### 30. this directive requires undertakings to make all necessary efforts to identify all their suppliers. in order to be fully effective , due diligence should not be limited to the first tier downstream and upstream in the supply chain but should encompass all suppliers and sub-contractors , particularly those that , during the due diligence process , might have been identified by the undertaking as posing major risks. this directive , however , recognises that not all undertakings have the same resources or capabilities to identify all their suppliers and therefore makes that obligation subject to the principles of reasonableness and proportionality , which in no case should be interpreted by undertakings as a pretext not to comply with their obligation to make all necessary efforts in that regard. ### 30. this directive requires undertakings to make all necessary efforts to identify all their suppliers and make this information accessible to the public. in order to be fully effective , due diligence should not be limited to the first tier downstream and upstream in the supply chain but should encompass all suppliers and sub-contractors , particularly those that , during the due diligence process , might have been identified by the undertaking as posing major risks. this directive , however , recognises that not all undertakings have the same resources or capabilities to identify all their suppliers and therefore makes that obligation subject to the principles of reasonableness and proportionality , which in no case should be interpreted by undertakings as a pretext not to comply with their obligation to make all necessary efforts in that regard.


### 33. in order to be effective , a due diligence framework should include grievance mechanisms at company or sector level and in order to ensure that such mechanisms are effective the participation of stakeholders should be ensured. . those mechanisms should allow stakeholders to raise concerns and should function as early-warning risk-awareness systems. grievance mechanisms should be entitled to make suggestions as to how risks should be addressed by the undertaking. they should also be entitled to propose an appropriate remedy when it is brought to their attention that the undertaking has caused or contributed to harm. ### 33. in order to be effective , a due diligence framework should include grievance mechanisms at company or sector level and in order to ensure that such mechanisms are effective the participation of stakeholders should be ensured. . those mechanisms should allow stakeholders to raise concerns and should function as early-warning risk-awareness systems. grievance mechanisms should be entitled to make suggestions as to how potential and actual adverse impacts should be addressed by the undertaking. they should also be entitled to propose an appropriate remedy when it is brought to their attention that the undertaking has caused or contributed to harm. remedies should be legitimate , accessible , predictable , equitable , transparent , rights-compatible , a source of continuous learning and based on engagement and dialogue.


### 39. member states should introduce further legislation to ensure that undertakings can be held liable for damage caused by undertakings under their control where they have , in the course of business , committed violations of internationally recognized human rights or international environmental standards. they should not be held liable however if they can prove that they took all due care to avoid the loss or damage , or that the damage would have occurred even if all due care had been taken. when introducing liability regimes , member states should consider adopting appropriate limitation periods and introducing the loser pays principle. ### 39. member states should introduce further legislation to ensure that undertakings can be held liable for harm arising out of human rights , environmental and governance impacts they , or entities they control or are able to control , or through a business relationship , have caused or contributed to by acts or omissions , unless the undertaking can prove it acted with due care and took all reasonable measures to prevent such harm. when introducing liability regimes , member states should consider adopting appropriate limitation periods.


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


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


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


### 3. member states shall establish a centralised platform and ensure that undertakings upload on that platform their due diligence strategies or the statement referred to in article 4. ### 3. member states shall establish a centralised platform and ensure that undertakings upload on that platform their due diligence strategies or the statement referred to in articles 4 and 6.


### 2. the evaluation and review of the due diligence strategy shall be carried out in consultation with stakeholders and the involvement of trade unions in the same manner as when establishing the due diligence strategy. ### 2. the evaluation and review of the due diligence strategy shall be carried out in consultation with stakeholders and the involvement of trade unions and workers' representatives in the same manner as when establishing the due diligence strategy.


### 2. the evaluation and review of the due diligence strategy shall be carried out in consultation with stakeholders and the involvement of trade unions in the same manner as when establishing the due diligence strategy. ### 2. the evaluation and review of the due diligence strategy shall be carried out in consultation with stakeholders including the involvement of trade unions in the same manner as when establishing the due diligence strategy.


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


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


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


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


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


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


### 1. member states may encourage the adoption by undertakings of sectoral due diligence action plans aimed at coordinating the due diligence strategies of undertakings within an economic sector. ### 1. member states may encourage the adoption by undertakings of sectoral due diligence action plans aimed at coordinating the due diligence strategies of undertakings within an economic sector.


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


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


### 3. member states shall facilitate the submission by third parties of complaints referred to in paragraph 2 by measures such as complaint submission forms and ensuring that complaints remain anonymous upon the request of the complainant. member states shall ensure that that form can also be completed electronically. ### 3. member states shall facilitate the submission by third parties of concerns referred to in paragraph 2 by measures such as submission forms and ensuring that concerns remain anonymous upon the request of the complainant. member states shall ensure that that form can also be completed electronically.


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


### 7. member states shall provide for penalties in accordance with article 19 in for undertakings that do not take remedial action within the period of time granted. ### 7. member states shall provide for penalties in accordance with article 19 in for undertakings that do not take remedial action.


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


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


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


### 1. the commission shall set up a european committee of competent authorities to facilitate the coordination and convergence of regulatory and supervisory practices , and monitor the performance of national competent authorities. ### 1. the commission shall set up a european committee of competent authorities to facilitate the coordination , sharing of information and convergence of regulatory , investigative and supervisory practices , and monitor the performance of national competent authorities.


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


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


### the fact that an undertaking has carried out due diligence in compliance with the requirements set out in this directive shall not absolve the undertaking of any civil liability which it may incur pursuant to national law. ### deleted


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


### 2. notes that globalisation has created interdependencies between societies , where any product results from complex transnational supply and value chains and where decisions taken by european firms impact on peoples’ ability to enjoy human rights and fundamental freedoms worldwide; ### 2. notes that globalisation has created interdependencies between societies , where a growing number of products result from complex transnational supply and value chains and where decisions taken by firms operating in the eu internal market , impact on peoples’ ability to enjoy human rights and fundamental freedoms worldwide;


### 2. believes that there is strong need for a mandatory , harmonised framework at union level to ensure a level playing field for business and welcomes the commission’s ongoing work on legislation requiring that union companies conduct due diligence on respect for human rights and environmental obligations throughout their supply chains; ### 2. believes that there is strong need for a mandatory , harmonised framework at union level to ensure a level playing field for business and welcomes the commission’s ongoing work on legislation requiring that union companies conduct due diligence on respect for human rights and environmental obligations , including those related to biodiversity , throughout their supply chains , in accordance with existing international due diligence standards , notably the un guiding principles on business and human rights and the oecd guidelines for multinational enterprises , the ilo tripartite declaration of principles concerning multinational enterprises and social policy , the oecd due diligence guidance for responsible business conduct and the un convention against corruption;


### 3. stresses that human rights abuses and breaches of social and environmental standards can be the result of a company’s own activities or of those of its business relationships; underlines therefore that due diligence should encompass the entire value chain; ### 3. stresses that human rights abuses , environmental harm and breaches of social , environmental and governance standards can be the result of a company’s own activities or of those of its business relationships; underlines therefore that due diligence should encompass the entire value chain;


### 3. calls on the commission to apply a human rights-based approach to the future legislation which shall be designed , implemented , monitored and evaluated respecting the core human rights principles of transparency and access to information , inclusion and non-discrimination with a special focus on the most vulnerable; ### 3. calls on the commission to apply a human rights-based approach to the future legislation which shall be designed , implemented , monitored and evaluated respecting the core human rights principles of transparency and access to information , inclusion and non-discrimination with a special focus on the most vulnerable; in particular , stresses that the due diligence obligations must be gender-responsive;


### 4. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers and trade union rights , women , children or indigenous people; stresses that full alignment with existing legal obligations and standards at european and international level should be sought; is of the opinion that the legislation should address all types of human rights abuses; ### 4. expresses its deep concern regarding the human rights’ impact of business activities in developing countries , particularly extractive industries , large-scale agri-business acquisitions and development projects on indigenous peoples , local communities and human rights and environmental defenders; stresses that the global failure to protect biodiversity affects particularly indigenous people and others who closely depend on nature for their material and cultural needs; stresses that all human rights should be covered by the future legislation; in particular , considers that emphasis should be placed on workers and trade union rights , women , children or indigenous people and local communities (notably their rights to free , prior and informed consent); stresses that full alignment with existing legal obligations and standards at european and international level should be sought; is of the opinion that the legislation should address all types of human rights abuses , including the violation of the right to a healthy environment;


### 5. highlights that the obligation to respect and protect human rights , the environment and to avoid the risk of corruption should be embedded throughout whole global value chains , products , services and business relationships; ### 5. highlights that the obligation to respect and protect human rights , the environment and to avoid the risk of corruption should be embedded throughout whole global value chains , products , services and business relationships and apply equally to financial institutions , including the european investment bank and the european bank for reconstruction and development;


### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights and the environment , including the european green deal , and eu international policy; ### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights and the environment , including the european green deal , and the commitment to reduce emissions by at least 55% by 2030 , and eu international policy;


### 7. stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks; considers that those strategies should cover every actual or potential adverse impact although the severity of the risk should be considered in the context of a prioritisation policy; ### 7. stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks and be an ongoing and dynamic process that is reviewed on a regular basis; considers that those strategies should cover every actual or potential adverse impact although the severity and likelyhood of the risk should be prioritised;


### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering companies’ activities and their business relationships , including their supply and subcontracting chains; ### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering financial institutions , companies’ activities and their business relationships , including their supply and subcontracting chains;


### 9. expresses the opinion that the future legislation should establish a comprehensive system of liability that includes administrative , civil and criminal liability , and a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement , including through penalties and sanctions of all nature; ### 9. expresses the opinion that the future legislation should establish a comprehensive system of liability that includes administrative , civil and criminal liability , and a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement , including through penalties , such as exclusion from public procurement , and sanctions of all nature; in addition , urges the union and its member states to make the fight against environmental crime an overriding strategic political priority in international judicial cooperation and for institutions and conferences of the parties to the united nations framework convention on climate change , notably by promoting compliance with multilateral environmental agreements through the adoption of criminal sanctions , exchange of best practices and by promoting the enlargement of the scope of the international criminal court to cover criminal acts that would amount to ecocide;


### 10. stresses that access to effective remedy is crucial; considers that the legislation should oblige companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable; considers , in addition , that such mechanism should provide for effective judicial remedies to victims of human rights violations , environmental damage and corruption abuses , individually and through collective actions; believes that special protection should be provided to human rights defenders and its lawyers; ### 10. stresses that access to effective remedy is crucial; considers that the legislation should oblige companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable , including in export processing zones , which are often characterised by exemptions from labour laws and taxes and face severe problems related to decent work and trade union restrictions; considers , in addition , that such mechanism should provide for effective judicial remedies to victims of human rights violations , environmental damage and corruption abuses , individually and through collective actions; believes that special protection should be provided to human rights defenders and its lawyers;


### 11. considers that company-level grievance mechanisms can provide effective early-stage recourse , provided they are legitimate , accessible , predictable , equitable , transparent and human rights-compatible; ### 11. considers that operational-level grievance mechanisms can provide effective early-stage recourse , provided they are legitimate , accessible , predictable , equitable , transparent and human rights-compatible , source of continuous learning and based on engagement and dialogues;


### 11. is convinced that it is crucial to make the sustainable development chapters of free trade agreements more enforceable and that the new legislation should explore ways of integrating the due diligence requirements into those chapters. ### 11. recalls the principle of policy coherence for development , requiring that the objectives of development cooperation be taken into account in policies that are likely to affect developing countries; stresses that corporate due diligence across the entire value chain should be at the heart of the forthcoming union trade policy review; emphasises the importance of mainstreaming and enforcing social , environmental and human rights due diligence obligations within all new and existing trade mechanisms such as free trade agreements , investment agreements , economic partnership agreements or generalised schemes of preferences; stresses that those trade instruments should include strong enforcement mechanisms such as withdrawal from preferential access in case of non-compliance; is convinced that it is crucial to make the sustainable development chapters of free trade agreements more binding and enforceable through effective monitoring and sanctions mechanisms that allow individuals and communities , outside or within the union , to seek redress;


### 12. further considers that in order to enable victims to obtain remedy , undertakings should be held liable for the damage the undertakings under their control have caused or contributed to where the latter have , in the course of their business relationships with the former , committed violations of internationally recognized human rights or have caused environmental harm; ### 12. further considers that in order to enable victims to obtain remedy , undertakings should be held liable for the harm arising out of human rights , environmental and governance impacts the undertakings they control or have the ability to control , or through a business relationship , have caused or contributed by acts or omissions;


### 15. recommends that union legislation cover all companies and all sectors , including state-owned enterprises , the banking sector and financial institutions , including the european investment bank; ### 15. recommends that union legislation cover all companies and all sectors , including state-owned enterprises and state bodies including their public procurement and export credit activities , the banking sector and financial institutions , including the european investment bank and the european bank for reconstruction and development;


### 16. requests that the commission submit without undue delay a legislative proposal on mandatory supply chain due diligence , following the recommendations set out in the annex hereto; considers that , without prejudice to detailed aspects of the future legislative proposal , articles 50 , 83(2) and 114 tfeu should be chosen as legal bases for the proposal; ### 16. requests that the commission submit without undue delay a legislative proposal on mandatory supply chain due diligence , following the recommendations set out in the annex hereto; considers that , without prejudice to detailed aspects of the future legislative proposal , articles 50 , 83(2) , 114 , 153(1)(e) and 191 tfeu should be chosen as legal bases for the proposal;


### 16. stresses that all human rights are universal , indivisible , interdependent and interrelated and should be promoted and implemented in a fair and equitable manner; recommends that due diligence obligations should apply to all business-related human rights abuses; ### 16. stresses that all human rights are universal , indivisible , interdependent and interrelated and should be promoted and implemented in a fair , equitable and non-discriminatory manner; recommends that due diligence obligations should apply to all business-related human rights abuses;


### having regard to the treaty on the functioning of the european union , and in particular articles 50 , 83(2) and 114 thereof , ### having regard to the treaty on the functioning of the european union , and in particular articles 50 , 83(2) , 114 , 153(1)(e) and 191 thereof ,


### to this end , it establishes minimum requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account , address and remediate the human rights , environmental and governance risks that those activities may pose. by coordinating safeguards for the protection of human rights , the environment and good governance , those due diligence requirements are aimed at improving the functioning of the internal market. ### to this end , it establishes minimum requirements for undertakings to identify , prevent , cease , mitigate , track , monitor , disclose , account , communicate , address and remediate the human rights , environmental and governance risks and impacts that those activities may pose. by coordinating safeguards for the protection of human rights , the environment and good governance , those due diligence requirements are aimed at improving the functioning of the internal market.


### 2. this directive further aims to ensure that undertakings can be held accountable for their adverse human rights , environmental and governance impacts throughout their value chain. ### 2. this directive further aims to ensure that undertakings can be held accountable and liable for the adverse human rights , environmental and governance impacts they cause , contribute or are directly linked to throughout their value chain.


### in case of insurmountable incompatibility , the sector-specific legislation shall apply. ### in case of insurmountable incompatibility , the legislation that provides the highest standards of protection with regards to human rights , the environment and governance shall apply.


### 2. it shall also apply to limited liability undertakings governed by the law of a non-member state and not established in the territory of the union when they operate in the internal market selling goods or providing services. an undertaking governed by the law of a non-member state and not established in the territory of the union shall be considered in compliance with this directive if it fulfils the due diligence requirements established in this directive as transposed in the legislation of the member state in which it operates. ### 2. it shall also apply to undertakings governed by the law of a non-member state and not established in the territory of the union when they operate in the internal market selling goods or providing services. an undertaking governed by the law of a non-member state and not established in the territory of the union shall fulfil the due diligence requirements established in this directive as transposed in the legislation of the member state in which it operates. it should be subject to the civil , criminal and administrative liability regimes established by this directive as transposed in the legislation of the member state in which it operates.


### - 'due diligence' means the process put in place by an undertaking aimed at identifying , ceasing , preventing , mitigating , monitoring , disclosing , accounting for , addressing , and remediating the risks posed to human rights , including social and labour rights , the environment , including through climate change , and to governance , both by its own operations and by those of its business relationships. ### - “due diligence obligation” means the obligation for an undertaking to take all reasonable measures to prevent human rights and environmental adverse impacts from occurring down their value chains , and to properly address such adverse impacts when they occur. the exercise of a due diligence obligation means identifying , assessing , preventing , ceasing , mitigating , monitoring , tracking , communicating , disclosing , accounting for , addressing , and remediating the potential and actual adverse impacts on human rights , including social and labour rights , the environment , including the contribution to climate change , and governance , in their own operations , their value chain and other business relationships.


### - ‘stakeholders’ means individuals and groups of individuals whose rights or interests may be affected by the human rights , environmental and good governance risks posed by an undertaking or its business relationships , as well as organisations whose statutory purpose is the defence of human rights , including social and labour rights , the environment and good governance , and includes but is not limited to workers and their representatives , local communities , indigenous peoples , citizens’ associations , trade unions , civil society organisations and the undertakings’ shareholders. ### - ‘stakeholders’ means individuals and groups of individuals whose rights or interests may be affected by the human rights , environmental and good governance impacts posed by an undertaking or its business relationships , as well as organisations whose statutory purpose is the defence of human rights , including social and labour rights , the environment and good governance , and includes but is not limited to workers and their representatives , local communities , indigenous peoples , citizens’ associations , trade unions , civil society organisations and the undertakings’ shareholders.


### - ‘business relationships’ means the network of relationships of an undertaking with business partners and other entities along its entire value chain , and any other non-state or state entity directly linked to the undertaking’s business operations , products or services. ### - ‘business relationships’ means subsidiaries and commercial relationships of an undertaking throughout its value chain , including suppliers and sub-contractors that are directly or indirectly linked to the undertaking’s business operations , products or services.


### - ‘supplier’ means all business relationships that provide a product or service to an undertaking , either directly or indirectly. ### - ‘supplier’ means all business relationships that provide a product , part of a product , or service to an undertaking , either directly or indirectly.


### - ‘value chain’ means all activities , operations , business relationships and investment chains of an undertaking inside or outside the eu. value chain includes entities with which the undertaking has a direct or indirect business relationship , upstream and downstream , and which either (a) supply products or services that contribute to the undertaking’s own products or services , or (b) receive products or services from the undertaking. ### - ‘value chain’ means all activities , operations , business relationships and investment chains of an undertaking inside or outside the eu. value chain includes entities with which the undertaking has a direct or indirect business relationship , upstream and downstream , and which either (a) supply products , parts of products or services that contribute to the undertaking’s own products or services , or (b) receive products or services from the undertaking.


### - ‘risk’ means a potential or actual adverse impact on individuals , groups of individuals and other organisations in relation to human rights , including social and labour rights , the environment , and good governance; ### - ‘risk’ means a potential adverse impact on individuals , groups of individuals and other organisations in relation to human rights , including social and labour rights , the environment , and good governance;


### - ‘human rights risk’ means any potential or actual adverse impact that may impair the full enjoyment of human rights by individuals or groups of individuals in relation to internationally recognized human rights , understood , at a minimum , as those expressed in the international bill of human rights , the united nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities , and the principles concerning fundamental rights set out in the ilo declaration on fundamental principles and rights at work , as well as those recognised in the ilo convention on freedom of association and the effective recognition of the right to collective bargaining , the ilo convention on the elimination of all forms of forced or compulsory labour , the ilo convention on the effective abolition of child labour , and the ilo convention on the elimination of discrimination in respect of employment and occupation. they further include , but are not restricted to , adverse impacts in relation to other rights recognised in a number of ilo conventions , such as freedom of association , minimum age , occupational safety and health , and equal remuneration , and the rights recognised in the convention on the rights of the child , the african charter of human and peoples’ rights , the american convention on human rights , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , and national constitutions and laws recognising or implementing human rights. ### - ‘human rights impact’ means any actual adverse impact that may impair the full enjoyment of human rights by individuals or groups of individuals in relation to internationally recognized human rights , understood , at a minimum , as those expressed in the international bill of human rights , the united nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities , (including the international convention on the elimination of all forms of racial discrimination , the convention on the elimination of all forms of discrimination against women , the convention on the rights of the child , the international convention on the protection of the rights of all migrant workers and members of their families , the convention on the rights of persons with disabilities , the united nations declaration on the rights of indigenous peoples , the declaration on the rights of persons belonging to national or ethnic , religious and linguistic minorities) and the principles concerning fundamental rights set out in the ilo declaration on fundamental principles and rights at work , as well as those recognised in the ilo convention on freedom of association and the effective recognition of the right to collective bargaining , the ilo forced labour convention on forced labour , the ilo convention on the abolition of forced labour , the ilo convention on the elimination of all forms of forced or compulsory labour , the ilo convention on the effective abolition of child labour , and the ilo convention on the elimination of discrimination in respect of employment and occupation , and the equal remuneration convention. they further include , but are not restricted to , adverse impacts in relation to other rights recognised in a number of ilo conventions , such as freedom of association , minimum age , occupational safety and health , living wages , and the rights recognised in the african charter of human and peoples’ rights , the american convention on human rights , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , and national constitutions and laws recognising or implementing human rights.


### - ‘human rights risk’ means any potential or actual adverse impact that may impair the full enjoyment of human rights by individuals or groups of individuals in relation to internationally recognized human rights , understood , at a minimum , as those expressed in the international bill of human rights , the united nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities , and the principles concerning fundamental rights set out in the ilo declaration on fundamental principles and rights at work , as well as those recognised in the ilo convention on freedom of association and the effective recognition of the right to collective bargaining , the ilo convention on the elimination of all forms of forced or compulsory labour , the ilo convention on the effective abolition of child labour , and the ilo convention on the elimination of discrimination in respect of employment and occupation. they further include , but are not restricted to , adverse impacts in relation to other rights recognised in a number of ilo conventions , such as freedom of association , minimum age , occupational safety and health , and equal remuneration , and the rights recognised in the convention on the rights of the child , the african charter of human and peoples’ rights , the american convention on human rights , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , and national constitutions and laws recognising or implementing human rights. ### - ‘human rights impact’ means any adverse impact that may impair the full enjoyment of human rights by individuals or groups of individuals in relation to internationally recognized human rights , understood , at a minimum , as those expressed in the international human rights conventions that are binding upon the european union or its member states , the international bill of human rights , international humanitarian law , the united nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities , and the principles concerning fundamental rights set out in the ilo declaration on fundamental principles and rights at work , as well as those recognised in the ilo convention on freedom of association and the effective recognition of the right to collective bargaining , the ilo convention on the elimination of all forms of forced or compulsory labour , the ilo convention on the effective abolition of child labour , and the ilo convention on the elimination of discrimination in respect of employment and occupation. they further include , but are not restricted to , adverse impacts in relation to other rights recognised in a number of ilo conventions , such as freedom of association , minimum age , occupational safety and health , and equal remuneration , and the rights recognised in the convention on the rights of the child , the african charter of human and peoples’ rights , the american convention on human rights , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , and national constitutions and laws recognising or implementing human rights.


### - ‘environmental risk’ means any potential or actual adverse impact that may impair the right to a healthy environment , whether temporarily or permanently , and of whatever magnitude , duration or frequency. these include , but are not limited to , adverse impacts on the climate , the sustainable use of natural resources , and biodiversity and ecosystems. these risks include climate change , air and water pollution , deforestation , loss in biodiversity , and greenhouse emissions. ### - ‘environmental impact’ means any violation of internationally recognized environmental standards , any adverse impact on the environment , regardless of whether this adverse impact has directly affected humans or human rights. environmental impacts that may impair the right to a healthy environment , whether temporarily or permanently , and of whatever magnitude , duration or frequency shall be considered as particularly serious. these include , but are not limited to , adverse impacts on the climate , the sustainable use of natural resources , and biodiversity and ecosystems. these risks include climate change , air and water pollution , deforestation , loss in biodiversity , and greenhouse emissions.


### - ‘environmental risk’ means any potential or actual adverse impact that may impair the right to a healthy environment , whether temporarily or permanently , and of whatever magnitude , duration or frequency. these include , but are not limited to , adverse impacts on the climate , the sustainable use of natural resources , and biodiversity and ecosystems. these risks include climate change , air and water pollution , deforestation , loss in biodiversity , and greenhouse emissions. ### - ‘environmental impact’ means any potential or actual adverse impact that may impair the right to a healthy environment , whether temporarily or permanently , and of whatever magnitude , duration or frequency. these include , but are not limited to , adverse impacts on the climate , the sustainable use of natural resources , air quality , and biodiversity and ecosystems. environmental impacts include , but are not limited to , climate change , air , soil and water pollution , diffuse pollution , production of waste , deforestation , loss in biodiversity , and greenhouse emissions.


### - ‘governance risk’ means any potential or actual adverse impact on the good governance of a country , region or territory. these include , but are not limited to , non-compliance with oecd guidelines for multinational enterprises , chapter vii on combatting bribery , bribe solicitation and extortion and the principles of the oecd convention on combating bribery of foreign public officials in international business transactions and situations of corruption and bribery where an undertaking exercises undue influence on , or channels undue pecuniary advantages to , public officials to obtain privileges or unfair favourable treatment in breach of the law , and including situations in which an undertaking becomes improperly involved in local political activities , makes illegal campaign contributions or fails to comply with the applicable tax legislation. ### - ‘governance impact’ means any adverse impact on the good governance of a country , region or territory. these include , but are not limited to , non-compliance with oecd guidelines for multinational enterprises , chapter vii on combatting bribery , bribe solicitation and extortion and the principles of the oecd convention on combating bribery of foreign public officials in international business transactions and situations of corruption and bribery where an undertaking exercises undue influence on , or channels undue pecuniary advantages to , public officials to obtain privileges or unfair favourable treatment in breach of the law , and including situations in which an undertaking becomes improperly involved in local political activities , makes illegal campaign contributions or fails to comply with the applicable tax legislation.


### 1. member states shall lay down rules to ensure that undertakings carry out due diligence with respect to human rights , environmental and governance risks in their operations and business relationships. ### 1. member states shall lay down rules to ensure that undertakings carry out effective due diligence with respect to human rights , environmental and governance risks and impacts in their operations and the operations of its business relationships.


### 2. undertakings shall in an ongoing manner identify and assess by means of an appropriate monitoring methodology whether their operations and business relationships cause or contribute to any human rights , environmental or governance risks. ### 2. undertakings shall in an ongoing manner identify and assess by means of an appropriate monitoring methodology whether their operations and those of its business relationships cause or contribute or are directly linked to any potential or actual adverse human rights , environmental or governance impact. this monitoring should draw on internal or external human rights expertise and involve meaningful consultation with potentially affected groups and other relevant stakeholders.


### 3. if an undertaking concludes that it does not cause or contribute to risks , it shall publish a statement in that sense , including its risk assessment , which shall be reviewed in the event that new risks emerge or in the event of the undertaking entering into new business relationships that can pose risks. ### deleted


### 4. if an undertaking identifies risks , it shall establish a due diligence strategy. the due diligence strategy shall: ### 4. undertakings shall establish and effectively implement a due diligence strategy. as part of their due diligence strategy , undertakings shall at a minimum:


### specify the risks that the undertaking has identified as likely to be present in its operations and business relationships and the level of severity and urgency thereof. ### identify and specify the potential or actual adverse human rights , environmental and governance impacts that are likely to be present in its operations and the operations of its business relationships and the level of severity , likelihood and urgency thereof.


### (ii) publicly disclose detailed , relevant and meaningful information about the undertaking’s value chain , including names , locations , and other relevant information concerning subsidiaries , suppliers and business partners in its value chain; ### (ii) map their value chain and publicly disclose detailed , relevant and meaningful information , including names , locations , types of products and services supplied , and other relevant information concerning subsidiaries , suppliers , subcontractors and business relationships;


### (iii) indicate the policies and measures that the undertaking intends to adopt with a view to ceasing , preventing or mitigating those risks; ### (iii) adopt all reasonable policies and measures with a view to ceasing , preventing or mitigating potential or actual adverse impacts;


### (iv) set up a prioritisation policy for cases in which the undertaking is not in a position to deal with all the risks at the same time. undertakings shall consider the level of severity and urgency of the different risks present , the scope of the risks , their scale and how irremediable they might be , and if necessary , use the prioritisation policy in dealing with these; ### (iv) set up a prioritisation strategy for cases in which the undertaking is not in a position to deal with all the risks at the same time. undertakings shall consider the level of severity , likelihood and urgency of the different potential or actual adverse impacts , the scope of the risks , their scale and how irremediable they might be , and if necessary , use the prioritisation policy in dealing with these;


### 7. the subsidiaries of an undertaking or the companies controlled by an undertaking shall be deemed in compliance with the obligation to establish a due diligence strategy if their parent or controlling company includes them in their due diligence strategy. ### deleted


### 8. undertakings shall carry out value chain due diligence which is proportionate and commensurate to their specific circumstances , particularly their sector of activity , the size and length of their supply chain , the size of the undertaking , its capacity , resources and leverage. ### 8. undertakings shall carry out value chain due diligence which is proportionate and commensurate to the severity and likelihood of their risks and their specific circumstances , particularly their sector of activity , the size and length of their supply chain , and the size of the undertaking.


### 9. undertakings shall ensure by means of contractual clauses and the adoption of codes of conduct that their business relationships put in place and carry out human rights , environmental and governance policies that are in line with their due diligence strategy. ### 9. undertakings shall ensure that their business relationships put in place , carry out and implement effective human rights , environmental and governance policies that are in line with their due diligence strategy , including but not limited to by means of contractual clauses and the adoption of policies or codes of conduct that their business relationships put in place and carry out. undertakings shall ensure that their own purchasing practices and cost repartition does not cause or contribute to risks and enables and facilitate the uptake of effective human rights , environmental and governance policies by their business relationships


### 1. member states shall ensure that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that is appropriate to their size and the nature and context of their operations , and shall guarantee , in particular , the right for trade unions at the relevant level to be involved in the establishment and implementation of the due diligence strategy in good faith with their undertaking. ### 1. member states shall ensure that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that is appropriate to their size and the nature and context of their operations , and shall guarantee , in particular , the right for trade unions at the relevant level , including sectoral , national , european and global levels to participate in the establishment and implementation of the due diligence strategy in good faith and without unjustified delays with their undertaking.


### 5. workers or their representatives shall be informed and consulted on the due diligence strategy of their undertaking in accordance with directive 2002/14/ec establishing a general framework for informing and consulting employees in the european community , directive 2009/38/ec on the establishment of a european works council and council directive 2001/86/ec supplementing the statute for a european undertaking with regard to the involvement of employees. ### 5. workers or their representatives shall be informed and consulted on the mapping of the potential and actual adverse impacts by the undertaking , on the due diligence strategy of their undertaking and on its implementation in accordance with directive 2002/14/ec establishing a general framework for informing and consulting employees in the european community , directive 2009/38/ec on the establishment of a european works council and council directive 2001/86/ec supplementing the statute for a european undertaking with regard to the involvement of employees.


### 1. member states shall ensure that undertakings make their due diligence strategy publicly available , accessible and free of charge , especially on the undertakings’ websites. ### 1. member states shall ensure that undertakings publicly disclose their due diligence strategy , making the following information accessible , comparable and free of charge , especially on the undertakings’ websites.


### 21. recalls that the united nations special rapporteur on human rights and the environment has stated that the rights to life , health , food , water and development , as well as the right to a safe , clean , healthy and sustainable environment , are necessary for the full enjoyment of human rights; points out that the united nations general assembly recognised , in its resolution 64/292 , the right to safe and clean drinking water and sanitation as a human right; recommends consequently that those rights be covered by the legislation; ### 21. recalls that the united nations special rapporteur on human rights and the environment has stated that the rights to life , health , food , water and development , as well as the right to a safe , clean , healthy and sustainable environment , are necessary for the full enjoyment of human rights; notes that the un special rapporteur has also stressed that the loss of biodiversity undermines the full enjoyment of human rights and that states should regulate harm to biodiversity from private actors as well as government agencies; points out that the united nations general assembly recognised , in its resolution 64/292 , the right to safe and clean drinking water and sanitation as a human right; recommends consequently that those rights be covered by the legislation;


### 25. notes that some businesses are accused of profiting from or even complicity in war crimes and crimes against humanity due to their own activity or that of their business partners in conflict-affected areas or to their business relationships with state- or non-state actors involved in conflicts globally; recommends that , in order to prevent substantial risks of grave human rights abuses and serious breaches of international law , the scope of due diligence under union legislation be extended to breaches of international criminal law and international humanitarian law in which businesses may be implicated; ### 25. notes that some businesses are profiting from or even complicity in war crimes and crimes against humanity due to their own activity or that of their business partners in conflict-affected areas or to their business relationships with state- or non-state actors involved in conflicts globally; recommends that , in order to prevent substantial risks of grave human rights abuses and serious breaches of international law , the scope of due diligence under union legislation be extended to breaches of international criminal law and international humanitarian law in which businesses may be implicated; recommends that the union legislation should require companies to respect the geneva conventions and the two additional protocols , as clarified by the ungps , the hague regulations and the rome statute of the international criminal court;


### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms; ### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms that are gender-responsive , free of cost and without risks of retaliation for rights holders;


### 27. is of the view that businesses have a responsibility to ensure that their activities do not undermine or harm the protection of human and environmental rights; insists they must not promote , participate or in any manner contribute to , or endorse policies and activities , which can lead to human rights violations; underlines that businesses must do everything possible , within their capacities , to prevent and mitigate the effect of adverse impacts; ### 27. is of the view that businesses have a responsibility to ensure that their activities do not undermine or harm the protection of human and environmental rights; insists they must not promote , participate or in any manner contribute to , or endorse policies and activities , which can lead to human rights violations; underlines that businesses must do everything possible , within their capacities , to identify , cease , prevent , mitigate , monitor and remediate the effect of adverse impacts; recalls that the due diligence process is a continuous , preventive , and risk-based process;


### 29. notes that the risk of business-related human rights adverse impacts does not always depend on the size of the company; insists that the scope of due diligence obligations must be based on the risk of adverse impacts and must be specific to the country and sector of activity; recalls that according to the ungps , three factors should be taken into account in assessing the severity of business impacts on human rights: the scale of the impact , the scope of the impact and whether the impact is irremediable; ### 29. notes that the risk of business-related human rights adverse impacts does not always depend on the size of the company; insists that the scope of due diligence obligations must be based on the risk of adverse impacts and must be specific to the country , including an analysis of the regional and local human rights context , and sector of activity; recalls that according to the ungps , three factors should be taken into account in assessing the severity of business impacts on human rights: the scale of the impact , the scope of the impact and whether the impact is irremediable; notes also that adverse impacts can be differentiated for women and men , as highlighted by the un working group on business and human rights in its gender guidance to the ungps;


### 32. notes that due diligence also necessitates measuring the effectiveness of processes and measures taken and communicating results , including periodically producing public evaluation reports; ### 32. notes that due diligence also necessitates measuring the effectiveness of processes and measures taken and communicating results , including periodically producing public evaluation reports on company due diligence process and its results in a standardised format based on an adequate and coherent reporting framework , that must be easily accessible and available to right-holders who are or may be adversely affected by the business activity and/or operations;


### 33. stresses that transparency must be at the core and the overriding principle of the monitoring and assessment process and that external participation , oversight and verification are key elements for robust and meaningful corporate human rights due diligence and its evaluation; calls , accordingly , for union due diligence legislation to require the publication of lists of companies within its scope , the publication of due diligence reports via online public repositories , and the identification of companies that comply or have failed to comply with due diligence obligations; ### 33. stresses that transparency must be at the core and the overriding principle of the monitoring and assessment process and that external participation , oversight and verification are key elements for robust and meaningful corporate human rights due diligence and its evaluation; calls , accordingly , for union due diligence legislation to require the publication of lists of companies within its scope , the publication of due diligence reports via online public repositories , and the identification of companies that comply or have failed to comply with due diligence obligations; notes that the union should undertake periodic monitoring of procedural compliance and regular updating of such lists , including through a right to appeal for the companies concerned;


### 36. in this context , underlines the importance of the freedom of association and right to collective bargaining , as well as free , prior and informed consent by indigenous communities; ### 36. in this context , underlines the importance of the freedom of association , the right to form and join trade unions and the right to collective bargaining and action , as well as free , prior and informed consent by indigenous communities;


### protection of whistle-blowers , human rights and environmental defenders ### protection of whistle-blowers , human rights and environmental defenders and lawyers


### 40. recommends that the legislation requires the establishment of a protection mechanism in compliance with directive (eu) 2019/1937 and the united nations declaration on human rights defenders , in order to protect stakeholders from lawsuits , attempts to silence their claims , intimidation and being otherwise deterred from seeking justice; ### 40. recommends that the legislation requires the establishment of a protection mechanism in compliance with directive (eu) 2019/1937 and the united nations declaration on human rights defenders , in order to protect stakeholders as well as lawyers representing plaintiffs from lawsuits , intimidation , attempts to silence their claims , intimidation and being otherwise deterred from seeking justice;


### 41. notes that the right to an effective remedy is an internationally recognised human right , enshrined by article 8 udhr and by article 2(3) iccpr , and is also a union fundamental right (article 47 of the charter); ### 41. notes that the right to an effective remedy is an internationally recognised human right , enshrined by article 8 udhr and by article 2(3) iccpr , as well as by article 6 and 13 of the echr , and is also a union fundamental right (article 47 of the charter);


### 43. stresses that as part of due diligence , as required by the corporate responsibility to respect human rights , companies should put in place processes to enable the adverse human rights impacts they cause or to which they contribute to be remedied; accordingly , operational level grievance mechanisms should be legitimate , accessible , predictable , equitable , transparent , rights-compatible , based on engagement and dialogue and a source of continued learning as established in united nations guiding principle 31; emphasises that such mechanisms should never be used to obstruct access to justice via state-based , judicial and non-judicial , grievance mechanisms; ### 43. stresses that as part of due diligence , as required by the corporate responsibility to respect human rights , companies should put in place processes to enable the adverse human rights impacts they cause or to which they contribute to be remedied in an effective way , ensuring that there is mutual agreement with the rights-holders on the parameters of the remedy and how it is provided; accordingly , operational level grievance mechanisms should be legitimate , accessible , predictable , equitable , transparent , rights-compatible , based on engagement and dialogue and a source of continued learning as established in united nations guiding principle 31; stresses that remedies should seek to redress imbalances in power , resources and information between the rights holders and the business enterprise; emphasises that such mechanisms should never be used to obstruct access to justice via state-based , judicial and non-judicial , grievance mechanisms;


### 44. insists that access to evidence and time limitations can be major practical and procedural barriers faced by victims of human rights abuses in third countries , obstructing their access to effective legal remedies; stresses that that the burden of proof should be shifted from the victims to the company and that the legislation must require companies to disclose all necessary information for interested parties to engage in judicial proceedings and for victims to access remedies; ### 44. insists that access to evidence and time limitations , as well as gender inequality , vulnerability and marginalisation can be major practical and procedural barriers faced by victims of human rights abuses in third countries , obstructing their access to effective legal remedies; stresses that that the burden of proof should be shifted from the victims to the company and that the legislation must require companies to disclose all necessary information for interested parties to engage in judicial proceedings and for victims to access remedies;


### 47. calls for measures to ensure that union due diligence legislation is adequately monitored and enforced by national and union bodies with appropriate duties and powers; such bodies should have competence to investigate abuses , initiate enforcement actions and to support victims , for instance through legal advice , technical support and representation; ### 47. calls for measures to ensure that union due diligence legislation is adequately monitored and enforced by national and union bodies with appropriate duties and powers; such bodies should have the necessary resources , expertise and competence to investigate abuses , initiate enforcement actions and to support victims , for instance through legal advice , technical support and representation; stresses that the commission should publish guidance addressing effective enforcement action at member states level;


### 48. recommends that union due diligence legislation require member states to determine effective , proportionate and dissuasive penalties and sanctions for non-compliance by companies with due diligence obligations , including in relation to the making of false or misleading statements; ### 48. recommends that union due diligence legislation require member states to determine effective , proportionate and dissuasive penalties and sanctions for non-compliance by companies with due diligence obligations , including in relation to the making of false or misleading statements; recommends that the union sanctions regime should include the exclusion from public procurement and public funding for non-compliant companies;


### 51. recommends that the legislation include criminal liability provisions for companies and directors and management that are held responsible in the event of severe violations of human rights. ### 51. recommends that the legislation include criminal liability provisions for companies and directors and management that are held responsible in the event of severe violations of human rights and to counter behaviour from companies which repeatedly and deliberately fail to respect human rights and environmental due diligence;


### 1. stresses that trade policy is an essential tool for implementing the circular economy and the eu’s sustainability agenda globally; underlines that increased recycling can reduce the eu’s reliance on imports of raw materials , and points to the need to decouple economic growth from resource use in order to ensure the long-term sustainability of global value chains; ### 1. stresses that trade policy is an essential tool for implementing the circular economy and the eu’s sustainability agenda globally and underlines therefore the importance of ensuring that trade and investment agreements do not contradict circular economy policies; considers it necessary to provide for carve-outs in trade agreements for relevant eu legislation on circular economy from the notion of trade barrier , as well as stronger and adequate legal environmental safeguards; underlines that increased recycling can reduce the eu’s reliance on imports of raw materials , and points to the need to decouple economic growth from resource extraction and use in order to ensure the long-term sustainability of global value chains; calls on the commission to adapt the eu’s raw materials strategy accordingly including the regular request of the eu to trade partners to abolish export duties on raw materials;


### 1. considers that placing sustainable products on the internal market should be the norm and calls for a horizontal sustainable product framework directive setting mandatory minimum requirements for durability , interoperability , reparability , upgradability , reusability and recyclability for all products alongside further product-specific requirements; ### 1. considers that producing and placing sustainable products on the internal market should be the norm and calls for a horizontal sustainable product framework directive setting mandatory minimum requirements at design , production and marketing stage for durability , interoperability , reparability , upgradability , reusability and recyclability for all products alongside further product-specific requirements; calls furthermore for such a comprehensive legislative proposal to be delivered timely and not to be further postponed in order to contribute to the economy recovery of the eu subsequent to the covid19-crisis;


### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is key to reducing the overall environmental footprint of european consumption and production , and to reaching the climate goals of the paris agreement; ### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy , in combination with the zero-pollution ambition for a toxic-free environment , is key to reducing the overall environmental footprint of european consumption and production so as to stay within planetary boundaries , and to reaching the climate goals of the paris agreement;


### 1. welcomes the commission’s intention to review directive 2009/125/ec; stresses that broadening its scope should not lead to any watering down of the results achieved in the field of energy efficiency; ### 1. underlines that nearly half of the energy efficiency savings that will be achieved by 2020 is due to the application of the ecodesign directive 2009/125/ec; stresses that a number of products -which are highly relevant from the perspective of their energy use(e.g. mobile network stations & subsystems or networking equipment)- have not yet been subject to ecodesign rules; notes further that a number of other products covered by ecodesign rules are outdated and should be updated (e.g. rules for decoders , heaters or rules on stand-by consumption); welcomes the commission’s intention to review directive 2009/125/ec; stresses that broadening its scope should be coupled with measures aimed at achieving further energy efficiency gains by energy-related products and services; insists that the expansion of scope to cover not only products but also structures , such as data centres or services such as used for cloud services , gaming or streaming;


### 1. welcomes the commission’s intention to review directive 2009/125/ec; stresses that broadening its scope should not lead to any watering down of the results achieved in the field of energy efficiency; ### 1. welcomes the commission’s intention to review directive 2009/125/ec; stresses that broadening its scope should lead to covering more products and structures with the ultimate aim to reduce energy uses and improve energy efficiency gains;


### 1. considers that the agriculture , food and forestry sectors and rural areas are essential components of the circular economy; ### 1. considers that the agriculture , food and forestry sectors and rural areas are essential components of the circular economy , and that , since it is closely based on nature's cycles and processes , sustainable agriculture is fully compatible with the properly functioning circular economy which is needed to produce healthy and affordable food to sustain lives and all generations living in a given territory;


### 2. regrets the lack of international and european standards on waste quality as this hinders a viable trade policy that is conducive to the circular economy; calls on the commission to present harmonised standards on waste quality and a legal definition of recyclable waste , and to include these in future ftas; ### 2. is convinced that the development of a comprehensive set of legislation on the circular economy would give the eu an advantage in developing relevant standards including at the international level; regrets the lack of international and european standards on waste quality as this hinders a viable trade policy that is conducive to the circular economy; calls on the commission to present harmonised standards on waste quality and a legal definition of recyclable waste; recalls the commission's commitment within the eu green deal for the eu to stop exporting its waste outside of the eu; supports therefore the announced revision of the rules on waste shipments and illegal exports."


### 2. calls on the union to increase the share of renewable energies in transport; ### 2. calls on the union to increase the share of renewable energies in transport , which accounted for 7 ,2 % in 2017 , staying well below the 10 % target set for 2020 under directive 2009/28/ec , aiming to achieve at least the 14 % target set for 2030 under directive (eu) 2018/2001; to accelerate the spread of battery electric vehicles (bevs); emphasises the potential of eu-wide co2 target levels for passenger cars to influence this spread4a;


### 2. underlines that the circular economy can provide solutions to the new challenges caused and highlighted by the covid-19 crisis by reducing the vulnerability of value chains within the eu and globally; ### 2. underlines that the circular economy can provide solutions to the new challenges caused and highlighted by the covid-19 crisis by reducing the vulnerability of value chains within the eu and globally while also providing opportunities for prosperity and well-being; calls on member states to duly reflect circular economy in their recovery plans;


### 2. takes the view that the announcement of the action plan is a clarion call for profound change to reorient farm production models towards agro-ecology , given the degradation and scarcity both in natural resources and in the rest of the food chain; ### 2. takes the view that the announcement of the action plan is a clarion call for profound change to reorient farm production models and concepts towards agro-ecology and organic farming , given the degradation and scarcity in natural resources and the need to improve production; notes that it points the way towards a more sustainable , resource-efficient , self-sufficient and resilient type of farming; stresses that the circular economy model and the changes involved will also affect the food processing and retail sectors;


### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; ### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant such as the textile value chain; highlights that for many value chains , such as the textile one , this will entail an absolute reduction of global textile production;


### 3. urges the commission to internalise the external costs of transport and to establish greenhouse gas certification schemes; ### 3. urges the commission to internalise the external costs of transport , to raise awareness of transport users and to promote cleaner transport solutions by establishing greenhouse gas certification schemes and common eu standards to estimate the carbon footprint of each passenger and freight journey; emphasises that greenhouse gas emissions caused through transport of intermediate goods in the production chain need to be included in certification schemes and urges the union to take measures to make production chains less transport-intensive;


### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) should be used to put in place circular economy initiatives and infrastructure; ### 3. believes that a circular economy is the way for the eu and european companies to remain competitive in a global market; therefore urges the commission and the member states to direct investments in order to scale up circular economy initiatives; considers that the eu’s economic recovery plan (next generation eu) , the just transition fund and other sectoral funds should be used to put in place circular economy initiatives and infrastructure while creating jobs in the eu;


### 3. considers that the principles of the circular economy entail better oversight over inputs , the development of a collaborative economy , enabling more effective use to be made of equipment and facilities , and cooperation between stakeholders on the ground , underpinned by shared commitments; ### 3. considers that the principles of the circular economy entail better use of energy resources (fuel , thermal efficiency of buildings) , water (water-saving irrigation systems , recovering and recycling water , storing water in the ground) and animal feed (since the raw materials used in concentrated animal feed often come from far away); the replacement of non-renewable chemical inputs (fertilisers , synthetic pesticides) with organic , bio-sourced products derived from natural processes (biofertilisers , biostimulants and biocontrols); the development of a collaborative economy , enabling more effective use to be made of equipment and facilities and preventing the over-equipment often associated with investment management based on tax planning , and greater cooperation between stakeholders on the ground , underpinned by collective and shared commitments;


### 4. calls on the commission to identify and abolish barriers that prevent or restrict market access for circular products from outside the eu and to investigate the possibilities and benefits of reducing tariffs on certain products in order to encourage the development of the circular economy; ### 4. recalls that in order for the eu to reach the objective of carbon neutrality by 2050 , it is necessary to address the carbon footprint in eu’s demand for imported products; calls on the commission to take concrete steps in differentiating products based on their carbon content also as a way to level the regulatory playing field; calls on the commission to identify and abolish barriers that prevent or restrict market access for circular and c02-neutral products from outside the eu and to investigate the possibilities and benefits of reducing tariffs on certain products in order to encourage the development of the circular economy including in the context of the ongoing review of the eu generalised scheme of preferences (gsp);


### 4. insists that the union should adopt binding legislation on sustainable alternative transport fuels and charging infrastructure; ### 4. recalls that the transport sector in the eu still depends heavily on oil and consequently on imports for its energy needs6a; insists therefore that , apart from including alternative fuels in the forthcoming comprehensive european strategy on sustainable and smart mobility , the union should adopt binding legislation on sustainable and renewable alternative transport fuels based on life-cycle assessment; encourages the commission to follow up on directive 2014/94/eu on the deployment of alternative fuels infrastructure by setting more ambitious objectives and adopting binding legislation for the availability of charging and maintenance infrastructure for electric vehicles throughout europe6b;


### 4. calls on the commission to propose an eu target for a reduction in the use of primary raw materials; ### 4. calls on the commission to propose an eu-level target to halve material footprint (as defined by eurostat) by 2030 , compared with 2015 baseline levels; calls for the establishment of an eu-level target to halve consumption footprint by 2030 , compared with 2015 baseline levels;


### 4. calls on the commission to propose an eu target for a reduction in the use of primary raw materials; ### 4. calls on the commission to propose an eu target for a reduction in the use of primary raw materials as well as binding eu targets to significantly reduce both the eu's material and consumption footprints by 2030;


### 4. calls for the implementation of a european protein plan advocating consumption of legumes , as crops that need no nitrogen-based fertilisers; ### 4. calls for the implementation of a european strategic plan for the supply of gmo-free plant proteins advocating consumption of legumes , as crops that need no nitrogenous amendments , as well as other grain protein and forage crops which offer a number of agronomical and environmental advantages and will reduce the huge volumes we import from distant countries , including some with no regard for the environment , biodiversity or human rights;


### 5. urges the commission to ensure that ftas reflect the objectives of the circular economy by including strong , binding and enforceable sustainable development chapters; suggests that the circular economy should be addressed in a cross-cutting manner in all relevant fta chapters; ### 5. urges the commission to ensure that all available trade instruments including ftas reflect the objectives of the circular economy by including strong , binding and enforceable sustainable development chapters; suggests that the circular economy should be addressed in a cross-cutting manner in all relevant fta chapters; calls on the commission to make progress at the wto with regard to the recognition of processes and production methods (ppms) as an element to distinguish between products with a special focus on circular production methods;


### 5. notes that shared mobility services save resources in production; ### 5. notes the need to increase occupancy rates and load factors; highlights that shared mobility services can benefit circular economy and the reduction of environmental impacts from transport; highlights that there would be less , but more intensively used vehicles , thus saving resources in production; believes that shared mobility can lead to the use of smaller electric vehicles with a lower range and less energy demand , allowing for lighter batteries produced with lower ghg emissions; points out that users can reduce range anxiety by trialling vehicles; highlights that users can use a vehicle meeting only their daily needs instead of having to buy a vehicle that would meet their peak need; notes that shared mobility benefits transport users by providing a higher degree of flexibility; underlines the need to distinguish - with a monetary threshold as a suitable indicator - between non-professional shared mobility and commercial transporting services in eu terminology , so as to lower barriers for shared mobility; believes that the european union should support small initiatives - often on a local level and implemented by micro , small or medium sized mobility enterprises or cooperatives - which bear great potential for innovation and resource-saving7a;


### 5. highlights the opportunities to combine circular economy solutions and digitalisation; calls on the commission and the member states to develop policies to support new sustainable business models based on product-as-a-service approaches; ### 5. highlights the opportunities to combine circular economy solutions and environmentally sustainable digitalisation; calls on the commission and the member states to develop policies to support new sustainable processes , products and business models based on product-as-a-service approaches; however , notes that digital technologies themselves present interlinking risks for both the people and the environment and considers imperative that the digitalisation of the union supports and does not hamper the transition towards a climate-neutral economy. calls on the commission to come forward with a study assessing the material and climate impacts of digitalisation , including the internet of things , 5g and the development of data centres , while to put energy efficiency and circular economy requirements at the heart of the development of digital technologies and data centres;


### 5. highlights the opportunities to combine circular economy solutions and digitalisation; calls on the commission and the member states to develop policies to support new sustainable business models based on product-as-a-service approaches; ### 5. highlights the opportunities to combine circular economy solutions and digitalisation; however , is concerned that the digital sector has a far from negligible environmental footprint since it is responsible for the fastest growing waste stream in the world1a; calls on the commission to assess the material and climate impact of digitalisation , including the internet of things and the development of datacentres; calls on the commission and the member states to develop policies to support new sustainable business models , such as product-as-a-service approaches provided they ensure sufficient protection for consumers , do not hinder the ‘right to repair’ and ensure an effective reduction of resource use and of environmental impacts;


### 5. highlights the opportunities to combine circular economy solutions and digitalisation; calls on the commission and the member states to develop policies to support new sustainable business models based on product-as-a-service approaches; ### 5. highlights the opportunities to combine circular economy solutions and digitalisation; calls on the commission and the member states to develop policies to support new sustainable business models based on product-as-a-service approaches providing sufficient protection for consumers and ensuring a reduction of resource consumption;


### 5. sees the circular bio-economy as an opportunity for agriculture , enabling it generate renewable energy from biodegradable farm and municipal waste and its by-products: organic fertilisers; ### 5. sees the circular bio-economy in the renewable energy sector as an opportunity for agriculture that can enable the production of recycled organic fertilisers , as replacements for , for example , imported phosphorous , global resources of which are dwindling , or synthetic nitrogen , which is polluting and energy-intensive to produce; takes the view , however , that the production of these organic fertilisers from digestates recovered from small methanation plants attached to farms , which make use of biodegradable farm waste as well as the waste from neighbouring residential areas and businesses , absolutely must adhere to strict health and environmental standards and to rules concerning their traceability and use , set at eu level , since these fertilisers must be free from contaminants (heavy metals , pharmaceutical residues , hormones , microbial pathogens , microplastics , glass , etc.) which could irreversibly pollute soils and the whole biosphere , thereby severely affecting farming and food production;


### 6. encourages the commission to engage with the eu’s trading partners to further support the objectives of the circular economy; stresses that particular attention must be given to how less developed partner countries can benefit from the circular economy; calls for an assessment of the impact of increased intra-eu recycling rates on countries strongly relying on waste imports. ### 6. encourages the commission to engage with the eu’s trading partners to further support the objectives of the circular economy; reminds that sustainability does not only require ambitious measures related to environment , climate change or biodiversity but should also focus on human rights and social issues as exemplified in the sdgs; stresses that particular attention must be given to how less developed partner countries can be supported in benefitting from the circular economy in particular to the ways in which circular economy can contribute to improve labour and social standards worldwide; calls for an assessment of the impact of increased intra-eu recycling rates on countries strongly relying on waste imports.