### 3. regrets that many businesses’ decisions are primarily guided by lower costs and higher profits with inadequate consideration of adverse impacts on human rights and the environment down their global value chains , while severe human rights violations often occur at primary production level , in particular when sourcing raw material and manufacturing products; ### 3. regrets that human rights violations may occur at primary production level , in particular when sourcing raw material and manufacturing products;


### 3. calls on the commission to apply a human rights-based approach to the future legislation which shall be designed , implemented , monitored and evaluated respecting the core human rights principles of transparency and access to information , inclusion and non-discrimination with a special focus on the most vulnerable; ### 3. calls on the commission to apply a human rights-based approach to the future legislation which shall be designed , implemented , monitored and evaluated through dialogue with local governments , relevant stakeholders and civil society , respecting the core human rights principles of transparency and access to information , inclusion and non-discrimination with a special focus on the most vulnerable;


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


### 4. is gravely concerned by the persistent exploitation and degradation of human beings through forced labour systems affecting 25 million people and from which the private economy extracted profits of 150 billion dollars globally in 2019; notes with concern that there are currently an estimated 152 million children in child labour , 72 million of whom work in hazardous conditions; ### 4. is gravely concerned by the persistent exploitation and degradation of human beings through forced labour and slave-like practices; is especially concerned by the levels of child labour in the world;


### 4. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers and trade union rights , women , children or indigenous people; stresses that full alignment with existing legal obligations and standards at european and international level should be sought; is of the opinion that the legislation should address all types of human rights abuses; ### 4. stresses that all human rights should be covered by the future legislation; considers that emphasis should be placed on workers , in particular women and children , trade union rights and the rights of indigenous people; insists that full alignment with existing legal obligations and standards at european and international level should be sought; is of the opinion that the legislation should address all types of human rights abuses;


### 5. considers that small , medium-sized and micro-enterprises may need less extensive and formalised due diligence processes , and that a proportional approach could take into account , amongst other elements , the sector of activity , the size of the undertaking , the context of its operations , its business model , its position in value chains and the nature of its products and services; ### 5. considers that a proportional approach could take into account , amongst other elements , the sector of activity , the size of the undertaking , the context of its operations , its business model , its position in value chains and the nature of its products and services;


### 5. highlights that the obligation to respect and protect human rights , the environment and to avoid the risk of corruption should be embedded throughout whole global value chains , products , services and business relationships; ### 5. highlights that the obligation to respect and protect human rights , the environment and to avoid the risk of corruption lies with states and governments , but in a globalised and digitised world the responsibility to observe and protect human rights must be borne by the entire international community; encourages the union to provide assistance and access to advice and recommendations regarding the development of domestic legislation and policies relating to business and human rights in third countries;


### 5. highlights that the obligation to respect and protect human rights , the environment and to avoid the risk of corruption should be embedded throughout whole global value chains , products , services and business relationships; ### 5. highlights that the obligation to respect and protect human rights , environmental standards and to avoid the risk of corruption , should be embedded throughout global value chains , products , services and business relationships;


### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights and the environment , including the european green deal , and eu international policy; ### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights and the environment , including the european green deal , and eu international policy; asks the commission to consolidate existing eu and international mandatory legal instruments and voluntary due diligence frameworks to develop a single set of due diligence guidelines , including clear metrics to measure progress , in the areas of human rights , the environment and good governance;


### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights and the environment , including the european green deal , and eu international policy; ### 6. underlines that due diligence strategies should be aligned with the sustainable development goals and eu policy objectives in the field of human rights and the environment , including the european green deal , the paris agreement and eu international policy;


### 6. is of the opinion that the new legislation should apply to all sectors , to all types of enterprises , whether public or private , and of all size across the union; considers that the focus should be placed on the risks; ### deleted


### 6. is of the opinion that the new legislation should apply to all sectors , to all types of enterprises , whether public or private , and of all size across the union; considers that the focus should be placed on the risks; ### 6. is of the opinion that the new legislation should apply to all sectors , to all types of enterprises , whether public or private , and of all sizes domiciled or operating in the union , while upholding the principle of proportionality; considers that the focus should be placed on the risks and that there should be positive incentives for companies that can demonstrate high levels of compliance with the ambitions of the new legislation;


### 7. stresses that due diligence should not be a ‘box-ticking exercise’ and that due diligence strategies should be in line with the dynamic nature of risks; considers that those strategies should cover every actual or potential adverse impact although the severity of the risk should be considered in the context of a prioritisation policy; ### 7. stresses that due diligence obligations should be carefully designed to prevent them from becoming a ‘box-ticking exercise’; believes that to limit the administrative burden for companies it is important to align with existing tools and frameworks as much as possible; emphasizes the need to conduct an impact assessment which balances the economic added value and the administrative burden for undertakings , and investigates the impact on the european and global level playing field;


### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering companies’ activities and their business relationships , including their supply and subcontracting chains; ### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering all violations linked to companies’ activities and business relationships , including their supply and subcontracting chains , and should include a duty to report activities accordingly;


### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering companies’ activities and their business relationships , including their supply and subcontracting chains; ### 7. is of the opinion that the future legislation should establish mandatory and effective corporate due diligence processes covering companies’ activities and their business relationships with third parties for all union companies and companies operating from within the internal market;


### 8. highlights that sound due diligence requires that all stakeholders be involved and consulted effectively and meaningfully; ### 8. highlights that sound due diligence requires that stakeholders are involved and consulted effectively and meaningfully;


### 8. underlines the need to design a sound monitoring system and to provide competent authorities (at union and at national level) with effective instruments to monitor the compliance with the legislation , in particular at local level; ### 8. underlines the need to design a sound monitoring and accountability system and to provide competent authorities (at union and at national level) with effective instruments to monitor the compliance with the legislation , in particular at local level;


### 9. expresses the opinion that the future legislation should establish a comprehensive system of liability that includes administrative , civil and criminal liability , and a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement , including through penalties and sanctions of all nature; ### 9. expresses the opinion that the future legislation should establish a compliance mechanism with the new legislation and should ensure its enforcement; stresses that encouraging voluntary measures based on the un guiding principles on business and human rights and the oecd guidelines for multinational enterprises , remains the most effective tool to ensure the protection of human rights and the natural environment by union companies and companies operating in third countries from within the internal market;


### 9. expresses the opinion that the future legislation should establish a comprehensive system of liability that includes administrative , civil and criminal liability , and a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement , including through penalties and sanctions of all nature; ### 9. expresses the opinion that the future legislation should establish a comprehensive system of liability that includes administrative , civil and criminal liability , and a sanctioning mechanism to enforce compliance with the new legislation and ensure enforcement , including through penalties and sanctions of all nature such as for example , disqualification from acting as a company director , in addition to intermediate steps before prosecution;


### 10. considers that , to enforce due diligence , member states should designate national authorities to share best practices as well as to supervise and impose sanctions , including criminal sanctions in severe cases; ### 10. considers that , to enforce due diligence , member states should designate national authorities to share best practices as well as to ensure compliance with this directive;


### 10. points out that corruption in the context of judicial proceedings can have a devastating effect on the lawful administration of justice and judicial integrity , and intrinsically violate the fundamental right to a fair trial , the right to due process and the victim’s right to effective redress; stresses that corruption generally leads to systematic abuse of human rights in the business context , for example , by preventing individuals from accessing goods and services that states are obliged to provide to meet their human rights obligations , by encouraging wrongful acquisition or appropriation by businesses of land , or by granting licences or concessions to businesses in the extractive sector; ### 10. points out that corruption in the context of judicial proceedings can have a devastating effect on the lawful administration of justice and judicial integrity , and intrinsically violate the fundamental right to a fair trial , the right to due process and the victim’s right to effective redress; stresses that corruption generally leads to systematic abuse of human rights in the business context , for example , by preventing individuals from accessing goods and services that states are obliged to provide to meet their human rights obligations;


### 10. stresses that access to effective remedy is crucial; considers that the legislation should oblige companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable; considers , in addition , that such mechanism should provide for effective judicial remedies to victims of human rights violations , environmental damage and corruption abuses , individually and through collective actions; believes that special protection should be provided to human rights defenders and its lawyers; ### 10. stresses that access to effective remedy is crucial; considers that the legislation should oblige companies to have an effective grievance mechanism that should be transparent , accessible , predictable , safe , trustworthy and accountable; believes that special protection should be provided to human rights defenders and its lawyers;


### 11. considers that company-level grievance mechanisms can provide effective early-stage recourse , provided they are legitimate , accessible , predictable , equitable , transparent and human rights-compatible; ### 11. considers that sectoral-level grievance mechanisms can provide effective early-stage recourse , provided they are legitimate , accessible , predictable , equitable , transparent and human rights-compatible;


### 11. regrets that despite attempts by european companies to implement their corporate responsibility policies to respect human rights , and various polices and laws in place to encourage or require due diligence across different member states , only 37% of businesses are currently undertaking due diligence in their supply chains and only 16% cover the entire value chain; stresses that protection of human rights and prevention of business-related abuses and violations cannot be achieved with current policies and that binding union legislation is necessary to bridge this gap; ### 11. regrets that despite attempts by european companies to implement their corporate responsibility policies to respect human rights , and various polices and laws in place to encourage or require due diligence across different member states , only 37% of businesses are currently undertaking due diligence in their supply chains and only 16% cover the entire value chain; stresses that the current policies have not always achieved the goal of protecting of human rights and prevention of business-related abuses and violations; calls on the commission to propose a legislative proposal to bridge this gap;


### 12. further considers that in order to enable victims to obtain remedy , undertakings should be held liable for the damage the undertakings under their control have caused or contributed to where the latter have , in the course of their business relationships with the former , committed violations of internationally recognized human rights or have caused environmental harm; ### deleted


### 12. further considers that in order to enable victims to obtain remedy , undertakings should be held liable for the damage the undertakings under their control have caused or contributed to where the latter have , in the course of their business relationships with the former , committed violations of internationally recognized human rights or have caused environmental harm; ### 12. further considers that in order to enable victims to obtain remedy , undertakings should be held liable for the damage the undertakings under their control , which can be economic , have caused or contributed to where the latter have , in the course of their business relationships with the former , committed violations of internationally recognized human rights or have caused environmental harm;


### 13. considers that conducting due diligence should not absolve undertakings from liability for the harm they have caused or have contributed to; further considers , however , that having a robust due diligence process in place may help undertakings to avoid causing harm; ### 13. considers that conducting due diligence should not absolve undertakings from liability for the damage they have caused or have contributed to; further considers , however , that having a robust due diligence process in place may help undertakings to avoid causing harm;


### 13. urges the commission to propose union mandatory human rights and environmental due diligence legislation imposing legal obligations on union companies and companies domiciled or operating in the union internal market and establishing effective monitoring , enforcement and remedy mechanisms; ### 13. calls on the commission to propose legislation for human rights and environmental due diligence imposing obligations on union companies and companies domiciled or operating in the union internal market and establishing effective monitoring , enforcement and remedy mechanisms;


### 14. considers that , in line with the un ‘protect , respect and remedy' framework considerations on the rights of victims to a remedy , the jurisdiction of eu courts should be extended to business-related civil claims brought against eu undertakings on account of harm caused within their value chain on account of human rights violations; further considers necessary the introduction into eu law of a forum necessitatis to give access to a court to victims who risk being denied justice; ### deleted


### 14. recommends that due diligence as required by union legislation be extended to all potential or actual adverse impacts which the company has or may have caused , contributed to or with which it may be directly linked; this extends to , but is not limited to , abuses across the entire value chain , including the parent undertaking , all subsidiaries , direct and indirect suppliers and subcontractors or other business partners; ### deleted


### 15. stresses that victims of business-related adverse impacts are often not sufficiently protected by the law of the country where the harm has been caused; considers , in this regard , that victims of human rights abuses committed by eu undertakings should be allowed to choose the law of a legal system with high human rights standards , which could be that of the place where the defendant undertaking is domiciled; ### 15. stresses that victims of business-related adverse impacts are often not sufficiently protected by the law of the country where the harm has been caused; considers , in this regard , that victims or stakeholders impacted by human rights , environmental or governance-related harms committed by undertakings breaching eu legislations should be allowed to choose the law of a legal system with high human rights standards , which would either be that of the place where the damage occurred (lex loci damni) , that of the place in which the event giving rise to the damage occurred (lex loci delicti commissi) or that of the place where the defendant undertaking is domiciled or , lacking a domicile in the member state , where it operates.


### 15. stresses that victims of business-related adverse impacts are often not sufficiently protected by the law of the country where the harm has been caused; considers , in this regard , that victims of human rights abuses committed by eu undertakings should be allowed to choose the law of a legal system with high human rights standards , which could be that of the place where the defendant undertaking is domiciled; ### 15. stresses that victims of business-related adverse impacts may not be sufficiently protected by the law of the country where the harm has been caused; considers , in this regard , that the adjustment of international private law might provide relief , but that this must always forego a thorough legal analysis and impact assessment; considers that such adjustment could allow the competent forum to apply the law of the member state where the defendant undertaking has its registered seat;


### 15. recommends that union legislation cover all companies and all sectors , including state-owned enterprises , the banking sector and financial institutions , including the european investment bank; ### 15. recommends that union legislation cover all sectors , including state-owned enterprises , the banking sector and financial institutions , including the european investment bank;


### 17. recommends that union mandatory due diligence legislation be adopted to require companies to identify and address their impacts with reference to all internationally recognised human rights including , as a minimum , those encompassed by the udhr , all nine core international human rights treaties , the ilo declaration on fundamental principles and rights at work and all fundamental ilo conventions , as well as the echr and icescr , which are binding on council of europe member states and also bind member states as a result of union law and the common constitutional traditions of the member states; ### 17. recommends that any future union due diligence legislation should require companies to identify and address their impacts with reference to internationally recognised human rights;


### 1. the debate on the responsibilities of business in relation to human rights became prominent in the 1990s , when new offshoring practices in clothing and footwear production drew attention to the poor labour conditions that many workers in global value chains faced. at the same time , many oil , gas , and mining companies pushed into increasingly remote areas , often displacing indigenous communities without adequate consultation or compensation. ### 1. the debate on the responsibilities of business in relation to human rights became prominent in the 1990s , when new offshoring practices in clothing and footwear production drew attention to the poor labour conditions that many workers in global value chains faced. at the same time , many oil , gas , mining and food industry companies pushed into increasingly remote areas , often displacing indigenous communities without adequate consultation or compensation.


### 4. businesses thus currently have at their disposal an important number of international due diligence instruments that can help them fulfil their responsibility to respect human rights. while it is difficult to overstate the importance of these instruments for businesses that take their duty to respect human rights seriously , their voluntary nature hampers their effectiveness and their effect has indeed proved limited , with a restricted number of businesses voluntarily implementing human rights due diligence in relation to their activities and those of their business relationships. respect for human rights continues to play a marginal role in undertakings’ policies and strategies. this is exacerbated by many undertakings’ excessive focus on short-term profit maximisation. ### 4. businesses thus currently have at their disposal an important number of international due diligence instruments that can help them fulfil their responsibility to respect human rights. while it is difficult to overstate the importance of these instruments for businesses that take their duty to respect human rights seriously , their voluntary nature can hamper their effectiveness and their effect has been varying , with a restricted number of businesses voluntarily implementing human rights due diligence in relation to their activities and those of their business relationships.


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


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


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


### in case of insurmountable incompatibility , the sector-specific legislation shall apply. ### deleted


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


### 1. this directive shall apply to all undertakings governed by the law of a member state or established in the territory of the union. ### 1. this directive shall apply to all undertakings governed by the law of a member state or established in the territory of the union , as defined in article 3(4) of the accounting directive.


### 1. this directive shall apply to all undertakings governed by the law of a member state or established in the territory of the union. ### 1. this directive shall apply to large undertakings governed by the law of a member state or established in the territory of the union.


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


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


### 3. member states may exempt micro-undertakings as defined in directive 2013/34/eu from the application of the obligations set up in this directive. ### deleted


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


### - 'due diligence' means the process put in place by an undertaking aimed at identifying , ceasing , preventing , mitigating , monitoring , disclosing , accounting for , addressing , and remediating the risks posed to human rights , including social and labour rights , the environment , including through climate change , and to governance , both by its own operations and by those of its business relationships. ### - 'due diligence' means the process put in place by an undertaking aimed at identifying , ceasing , preventing , mitigating , monitoring , disclosing , accounting for , addressing , and redressing the risks posed to human rights , the environment , and to governance , both by its own operations and by those of its direct suppliers.


### - 'due diligence' means the process put in place by an undertaking aimed at identifying , ceasing , preventing , mitigating , monitoring , disclosing , accounting for , addressing , and remediating the risks posed to human rights , including social and labour rights , the environment , including through climate change , and to governance , both by its own operations and by those of its business relationships. ### - 'due diligence' means the process put in place by an undertaking aimed at identifying , ceasing , preventing , mitigating , monitoring , disclosing , accounting for , addressing , and remediating the risks posed to human rights , including social and labour rights , the environment , including through climate change , and to good governance , both by its own operations and by those of its business relationships.


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


### - ‘business relationships’ means the network of relationships of an undertaking with business partners and other entities along its entire value chain , and any other non-state or state entity directly linked to the undertaking’s business operations , products or services. ### deleted


### - ‘risk’ means a potential or actual adverse impact on individuals , groups of individuals and other organisations in relation to human rights , including social and labour rights , the environment , and good governance; ### - ‘risk’ means a potential or actual adverse impact on individuals , groups of individuals and other organisations in relation to human rights , the environment and good governance. an exhaustive list of risks is laid down in annex i;


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


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


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


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


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


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


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


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


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


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


### 2. undertakings shall in an ongoing manner identify and assess by means of an appropriate monitoring methodology whether their operations and business relationships cause or contribute to any human rights , environmental or governance risks. ### 2. undertakings shall in an ongoing manner identify and assess by means of an appropriate monitoring methodology whether their operations and of their direct suppliers cause or contribute to any human rights , environmental or governance risks.


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


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


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


### (ii) publicly disclose detailed , relevant and meaningful information about the undertaking’s value chain , including names , locations , and other relevant information concerning subsidiaries , suppliers and business partners in its value chain; ### (ii) publicly disclose relevant information about the undertaking’s value chain;


### (ii) publicly disclose detailed , relevant and meaningful information about the undertaking’s value chain , including names , locations , and other relevant information concerning subsidiaries , suppliers and business partners in its value chain; ### (ii) with due regard for commercial confidentiality , publicly disclose detailed , relevant and meaningful information about the undertaking’s value chain , including names , locations , and other relevant information concerning subsidiaries , suppliers and business partners in its value chain;


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


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


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


### 5. undertakings shall make all reasonable efforts to identify subcontractors and suppliers in their entire value chain. ### 5. undertakings shall make all reasonable efforts to identify subcontractors and suppliers in the first tier of their value chain.


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


### 9. undertakings shall ensure by means of contractual clauses and the adoption of codes of conduct that their business relationships put in place and carry out human rights , environmental and governance policies that are in line with their due diligence strategy. ### 9. undertakings shall ensure by means of contractual clauses , by means of the adoption of codes of conduct and , where relevant , by means of certified and independent audits , that their business relationships put in place and carry out human rights , environmental and governance policies that are in line with their due diligence strategy.


### involvement of trade unions and consultation of stakeholders ### consultation of stakeholders


### involvement of trade unions and consultation of stakeholders ### involvement and consultation of stakeholders


### 1. member states shall ensure that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that is appropriate to their size and the nature and context of their operations , and shall guarantee , in particular , the right for trade unions at the relevant level to be involved in the establishment and implementation of the due diligence strategy in good faith with their undertaking. ### 1. member states shall ensure that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that is appropriate to their size and the nature and context of their operations.


### 1. member states shall ensure that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that is appropriate to their size and the nature and context of their operations , and shall guarantee , in particular , the right for trade unions at the relevant level to be involved in the establishment and implementation of the due diligence strategy in good faith with their undertaking. ### 1. member states shall ensure that undertakings carry out in good faith effective , meaningful and informed consultations with stakeholders when establishing and implementing their due diligence strategy in a manner that is appropriate to their size and the nature and context of their operations , and shall guarantee , in particular , the right for trade unions or workers' representatives or workers themselves at the relevant level to be involved in the establishment and implementation of the due diligence strategy in good faith with their undertaking.


### 2. member states shall ensure that stakeholders are entitled to request from the undertaking that they are consulted within the terms of paragraph 1. ### 2. member states shall ensure that primary stakeholders are entitled to request from the undertaking that they are consulted within the terms of paragraph 1.


### 6. member states shall ensure that where an undertaking refuses to carry out consultations with stakeholders , fails to involve trade unions in good faith , or does not adequately inform and consult workers or their representatives , stakeholders and trade unions may refer the matter to the competent national authority ### 6. member states shall ensure that where an undertaking refuses to carry out consultations with stakeholders or does not adequately inform and consult workers or their representatives , stakeholders may refer the matter to the competent national authority


### 1. member states shall ensure that undertakings make their due diligence strategy publicly available , accessible and free of charge , especially on the undertakings’ websites. ### 1. member states shall ensure that undertakings make their due diligence strategy publicly available , accessible and free of charge , especially on the undertakings’ websites , whilst respecting trade secrets.


### 18. notes that charter applies to all union legislation and to national authorities when implementing union law both in the union and in third countries; ### deleted


### 19. notes that the human rights of groups at risk of vulnerability and marginalisation are disproportionately impacted by businesses’ activities; insists therefore that union mandatory due diligence legislation should refer to group-specific instruments in defining the scope of corporate human rights due diligence; stresses , in this regard , that all rights guaranteed to those most severely affected groups under local , national or international law must be covered , as enshrined in article 5 of the united nations declaration on the rights of indigenous peoples; ### 19. notes that the human rights of groups at risk of vulnerability and marginalisation are disproportionately impacted by businesses’ activities; stresses , in this regard , that all rights guaranteed to those most severely affected groups under local , regional , national or international law must be covered , as enshrined in article 5 of the united nations declaration on the rights of indigenous peoples;


### 21. recalls that the united nations special rapporteur on human rights and the environment has stated that the rights to life , health , food , water and development , as well as the right to a safe , clean , healthy and sustainable environment , are necessary for the full enjoyment of human rights; points out that the united nations general assembly recognised , in its resolution 64/292 , the right to safe and clean drinking water and sanitation as a human right; recommends consequently that those rights be covered by the legislation; ### 21. recalls that the united nations special rapporteur on human rights and the environment has stated that the rights to life , health , food , water and development , as well as the right to a safe , clean , healthy and sustainable environment , are necessary for the full enjoyment of human rights; points out that the united nations general assembly recognised , in its resolution 64/292 , the right to safe and clean drinking water and sanitation as a human right; recommends that those rights be covered by any possible legislation;


### 22. notes that the united nations high commissioner for human rights and human rights council have stated that climate change has an adverse impact on the full and effective enjoyment of human rights; underlines that the member states of the united nations have an obligation to respect human rights when addressing adverse impacts of climate change; points out that the supreme court of the netherlands has confirmed that articles 2 and 8 of the echr impose a positive obligation for state parties to take appropriate measures to prevent dangerous climate change; insists that climate change mitigation and adaptation in line with the paris agreement’s temperature goals must form part of businesses’ human rights and environmental due diligence obligations under the legislation; ### 22. notes that the united nations high commissioner for human rights and human rights council have stated that climate change has an adverse impact on the full and effective enjoyment of human rights; underlines that the member states of the united nations have an obligation to respect human rights when addressing adverse impacts of climate change; points out that the supreme court of the netherlands has confirmed that articles 2 and 8 of the echr impose a positive obligation for state parties to take appropriate measures to prevent dangerous climate change; insists that any possible corporate due diligence legislation must be in line with the paris agreement;


### 23. notes that some corporations unlawfully exploit natural resources , which not only constitutes a major sustainability and environmental challenge but also results in severe adverse impacts on the social , economic , cultural , civil and political rights of local communities; such business practices violate the fundamental right of peoples to self-determination and the principle of permanent sovereignty , access and control over their natural resources , enshrined in un general assembly resolution 1803 (xvii); recommends that the legislation requires member states to regulate businesses’ activity in compliance with their commitment to the principles enshrined in the charter of the united nations , including the fundamental principles of equality , non-discrimination and self-determination of peoples; ### deleted


### 24. notes that systemic corruption violates the principles of transparency , accountability and non-discrimination , with severe implications for the effective enjoyment of human rights; recalls that the oecd anti-bribery convention and united nations convention against corruption oblige member states to implement effective practices aimed at the prevention of corruption; stresses that provisions of the united nations convention against corruption should form part of due diligence obligations in the legislation; ### deleted


### 25. notes that some businesses are accused of profiting from or even complicity in war crimes and crimes against humanity due to their own activity or that of their business partners in conflict-affected areas or to their business relationships with state- or non-state actors involved in conflicts globally; recommends that , in order to prevent substantial risks of grave human rights abuses and serious breaches of international law , the scope of due diligence under union legislation be extended to breaches of international criminal law and international humanitarian law in which businesses may be implicated; ### deleted


### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms; ### 26. recommends that , requirements for corporate human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they connected , which could entail having in place an embedded human rights policy and a human rights due diligence process;


### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses should avoid infringing human rights and address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms; ### 26. recommends that , requirements for corporate mandatory human rights and environmental due diligence be grounded in the principle of corporate responsibility to respect human rights as articulated by the ungps; businesses must not infringe human rights , but ensure they are respected and they should address adverse human rights impacts with which they are directly or indirectly connected , entailing in practice that they should have in place an embedded human rights policy , a human rights due diligence process and appropriate and adequate measures to facilitate access to effective remedies for business-related human rights abuses , including at company level , and other grievance mechanisms;


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


### 29. notes that the risk of business-related human rights adverse impacts does not always depend on the size of the company; insists that the scope of due diligence obligations must be based on the risk of adverse impacts and must be specific to the country and sector of activity; recalls that according to the ungps , three factors should be taken into account in assessing the severity of business impacts on human rights: the scale of the impact , the scope of the impact and whether the impact is irremediable; ### 29. insists that the scope of due diligence obligations must be based on the risk of adverse impacts and must be specific to the country and sector of activity; recalls that according to the ungps , three factors should be taken into account in assessing the severity of business impacts on human rights: the scale of the impact , the scope of the impact and whether the impact is irremediable;


### 31. notes that in order to assess human rights risks , independent monitoring of human rights impacts and working conditions in supply chains is essential , in particular by means of monitoring , which has workers and affected communities at its core and fully involves relevant stakeholders; ### 31. notes that in order to assess human rights risks , independent monitoring of human rights impacts and working conditions in supply chains is essential and should fully involve relevant stakeholders;


### 32. notes that due diligence also necessitates measuring the effectiveness of processes and measures taken and communicating results , including periodically producing public evaluation reports; ### deleted


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


### 34. is of the view that transparency should not be corporate led but based on the right to know of those who are impacted by commercial activities , including workers , communities and consumers; suggests that stakeholders have a right to know such information in a comprehensive , timely and honest manner; believes that enforcing the right to be informed allows for the clear establishment of duties and duty bearers and rights and right-holders; ### 34. is of the view that transparency should not be corporate led but based on the right to know of those who are impacted by commercial activities , including workers , communities and consumers; suggests that stakeholders have a right to know such information in a comprehensive , timely and honest manner;


### 35. notes that rights holders primarily affected by business-related human rights abuses often lack adequate access to information about their rights and about how they are given effect in domestic legislative systems , and have difficulty accessing state agencies and organisations concerned with protection and enforcement of their rights; recommends that the legislation encourage businesses to engage with all affected and potentially affected stakeholders , with their representatives , or both , including workers’ representatives , at all stages of the due diligence process , from development to monitoring and evaluation , in a timely and meaningful manner; ### 35. notes that rights holders primarily affected by business-related human rights abuses often lack adequate access to information about their rights and about how they are given effect in domestic legislative systems , and have difficulty accessing state agencies and organisations concerned with protection and enforcement of their rights; recommends that the legislation encourage businesses to engage with all affected stakeholders , with their representatives , or both , including workers’ representatives , at all stages of the due diligence process , from development to monitoring and evaluation , in a timely and meaningful manner;


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


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


### 42. highlights the fact that , as recalled by the ungps , states have the duty to ensure , through judicial , administrative , legislative or other appropriate means , that those affected by business-related human rights abuses have access to an effective remedy; recommends that the legislation makes specific reference to this obligation in line with the united nations basic principles and guidelines on the rights to remedy and reparation for victims of gross violations of international human rights law and serious violations of international humanitarian law; ### 42. highlights the fact that , as recalled by the ungps , states have the duty to ensure , through judicial , administrative , legislative or other appropriate means , that those affected by business-related human rights abuses have access to an effective remedy;


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


### 45. stresses the importance of effective access to remedies for persons in situations of vulnerability , as enshrined in article 13 of the convention on the rights of persons with disabilities; recalls that article 47 of the charter requires member states to provide legal aid to those who lack sufficient resources insofar as such aid is necessary to ensure effective access to justice; ### 45. stresses the importance of effective access to remedies for persons in situations of vulnerability , as enshrined in article 13 of the convention on the rights of persons with disabilities;


### 46. recommends that the legislation establishes guidance regarding the elements of an effective , fair and equitable operational grievance mechanism , with a view to defining appropriate measures to prevent harm , including providing adequate access to remedies; ### 46. recommends that any possible legislation should establish guidance regarding the elements of an effective , fair and equitable operational grievance mechanism , with a view to defining appropriate measures to prevent harm , including providing adequate access to remedies;


### 47. calls for measures to ensure that union due diligence legislation is adequately monitored and enforced by national and union bodies with appropriate duties and powers; such bodies should have competence to investigate abuses , initiate enforcement actions and to support victims , for instance through legal advice , technical support and representation; ### 47. underlines that any union due diligence legislation must be adequately monitored and enforced by national and union bodies;


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


### 51. recommends that the legislation include criminal liability provisions for companies and directors and management that are held responsible in the event of severe violations of human rights. ### deleted


### 1. stresses that trade policy is an essential tool for implementing the circular economy and the eu’s sustainability agenda globally; underlines that increased recycling can reduce the eu’s reliance on imports of raw materials , and points to the need to decouple economic growth from resource use in order to ensure the long-term sustainability of global value chains; ### 1. stresses that a strategic trade policy is an essential tool for implementing the circular economy and the eu’s sustainability agenda globally; underlines that increased recycling can reduce the eu’s reliance on imports of raw materials , and points to the need to decouple economic growth from resource use in order to ensure the long-term sustainability of global value chains; underlines that the transition from a linear to a circular economy needs to be inclusive and collaborative in all its aspects and with the consideration and participation of all genders;


### 1. considers that placing sustainable products on the internal market should be the norm and calls for a horizontal sustainable product framework directive setting mandatory minimum requirements for durability , interoperability , reparability , upgradability , reusability and recyclability for all products alongside further product-specific requirements; ### 1. considers that placing sustainable products on the internal market should be the norm; calls for a sustainable product framework directive that sets mandatory minimum requirements for durability , interoperability , reparability , upgradability , reusability and recyclability while differentiating between different categories of products and taking into account market and technological developments; stresses the importance of ambitious sectoral eu policies , as well as the proper implementation and effective enforcement of existing rules for a well-functioning sustainable single market;


### 1. considers that placing sustainable products on the internal market should be the norm and calls for a horizontal sustainable product framework directive setting mandatory minimum requirements for durability , interoperability , reparability , upgradability , reusability and recyclability for all products alongside further product-specific requirements; ### 1. considers that placing sustainable products on the internal market should be the norm and welcomes the progress achieved with the eco-design directive (2009/125/ec) and eco labelling regulation (66/2010);


### 1. highlights that the carbon and resource footprint of goods due to transport and packaging could be reduced through a circular economy approach; ### 1. highlights that the carbon and resource footprint of goods due to transport and packaging could be reduced through a circular economy approach , minimising at the same time waste production and the use of virgin raw materials;


### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is key to reducing the overall environmental footprint of european consumption and production , and to reaching the climate goals of the paris agreement; ### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is key to reducing the overall environmental footprint of european consumption and production , and to reaching the goals of the 2030 agenda for sustainable development , the paris agreement and the convention on biological diversity;


### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is key to reducing the overall environmental footprint of european consumption and production , and to reaching the climate goals of the paris agreement; ### 1. welcomes the commission’s new circular economy action plan; highlights the fact that the circular economy is key to reducing the overall environmental footprint of european consumption and production , and to reaching the climate goals of the paris agreement and to fostering eu competitiveness and innovation;


### 1. considers that the agriculture , food and forestry sectors and rural areas are essential components of the circular economy; ### 1. considers that the agriculture , food and forestry sectors and rural areas are essential components of the circular economy , and more specific the circular bioeconomy. bioeconomy relies on a truly dynamic farming and forestry sector and in order for bioeconomy to reach its full potential , it must continue to be a priority for the eu and coherent measures and funding must be made available;


### 1. considers that the agriculture , food and forestry sectors and rural areas are essential components of the circular economy; ### 1. considers that the agriculture , food and forestry sectors and rural areas are essential components of the circular economy; and underlines that the circular economy and bio-economy can provide solutions to the new challenges facing the agricultural sector caused and highlighted by the covid-19 crisis by reducing the vulnerability of value chains within the eu and globally;


### 2. regrets the lack of international and european standards on waste quality as this hinders a viable trade policy that is conducive to the circular economy; calls on the commission to present harmonised standards on waste quality and a legal definition of recyclable waste , and to include these in future ftas; ### 2. acknowledges the need for a comprehensive legal framework on circular economy; regrets the lack of international and european standards on waste quality and end-of-waste criteria as this hinders a viable trade policy that is conducive to the circular economy; calls on the commission to present harmonised standards on waste quality and end-of-waste rules , a legal definition of recyclable waste , and to include these in future ftas and introduce these standards on an international level; believes that a revision of the waste shipment regulation would provide an opportunity to put an end to the export of the eu’s waste problems and therefore welcomes the commission's announcement of revising this regulation;


### 2. calls on the union to increase the share of renewable energies in transport; ### 2. calls on the union to increase the share of renewable energies in transport , in order to reduce greenhouse gas emissions and support the creation of new job opportunities;


### 2. takes the view that the announcement of the action plan is a clarion call for profound change to reorient farm production models towards agro-ecology , given the degradation and scarcity both in natural resources and in the rest of the food chain; ### 2. takes the view that the announcement of the action plan is a clarion call for acceleration and realisation of the full potential of the circular economy and the bio-economy in the agriculture sector and across the food-supply chain;


### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; ### 3. notes that in the transition to a circular economy particular attention must be given to key supply chains where the eu’s environmental footprint is significant; underlines the need for transparency and increased traceability in these supply chains and calls on the commission to tackle notably the efficient use of resources and sustainable production and consumption patterns in the garment sector under its future ‘eu strategy for textiles’; welcomes the planned ‘circular electronics initiative’ and underlines the need to in this context define how e-waste can be exported for re-use and recycling;


### 3. urges the commission to internalise the external costs of transport and to establish greenhouse gas certification schemes; ### 3. urges the commission to internalise the external costs of transport and to establish greenhouse gas certification schemes; in this respect , stresses the importance of innovation and fiscal policies. points to labelling as a critical tool to help consumers distinguish and choose the most sustainable services.


### 3. urges the commission to internalise the external costs of transport and to establish greenhouse gas certification schemes; ### 3. urges the commission to internalise the external costs of transport , defining adequate incentives and pricing models and to establish greenhouse gas certification schemes;


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


### 4. calls on the commission to identify and abolish barriers that prevent or restrict market access for circular products from outside the eu and to investigate the possibilities and benefits of reducing tariffs on certain products in order to encourage the development of the circular economy; ### 4. calls on the commission to identify and abolish barriers that prevent or restrict market access for circular products from outside the eu and to investigate the possibilities and benefits of reducing tariffs on certain products in order to encourage the development of the circular economy; calls on the commission to take into account the special needs of eu’s small and medium-sized enterprises (smes) and to support them in the implementation of their business strategies to export circular products;


### 4. insists that the union should adopt binding legislation on sustainable alternative transport fuels and charging infrastructure; ### 4. insists that the union should adopt binding legislation with eu standards on sustainable alternative transport fuels and charging infrastructure for all modes of transport , as well as guaranteeing the sufficient eu financing and human resources for an efficient provision and implementation of the latter; notes that this legislation should take into account the particular needs of islands , outermost regions , peripherical regions , mountainous and depopulated areas;


### 4. insists that the union should adopt binding legislation on sustainable alternative transport fuels and charging infrastructure; ### 4. insists that the union should adopt binding legislation on sustainable alternative and renewable transport fuels and charging infrastructure; encourages the harmonisation of fiscal stimulus policies for the consumption of this type of fuels and the purchase of vehicles that use them.


### 4. insists that the union should adopt binding legislation on sustainable alternative transport fuels and charging infrastructure; ### 4. insists that the union should adopt binding legislation on sustainable alternative transport fuels and charging infrastructure , optimising synergies at european , national and regional level.


### 4. calls on the commission to propose an eu target for a reduction in the use of primary raw materials; ### 4. calls on the commission to propose an eu target for a reduction in the use of primary raw materials; in this context appreciates the objective of the commission to limit the use of whole trees and food and feed crops for energy purposes , believes that this is the right signal to industries creating high value products or substances from recycled material or by-products of the respective value chains;


### 4. calls on the commission to propose an eu target for a reduction in the use of primary raw materials; ### 4. calls on the commission to propose an eu target for a reduction in the use of primary raw materials “with the aim of reducing the environmental and resource footprint of eu production and consumption;


### 4. calls for the implementation of a european protein plan advocating consumption of legumes , as crops that need no nitrogen-based fertilisers; ### 4. calls for the implementation of a european protein plan to become more independent of protein imports; moreover , growing new protein crops in europe could give an opportunity to farmers; the production of crops that need no nitrogen-based fertilisers has an additional advantage;


### 5. urges the commission to ensure that ftas reflect the objectives of the circular economy by including strong , binding and enforceable sustainable development chapters; suggests that the circular economy should be addressed in a cross-cutting manner in all relevant fta chapters; ### 5. urges the commission to ensure that ftas reflect the objectives of the circular economy by including strong , binding and enforceable sustainable development chapters and competitive business models that encourage trade in recycled rather than in primary materials; calls on the commission to evaluate how to balance enhancing trade in recycled goods with upholding strong quality standards and consumer protection; suggests that the circular economy should be addressed in a cross-cutting manner in all relevant fta chapters; underlines the need for the effective enforcement of trade agreements as a priority task of the chief trade enforcement officer;


### 5. notes that shared mobility services save resources in production; ### 5. notes that shared mobility services save resources in production; therefore , calls for the promotion of intelligent transport systems that help to promote intelligent intermodality , including the "last mile" , and to provide users integrated information for purchasing and procurement decisions. such information should pay particular attention to data on the origin of products and services , operating costs and their relationship to greenhouse gas emissions detailed by option.


### 5. notes that shared mobility services save resources in production; ### 5. notes that shared mobility services save resources in production , stresses that shared mobility services decrease congestion and contribute to solve urban transport density problems;


### 5. highlights the opportunities to combine circular economy solutions and digitalisation; calls on the commission and the member states to develop policies to support new sustainable business models based on product-as-a-service approaches; ### 5. highlights the opportunities to combine circular economy solutions and digitalisation; calls on the commission and the member states to develop policies to support existing and new sustainable , and circular , business models , based on product-as-a-service (paas) approaches; invites the commission to facilitate product-as-a-service approaches in the new sustainable products initiative and remove potential regulatory and fiscal barriers to paas-models;


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


### 5. sees the circular bio-economy as an opportunity for agriculture , enabling it generate renewable energy from biodegradable farm and municipal waste and its by-products: organic fertilisers; ### 5. considers that the circular economy and bio-economy offers great potential for farmers and their cooperatives in the transition towards a climate-neutral european economy through for example , advanced bio-refineries that produce bio-fertilisers , protein feed , bioenergy and biochemicals; highlights that farmers have the potential to produce renewable energy such as biogas from agricultural waste and residues such as manure , or from other sources of waste and residues from the food industry , sewage , wastewater and municipal waste; urges greater research , prioritisation and investment in these options;


### 6. encourages the commission to engage with the eu’s trading partners to further support the objectives of the circular economy; stresses that particular attention must be given to how less developed partner countries can benefit from the circular economy; calls for an assessment of the impact of increased intra-eu recycling rates on countries strongly relying on waste imports. ### 6. encourages the commission to engage in regulatory dialogues and cooperation with the eu’s trading partners to further support the objectives of the circular economy; calls on the commission and member states to further deploy efforts in international fora (unctad , wto , g20 , g7) to pursue the eu’s agenda on circular economy and ensure a global level playing field with international partners; stresses that particular attention must be given to how less developed partner countries can benefit from the circular economy; calls for an assessment of the impact of increased intra-eu recycling rates on countries strongly relying on waste imports; calls on the commission in particular to integrate the circular economy principles in its strategy ‘towards a comprehensive strategy with africa’.


### 6. notes that the environmental impacts caused by the extraction and processing of raw materials for vehicles can be reduced through material efficiency and improved recycling; ### 6. notes that the environmental impacts caused by the extraction and processing of raw materials for vehicles can be reduced through eco-design , material efficiency and improved recycling;


### 6. underlines the need to create economic incentives for innovation in circular solutions and calls for support for this in the new industrial strategy for europe and the sme strategy; emphasises the specific role that smes (small and medium-sized enterprises) and start-ups are playing in the transition to a circular economy; ### 6. underlines the need to eliminate market- distorting subsidies and to on the other hand create economic incentives for innovation in circular solutions and calls for support for this in the new industrial strategy for europe and the sme strategy; emphasises the specific role that smes (small and medium-sized enterprises) and start-ups are playing in the transition to a circular economy;


### 6. hopes that the circular economy will contribute to the relocation of agriculture and food production at local level by strengthening regional and local food systems; ### 6. notes the potential of a fully implemented circular economy to contribute to the diversification of income for farmers and the contribution it can make downstream in the rural economy , bringing benefits to both agriculture and rural communities;


### 6. hopes that the circular economy will contribute to the relocation of agriculture and food production at local level by strengthening regional and local food systems; ### 6. hopes that the circular economy will contribute to the strengthening of regional and local food systems which could strengthen the position of the farmer in the food system;


### a. whereas the transport sector has a high potential for improved resource efficiency and an increasing share of the transported goods are packaged in single-use materials; ### a. whereas the transport and logistics sectors and their supply chains have a high potential for improved resource efficiency and an increasing share of the transported goods are packaged in single-use materials;


### a. whereas unless we reduce our use of resources , the world will be consuming resources as if there were three planets , and whereas a reduction in our overall use of natural resources and in waste is the overarching objective of the circular economy; ### a. whereas unless we reduce our use of resources , the world will be consuming resources as if there were three planets , and whereas a reduction in our overall use of natural resources and in waste is the overarching objective of the circular economy including bioeconomy;


### 7. urges the commission to introduce longer guarantee periods and a right to repair for vehicles; ### 7. urges the commission to introduce longer guarantee periods and a right to repair for vehicles; encourages exploration of the benefits that an efficient combination of scanning and 3d printing can bring to repair processes.


### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework; ### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention and an increase in product reuse , ‘designing out of waste’ and consumer benefits should guide the new sustainable product policy framework as well as the industrial strategy;


### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework; ### 7. underlines that safe and sustainable-by-design substances , materials and products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework;


### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework; ### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework and be reflected in the industrial strategy;


### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework; ### 7. underlines that sustainable , reusable , repairable and durable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework;


### 7. supports the commission in its efforts to better inform consumers on nutritional and ecological claims , and calls for labelling of residues present in food; ### deleted