### 2. welcomes the ongoing extension of the eu’s trans-european transport network (ten-t) in the western balkans and the eastern partnership countries , and calls on the commission to speed up the review process of ten-t and its external dimension and to come up with a comprehensive transport initiative to connect ten-t with strategic networks in asia; ### 2. whereas the european union’s economic and investment plan for the western balkans region is to be viewed as a key element of the eu-asia connectivity strategy , the western balkans’ region , given its geographical position , plays an important role in the eu's connectivity towards asia; welcomes , therefore , the ongoing extension of the eu’s trans-european transport network (ten-t) in the western balkans and the eastern partnership countries; calls on the commission to consider an appointment of special ten-t coordinator for the enlargement and eastern partnership countries; underlines that during the ongoing review process of ten-t policy the commission should pay due attention to its external dimension , including the link with a comprehensive transport initiative to find synergies between the extended ten-t and strategic networks in asia;


### 2. expects the strategy to contribute to implementing the eu’s main framework policies of building a strong and fair union , investing in peaceful international relations , achieving economic progress on the basis of the european green deal and the digital transformation , and promoting global justice; ### 2. expects the strategy to contribute to implementing the eu’s main framework policies of building a strong and fair union , investing in peaceful and respectful international relations , achieving economic progress on the basis of the european green deal and the digital transformation , and promoting the european way of life; furthermore believes that such a strategy would underline and facilitate achieving a more assertive european position in global politics;


### 3. stresses the importance of the ongoing negotiations of comprehensive air transport agreements with partner countries in asia; calls in particular for a swift conclusion of the agreement between the eu and the association of southeast asian nations (asean) , which is expected to connect more than a billion citizens; highlights the importance of eu support to asian countries in mitigating the impact of civil aviation on climate change; ### 3. stresses the importance of the ongoing negotiations of comprehensive air transport agreements with partner countries in asia that end with any bilateral agreement still in force that limits free competition and movement; calls in particular for a swift conclusion of the agreement between the eu and the association of southeast asian nations (asean) , which is expected to connect more than a billion citizens; highlights the importance of eu support to asian countries in mitigating the impact of civil aviation on climate change;


### 3. is of the view that the strategy must comprehensively address a broad spectrum of political , economic , cultural , sustainability and security dimensions based on the eu’s fundamental values and its shared interests; insists that the values of freedom , human rights , rule of law , democracy , solidarity , sustainability , inclusiveness , transparency , reciprocity and the adherence to multilateralism must guide the strategy; ### 3. is of the view that the strategy must comprehensively address a broad spectrum of political , economic , cultural , sustainability and security dimensions based on the eu’s fundamental values and its shared interests , implement flagship projects that demonstrate our values of sustainability , human rights and transparency;


### 4. invites economic and societal stakeholders at the eu level and in the member states to participate in the development of the strategy; ### 4. highlights the huge economic potential of connectivity , in particular in the digital field , and sees it as a key element to ensure future growth and prosperity in europe; invites economic and societal stakeholders at the eu level and in the member states to participate in the development of the strategy; suggests that the eu , particularly when recalling its high level of grants compared to the level of grants by other global actors , seeks a more assertive economic policy in order to provide increased market access and economic opportunities for eu companies;


### 5. highlights the importance of the ongoing work of the eu-china connectivity platform in its efforts to explore opportunities for cooperation in the area of transport between the eu’s ten-t network and china’s belt and road initiative (bri); acknowledges the importance of working towards greater transparency , reciprocity in market access and a level playing field for businesses in the area of transport infrastructure development with china. ### 5. highlights the importance of the ongoing work of the eu-china connectivity platform in its efforts to explore opportunities for cooperation in the area of transport between the eu’s ten-t network and china’s belt and road initiative (bri); acknowledges the importance of working towards greater transparency , reciprocity in market access and a level playing field for businesses in the area of transport infrastructure development with china; urges all european companies engaged with projects related to the bri to promote human rights’ due diligence in the framework of the united nations guiding principles on business and human rights; calls on member states to provide effective guidance to european enterprises on how to assess actual and potential human rights’ impacts related to the bri;


### 5. highlights the importance of the ongoing work of the eu-china connectivity platform in its efforts to explore opportunities for cooperation in the area of transport between the eu’s ten-t network and china’s belt and road initiative (bri); acknowledges the importance of working towards greater transparency , reciprocity in market access and a level playing field for businesses in the area of transport infrastructure development with china. ### 5. highlights the importance of the ongoing work of the eu-china connectivity platform in its efforts to explore opportunities for cooperation and find synergies in the area of transport between the eu’s extended ten-t network and china’s belt and road initiative (bri); acknowledges the importance of working towards greater transparency , reciprocity in market access and a level playing field for businesses in the area of transport infrastructure development with china.


### b. whereas a global connectivity strategy should serve the goals of the eu’s key policies such as the european green deal , the digital transformation and the global promotion of human rights; whereas it should build on europe’s strength in trade policy , and address newly urgent challenges such as global health and security; ### b. whereas a global connectivity strategy should serve the goals of the eu’s key policies such as the european green deal , the digital transformation and the promotion of the values of the european way of life; whereas it should build on europe’s strength in trade policy , and address newly urgent challenges such as global health and security;


### d. whereas a global connectivity strategy should be included in the commission work programme for 2021; ### d. whereas despite numerous calls from members of the european parliament a global connectivity strategy was not included in the commission work programme for 2021 and underlines that without adequate funding , financial means , and allocation of human resources , the strategy will not be able to reach its full potential;


### 6. gives greatest emphasis to the need for a fair partnership with respective countries; believes the strategy must create shared benefits , prevent one-sided dependencies or debt traps , empower self-determination , and be conducted with mutual respect; ### 6. gives greatest emphasis to the need for a fair cooperation and mutual respect for our partners and other respective countries and regions while using the attractiveness of the internal market , trade policies and other “soft-powers” of the eu to promote the values of the european way of life; believes the strategy must create shared benefits , prevent one-sided dependencies or debt traps , empower self-determination , and be conducted with mutual respect;


### 9. proposes that the strategy be discussed regularly by the commissioners’ group for a stronger europe acting as connectivity coordination body , co-chaired by the vp/hr and a commission connectivity coordinator , ideally an executive vice-president; ### 9. underlines that the strategy needs to have a clearer leadership and division of competence inside the commission , at each level , including at the top , therefore it proposes that the implementation of the strategy be discussed regularly by the commissioners’ group for a stronger europe acting as connectivity coordination body , co-chaired by the vp/hr and a commission connectivity coordinator , ideally an executive vice-president; highlights the expectation that such regular reports should be thoroughly discussed by the european parliament and the council;


### 11. believes that the inclusion of relevant stakeholders is essential for the success of the strategy; recommends the creation of a high level expert group as an advisory body on international connectivity including business representatives , human rights , environmental and labour rights advocates , and international financial institutions; ### 11. believes that the inclusion of relevant stakeholders is essential for the success of the strategy; recommends the creation of a high level expert group as an advisory body on international connectivity including business representatives , international financial institutions and other stakeholders;


### 12. strongly believes that european development banks should play a central role in managing investment in international connectivity projects in particular with regard to the mobilisation of private sector investment; ### 12. strongly believes that european development banks with a special focus of the european investment bank and eu financial programs , such as the invest eu , should play a central role in managing investment in international connectivity projects in particular with regard to the mobilisation of private sector investment;


### 12. strongly believes that european development banks should play a central role in managing investment in international connectivity projects in particular with regard to the mobilisation of private sector investment; ### 12. strongly believes that european development banks should play a central role in managing investment in international connectivity projects in particular with regard to the mobilisation of private sector investment , differentiating investment policies based on the country’s level of development;


### 14. calls on the commission and the member states to step up their ambition for the digital transformation; expects the eu to become a competitive global actor in digitalisation on a par with the us and china; considers , in this context , the promotion of digital connectivity a high priority for the eu; believes that the development of open strategic autonomy in this sector must include digitalisation partnerships with third countries; underlines that the eu should aim at co-leadership in setting and defending international standards and practices; ### 14. points with great emphasis to the fact that digitalisation is the key trend for the 21st century and underlines its impact on the every day life of every single european citizen , therefore calls on the commission and the member states to step up their ambition for the digital transformation; expects the eu to become a competitive global actor in digitalisation on a par with the us and china; considers , in this context , the promotion of digital connectivity a high priority for the eu; believes that the development of open strategic autonomy in this sector must include digitalisation partnerships with third countries; underlines that the eu should aim at co-leadership in setting and defending international standards and practices;


### 16. commends the initiatives adopted for the western balkans aiming to promote youth cooperation and exchanges , as well as vocational education and training , and encourages offering similar programmes to other partners of the connectivity strategy , starting with the eastern partnership countries; ### 16. commends the initiatives adopted for the western balkans aiming to promote youth cooperation and exchanges , as well as vocational education and training , and encourages offering similar programmes to other partners of the connectivity strategy , starting with the eastern partnership countries; points out , however , that connectivity issues should not blind us to the fact that in overall terms the accession of the countries of the western balkans to the european union would bring more drawbacks than advantages;


### 17. highlights the importance of trade and investment in achieving the objectives of the strategy; emphasises , in this context , in particular the role of international norms and standards; is of the view that the eu model of standardisation policy has the advantage of being innovative , open and inclusive , and must be enabled to continue coping with the global competition between different standardisation paradigms; emphasises in this context the need to prevent any authoritarian tendencies in future standardisation of ict and the internet of things; ### 17. highlights the importance of trade and investment in achieving the objectives of the strategy; emphasises , in this context , in particular the role of international norms and standards; is of the view that the eu model of standardisation policy has the advantage of being innovative , open and inclusive , and must be enabled to continue coping with the global competition between different standardisation paradigms;


### 18. believes that the covid-19 pandemic has demonstrated the urgency of prioritising the health sector as a new crucial area for cooperation , in particular on the resilience of health systems , access to medicines , medical equipment and vaccines , avoiding one-sided dependencies , ensuring safe and diverse pharmaceutical and health-related industrial supply chains , and exchange of best practices in crisis management and pandemic prevention policies; ### 18. believes that the covid-19 pandemic has demonstrated the urgency of prioritising the health sector as a new crucial area for cooperation , in particular on the resilience of health systems , access to medicines , medical equipment and vaccines , avoiding one-sided dependencies , ensuring safe and diverse pharmaceutical and health-related industrial supply chains , and exchange of best practices in crisis management and pandemic prevention policies and reciprocity in managing travel and open borders;


### 19. is convinced that the strategy’s security dimension must urgently be developed in order for the eu to keep abreast of new security challenges; highlights growing security concerns emanating from the eu’s eastern and southern neighbourhood; urges the eeas and the member states to play a more proactive role on these issues; ### 19. is convinced that the strategy’s security dimension must urgently be developed in order for the eu to keep abreast of new security challenges , including digital connectivity , critical infrastructure and potential dual use of technology; highlights growing security concerns emanating from the eu’s eastern and southern neighbourhood; urges the eeas and the member states to play a more proactive role on these issues;


### 20. strongly welcomes the establishment of the eu-japan partnership on sustainable connectivity and quality infrastructure , with its focus on the western balkans , eastern europe , central asia , the indo-pacific and africa; applauds japan for pro-actively proposing practical steps to realise agreed ambitions; hopes that the eu and japan will manage to kick-start the operationalisation of the partnership in the first half of 2021; ### 20. strongly welcomes the establishment of the eu-japan partnership on sustainable connectivity and quality infrastructure , with its focus on the western balkans , eastern europe , central asia , the indo-pacific and africa; applauds japan for pro-actively proposing practical steps to realise agreed ambitions; hopes that the eu and japan will manage to kick-start the operationalisation of the partnership in the first half of 2021; calls , in the context of connectivity at the level of the eurasian continent , for consideration to be given to a partnership with russia , in the light of that country's key strategic position and the economic opportunities it offers , particularly in the energy sphere;


### 21. strongly welcomes ongoing negotiations for building a connectivity partnership with india; hopes that the rotating eu council presidencies , as well as the subsequent g20 presidencies , of italy and india will use their leverage to move forward; welcomes also the eu-korean exploratory exchanges on a connectivity partnership , and hopes it will make good headway in 2021; advocates the establishment of an eu-asean connectivity partnership aiming at interconnecting with asean’s already existing connectivity master plan and project pipeline; ### 21. strongly welcomes ongoing negotiations for building a connectivity partnership with india; hopes that the rotating eu council presidencies , as well as the subsequent g20 presidencies , of italy and india will use their leverage to move forward; welcomes also the eu-korean exploratory exchanges on a connectivity partnership , and hopes it will make good headway in 2021; advocates the establishment of an eu-asean connectivity partnership aiming at interconnecting with asean’s already existing connectivity master plan and project pipeline; deplores the adverse impact which the trade agreement and the investment protection agreement with vietnam will have , as a result of the significant advantages granted to that country , one of the last communist dictatorships; calls instead for the sanctions imposed by the eu on cambodia to be lifted;


### 22. welcomes the general principles of the blue dot network (bdn) concept initiated by the united states; calls on commission and eeas to engage with bdn , without yet endorsing it as long as sustainability concerns remain unresolved; ### 22. takes the view that , as regards the certification of structures , the member states should not as a matter of priority refer to a standard initiated by the united states , but establish their own common yardsticks;


### 22. welcomes the general principles of the blue dot network (bdn) concept initiated by the united states; calls on commission and eeas to engage with bdn , without yet endorsing it as long as sustainability concerns remain unresolved; ### 22. expresses its firm belief that the eu should strengthen the cooperation with the us administration; therefore welcomes the general principles of the blue dot network (bdn) concept initiated by the united states; calls on commission and eeas to engage with strengthening transatlantic cooperation on connectivity;


### 23. is also willing to consider partnership with the chinese belt and road initiative in specific cases where this does not compromise core eu principles; ### 23. takes the view that the decision whether or not to get involved in chinese projects which are part of the belt and road initiative must remain a matter for the member states alone;


### 23. is also willing to consider partnership with the chinese belt and road initiative in specific cases where this does not compromise core eu principles; ### 23. is also willing to consider partnership with the chinese belt and road initiative in specific cases where this does not compromise core eu principles , with these projects to be subject of scrutiny by the commission in order to assure their compliance with eu standards , interests , and principles;;


### 1. takes note of the commission’s initiatives to support european smes’ access to international markets; stresses , however , that smes have to deal with too many regulations and burdens and excessive bureaucracy; stresses that smes are kept at a competitive disadvantage by investing in climate neutrality to comply with the green deal while trying to remain competitive and thrive on export markets; ### 1. urges in light of the current crisis the commission to focus on smes as the backbone of our economy , to boost the economic recovery and competitiveness of the eu; takes note of the commission’s initiatives to support european smes’ access to international markets; stresses , however , that smes have to deal with too many regulations and burdens and excessive bureaucracy; stresses that smes are kept at a competitive disadvantage by investing in climate neutrality to comply with the green deal while trying to remain competitive and thrive on export markets; stresses therefore the need to further improve the business environment in the eu i.e. by facilitating easier access to finance; underlines that cutting red tape and easing of bureaucratic burdens should remain a priority and that legal certainty , evidence based policy , assessments of impact and cost efficiency must be ensured before introducing new eu rules; reminds the commission of the one-in-one-out principle; highlights in this sense the importance of effective communication and awareness raising campaigns; welcomes the commission’s objective to launch early in 2020 a dedicated rules of origin self-assessment tool for smes on the future access2market platform to help companies assess whether a product can benefit from preferences under a given eu trade agreement , in order to facilitate smes’ utilisation of preferences under eu trade agreements;


### 1. recalls that the eu’s industrial future is linked to an alignment of the economy with the principles of the european green deal , a roadmap towards a new growth policy for the eu , bringing citizens , cities and regions together , and allowing for a just transition; ### 1. recalls that the eu’s industrial future is linked above all to a full economic recovery following the pandemic crisis and to a roadmap towards a new growth policy for the eu carrying citizens , cities and regions to the same higher level of development , and allowing for a just transition;


### 1. notes that the covid-19 crisis has had a profound impact on global production and has prompted the european union to consider its future industrial strategy; ### 1. notes that the commission’s proposal on a future eu industrial strategy was published at the very beginning of the covid-19 crisis and has since been complemented by a further package of recovery measures for europe’s industry and smes; notes that the strategy focuses on business recovery in a first phase , reconstruction and transformation in a second phase.;


### a. whereas today eu industry employs around 35 million people and accounts for over 80 % of exports; whereas women still remain under-represented across industrial sectors , occupations and management levels; ### a. whereas today eu industry employs around 35 million people and accounts for over 80 % of exports; whereas women still remain under-represented across industrial sectors , occupations and management levels despite the fact that based on eurostat data on educational attainment , women have already reached the europe 2020 headline target in2013 with a proportion of 40 ,1% of women having completed tertiary education and despite the fact that in 2019 in the age group of 20-24 years 86 ,2% of women had completed at least upper secondary education while only 81% of men;


### b. whereas the eu industrial strategy must serve as a vector for creating more and better jobs and achieve an inclusive and balanced job market , accompanying the transition towards a digital and carbon-neutral industry; ### b. whereas the eu industrial strategy must serve as a vector for creating more , better and fully inclusive jobs and achieve an inclusive and balanced job market where also people with disabilities can work , accompanying the transition towards a digital and carbon-neutral industry;


### b. whereas the eu’s smes have traditionally generated a high share of the eu’s employment , and in so doing have ensured social and economic well-being and prosperity; ### b. whereas the eu’s microenterprises and smes have traditionally generated a high share of the eu’s employment , and in so doing have ensured social and economic well-being and prosperity;


### c. whereas digitalisation and artificial intelligence are crucial for all industry sectors , increasing competitiveness , creating job opportunities and economic prosperity; ### c. whereas digitalisation , collaborative robots , smart factories and artificial intelligence are crucial for all industry sectors , increasing competitiveness , creating job opportunities and economic prosperity;


### d. whereas the covid-19 pandemic has brought unprecedented challenges for eu industry , with over 5 million people at risk of losing their jobs and a projected average reduction in gdp of around 7 % across the eu; ### d. whereas the covid-19 pandemic has brought unprecedented challenges for eu industry , with over 5 million people at risk of losing their jobs and a projected average reduction in gdp of around 7 % across the eu and low-skilled workforce is particularly vulnerable in the digital age , therefore digital literacy is an indispensable asset;


### 2. notes that this crisis has demonstrated the need for the eu to adjust its industrial strategy by strengthening the defence of its strategic interests without abandoning international trade; ### 2. notes that this crisis has demonstrated the need for the eu to adjust its industrial strategy by strengthening the defence of its strategic interests without abandoning international trade; believes that the eu must strike the right balance between protection and openness of its markets , while defending fair competition rules at global level;


### 3. stresses that in supporting smes through the european structural and investment funds (esif) the goal should be , inter alia , an innovative and smart economic transformation , a greener and low carbon eu , as well as an eu which is more connected and aims to ensure long-term and sustainable employment; ### 3. stresses that in supporting microenterprises and smes through the european structural and investment funds (esif) the goal should be , inter alia , an innovative and smart economic transformation , a greener and low carbon eu , as well as an eu which is more connected and aims to ensure long-term and sustainable employment;


### 4. reiterates that the public sector has an important new role to play in facilitating a just transition by promoting a green and fair energy transition , green and blue investments , the circular economy , as well as climate adaptation and risk prevention in all eu regions; ### 4. notes that the public sector has an important new role to play in facilitating a just transition by promoting a green and fair energy transition , green and blue investments , the circular economy , as well as climate adaptation of territories and risk prevention in all eu regions;


### - having regard to the commission proposal for a regulation of 4 march 2020 establishing the framework for achieving climate neutrality and amending regulation (eu) 2018/1999 (european climate law) (com(2020)0080) , ### deleted


### - having regard to its resolution of 15 january 2020 on the european green deal (2019/2956(rsp))3 , ### deleted


### - having regard to the commission communication of 11 december 2019 on the european green deal (com(2019)0640) , ### deleted


### 1. calls on the eu to increase its investments in programmes for climate resilient agriculture , sustainable intensification and diversification , agroecology and agroforestry , with the aim of stopping the expansion of land use at the expense of forests while feeding and providing economic opportunities for a growing population; ### 1. calls on the eu to increase its investments in programmes for climate resilient agriculture , sustainable intensification and diversification , agroecology and agroforestry , with the aim of stopping illegal logging and the expansion of land use at the expense of forests while feeding and providing economic opportunities for a growing population in harmony with the european green deal , while notes the different level of national policies in the context of circular bioeconomy;


### 1. emphasises the important role played by farmers in food production and how this is dependent on natural resources such as soil , water and forests; recognises the multifunctionality of forests; ### 1. emphasises the important role played by farmers in food production and how this is dependent on natural resources such as soil , water and forests. recognises the multifunctionality of forests and the need to encourage new practices introduced by european farmers in recent years such as hedge-planting and the use of agroforestry techniques;


### 2. underlines that eu cooperation measures need to tackle corruption , weak governance and institutions , lack of trained personnel , impunity and insecure land tenure as major causes of illegal logging , fraud , tax evasion and violations of human rights; ### 2. underlines that eu cooperation measures need to tackle corruption , weak governance and institutions , lack of trained personnel , impunity and insecure land tenure as major causes of illegal logging , fraud , tax evasion and violations of human rights; hence urges the traceability of timber and timber products throughout the supply chain;


### 3. recalls that indigenous people , local communities , smallholder farmers and women possess and heavily rely on indispensable knowledge regarding forests; calls on the eu to ensure their participation in the design and implementation of eu development programmes which have an impact on them; calls on the eu , furthermore , to increase the transparency of voluntary partnership agreements; ### 3. recalls that indigenous people , local communities , smallholder farmers and women possess and heavily rely on indispensable knowledge regarding forests while acknowledges the role of professional forester’s whose role is also utmost important in order to implement effective forest protection; calls on the eu to ensure their participation in the design and implementation of eu development programmes which have an impact on them; calls on the eu , furthermore , to increase the transparency of voluntary partnership agreements; stresses that priority should be given also to knowledge on forestry and forest protection , including innovation and digitalisation , as well as knowledge transfer;


### 5. urges the eu to discuss deforestation issues in bilateral dialogues with partner countries in order to encourage them to include forests in their nationally determined contributions (ndcs) under the paris agreement , to work on internationally binding forest protection schemes and to coordinate with international initiatives; ### 5. urges the eu to discuss deforestation issues in bilateral dialogues with partner countries in order to encourage them to include forests in their nationally determined contributions (ndcs) under the paris agreement , to work on internationally binding forest protection and reforestation schemes and to coordinate with international initiatives; calls on the eu to consider providing support to third countries with the potential to switch to non-wood based renewable energy sources , thereby reducing the pressure on deforestation caused by the use of wood as fuel , and encourages actions to increase forest cover and other wooded land where relevant , especially in abandoned lands , close to urban and peri-urban areas as well as in mountainous areas considering regional site and changing climatic conditions;


### 6. welcomes the commitment by the commission to increase supply chain sustainability and transparency; calls for the adoption of regulatory measures while ensuring a level playing field to avoid income loss in developing countries and unfair competition; ### 6. welcomes the commitment by the commission to increase supply chain sustainability and transparency and urges the traceability of timber and timber products throughout the supply chain within the eu and in third countries; calls for the adoption of regulatory measures while ensuring a level playing field to avoid income loss in developing countries and unfair competition; is convinced that the eu forest strategy should promote and share of best practices and results in the forest sector and improve cooperation among member states;


### 7. calls on the eu to make sure that policies in all areas are coherent with its commitments to protect and restore forests; recalls that the sustainability chapters of trade agreements need to contain forest-specific and responsible business conduct provisions , as well as mechanisms to oversee the effective implementation of these provisions. ### 7. calls on the eu to make sure that policies in all areas are coherent with its commitments to protect and restore forests; recalls that the sustainability chapters of trade agreements need to contain forest-specific and responsible business conduct provisions , as well as mechanisms to oversee the effective implementation of these provisions , stresses that afforestation can help to reach climate neutrality by 2050.


### 1. calls on the union to adopt a legislative act requiring companies to conduct mandatory due diligence throughout their entire supply chains to ensure that forest risk commodities placed on the union market are sustainable , deforestation-free and comply with human rights obligations; stresses that such legislation should follow a cross-commodity approach , apply to all economic actors , including financial actors , and be accompanied by a robust enforcement mechanism , including effective , proportionate and dissuasive penalties for non-compliance; ### 1. stresses that forestry policy is primarily a national competence , however recognizes that many eu policies have an impact on forests , therefore cross-sectoral coordination and impact assessment focusing on smes is necessary. calls on the union to adopt a legislative act requiring companies to conduct due diligence throughout their entire supply chains to ensure that forest risk commodities placed on the union market are sustainable , deforestation-free and comply with human rights obligations in line with international obligations; stresses that such legislation should follow a cross-commodity approach , apply to all economic actors , including financial actors , and be accompanied by a robust enforcement mechanism , including effective , proportionate and dissuasive penalties for non-compliance , stresses that any new legal framework should create opportunities for smes and not lead to an excessive administrative burden for them;


### 1. calls on the union to adopt a legislative act requiring companies to conduct mandatory due diligence throughout their entire supply chains to ensure that forest risk commodities placed on the union market are sustainable , deforestation-free and comply with human rights obligations; stresses that such legislation should follow a cross-commodity approach , apply to all economic actors , including financial actors , and be accompanied by a robust enforcement mechanism , including effective , proportionate and dissuasive penalties for non-compliance; ### 1. calls on the union to adopt a legislative act requiring companies to conduct mandatory due diligence throughout their entire supply chains to ensure that forest risk commodities placed on the union market are sustainable , deforestation-free and comply with human rights obligations , also taking into account the oecd due diligence guidance for responsible business conduct; stresses that such legislation should follow a cross-commodity approach , apply to all economic actors , including financial actors , and be accompanied by a robust enforcement mechanism , including effective , proportionate and dissuasive penalties for non-compliance; invites the commission to promote such a regulatory framework at international level;


### 2. calls for the union to strengthen its standards in terms of mandatory disclosure of information by undertakings related to the production or processing of forest risk commodities in the remit of the revision of directive 2014/95/eu of the european parliament and of the council1 ; ### 2. calls for the union to strengthen its standards in terms of mandatory disclosure of information by undertakings related to the production or processing of forest risk commodities , calls for the implementation of the bioeconomy strategy; recognise the positive economic , societal and environmental contribution of the forest industry and ask for further investment in research , innovation and technological advancement;


### 2. notes that voluntary measures alone will not stop deforestation; ### 2. notes that unilateral commitments alone will not stop deforestation and that compliance with union rules , together with safeguard clauses in the event of non-compliance , is therefore a necessary precondition for all the union's trade negotiations;


### 3. recalls that the increasing union demand of wood for materials , energy and bioeconomy increases the risks of import-embodied deforestation , land grabbing , forced displacement and violation of indigenous people’s rights; stresses the need to ensure effective recognition and respect of customary land tenure rights of forest-dependent communities and of indigenous people; ### 3. recalls that the increasing union demand of wood for materials , energy and bioeconomy increases the risks of import-embodied deforestation , land grabbing , forced displacement and violation of indigenous people’s rights; stresses the need to ensure effective recognition and respect of customary land tenure rights of forest-dependent communities and of indigenous people as a question of social justice; recognizes to this regard the relevance of international frameworks such as the fao voluntary guidelines on the responsible governance of tenure of land , fisheries and forests (vggt) , which offers legal clarity and internationally accepted standards of good practices for the responsible governance of land tenure; invites the commission to support the diffusion , use and implementation of the vggt at global , regional and country level , also through the external investment plan;


### 3. recalls that the increasing union demand of wood for materials , energy and bioeconomy increases the risks of import-embodied deforestation , land grabbing , forced displacement and violation of indigenous people’s rights; stresses the need to ensure effective recognition and respect of customary land tenure rights of forest-dependent communities and of indigenous people; ### 3. highlights the positive role of the eu’s forest industry for advancing global standards on sustainable forest management , recalls that the increasing union demand of wood for materials , energy and bioeconomy increases the risks of import-embodied deforestation , land grabbing , forced displacement and violation of indigenous people’s rights; urges the stopping of illegal logging and the traceability of timber and timber products throughout the supply chain stresses the need to ensure effective recognition and respect of customary land tenure rights of forest-dependent communities and of indigenous people;


### 4. regrets that policies aiming at protecting biodiversity and mitigating climate change are not automatically mutually supportive; is notably worried about the environmental impact of increasing imports of biomass triggering deforestation abroad; ### 4. regrets that policies aiming at protecting biodiversity and mitigating climate change are not automatically mutually supportive; calls on the eu to undertake a careful and exhaustive evaluation about the environmental impact of increasing imports of biomass , which might lead to unsustainable practices triggering deforestation abroad , if not duly monitored;


### 4. regrets that policies aiming at protecting biodiversity and mitigating climate change are not automatically mutually supportive; is notably worried about the environmental impact of increasing imports of biomass triggering deforestation abroad; ### 4. regrets that policies aiming at protecting biodiversity and mitigating climate change are not automatically mutually supportive; is notably worried about the environmental impact of increasing imports of biomass triggering deforestation abroad and stresses that afforestation can help to reach climate neutrality by 2050; calls for a timely implementation of the renewable energy directive (redii) which stipulates strong sustainability criteria for renewable energy sources. recalling that the redii directive represents a vitally important contribution to limit negative and unintended impact of the eu’s renewable energy policy;


### 5. calls on the union to comply with the principle of policy coherence for development and to ensure consistency between its development , trade , agriculture , energy and climate policies; ### 5. calls on the union to promote sustainable forest management (sfm) which has not only economic benefit but the forest growth also help to implement climate goals , which is key in decreasing deforestation and forest degradation and to comply with the principle of policy coherence for development and to ensure consistency between its development , trade , agriculture , energy and climate policies; calls on the eu to consider providing support to third countries with the potential to switch to non-wood based renewable energy sources , thereby reducing the pressure on deforestation caused by the use of wood as fuel , and encourages actions to increase forest cover and other wooded land where relevant , especially in abandoned lands , close to urban and peri-urban areas as well as in mountainous areas considering regional site and changing climatic conditions;


### 5. calls on the union to comply with the principle of policy coherence for development and to ensure consistency between its development , trade , agriculture , energy and climate policies; ### 5. calls on the union to comply with the principle of policy coherence for development as set out in article 208 tfue and to ensure consistency between its development , trade , agriculture , energy , research and climate policies; urges in particular the eu to substantially increase its investments in programmes for research and innovation in order to strengthen and enhance climate resilient agriculture , crop diversification and agroecology , in line with the objectives of the european green deal;


### 6. calls on the commission to include ambitious forest-specific provisions in all union trade and investment agreements; stresses that these provisions should be binding and enforceable through an effective monitoring and sanctions mechanism. ### 6. calls on the commission to include ambitious forest-specific provisions in all union trade and investment agreements , including robust , coherent and enforceable sustainability chapters; stresses that these provisions should be binding and enforceable through an effective monitoring and sanctions mechanism; invites the commission to carefully assess the impacts of trade agreements on deforestation in the sustainability impact assessments (sias) and other relevant assessments , based on solid data and evaluation methodologies.


### 6. calls on the commission to include ambitious forest-specific provisions in all union trade and investment agreements; stresses that these provisions should be binding and enforceable through an effective monitoring and sanctions mechanism. ### 6. calls on the commission to include ambitious forest-specific provisions in all union trade and investment agreements; stresses that these provisions should be binding and enforceable through an effective monitoring and sanctions mechanism; recalls that forests have a therapeutic function with direct positive consequences for human health and quality of life , and could therefore also contribute to the socioeconomic development of rural areas.


### 6. calls on the commission to include ambitious forest-specific provisions in all union trade and investment agreements; stresses that these provisions should be binding and enforceable through an effective monitoring and sanctions mechanism. ### 6. calls on the commission to include ambitious forest-specific provisions in all union trade and investment agreements , stresses that priority should be given also to knowledge on forestry and forest protection , including innovation and digitalisation , as well as knowledge transfer; stresses that these provisions should be enforceable through an effective monitoring mechanisms to seek redress , notably by providing a complaint mechanism.


### b. whereas the european union is in a unique position to take the lead for a sustainable recovery; ### b. whereas the european union is in a unique position to take the lead for a sustainable recovery due to its commitment and courage embracing the digital and green transitions; whereas the union has set new standards in terms of the sustainable development chapters of the free trade agreements signed with new trading partners;


### 1. welcomes the timely launch of the review of the eu trade policy in 2020 , as a response to the covid-19 pandemic , and welcomes the concept of “open strategic autonomy” and invites the commission to provide further details on its content; for this purpose , considers crucial to coordinate and create synergies between trade policy and internal policies (e.g. industrial , digital , environmental policies); and insists that the eu trade strategy must increase the competitiveness of the eu industry including the agricultural sector , create quality jobs and protect workers , generate inclusive and sustainable economic growth in line with the european green deal and promote eu interests and values; highlights that the eu trade strategy must fully participate in the recovery process from the crisis with a broader reflexion on the vulnerabilities of the eu and its dependence on third markets and countries; ### 1. welcomes the timely launch of the review of the eu trade policy in 2020 , as a response to the covid-19 pandemic , and welcomes the concept of “open strategic autonomy” and invites the commission to provide further details on its content; for this purpose , considers crucial to coordinate and create synergies between trade policy and internal policies (e.g. industrial , health , financial , digital , environmental policies); and insists that the eu trade strategy must increase the competitiveness of the eu industry including the agricultural sector , create quality jobs and protect workers , generate inclusive and sustainable economic growth in line with the european green deal and promote eu interests and values both inside and outside the union; highlights that the eu trade strategy must fully participate in the recovery process from the crisis with a broader reflexion on the vulnerabilities of the eu and its dependence on third markets and countries , in order to keep the key supply chains for essential goods for the crisis (i.e. medical supplies , food products , ict goods and services) open and functioning;


### a. whereas the commission’s communication ‘an sme strategy for a sustainable and digital europe’ was published on 10 march 2020 , while on 11 march the who issued the covid-19 pandemic alert , rendering the economic , social and political environment referred to by the commission out of date; ### a. whereas the commission’s communication ‘an sme strategy for a sustainable and digital europe’ was published on 10 march 2020 ,while on 11 march the who issued the covid-19 pandemic alert , making a revision of the strategy necessary , due to the change in many economic , social and political conditions; whereas the commission’s strategy presented in march still proposes valid solutions to address the structural challenges smes were facing prior to the covid-19 crisis and the upcoming ones related to the environmental and the digital transitions;


### 2. considers that the objectives of the 'sme strategy for a sustainable and digital europe’ should be fully matched by financial and other resources to enable member states to promote sme transition towards sustainability and digitisation , which is of particular importance for the least developed countries and regions in the context of cohesion policy; stresses that such objectives cannot be contradictory and must , on the contrary , accompany measures to safeguard employment with rights and improve working conditions in the various sectors of activity; ### 2. considers that the objectives of the 'sme strategy for a sustainable and digital europe’ should be fully matched by financial and other resources made available to the member states and the eu budget to promote sme transition towards sustainability and digitisation , which is of particular importance for the least developed countries and regions in the context of cohesion policy; stresses that such objectives cannot be contradictory and must , on the contrary , accompany measures to safeguard employment with rights , improve working conditions in the various sectors of activity and uphold the objectives of the paris agreement;


### 1. emphasises that trade is not an end in itself , but a tool to achieve the sustainable development goals (sdgs); recalls the eu’s commitment regarding the principle of policy coherence for development and the ‘do-no-harm’ principle; ### 1. points out that the eu's commercial policy must strengthen europe's place in global supply chains; emphasises that trade is not an end in itself , but a tool to achieve the sustainable development goals (sdgs); recalls the eu’s commitment regarding the principle of policy coherence for development and the ‘do-no-harm’ principle; the eu must aim to achieve maximum possible consensus in order to ensure that trade deals take proper account of the interests and concerns of all the member states; points out that the eu is committed to a robust , effective and credible commercial policy which will form the basis of an open , rule-based multilateral commercial system;


### 2. stresses the importance of comprehensive , binding and enforceable provisions on social , labour and environmental standards , especially in the trade and sustainable development (tsd) chapters of free trade agreements (ftas); stresses the importance of effective monitoring and sanctions mechanisms that allow individuals and communities , whether outside or within the eu , to seek redress; calls for the systematic use of comprehensive ex ante and ex post impact assessments on trade sustainability , including with regard to human rights; ### 2. stresses the importance of comprehensive and enforceable provisions on social , labour and environmental standards , especially in the trade and sustainable development (tsd) chapters of free trade agreements (ftas); considers that the member states' parliaments and civil society and other stakeholders concerned must be kept properly informed right from the start of the preparatory procedures for negotiations on trade deals and stresses the importance of effective monitoring mechanisms; calls for the systematic use of comprehensive ex ante and ex post impact assessments on trade sustainability , including with regard to human rights;


### 3. highlights that trade agreements can have a negative impact on food security in developing countries; calls for the eu to support developing countries’ demands to protect their food production and to safeguard their population from the potentially destructive effects of cheap imports , notably through the revision of their common external tariffs within the remit of revised economic partnership agreements (epas); ### 3. highlights that trade agreements must exert a positive influence on food security in developing countries; calls for a holistic approach encompassing key issues such as public procurement , competition , including subsidies , and sanitary and phytosanitary barriers;


### 4. recalls that one of the main challenges for developing countries is to climb up the global value chain through economic diversification; calls for the eu to refrain from adopting a trade policy that as a general rule prohibits developing countries from levying export taxes on raw materials , insofar as it is wto-compatible; ### 4. recalls that one of the main challenges for developing countries is to climb up the global value chain through economic diversification; welcomes the eu's support for far-reaching , balanced and mutually-beneficial free-trade-agreement negotiations with the aim of ensuring a level playing field; points out that tax avoidance , tax evasion and tax fraud must be tackled robustly and that rule systems aimed at creating and safeguarding open , fair competition should be promoted;


### 5. stresses that the implementation of the paris agreement should be supported by eu trade policy; calls for the inclusion of specific provisions and targets to achieve these commitments in ftas , notably on the implementation of the national determined contributions , on loss and damage associated with the adverse effects of climate change , and on technology transfer. ### 5. stresses that the eu constitutes a large-scale free trade programme which supports the creation of millions of jobs and contributes to welfare , at the same time taking into account the expectations expressed by eu citizens regarding trade liberalisation in a rapidly-changing globalised world , including the need to promote eu values and standards such as the paris agreement on climate change and safeguard the right of governments to regulate in the public interest; welcomes the inclusion of specific provisions and targets to achieve these commitments in ftas , notably on the implementation of the national determined contributions and on technology transfer.


### 1. acknowledges that there is sufficient strong evidence that shows that the voluntary efforts of union companies to prevent and mitigate the negative impacts of their behaviour on developing countries have failed as violations of human rights of individuals , in particular worker’s rights , and of local communities are still taking place at the end of the supply chain; ### 1. acknowledges that there is sufficient strong evidence that shows that the voluntary efforts of union companies to prevent and mitigate the negative impacts of their behaviour on developing countries have failed as violations of human rights of individuals , in particular worker’s rights , and of local communities are still taking place at the end of the supply chain; notes that the environment continues to suffer the adverse impact of abusive and unethical corporate behaviour which is very often facilitated and exacerbated by corporate corruption practices; is concerned by the impact of the covid-19 crisis which has dramatically disrupted business and exposed major vulnerabilities in the economy and global supply chains linked to conditions of work and disaster preparedness as well as negatively impacted human rights , in particular workers’ rights; notes , furthermore , that the covid-19 crisis had negative impact on the environment in partner countries , thereby affecting local populations; is extremely concerned about the severe consequences of those impacts on women;


### 1. acknowledges that there is sufficient strong evidence that shows that the voluntary efforts of union companies to prevent and mitigate the negative impacts of their behaviour on developing countries have failed as violations of human rights of individuals , in particular worker’s rights , and of local communities are still taking place at the end of the supply chain; ### 1. acknowledges that there is sufficient strong evidence that shows that the voluntary efforts of union companies to prevent and mitigate the negative impacts of their behaviour on developing countries have failed as violations of human rights of individuals , in particular worker’s rights , and of local communities , as well as activities that increase the effects of climate change in the most vulnerable countries , are still taking place at the end of the supply chain;


### 1. acknowledges that there is sufficient strong evidence that shows that the voluntary efforts of union companies to prevent and mitigate the negative impacts of their behaviour on developing countries have failed as violations of human rights of individuals , in particular worker’s rights , and of local communities are still taking place at the end of the supply chain; ### 1. regrets that the voluntary efforts of union companies to prevent and mitigate the negative impacts of their behaviour on developing countries are not yet sufficiently effective and that there are still examples of violations of human rights of individuals , in particular worker’s rights , and of local communities at the end of the supply chain;


### 7. in some member states the need to make businesses more responsive to human rights and to environmental and governance concerns has led to the adoption of national due diligence legislation. in the netherlands , the child labour due diligence act requires undertakings operating in the dutch market to investigate whether there is a reasonable suspicion that the goods or services supplied have been produced using child labour and , in the event of reasonable suspicion , to adopt and implement an action plan. in france , the law on a duty of vigilance of parent and ordering companies requires from some large companies the adoption of a due diligence plan to identify and prevent human rights , health and safety and environmental risks caused by the undertaking , its subsidiaries or suppliers. in many other member states , debate is ongoing as to the introduction of mandatory due diligence requirements for undertakings. ### deleted


### 8. in order to ensure a level playing field the responsibility for companies to respect human rights under international standards should be transformed into a legal duty at union level. by coordinating safeguards for the protection of human rights , the environment and good governance , this directive will ensure that all undertakings operating in the internal market are subject to harmonised minimum due diligence obligations , which will improve the functioning of that market. ### 8. in order to ensure a level playing field the responsibility for companies to respect human rights under international standards should be transformed into an effective instrument at union level. by coordinating safeguards for the protection of human rights and the environment , this directive will ensure that undertakings under the scope of the instrument are subject to harmonised due diligence obligations , which will improve its functioning.


### 9. the establishment of mandatory due diligence requirements at eu level will be beneficial to businesses in terms of harmonization , legal certainty and the securing of a level playing field , and will give companies subject to them a competitive advantage inasmuch as societies are increasingly demanding from undertakings that they become more ethical and sustainable. this directive , by setting a european due diligence standard , could help foster the emergence of a global standard for responsible business conduct. ### 9. the establishment of due diligence requirements at eu level can be beneficial to businesses in terms of harmonization , legal certainty and the securing of a level playing field. this directive , by setting a european due diligence standard , could help foster the emergence of a global standard for responsible business conduct.


### 10. this directive is aimed at preventing and mitigating adverse human rights , governance and environmental impacts throughout the value chain , as well as ensuring that undertakings can be held accountable for these risks and that anyone who has suffered harm in this regard can effectively exercise the right to obtain remedy. ### 10. this directive aims at preventing and mitigating adverse human rights and environmental impacts , as well as ensuring that undertakings have the obligation to identify these risks.


### 13. the directive applies to all undertakings governed by the law of a member state or established in the territory of the union regardless of their size , sector , and whether they are private or state-owned. all economic sectors , including the financial sector , are covered by this directive. ### 13. the directive applies to undertakings governed by the law of a member state or established in the territory of the union with more than 5000 employees.


### 14. a degree of proportionality is built into the due diligence process , as this process is contingent on the risks a company is exposed to. this would imply that many small and medium-size undertakings and micro-enterprises may need less extensive and formalised due diligence processes. an undertaking that , after carrying out a risk assessment , concludes that it does not identify any risks in its business relationships , would only need to fill in and communicate a statement , which should in any case be reviewed in case of changes to the undertakings’ operations or operating context. micro-enterprises in most sectors tend to encounter low risks in their business relationships and , consequently , it is considered appropriate to allow member states to decide whether micro-enterprises should be exempted from the application of the requirements in this directive. ### 14. subsidiarity and proportionality has to be built into the due diligence process , as this process is contingent on the risks a company is exposed to. small and medium-size undertakings and micro-enterprises should be therefore excluded from the obligation of formalised due diligence processes. an undertaking that , after carrying out a risk assessment , concludes that it does not identify any risks in its business relationships , would only need to fill in and communicate a statement , which should be reviewed in case of significant changes to the undertakings’ operations or operating context.


### 15. for undertakings owned or controlled by the state , the fulfilment of their due diligence obligations should require that they procure services from undertakings which have complied with due diligence obligations. member states are encouraged not to provide extraordinary state support to companies that do not comply with the objectives of this directive. ### deleted


### 16. due diligence is defined in this directive as the process put in place by an undertaking in order to identify , cease , prevent , mitigate , monitor , disclose , account for , address and remedy the risks posed to human rights , including social and labour rights , the environment , including climate change , and to governance , both by its own operations and its business relationships. ### 16. due diligence is defined in this directive as the process put in place by an undertaking in order to identify , cease , prevent , mitigate , monitor , disclose , account for , address and remedy the risks posed to human rights and the environment , including climate change in its direct contractual business relationships.


### 17. in relation to human rights risks , this directive lists a number of instruments undertakings should take into consideration when assessing their potential risks. the list is conceived as non-exhaustive , undertakings being strongly encouraged to take into consideration other human rights instruments that would enable them to carry out a complete due diligence process to prevent any risk for human rights. ### 17. in relation to human rights risks , annex i to this directive lists the instruments undertakings should take into consideration when assessing their potential risks. the list is exhaustive and can be reviewed by the commission by means of a delegated act where necessary to include the reference to internationally legally binding human rights instruments that may be adopted in the future.


### 18. environmental risks are often closely linked to human rights risks. 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; furthermore , the united nations general assembly has recognised , in resolution 64/292 , the right to safe and clean drinking water and sanitation as a human right. the covid-19 pandemic has underlined not only the importance of safe and healthy working environments , but also that of undertakings ensuring they do not cause or contribute to health risks in their value chains. consequently , those rights should be covered by the legislation. ### deleted


### 20. this directive also requires undertakings to carry out due diligence in order to prevent any adverse impact on the good governance of the countries , regions or territories in which they carry out their business activities. in particular , undertakings should comply with the oecd anti-bribery convention and take measures to prevent any undue influence being exercised on public officials with a view to obtaining privileges or unfair favourable treatment that is in breach of the law. undertakings should also abstain from improperly influencing local political activities and should strictly comply with the applicable tax legislation. ### deleted


### 21. environmental , governance and human right risks are not gender-neutral. undertakings should be encouraged to integrate the gender perspective into their due diligence processes. they can find guidance in the un booklet gender dimensions of the guiding principles on business and human rights. ### deleted


### 22. adverse impacts or violations of human rights and social and environmental standards by undertakings can be the result of their own activities or of those of their business relationships , in particular suppliers , sub-contractors and investee undertakings. in order to be effective , undertakings’ due diligence should encompass the entire value chain. ### 22. the adverse impacts or violations of human rights and environmental standards by undertakings can be the result of their own activities or of those of their direct contractual business relationships , in particular suppliers , sub-contractors and investee undertakings.


### 23. due diligence is primarily a preventative mechanism that requires companies to identify potential or actual adverse impacts and to adopt policies and measures to cease , prevent , mitigate , monitor , disclose , address , remediate them , and account for how they address those impacts. undertakings should be required to produce a document in which they make explicit their due diligence strategy with reference to each of those stages. this due diligence strategy should be duly integrated into the company’s overall business strategy. ### 23. due diligence is a preventative mechanism that requires companies to identify potential or actual adverse impacts and to adopt policies and measures to mitigate and monitor how they address these. undertakings may produce a document in which they make explicit their due diligence strategy. any due diligence framework should be based on an obligation of means rather than an obligation of results.


### 24. due diligence should not be a ‘box-ticking’ exercise but should consist of an ongoing assessment of risks , which are dynamic and may change on account of new business relationships or contextual developments. undertakings should therefore in an ongoing manner monitor and adapt their due diligence strategies accordingly. those strategies should cover every actual or potential adverse impact , although the severity of the risk should be considered if the establishment of a prioritisation policy is required. ### deleted


### 26. sound due diligence requires that all stakeholders be consulted effectively and meaningfully , and that trade unions in particular be appropriately involved. the consultation and involvement of stakeholders can help companies to identify risks more precisely and to set up a more effective due diligence strategy. this directive therefore requires the consultation and involvement of stakeholders in all stages of the due diligence process. furthermore , their involvement and consultation may help to push back against pressure from financial markets and short-term investors and give voice to those with a strong interest in the long-term sustainability of the company. stakeholder participation may help improve the long-term performance and profitability of companies , as their increased sustainability would have positive aggregate economic effects. ### 26. sound due diligence requires that relevant stakeholders may be consulted effectively and meaningfully. stakeholder participation may help improve the long-term performance and profitability of companies as their increased sustainability would have positive aggregate economic effects.


### 27. the concept of stakeholder should be broadly interpreted and include all persons whose rights and interests may be affected by the decisions of the company , which includes , but is not limited to , workers , local communities , indigenous peoples , citizens’ associations and shareholders , and organisations whose statutory purpose is to ensure that human and social rights , environmental and good governance standards are respected , such as trade unions and civil society organisations. ### deleted


### 28. to avoid the risk of critical stakeholder voices remaining unheard or marginalised in the due diligence process , the directive grants stakeholders the right to safe and meaningful consultation as regards the company’s due diligence strategy , and ensure the appropriate involvement of trade unions. ### deleted


### 29. complaint procedures should ensure that the anonymity , safety , physical and legal integrity of whistle-blowers is protected , in line with directive (eu) 2019/1937 of the european parliament and of the council. ### 29. complaint procedures must be in line with directive (eu) 2019/1937 of the european parliament and of the council and other relevant existing legislation.


### 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 their suppliers in the first tier of the supply chain outside the eu. this directive , however , does not lose sight of the fact that not all undertakings have the same resources or capabilities to identify all their suppliers and therefore subjects this obligation to the principles of reasonableness , subsidiarity and proportionality , taking into account the severity and repeated nature of the infringements , which in no case should be interpreted by undertakings as a pretext not to comply with their obligation to make necessary efforts in that regard;


### 31. for due diligence to be embedded in the culture and structure of a company , it is necessary that the members of the administrative , management and supervisory bodies of the company be responsible for the adoption and implementation of the due diligence strategy. the board of directors should have the appropriate knowledge , training and experience in due diligence matters. the directive requires that large companies have an advisory committee from whose expertise on due diligence matters the undertaking should benefit. this directive also requires that remuneration policies be brought in line with the objectives of this directive. ### 31. for due diligence to be embedded in the culture and structure of a company it is necessary that the members of the administrative , management and supervisory bodies of the company follow the due diligence strategy in the case the company has adopted one.


### 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 might include grievance mechanisms at company or sector level for the effectiveness of which the participation of relevant stakeholders should be encouraged. these mechanisms could allow stakeholders to raise concerns and function as early-warning risk-awareness systems.


### 34. member states should designate one or more national authorities to supervise the correct implementation by undertakings of their due diligence obligations and ensure the proper enforcement of this directive. those national authorities should be entitled to carry out appropriate checks , on their own initiative or based on complaints received from stakeholders and third parties , and impose penalties , in order to ensure that undertakings comply with the obligations set out in the legislation; at union level , a european committee of competent authorities should be set up by the european commission. ### 34. member states should designate one or more national authorities to supervise the correct implementation by undertakings of their due diligence obligations and ensure the proper enforcement of this directive. these national authorities should be entitled to carry out appropriate checks , on their own initiative or based on complaints received from stakeholders , and impose proportionate legal consequences , taking into account the severity and repetition of infringements , in order to ensure that undertakings comply with the obligations set out in the legislation; at union level , a european due diligence network together with the national competent authorities should be set up by the european commission.


### 38. the right to an effective remedy is an internationally recognised human right , enshrined in article 8 udhr and in article 2(3) iccpr , and is also a union fundamental right (article 47 of the charter). as recalled by the ungps , states have the duty to ensure , through judicial , administrative , legislative or other appropriate means , that those affected by business-related human rights abuses have access to an effective remedy. therefore , this directive makes specific reference to this obligation in line with the united nations basic principles and guidelines on the rights to remedy and reparation for victims of gross violations of international human rights law and serious violations of international humanitarian law. ### deleted


### 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. ### deleted


### 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 , this directive requires the commission to prepare an exhaustive list of guidelines in consultation with member states and the oecd and with the assistance of a number of specialised agencies. there already exist a number of guidelines on due diligence produced by international organisations which could be used as a reference for the commission when developing guidelines under this directive specifically for eu companies. other than general guidelines which should guide all affected undertakings 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.


### 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 by adhering to reasonable due diligence policies and procedures , undertakings operating in the internal market fulfil their duty to respect human rights and the environment and do not cause or contribute to risks to human rights and the environment in their activities and those of their direct contractual business relationships.


### article 7 ### deleted


### this directive is without prejudice to the obligations imposed on certain undertakings by directive 2013/34/eu to include in their management report a non-financial statement including a description of the policies pursued by the undertaking in relation to , as a minimum , environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters , and the due diligence processes implemented. ### this directive is without prejudice to the obligations imposed on certain undertakings by directive 2013/34/eu.


### 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. ### deleted


### 3. in large companies , the advisory committee referred to in article 12 shall be consulted in the evaluation and review of the due diligence strategy. ### deleted


### 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 can voluntarily establish a grievance mechanism , both as an early-warning risk-awareness and as are mediation system , allowing relevant stakeholders 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.


### 4. undertakings shall publish concerns raised via their grievance mechanisms as well as remediation efforts and regularly report on progress made in those instances. ### deleted


### article 10 ### deleted


### 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. ### deleted


### article 12 ### deleted


### 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 of sectoral due diligence action plans aimed at coordinating the due diligence strategies of undertakings within an economic sector. companies that join and implement an officially recognized (sectoral) standard , a safe harbour , can limit their risk for legal consequences . the standard must consider all core elements of due diligence and have been developed in a multi-stakeholder process. the company's compliance with the standard should be audited. the safe harbour provides positive incentives for exemplary conduct.


### 2. member states shall ensure that stakeholders , particularly trade unions , have the right to participate in the definition of sectoral due diligence action plans. ### deleted


### 5. trade unions shall be given the necessary resources to carry out their responsibilities in this area , including in order to establish connections with trade unions and workers in the undertakings with which the main undertaking has business relationships. ### deleted


### 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 be conducted in the event a competent authority is in possession of relevant information regarding possible breaches of internationally legally binding human rights and environmental standards , including on the basis of substantiated complaints.


### 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 , as well as ensure consistency among their practices , the commission , in consultation with member states and the oecd , shall publish general non-binding guidelines for undertakings on how best to fulfil the due diligence obligations set out in this directive. these 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 available no later than 18 months after the date of entry into force of this directive.


### 2. 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 , may prepare specific non-binding guidelines for undertakings operating in certain sectors. ### 2. the commission , in consultation with member states and the oecd may prepare specific non-binding guidelines for undertakings operating in certain sectors.


### 2. the commission , assisted by the european union agency for fundamental rights , the european environmental agency , and the european agency for small and medium enterprises shall publish , based on the information shared by national competent authorities and in cooperation with other public sector experts and stakeholders , an annual due diligence score-board. ### deleted


### 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 legal consequences applicable to infringements of the national provisions adopted in accordance with this directive and shall take all the measures necessary to ensure that those consequences are enforced. legal consequences should be applied where appropriate and 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. ### deleted


### [...] ### deleted


### b. whereas companies should respect human rights , the environment and good governance and should not cause or contribute to causing any adverse impacts in this regard; ### b. whereas companies should respect internationally binding human rights and the environment and should not cause or contribute to causing any adverse impacts in this regard;


### d. whereas according to ilo statistics around the globe there are around 25 million victims of forced labour , 152 million victims of child labour , 2 ,78 million deaths due to work-related diseases per year and 374 million non-fatal work-related injuries per year; whereas the ilo has developed several conventions to protect workers , but their enforcement is still lacking , especially with reference to the labour markets of developing countries; ### deleted


### f. whereas that debate has led , among other things , to the adoption of due diligence frameworks and standards within the un , the oecd and the ilo; whereas these standards are however voluntary and , consequently , their uptake has been limited; ### f. whereas that debate has led , among other things , to the adoption of due diligence frameworks and standards within the un and the oecd; whereas these standards are however voluntary and , consequently , their uptake has been limited;


### g. whereas , according to a commission study , only 37% of business respondents currently conduct environmental and human rights due diligence , and only 16% cover the entire supply chain; ### g. whereas , according to a commission study , only 37% of business respondents currently conduct environmental and human rights due diligence;


### h. whereas some member states , such as france and the netherlands , have adopted legislation to enhance corporate accountability and have introduced mandatory due diligence frameworks; ### 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. stresses that it is the responsibility of states and governments to safeguard human rights in their countries and that this responsibility shall not be transferred to private actors; 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 mitigate them;


### 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 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; deplores the fact that globalisation has led to an increasing dependence of european economies , illustrated in particular , in light of the covid-19 crisis , with regard to china , on medical and pharmaceutical products;


### 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 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;


### 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 violations and breaches of 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 direct suppliers in the first tier of the supply chain outside the european union;


### 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 , participation and accountability; stresses that it should be guided by the overarching principle of “do not harm” as it is important to avoid unintended effects and that the legislation should be subjected to a meaningful and inclusive consultation process on the ground with the relevant stakeholders; highlights that process should be carried out in close cooperation with the union delegations; stresses that the future legislation should be informed by a gender analysis and take into account the specific needs of women and girls;


### 4. considers that the scope of any future mandatory eu due diligence framework should be broad and cover all undertakings governed by the law of a member state or established in the territory of the union , including those providing financial products and services , regardless of their size or sector of activity and of whether they are publicly owned or controlled undertakings; ### 4. considers that the future eu due diligence framework should cover undertakings governed by the law of a member state or established in the territory of the union with more than 5000 employees;


### 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. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers and trade union rights and , in particular , the rights to freedom of association , to collective bargaining and to a living wage; notes that the rights of women and vulnerable groups such as children and indigenous people should also receive special attention; stresses that full alignment with existing legal obligations and standards at european and international level , such as un guiding principles on business and human rights , the oecd guidelines for multinational enterprises , oecd due diligence guidance for responsible business conduct , relevant sector-specific oecd due diligence guidance , and the ilo tri-partite declaration of principles concerning multinational enterprises and social policy , should be sought; is of the opinion that the legislation should include all types of human rights abuses and not only the most serious ones;


### 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. 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 , as well as on the effects of business activity on the environment; stresses that full alignment with existing legal obligations and standards at european and international level should be sought , paying special attention to the ilo conventions , the convention on the elimination of all forms of discrimination against women and the convention on the rights of the child; is of the opinion that the legislation should address all types of human rights abuses;


### 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. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers’ and trade union rights and on the rights of women , children , persons with disabilities and 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;


### 5. considers that small , medium-sized and micro-enterprises may need less extensive and formalised due diligence processes , and that a proportional approach could take into account , amongst other elements , the sector of activity , the size of the undertaking , the context of its operations , its business model , its position in value chains and the nature of its products and services; ### 5. underlines due diligence processes would cause unnecessary burden for small , medium-sized and micro-enterprises therefore they should be exempted from the scope of the future due diligence legislation;


### 6. stresses that the rights to an effective remedy and fair trial are basic human rights enshrined in article 8 of the universal declaration of human rights (udhr) , article 2(3) of the international covenant on civil and political rights (iccpr) , as well as in articles 6 and 13 of the echr and article 47 of the charter; stresses that the union , as part of its commitment to promote , protect and fulfil human rights worldwide , must promote the rights of victims of business-related human rights violations and abuses that amount to criminal offences in third countries , in line with directives 2011/36/eu1 , and 2012/29/eu2 of the european parliament and of the council; ### 6. stresses that the rights to an effective remedy and fair trial are basic human rights enshrined in article 8 of the universal declaration of human rights (udhr) , article 2(3) of the international covenant on civil and political rights (iccpr) , as well as in articles 6 and 13 of the echr and article 47 of the charter; stresses that the union , as part of its commitment to promote , protect and fulfil human rights worldwide , must promote the rights of victims of business-related violations of internationally legally binding human rights rooted in human dignity that amount to criminal offences in third countries , in line with directives 2011/36/eu1 , and 2012/29/eu2 of the european parliament and of the council;