the eu gender equality strategy; ### 2. notes that in the area of social and employment policies , next generation eu (ngeu) and the eu budget can play a subsidiary but instrumental role in triggering , bundling and directing investments towards social development and resilience resilience and to promote innovative actions; and calls for better coordination of national policies towards overarching eu objectives such as the european green deal , the digital transition and the implementation of the european pillar of social rights , the un sustainable development goals , the eu gender equality strategy and barcelona targets for high quality and affordable childcare and early childhood education;


### 3. highlights the importance of horizontal coordination between eu programmes and national measures for social justice and combating the risk of poverty , the reformed european social fund being the prime example; holds , however , that the social and employment impact should be a transversal consideration across all expenditure programmes; ### 3. highlights the importance of horizontal coordination between eu programmes and national measures for social justice and combating the risk of poverty and the social exclusion , the reformed european social fund being the prime example; strongly underlines at the same time that the social and employment impact should be a transversal consideration across all expenditure programmes;


### 5. regrets that the limited size of the eu budget means that its redistribution and stabilisation functions are also limited; stresses that it is all the more important to take full advantage of all possibilities under the multiannual financial framework (mff) , the ngeu and the own resources system to support national recovery , social justice , and environmental , economic , social and inclusive resilience. ### 5. regrets that the limited size of the eu budget means that its redistribution and stabilisation functions are also limited; stresses that it is all the more important to take full advantage of all possibilities under the multiannual financial framework (mff) , the ngeu and the own resources system to support inclusive recovery , social justice , and environmental , economic , social and institutional resilience.


### 2. appreciates the agency’s activities to develop , gather and provide reliable and relevant information , analysis and tools on occupational safety and health , which contribute to the union policy aiming to promote healthy and safe workplaces across the union; ### 2. appreciates the agency’s activities to develop , gather and provide reliable and relevant information , analysis and tools on occupational safety and health , which contribute to the union policy aiming to promote healthy and safe workplaces across the union; stresses the need to ensure proper resources to allow the agency to implement its work programme , ahead of the new eu strategic framework on health and safety at work (2021-2027)


### 3. takes notes that two corrective actions on the previous years’ court’s observations are ongoing; ### 3. takes notes that two corrective actions reported by eca linked to the high level of committed appropriations carried over from previous years are ongoing;


### 2. appreciates the foundation activities in helping transition and developing countries harness the potential of their human capital through the reform of education , training , and labour market systems , in the context of the union ’s external relations policies; ### 2. welcomes the foundation activities in helping transition and developing union neighbouring countries , enlargement countries and central asian countries harness the potential of their human capital through the reform of education , training , and labour market systems , in the context of the union ’s external relations policies; highlights the need of ensuring adequate human and financial resources allowing the foundation to continue implementing its work programme with a very high activity completion rate;


### d. whereas over a quarter of workers in europe experience excessive work-related stress; whereas 51 % of eu workers say stress is common in their workplace and nearly 80 % of managers are concerned about work-related stress8 ; whereas there are significant variations between the member states’ legislation on psychosocial risks; ### d. whereas a good psychosocial working environment enhances workers’ good performance and personal development , as well as workers’ mental and physical well-being; whereas psychosocial risks can arise from poor work design , organisation and management , as well as a poor social context of work , and can result in negative psychological , physical and social outcomes such as work-related stress , burnout or depression; whereas over a quarter of workers in europe experience excessive work-related stress; whereas 51 % of eu workers say stress is common in their workplace and nearly 80 % of managers are concerned about work-related stress8 ; whereas there are significant variations between the member states’ legislation on psychosocial risks; whereas work-related stress can significantly increase the risk of triggering and exacerbating musculoskeletal disorders and rheumatic and chronic inflammatory diseases;


### f. whereas people who regularly work from home are more than twice as likely to work in excess of the requisite maximum 48 hours per week and are at risk of resting for less than the requisite 11 hours between working days; whereas almost 30 % of teleworkers report working in their free time every day or several times a week11 ; ### f. whereas people who regularly work from home are more than twice as likely to work in excess of the requisite maximum 48 hours per week and are at risk of resting for less than the requisite 11 hours between working days; whereas almost 30 % of teleworkers report working in their free time every day or several times a week11 ; whereas gender aspects should be addressed in the context of the right to disconnect;


### g. whereas the covid-19 crisis has exposed the vulnerability of non-standard workers , including platform and self-employed workers; whereas platform work in the labour market is highly likely to continue growing; whereas self-employed workers are excluded from the scope of application of the strategic framework for health and safety at work , as they are not covered by the eu legislation on occupational health and safety; ### g. whereas the covid-19 crisis has exposed the vulnerability of non-standard workers , including platform and self-employed workers; whereas platform work in the labour market is highly likely to continue growing; whereas self-employed workers are excluded from the scope of application of the strategic framework for health and safety at work , as they are not covered by the eu legislation on occupational health and safety; whereas platform workers are exposed to particular health and safety risks due to the characteristics of work they are performing; whereas algorithmic management presents new challenges for the future of work which can generate excessive speed and efficiency pressure for workers and therefore significant risks for their health and safety; whereas the road safety of platform workers in the transport and delivery sector , in particular cyclists as vulnerable road users , and the safety of other road users can be put in danger because of speed and efficiency pressure; whereas female platform workers , in particular female drivers and women providing cleaning and care services in private residences , can have an increased risk of being victims of sexual harassment and violence and might refrain from reporting because of lack of reporting tools , no contact with a human manager or fear of bad ratings and loss of future work; whereas sexual harassment and violence are under-reported in platform work;


### h. whereas disturbing reports regarding breaches of cross-border and seasonal workers’ rights in terms of working and living conditions have surfaced during the pandemic; ### h. whereas the precariousness of the working and living conditions of seasonal workers in europe , in particular in the agriculture sector , were already well documented before covid 19; whereas disturbing reports regarding breaches of cross-border and seasonal workers’ rights in terms of working and living conditions have shown that their situation deteriorated even further during the pandemic;


### 2. calls for directive 2004/37/ec of 29 april 2004 on the protection of workers from the risks related to exposure to carcinogens or mutagens at work to be updated on a continual basis and in an ambitious timeframe , ensuring that occupational exposure limits contained in the directive exist for a minimum of 50 priority substances by 2024; calls for the inclusion of reprotoxic substances and hazardous medicinal products in the scope of the directive; ### 2. calls for directive 2004/37/ec of 29 april 2004 on the protection of workers from the risks related to exposure to carcinogens or mutagens at work to be updated on a continual basis and in an ambitious timeframe , ensuring that occupational exposure limits contained in the directive exist for a minimum of 50 priority substances by 2024; calls for the inclusion of reprotoxic substances and hazardous medicinal products in the scope of the directive; insists on using a risk-based methodology to set limit values for non-threshold substances;


### 4. believes that council directive 89/391/eec on the introduction of measures to encourage improvements in the safety and health of workers at work has not proven effective enough for the assessment and management of psychosocial risks; recalls its request that the commission include in the strategic framework for occupational safety and health the right to disconnect and , explicitly , that it develop new psychosocial measures as part of the framework; calls on the commission , in this regard , to step up the ambition of the strategic framework for occupational safety and health; calls on the commission to propose a directive on psychosocial risks and well-being at work aimed at the efficient prevention in the workplace of , inter alia , anxiety , depression , burnout and stress; calls on the commission to aim for the recognition of anxiety , depression and burnout as occupational diseases , to establish mechanisms for their prevention and the reintegration into the workplace of affected employees , and to shift from individual-level actions to a work organisation approach; ### 4. believes that council directive 89/391/eec on the introduction of measures to encourage improvements in the safety and health of workers at work has not proven effective enough for the assessment and management of psychosocial risks; recalls its request that the commission include in the strategic framework for occupational safety and health the right to disconnect and , explicitly , that it develop new psychosocial measures as part of the framework; calls on the commission , in this regard , to step up the ambition of the strategic framework for occupational safety and health; calls on the commission to propose a directive on psychosocial risks and well-being at work aimed at the efficient prevention in the workplace of , inter alia , anxiety , depression , burnout , stress and flare-ups of rheumatic / chronic inflammatory diseases; calls on the commission to aim for the recognition of anxiety , depression , burnout and rheumatic and chronic inflammatory diseases as occupational diseases , to establish mechanisms for their prevention and the reintegration into the workplace of affected employees , and to shift from individual-level actions to a work organisation approach;


### 5. welcomes the fact that the commission is strengthening the gender focus on occupational safety and health; calls on the commission to propose a legal act based on the framework agreement on harassment and violence at work , and to ensure that the fight against workplace violence and harassment applies regardless of the reason for the harassment and that it is not limited to cases based on discriminatory grounds; calls on the member states’ governments to ratify ilo convention no 190 to put in place the necessary laws and policy measures to prevent and address violence and harassment in the world of work; ### 5. stresses the fact that female workers face increased challenges to occupational health and wellbeing , particularly in the health and care sectors; welcomes the fact that the commission is strengthening the gender-responsive approach to occupational safety and health; insists on ensuring gender-balance in decision-making particularly during crisis situations such as the covid pandemic; calls on the commission to propose a legal act based on the framework agreement on harassment and violence at work , and to ensure that the preventive and protective measures aimed at eradicating violence and harassment in the world of work apply regardless of the reason and the cause for the harassment and that it is not limited to cases based on discriminatory grounds; calls on the member states’ governments to ratify ilo convention no 190 to put in place the necessary laws and policy measures to prohibit , prevent and address violence and harassment in the world of work;


### 6. welcomes the commission’s intention to present by the end of 2021 a legislative initiative to improve the working conditions of platform workers; calls on the commission to ensure that the proposal guarantees rights for all platform workers for a healthy and safe working environment; ### 6. welcomes the commission’s intention to present by the end of 2021 a legislative initiative to guarantee and improve decent working conditions of platform workers; calls on the commission to ensure that the proposal guarantees rights for all platform workers for a healthy and safe working environment , including by ensuring that the presumption of an employment relationship applies;


### 7. calls on the commission to guarantee that all workers , including non-standard workers , workers in platform companies and the self-employed are covered by occupational safety and health (osh) legislation and policies; ### 7. calls on the commission to guarantee that all workers , including non-standard workers , workers in platform companies and the genuinely self-employed are covered by occupational safety and health (osh) legislation and policies;


### 8. calls on the commission to include health and safety in all eu strategies and policies on the green and digital transitions , including on artificial intelligence (ai); ### 8. calls on the commission to ensure that the technology used in the green and digital transitions will be safe for workers; calls on the commission to include health and safety in all eu strategies and policies on the twin transition , including on artificial intelligence (ai); calls in particular for the introduction of safeguards against the adverse impacts of algorithmic management on the health and safety of workers , algorithms deployed in the areas of work must be transparent , non-discriminatory and ethical; algorithmic decisions must be contestable and reversible , and consequently must be subject to human oversight;


### 10. calls on the commission and the member states to improve research and data collection and to conduct a detailed assessment of problems with health and safety associated with teleworking; ### 10. calls on the commission and the member states to improve research and data collection and to conduct a detailed assessment of problems with health and safety associated with teleworking , with a view of analysing the impact of gender , age and disability when it comes to the aforementioned problems;


### 11. calls on the commission to propose a legislative framework with a view to establishing minimum requirements for remote work across the union; stresses that such a framework should clarify working conditions , including the provision , use and liability of equipment , including as regards existing and new digital tools , and that it should ensure that such work is carried out on a voluntary basis and that the rights , workload and performance standards of teleworkers are equivalent to those of comparable workers; ### 11. calls on the commission to propose a legislative framework in consultation with european social partners with a view to establishing minimum requirements for telework across the union ensuring that teleworking does not affect the employment conditions of teleworkers; stresses that such a framework should clarify working conditions , including the provision , use and liability of equipment , including as regards existing and new digital tools , and that it should ensure that such work is carried out on a voluntary basis and that the rights , workload and performance standards of teleworkers are equivalent to those of comparable workers;