### 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 a domestic industry is a motor of growth , innovation and social well-being within the eu; ### a. whereas a domestic industry is a motor of growth , innovation and social prosperity within the eu;


### 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 and better jobs and achieve an inclusive and balanced job market , accompanying the twin transitions towards a digital and carbon-neutral industry; whereas the implementation of the green deal and the digital strategy should boost sustainable growth towards a greener and more circular industry and create new job opportunities;


### 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 smes play a crucial role in the eu industry and have traditionally generated a high share of the eu’s employment , therefore ensuring social and economic well-being and prosperity all over the eu territory;


### c. whereas digitalisation and artificial intelligence are crucial for all industry sectors , increasing competitiveness , creating job opportunities and economic prosperity; ### c. whereas digitalisation and artificial intelligence and their promotion in an inclusive , secure and neutral way are crucial for all industry sectors , increasing competitiveness , creating job opportunities and economic prosperity;


### 2. notes that investment in innovative means of production should foster cohesion amongst all eu regions , allowing them to accomplish fair and inclusive economic growth; ### 2. notes that investment in research and innovation and deployment of innovative technologies , means of production and upskilling workers particularly in smes should foster cohesion amongst all eu regions , allowing them to accomplish fair , resilient and inclusive economic growth , allowing them to transition and innovate to access market opportunities;


### 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 smes through the european structural and investment funds (esif) the goal should be , inter alia , the economical growth and diversification , 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. reiterates that private and public sectors have an important role to play in facilitating a just transition by promoting a green and fair energy transition , green , blue , digital and sustainable investments , the circular economy , as well as climate adaptation and risk prevention in all eu regions , in particular in outermost regions;


### 5. notes that the eu’s cohesion policy needs adequate financing from the esif to foster economic , social and territorial cohesion in all eu regions by helping to reduce economic and social disparities , achieve positive convergence and foster sustainable development; ### 5. welcomes the recovery fund and the next generation eu instrument to develop strong cohesion and industrial policies; notes that the eu’s cohesion policy needs adequate financing from the esif to foster economic , social and territorial cohesion in all eu regions by helping to reduce economic and social disparities , achieve positive convergence and foster sustainable and climate-resilient development; recognizes the role of esif in european regions to develop skills and build capacities for smart specialization , circular economy , entrepreneurship and transition to industry 4.0;


### 6. believes that the eu should be attentive to preserving and developing an industrial strategy and production which ensure european strategic autonomy , as well as the availability and delivery of essential products and equipment for citizens if the need arises in the single market; ### 6. believes that the eu should be attentive to preserving and developing an industrial strategy and production which ensure european strategic autonomy , as well as the availability and delivery of essential products and equipment for citizens if the need arises in the single market; calls upon further efforts to guarantee strong european value chains to reduce dependence from third countries in key strategic sectors and recalls the opportunities new disruptive technologies , such as additive manufacturing , can play in bringing back manufacturing to european regions and re-localizing industrial facilities;


### 7. considers that esif financial support should prioritise investments in new or transformed industrial production in carbon-intensive regions in order to facilitate achieving the goals of a just transition. ### 7. considers that esif financial support should prioritise investments in new or transformed industrial production in carbon-intensive regions in order to facilitate achieving the goals of a just transition; stresses that cohesion policy operational programmes should be developed in line with the new industrial strategy for europe by combining grants with financial instruments in order to fill in the investment gap.


### 1. welcomes the progress made through forest law enforcement , governance and trade (flegt) voluntary partnership agreements (vpas) , especially in indonesia , and the increased dialogue between governments , industry and civil society in several countries resulting from the vpa process; is convinced that the eu should continue to engage with vpa countries to ensure it remains an attractive alternative to export markets with less stringent environmental standards; welcomes the commission’s upcoming fitness check of the flegt regulation and the eu timber regulation; ### 1. welcomes the progress made through forest law enforcement , governance and trade (flegt) voluntary partnership agreements (vpas) and the increased dialogue between governments , industry and civil society in several countries resulting from the vpa process; notes that to date , seven countries have ratified vpas with the eu (cameroon , the central african republic , ghana , indonesia , liberia , the republic of the congo and vietnam) , among which indonesia is the first and so far the only vpa partner with flegt licencing since 2016 , and that the eu has concluded negotiations and initialled vpas with honduras and guyana , while negotiations are ongoing with six other countries (côte d’ivoire , the democratic republic of the congo , gabon , laos , thailand and malaysia); is convinced that the eu should continue to engage with vpa countries to ensure it remains an attractive alternative to export markets with less stringent environmental standards; welcomes the commission’s upcoming fitness check of the flegt regulation and the eu timber regulation;


### 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 , and nature-based solutions with the aim of stopping the expansion of land use at the expense of forests while feeding and providing economic opportunities , protecting ecosystems and improving livelihoods and food security for a growing population;


### 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 multiple services they provide , going from the traditional production of wood and other products , to environmental benefits such as carbon absorption and storage , preventing soil erosion and improved air and water quality;


### 2. calls on the commission to step up capacity support to vpa countries in order to accelerate the implementation of the commitments made , including combatting corruption and greenwashing , enhancing good governance , and exploring the inclusion of more ambitious sustainable forestry provisions in trade and sustainable development chapters; ### 2. calls on the commission to step up capacity support to vpa countries in order to accelerate the implementation of the commitments made , including combatting corruption and greenwashing , enhancing good governance , and the inclusion of more ambitious sustainable forestry provisions in trade and sustainable development chapters in free trade agreements;


### 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 deforestation , 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;


### 3. calls on the eu to more closely cooperate with like-minded importing countries in the fight against deforestation and climate change while safeguarding avenues for legal trade; ### 3. calls on the eu to strengthen international cooperation by increasing efforts in key international fora , including the world trade organization (wto) and the organisation for economic co-operation and development (oecd); calls on the commission to investigate avenues for multi- , pluri- , or bilateral cooperation with like-minded importing countries in the fight against deforestation and climate change as a consequence of imports while safeguarding avenues for legal trade;


### 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 and that together with environmental human rights defenders , they are increasingly under threat and intimidation , facing human rights violations in their efforts to protect their forests , land and environment; calls on the eu to ensure their participation in the design and implementation of eu development programmes which have an impact on them and in the enforcement of forest protection measures; calls on the eu , furthermore , to increase the transparency of voluntary partnership agreements;


### 4. underlines the importance of measures ensuring that demand is in line with the stated goals , as the eu is a major importer of commodities associated with deforestation; ### 4. underlines the importance of measures ensuring that demand is in line with the stated goals , such as the paris agreement and the european green deal , as the eu is a major importer of commodities associated with deforestation , such as soy , palm oil , eucalyptus , rubber , maize , beef , leather and cocoa , which are often drivers of global deforestation;


### 4. calls for the forestry sector to feature strongly in the upcoming neighbourhood , development and international cooperation instrument (ndici) and for the full potential of the external investment plan and regional blending facilities to be exploited in leveraging private funding; ### 4. calls for the forestry sector to feature strongly in the upcoming neighbourhood , development and international cooperation instrument (ndici) and for the full potential of the external investment plan and regional blending facilities to be exploited in leveraging private funding , with the aim of achieving the sdg’s;


### — having regard to the draft feasibility study on options to step up eu action against deforestation , commissioned by the commission’s directorate general for environment (2017) , ### — having regard to the feasibility study on options to step up eu action against deforestation , commissioned by the commission’s directorate general for environment (2017) ,


### a. whereas , despite all efforts so far , conservation and sustainable use of the world’s forests cannot be adequately ensured by current policies; ### a. whereas , despite all efforts so far , conservation and sustainable use of the world’s forests , including in the eu have not been adequately ensured by current policies; whereas , in addition , eu nature legislation , while fit for purpose , lacks implementation and problems with illegal logging are also found in the eu;


### b. whereas stepping up action to protect existing forests and actively and sustainably create new forest coverage has to play a crucial role in the eu’s sustainability policies; ### b. whereas stepping up action to protect existing forests and actively and sustainably create new forest coverage has to play a crucial role in the eu’s sustainability policies; whereas the eu should continue to mainstream biodiversity objectives into forestry and other policies as stated under the european green deal;


### 6. calls for raising consumer awareness about the need to reduce our consumption footprint on land and encourages people to consume products from supply chains that are ‘deforestation-free’. ### 6. calls for raising awareness among consumers and eu-industries about the need to reduce our consumption footprint on land and encourages people to consume products from and for the eu bio economy to set up supply chains that are ‘deforestation-free’.


### 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 biodiversity objectives should be mainstreamed into forestry and other policies ; recalls that the sustainability chapters of trade agreements need to contain binding forest-specific and responsible business conduct provisions , as well as mechanisms to oversee the effective implementation of these provisions.


### 1. highlights that the eastern partnership (eap) is an important part of the eu neighbourhood policy and is aimed at achieving political association , ensuring further economic integration and establishing a platform to address common challenges; ### 1. highlights that the eastern partnership (eap) is an important part of the eu neighbourhood policy and is aimed at achieving political association , ensuring further economic integration , promoting prosperity and establishing a platform to address common challenges;


### 2. stresses that the eap offers a solid framework for multilateral and bilateral cooperation; ### 2. stresses that the eap offers a solid framework for multilateral and bilateral cooperation; emphasises that due to the tense global trade environment , the eu’s and eap countries’ close cooperation with like-minded countries and with international organisations is essential;


### 4. is aware that common problems in the eap countries are a high level of corruption , bank fraud , the influence of oligarchs , the informal economy and poor governance; calls on the eap countries to improve the rule of law , to eliminate these problems and to tackle illicit trade; ### 4. notes that issues such as high level of corruption , bank fraud , the influence of oligarchs , the informal economy and poor governance are of concern in the eastern partnership countries; calls on the eap countries to improve the rule of law , to eliminate these problems and to tackle illicit trade; stresses that the continuation of judicial reforms , reducing level of corruption , applying eu standards , ensuring competition and improving the business environment are key in providing more certainty and security for economic stakeholders , including investors and thereby increasing investments and better realising the full potential of economic development; points out that the association agreements and deep and comprehensive free trade agreements (aa/dcfta) with georgia , moldova and ukraine , and the comprehensive and enhanced partnership agreement (cepa) with armenia , serve as the roadmaps for reforms;


### – having regard to the joint declarations of the eastern partnership summits of 2011 in warsaw , 2013 in vilnius , 2015 in riga and 2017 in brussels , ### – having regard to the joint declarations of the eastern partnership summits of 2009 in prague , 2011 in warsaw , 2013 in vilnius , 2015 in riga and 2017 in brussels ,


### – having regard to the association agreement between the european union and the european atomic energy community and their member states , of the one part , and georgia , of the other part1 , to the association agreement between the european union and the european atomic energy community and their member states , of the one part , and the republic of moldova , of the other part2 , and to the association agreement between the european union and its member states , of the one part , and ukraine , of the other part3 , including deep and comprehensive free trade areas (dcftas) , ### – having regard to the association agreement between the european union and the european atomic energy community and their member states , of the one part , and georgia , of the other part1 , to the association agreement between the european union and the european atomic energy community and their member states , of the one part , and the republic of moldova , of the other part2 , and to the association agreement between the european union and its member states , of the one part , and ukraine , of the other part3 , including deep and comprehensive free trade areas (dcftas) , and the comprehensive and enhanced partnership agreement between the european union and the european atomic energy community and their member states , of the one part , and the republic of armenia ,


### 1. underlines that approximately 80 % of global deforestation is caused by the expansion of land used for agriculture; stresses in this context that the commission communication on stepping up eu action to protect and restore the world’s forests of july 2019 recognises that union demand for products such as palm oil , meat , soy , cocoa , maize , timber , rubber , including in the form of processed products or services , is a large driver of deforestation , ecosystem destruction and human rights violations across the globe; ### 1. underlines that approximately 80 % of global deforestation is caused by the expansion of land used for agriculture; stresses in this context that the commission communication on stepping up eu action to protect and restore the world’s forests of july 2019 recognises that union demand for products such as palm oil , meat , soy , cocoa , maize , timber , rubber , as well as cotton , coffee , sugar cane , rapeseed and mangrove-farmed shrimps , including in the form of processed products or services , is a large driver of deforestation , ecosystem destruction and human rights violations across the globe;


### 1. underlines that approximately 80% of global deforestation is caused by the expansion of land used for agriculture; stresses in this context that the commission communication on stepping up eu action to protect and restore the world’s forests of july 2019 recognises that union demand for products such as palm oil , meat , soy , cocoa , maize , timber , rubber , including in the form of processed products or services , is a large driver of deforestation , ecosystem destruction and human rights violations across the globe; ### 1. underlines that approximately 80% of global deforestation is caused by the expansion of land used for agriculture; stresses in this context that the commission communication on stepping up eu action to protect and restore the world’s forests of july 2019 recognises that union demand for products such as palm oil , meat , soy , cocoa , maize , timber , rubber , including in the form of processed products or services , is a large driver of deforestation , forest degradation , ecosystem destruction and human rights violations across the globe;


### 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 as well as do not pose high risks for the destruction and degradation of forests and biodiversity-rich ecosystems; stresses that such legislation should follow a cross-commodity approach , apply to all economic actors , including financial actors , and be accompanied by a robust reporting , disclosure and enforcement mechanism , including effective measures to guarantee compliance;


### 1. calls for binding union law to be adopted that ensures that all supply chains of products imported into the union and also of those products and services supplied within the union do not involve deforestation and ecosystem degradation or conversion , or human rights violations , and that protects indigenous peoples and local communities; ### 1. calls for binding union law to be adopted that ensures that the supply chains of products imported into the union do not lead to deforestation , ecosystem degradation , human rights violations or the violation of rights of indigenous peoples and local communities;


### 2. supports the commission in its efforts to strengthen standards and certification schemes that help to identify and promote deforestation-free commodities; ### 2. supports the commission in its efforts to strengthen standards and certification schemes that help to identify and promote deforestation-free commodities; highlights the importance of the development of a sustainable bio economy which gives a high economic value to sustainably produced products;


### 2. notes that voluntary measures alone will not stop deforestation; ### 2. notes that although voluntary measures alone will not stop deforestation , binding legislation should be combined with non-legislative initiatives , such as cooperation with third countries , in order to fight against global deforestation;


### a. whereas biologically diverse forests being natural carbon sinks are indispensable in the fight against climate change in line with the paris agreement’s goals to hold the increase in the global average temperature to well below 2°c above pre-industrial levels and pursue efforts to limit the temperature increase to 1 , 5°c above pre-industrial levels , as well as for climate change adaptation and biodiversity conservation; ### a. whereas biologically diverse forests being natural carbon sinks are indispensable in the fight against climate change in line with the paris agreement’s goals to hold the increase in the global average temperature to well below 2°c above pre-industrial levels and pursue efforts to limit the temperature increase to 1 , 5°c above pre-industrial levels , as well as for climate change adaptation and biodiversity conservation; whereas not only deforested areas , but also forests degraded by human intervention can turn into a source of carbon dioxide;


### a. whereas biologically diverse forests being natural carbon sinks are indispensable in the fight against climate change in line with the paris agreement’s goals to hold the increase in the global average temperature to well below 2°c above pre-industrial levels and pursue efforts to limit the temperature increase to 1 , 5°c above pre-industrial levels , as well as for climate change adaptation and biodiversity conservation; ### a. whereas biologically diverse forests being natural carbon sinks as well as sustainably managed sources of renewable raw materials that substitute emission and energy intensive materials are indispensable in the fight against climate change in line with the paris agreement’s goals to hold the increase in the global average temperature to well below 2°c above pre-industrial levels and pursue efforts to limit the temperature increase to 1 , 5°c above pre-industrial levels , as well as for climate change adaptation and biodiversity conservation;


### b. whereas union consumption contributes to 10% of global deforestation; ### b. whereas union consumption represents 10% of global deforestation; in real figures this means e.g. 4 ,45 mha embodied deforestation for soy , 1 ,3 mha for livestock and about 198 ,000 ha for timber1a;


### b. whereas union consumption contributes to 10% of global deforestation; ### b. whereas union consumption is estimated to contribute to at least 10% of global deforestation;


### 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 and to ensure consistency between its development , trade , agriculture , energy and climate and biodiversity policies;


### 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 and biodiversity-specific provisions in all union trade and investment agreements; stresses that these provisions should be binding and enforceable through effective monitoring mechanism and evaluation systems to ensure accountability and transparency.


### 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's trade policy in 2020 , in response to the covid-19 pandemic , the rise in protectionist behaviour globally and the particularly challenging environment facing international trade; welcomes the debate regarding the concept of “open strategic autonomy” and invites the commission to provide further details on its content; for this purpose , considers it crucial to coordinate and create synergies between trade policy and internal policies (e.g. industrial , digital , environmental policies) and situate trade policy within the eu's broader external policy; insists that the eu trade strategy must increase the competitiveness of 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 the eu's interests and values; highlights that the eu's trade strategy has the potential to contribute significantly towards the recovery process after the ongoing public health and economic crisis;


### b. whereas , following the covid-19 outbreak , inequality between member states in terms of the support they are able to give their smes is likely to exacerbate distortions of competition on the single market between smes from different countries; ### b. whereas , following the covid-19 outbreak , member states have to provide for the necessary support they are able to give to their smes , especially by taking advantage of the flexibility of state aid rules , without creating distortions of competition on the single market;


### c. whereas many smes in the transport sectors , such as those providing taxi and tourism services , have been seriously affected by unfair competition from multinational companies , so-called digital platforms that have managed to circumvent certain legal obligations imposed on other companies , thereby contributing to social dumping , workplace deregulation and the insolvency of many businesses; ### deleted


### 1. notes that the covid-19 crisis has demonstrated the importance for the economy and for business of smes operating in the transport sector , bearing in mind that uninterrupted freight transport has been essential to ensure the functioning of supply chains for various types of goods , as has the transport of workers in key sectors; stresses that smes in the tourism sector are facing unprecedented difficulties including a serious liquidity crisis due to the pandemic; stresses the importance of state intervention to shore up smes in difficulty , ensuring job retention , the protection of earnings and respect for workers' rights; underlines the need to step up support for smes in these sectors at eu level and address the enormous inequalities resulting from different levels of national support; calls on the commission to monitor developments and assess the possibility of emergency support in addition to measures already announced , including funding and capitalisation , until tourist and transport flows have returned to their previous levels; ### 1. notes that the covid-19 crisis has demonstrated the importance for the economy and for business of smes operating in the transport sector , bearing in mind that uninterrupted freight transport has been essential to ensure the swift and smooth functioning of supply chains for various types of goods; points out in that regard the importance of ensuring the reduction of bureaucracy for micro enterprises and smes and the assessment of the implementation of all new eu legislation having a negative impact or disproportionally hindering micro and smes operators on the internal transport market; stresses that smes in the tourism sector are facing unprecedented difficulties including a serious liquidity crisis due to the pandemic , therefore calls on the commission for a revised strategy for european smes , that would take into account the impact of covid-19 on smes; furthermore , highlights the importance of taking into consideration the local , regional and national needs , in order to strengthen and to stimulate the business environment and to link it with the new industrial policy at eu level;


### 1. underlines the decisive contribution of smes to innovation , job creation and an inclusive labour market; is extremely concerned about the rising unemployment rates in the eu and the risk of millions of people losing their jobs as a result of the covid-19 crisis; recognises that at present smes are faced with severe liquidity problems and , in this context , highlights the need for sustainable finance to bridge the current investment gap and to reinforce smes’ ability to innovate and move towards more sustainable , resource-efficient , circular and climate-neutral solutions , ensuring the successful implementation of the european green deal and the related just transition; ### 1. underlines the decisive contribution of smes to innovation , including to social innovation , job creation and an inclusive labour market; is extremely concerned about the rising unemployment rates in the eu and the risk of millions of people losing their jobs as a result of the covid-19 crisis; recognises that at present smes are faced with severe liquidity problems and , in this context , stresses the importance of wide-ranging and coordinated action to secure europe’s industrial fabric , stimulate the economy and support employment; highlights , moreover , the need for sustainable finance to bridge the current investment gap and to reinforce smes’ ability to innovate and move towards more sustainable , resource-efficient , circular and climate-neutral solutions , ensuring the successful implementation of the european green deal and the related just transition , in order to ensure that no one is left behind; considers also that the development of the circular economy represents an opportunity for smes by creating jobs and new markets , as well as increased business efficiency;


### 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 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 , and insists on the importance of providing support to smes for upskilling the sector’s workforce with a specific focus on digital skills and innovative technologies; furthermore , stresses the importance of ensuring synergies and complementarities between the existing funding solutions and highlights the need of simplification of procedures and reducing the administrative burden and costs for beneficiaries; stresses that such objectives should be complementary and accompany measures to safeguard the competitiveness and the growth of both transport and tourism sectors as well as employment and improve working conditions in the various sectors of activity;


### 3. recognises that a number of states and cities are able to prohibit or closely regulate the activity of so-called digital platforms; underlines the urgent need for regulation of these platforms on a broader basis to prevent unfair competition and ensure respect for workers' rights and user safety; underlines at the same time the need for specific measures to modernise taxi services. ### 3. recognises that a number of national , regional and local authorities are currently regulating the activity of so-called digital platforms; underlines the urgent need for regulation of these platforms at eu level in order to prevent unfair competition and ensure legal certainty for businesses and customers , the respect for workers' rights and user safety; underlines at the same time the need for specific measures to modernise transport services and to move toward smart and sustainable urban mobility.


### — having regard to political guidelines for the next european commission 2019-2024 of the president of the commission ms ursula von der leyen , ### — having regard to the political guidelines for the european commission 2019-2024 of 16 july 2019 ,


### 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. emphasises that trade is not an end in itself , but an important tool to achieve the sustainable development goals (sdgs) , by implementing inclusive economic growth and poverty reduction; recalls the eu’s commitment regarding the principle of policy coherence for development and the ‘do-no-harm’ principle;


### 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. emphasises that trade is not an end in itself , but a tool to achieve the sustainable development goals (sdgs) and promote the union's values; recalls the eu’s commitment regarding the principle of policy coherence for development and the ‘do-no-harm’ principle;


### 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. emphasises that trade should always be in line with and strive for the achievement of the sustainable development goals (sdgs); recalls the eu’s commitment regarding the principle of policy coherence for development and the ‘do-no-harm’ principle;


### 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. supports engagement in the formulation of trade agreements that are conducive to improved food security by strengthening evidence on the implications of changes in trade policies , facilitating neutral dialogue on this topic , on the basis of the recommendations of the fao; highlights that trade agreements should not have a negative impact on food security; 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 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 should not have a negative impact on food security in developing countries; calls , in that connection , for the eu to help developing countries to protect their local food production and support small family farms; calls on the commission to carry out an in-depth review of the current epas to determine whether changes are needed;


### 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;


### 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 implementation of the paris agreement should be supported by eu trade policy; points out that compliance with the paris agreement must be a mandatory provision of eu trade agreements; 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.


### 1. regrets the current low levels of supply chain due diligence; ### 1. highlights that it is the duty of states and governments to respect , protect and safeguard human rights , and therefore recalls the importance of strong trade and sustainable development chapters in free trade agreements; regrets the current low levels of supply chain due diligence;


### 1. regrets the current low levels of supply chain due diligence; ### 1. underlines that in a globalised and digitised world , responsibility for observing universal human rights must be borne by the entire international community and regrets the current low levels of supply chain due diligence;


### 1. considers that voluntary due diligence standards have severe limitations and that the union should urgently adopt minimum requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account , address and remediate human rights , environmental and governance risks in their entire value chain; believes that this would be beneficial for stakeholders , as well as for businesses in terms of harmonization , legal certainty and a level playing field; stresses that this would enhance the reputation of eu undertakings and of the union as a standard setter; ### 1. considers that voluntary due diligence standards have severe limitations and that the union should urgently adopt clear minimum requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account , address and redress the risks of violations of human rights , environmental and governance risks in their entire value chain; believes that this would be beneficial for stakeholders , as well as for businesses in terms of harmonization , legal certainty and a level playing field; stresses that this would enhance the reputation of eu undertakings and of the union as a standard setter;


### 1. considers that voluntary due diligence standards have severe limitations and that the union should urgently adopt minimum requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account , address and remediate human rights , environmental and governance risks in their entire value chain; believes that this would be beneficial for stakeholders , as well as for businesses in terms of harmonization , legal certainty and a level playing field; stresses that this would enhance the reputation of eu undertakings and of the union as a standard setter; ### 1. considers that voluntary due diligence standards have limitations and that the union should adopt clear minimum requirements for undertakings to identify , prevent , cease , mitigate , monitor , disclose , account , address and redress the risks of violations of human rights , environmental and governance risks in their value chain; believes that this would be beneficial for stakeholders , as well as for businesses in terms of harmonization , legal certainty and a level playing field; stresses that this would enhance the reputation of eu undertakings and of the union as a standard setter;


### 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. highlights that there is sufficient strong evidence that shows that the voluntary efforts of companies domiciled or operating in the union to identify , prevent , mitigate and account for the negative impacts of their behaviour on developing countries have not been sufficient , as violations of the human rights of individuals , in particular women and children , and of local communities are still taking place throughout the supply chain , as are violations of environmental standards and corruption abuses; acknowledges that there is growing political , public and private sector support for union legislation on due diligence to level the playing field , as responsible companies are currently competing with less scrupulous ones;


### 6. a more general approach was taken by the non-financial reporting directive5 , which imposes on some large undertakings the obligation to report on the policies they pursue in relation to environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters , including due diligence. however , the scope of that directive is limited and the obligation is based on a comply-or-explain principle. ### 6. a more general approach was taken by the non-financial reporting directive5 , which imposes on some large undertakings the obligation to report on the policies they pursue in relation to environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters , including due diligence. that obligation is based on a comply-or-explain principle.


### 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 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 large 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 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 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 large undertakings operating in the internal market are subject to harmonised minimum due diligence obligations , which will improve the functioning of that market.


### 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 mandatory 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 , and could 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.


### 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 is aimed at preventing and mitigating adverse human rights , governance and environmental impacts in the first tier of the value chain , as well as ensuring that undertakings can be held accountable for these risks and to facilitate that anyone who has suffered harm in this regard can effectively exercise the right to redress.


### 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 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 to facilitate that anyone who has suffered harm in this regard can effectively exercise the right to redress.


### 11. this directive should not prevent member states from maintaining or introducing further general or sector-specific due diligence requirements , provided that they do not hamper the effective application of the due diligence requirements as provided for in this directive. this directive is not aimed at replacing eu due diligence legislation already in force or preclude further sector-specific eu legislation from being introduced , and , consequently , it should apply without prejudice to further due diligence requirements established in union sector-specific legislation , in particular regulation (eu) no 995/20106 and regulation (eu) 2017/8217 . this directive establishes in this regard a conflict of norms rule. in case of insurmountable incompatibility , the sector-specific legislation should apply. ### 11. this directive should not prevent member states from maintaining or introducing further general or sector-specific due diligence requirements , provided that they do not hamper the effective application of the due diligence requirements as provided for in this directive. this directive is not aimed at replacing eu due diligence legislation already in force or preclude further sector-specific eu legislation from being introduced , and , consequently , it should apply without prejudice to further due diligence requirements established in union sector-specific legislation , in particular regulation (eu) no 995/20106 and regulation (eu) 2017/8217 .


### 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 all large undertakings , as defined in article 3(4) of the accounting directive , 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. the commission shall identify high-risk sectors of economic activity with a significant impact on human rights , environmental and good governance matters in order to include the small and medium-sized enterprises in those sectors within the scope of this directive.


### 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 large undertakings governed by the law of a member state or established in the territory of the union regardless of their sector , and whether they are private or state-owned.


### 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. ### deleted


### 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. the mandatory due diligence process should be proportionate to the risks a company is exposed to. small and medium-size undertakings and micro-enterprises are therefore excluded from a formalised due diligence processes. they are however , encouraged to implement them if possible.


### 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 redress the risks posed to human rights , the environment and to governance , both by its own operations and its direct , contractual relationships with suppliers.


### 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. human rights should be understood , at a minimum , as those expressed in the international bill of human rights , the united nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities , and the principles concerning fundamental rights set out in the ilo declaration on fundamental principles and rights at work , as well as those recognised in the ilo convention on freedom of association and the effective recognition of the right to collective bargaining , the ilo convention on the elimination of all forms of forced or compulsory labour , the ilo convention on the effective abolition of child labour , and the ilo convention on the elimination of discrimination in respect of employment and occupation. they further include , but are not restricted to , adverse impacts in relation to other rights recognised in a number of ilo conventions , such as freedom of association , minimum age , occupational safety and health , and equal remuneration , and the rights recognised in the convention on the rights of the child , the african charter of human and peoples’ rights , the american convention on human rights , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , and national constitutions and laws recognising or implementing human rights.


### 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. this directive provides for an exhaustive list of risks for the violation of human rights , the environment and good governance in annex i. this list is based on the existing international and european human rights , environmental and good governance obligations. it forms the basis for a single set of guidelines for undertakings to be developed by the commission on how to set up and organize a due diligence process , including metrics to measure progress.


### 19. this directive establishes a non-exhaustive list of environmental risks. to contribute to the internal coherence of eu legislation and to provide legal certainty , this list is based on regulation (eu) 2020/852 on the establishment of a framework to facilitate sustainable investment in which undertakings may find guidance for assessing their risks. ### 19. to contribute to the internal coherence of eu legislation and to provide legal certainty , the list of environmental risks is based on regulation (eu) 2020/852 on the establishment of a framework to facilitate sustainable investment in which undertakings may find guidance for assessing their risks.


### 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. ### 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. governance risks include , but are not limited to , non-compliance with oecd guidelines for multinational enterprises , chapter vii on combatting bribery , bribe solicitation and extortion and the principles of the oecd convention on combating bribery of foreign public officials in international business transactions and situations of corruption and bribery where an undertaking exercises undue influence on , or channels undue pecuniary advantages to , public officials to obtain privileges or unfair favourable treatment in breach of the law , and including situations in which an undertaking becomes improperly involved in local political activities , makes illegal campaign contributions , breaches the whistle-blowers protection or fails to comply with the application tax legislation. in particular , undertakings 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.


### 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. 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 , large undertakings’ due diligence should encompass the entire value chain. however , the traceability of all undertakings intervening in the value chain can be difficult. the commission should thus evaluate and propose tools in order to help undertakings with the traceability of their value chains.


### 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. 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 direct suppliers;


### 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 primarily a preventative mechanism that requires companies to do their best effort to identify potential or actual adverse impacts and to adopt policies and measures to cease , prevent , mitigate , monitor , disclose , address , and redress 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.


### 25. undertakings should first try to address and solve a potential or actual risk in consultation with stakeholders. should this attempt be unsuccessful , and the company’s responsible disengagement becomes an option , the company should also consider the potential adverse impacts of that decision and take appropriate measures to address them. ### 25. undertakings should first try to address and solve a potential or actual risk in consultation with stakeholders. an undertaking which has leverage to prevent or mitigate this risk should exercise it. an undertaking lacking leverage may try to increase it by , for example , offering capacity-building or other incentives to the related entity , or collaborating with other actors. where a risk cannot be prevented or mitigated and the leverage cannot be increased , the undertaking should terminate its business relationship in a responsible manner.


### 25. undertakings should first try to address and solve a potential or actual risk in consultation with stakeholders. should this attempt be unsuccessful , and the company’s responsible disengagement becomes an option , the company should also consider the potential adverse impacts of that decision and take appropriate measures to address them. ### 25. undertakings should try to address and solve a potential or actual risk in consultation with stakeholders.


### 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 all primary stakeholders be consulted effectively and meaningfully. 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. 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 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 all primary 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. 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. ### 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 or workers’ representatives or workers themselves.


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


### 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.


### 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 identify their direct suppliers. this directive 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.


### 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 be responsible for the adoption and implementation of the due diligence strategy.


### 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 be responsible for the adoption and implementation of the sustainability and due diligence strategies. 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.


### 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 , the eu due diligence framework should include sectoral and company-level grievance mechanisms to ensure the effective participation of primary and secondary stakeholders. those mechanisms should allow stakeholders to raise concerns and should 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. at union level , the european commission should set up sectoral grievance systems.


### 35. repeated infringement by an undertaking of the national provisions adopted in accordance with this directive , intentionally or with serious negligence , should constitute a criminal offence. ### 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


### 39. member states should introduce further legislation to ensure that undertakings can be held liable for damage caused by undertakings under their control where they have , in the course of business , committed violations of internationally recognized human rights or international environmental standards. they should not be held liable however if they can prove that they took all due care to avoid the loss or damage , or that the damage would have occurred even if all due care had been taken. when introducing liability regimes , member states should consider adopting appropriate limitation periods and introducing the loser pays principle. ### 39. member states should use existing liability regimes or , if necessary , 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 these liability regimes , member states should consider adopting appropriate limitation periods and introducing the loser pays principle.


### 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 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. the commission should envisage producing sector-specific guidelines and provide a regularly updated list of country fact-sheets in order to help companies assess the risks of their business operations in a given area. those fact-sheets should indicate in particular which list of conventions and treaties among those listed in article 3 of the directive have been ratified by a given country.


### 40. in order to create clarity and certainty and consistency among the practices of undertakings , in particular small , medium-sized and micro-enterprises , this directive requires the commission to prepare guidelines in consultation with member states and the oecd and with the assistance of a number of specialised agencies. a number of guidelines on due diligence produced by international organisations already exist which could be used as a reference for the commission when developing guidelines under this directive specifically for eu companies. in addition to general guidelines which could guide smes in the application of due diligence in their operations , the commission should envisage producing sector-specific guidelines and provide a regularly updated list of country fact-sheets in order to help companies assess the 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 guidelines in consultation with member states and the oecd and with the assistance of a number of specialised agencies , which accompany the list of risks established in annex i. 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 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 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 direct suppliers.


### 2. undertakings shall communicate their due diligence strategy to their workers and business relationships and to one of the national competent authorities designated pursuant to article 14. ### 2. undertakings shall communicate their due diligence strategy to their workers and business relationships and , on their request , to one of the national competent authorities designated pursuant to article 14.


### 2. undertakings shall communicate their due diligence strategy to their workers and business relationships and to one of the national competent authorities designated pursuant to article 14. ### 2. undertakings shall communicate their due diligence strategy to their workers and business relationships and , on request , to one of the national competent authorities designated pursuant to article 14.


### 3. member states shall establish a centralised platform and ensure that undertakings upload on that platform their due diligence strategies or the statement referred to in article 4. ### 3. member states shall ensure that undertakings upload on a national or european centralised platform their due diligence strategies or the statement referred to in article 4. such platform could be the single european access point mentioned by the commission in its recent capital markets union action plan (com/2020/590).


### 1. undertakings shall evaluate the effectiveness and appropriateness of their due diligence strategy at least once a year , and review it accordingly when necessary. ### 1. undertakings shall evaluate the effectiveness and appropriateness of their due diligence strategy at least every 5 years , and review it accordingly when necessary.


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


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


### 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


### article 9 ### 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. large 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 large undertakings are enabled to provide for such a mechanism through collaborative arrangements with other undertakings or organisations. member states shall encourage small and medium-sized undertakings to join such collaborative arrangements.


### 2. grievance mechanisms shall be legitimate , accessible , predictable , safe , equitable , transparent , rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in principle 31 of the united nations guiding principles on business and human rights. they shall provide for anonymous complaints. ### 2. grievance mechanisms shall be legitimate , accessible , predictable , safe , equitable , transparent , rights-compatible and adaptable as set out in the effectiveness criteria for non-judicial grievance mechanisms in principle 31 of the united nations guiding principles on business and human rights. they shall provide for anonymous and/or confidential complaints.


### article 10 ### deleted


### 1. member states shall ensure that the governing body of the undertaking has the necessary qualifications , knowledge and expertise as regards due diligence. ### deleted


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


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


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


### 6. member states shall ensure that if the failure to comply with this directive could lead to irreparable harm , a competent authority may order the adoption of interim measures by the undertaking concerned , or order the temporary suspension of activities. ### 6. member states shall ensure that if the failure to comply with this directive could lead to irreparable harm , a competent authority may order the adoption of interim measures by the undertaking concerned.


### 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 , 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.


### article 17 ### deleted


### 1. member states shall ensure that a specific portal for small , medium-sized and micro undertakings is available where they may seek guidance and obtain further support and information about how best fulfil their due diligence obligations. ### 1. member states shall ensure that a specific portal for small , medium-sized and micro undertakings is available where they may seek guidance and obtain further support and information about how best to organize their due diligence process.


### 2. small , medium-sized and micro undertakings shall be eligible for financial support to perform their due diligence obligations under the union’s programmes to support small , medium sized and micro enterprises. ### deleted


### penalties ### sanctions


### 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 proportionate sanctions applicable to infringements of the national provisions adopted in accordance with this directive and shall take all the measures necessary to ensure that those sanctions are enforced.


### 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


### a. whereas the globalisation of economic activity has in many instances given rise to and aggravated adverse impacts on human rights , including social and labour rights , the environment and the good governance of states; ### a. whereas the globalisation of economic activity has aggravated adverse impacts on human rights , including social and labour rights , the environment and the good governance of states;


### 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 human rights , the environment and good governance and should not cause or contribute to causing adverse impacts in this regard;


### 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.


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


### 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 in a global economy there are interdependencies between societies and many value chains are interlinked , this has created opportunity for growth and development; however some products with complex transnational value chains may impact on peoples’ ability to enjoy human rights and fundamental freedoms worldwide;


### 2. believes that there is strong need for a mandatory , harmonised framework at union level to ensure a level playing field for business and welcomes the commission’s ongoing work on legislation requiring that union companies conduct due diligence on respect for human rights and environmental obligations throughout their supply chains; ### 2. believes that there is strong need for a mandatory , harmonised framework at union level to contribute to the implementation of the united nations sustainable development goals and the paris agreement , and to ensure a level playing field for business; calls on the commission to step up its ongoing work on legislation requiring that companies domiciled or operating in the union conduct due diligence on respect for human rights and environmental obligations throughout their supply chains; insists on the importance of consultation with developing countries and civil society organisations in both the union and developing countries;


### 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. encourages member states to avoid solitary paths such as developing national due diligence measures for national and union companies; 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 and companies operating from within the single market 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 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 direct suppliers in their value chain;