### 8. highlights the importance of introducing an obligation requiring certain eu companies to produce , on an annual basis , a country-by-country report for each tax jurisdiction in which they operate; urges the council to urgently resume negotiations with parliament on the commission’s proposal for a directive amending directive 2013/34/ec as regards disclosure of income tax information by certain undertakings and branches (com(2016)0198)19 ; ### 8. highlights the importance of introducing an obligation requiring certain eu companies to produce , on an annual basis , a country-by-country report for each tax jurisdiction in which they operate , including tax jurisdictions outside the union , containing , amongst other , information on profits made , taxes paid on profits and public subsidies received , number of employees and subsidiaries; urges the council to urgently resume negotiations with parliament on the commission’s proposal for a directive amending directive 2013/34/ec as regards disclosure of income tax information by certain undertakings and branches (com(2016)0198)19 ;


### 9. urges the council to initiate without delay negotiations with parliament on the proposal for a directive on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures (com(2012)0614) (‘the women on boards proposal’) , which sets out to put an end to the pervasive imbalance between women and men at the highest-levels of decision-making in companies; ### 9. stresses the importance of diversity in inclusiveness in companies; urges the council to initiate without delay negotiations with parliament on the proposal for a directive on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures (com(2012)0614) (‘the women on boards proposal’) , which sets out to put an end to the pervasive imbalance between women and men at the highest-levels of decision-making in companies , which is in line with the principles of diversity and inclusiveness and leads to better business performance;


### 10. notes the major role of directors in defining a company’s strategy and overseeing its operations; considers that directors should have a duty to integrate long-term interests and sustainability risks , impacts , opportunities and dependencies in the overall strategy of the company; ### 10. notes that companies are not abstract entities disconnected of today’s environmental and social challenges; considers that companies should more actively contribute to sustainability as their long-term performance , resilience and even survival may depend on their adequate response to environmental and social matters; stresses , in this regard , that the directors’ duty of care towards the company should be defined not only in relation to short-term profit maximisation of shares , but also in relation to sustainability concerns; notes the major role of executive directors in defining a company’s strategy and overseeing its operations; considers that executive directors should have a duty to integrate long-term interests and sustainability risks , impacts , opportunities and dependencies in the overall strategy of the company;


### 10. notes the major role of directors in defining a company’s strategy and overseeing its operations; considers that directors should have a duty to integrate long-term interests and sustainability risks , impacts , opportunities and dependencies in the overall strategy of the company; ### 10. notes the major role of directors in defining a company's strategy and overseeing its operations; considers that directors duty to act in the interest of the company should be understood as a duty to integrate long-term interests and sustainability risks , impacts , opportunities and dependencies in the overall strategy of the company;


### 11. calls on the commission to present a legislative proposal ensuring that members of the administrative , management and supervisory bodies of limited liability companies , acting within the competences assigned to them by national law , have collective responsibility for defining , disclosing and monitoring a corporate sustainability strategy; ### 11. calls on the commission to present a legislative proposal to ensure that directors’ duties cannot be misunderstood as amounting to the short-term maximisation of shareholder value , but must include the long-term interest of the company and society , as well that of workers and other stakeholders. the legislative proposal should also ensure that members of the administrative , management and supervisory bodies of companies , acting within the competences assigned to them by national law , have collective responsibility for defining , disclosing and monitoring a corporate sustainability strategy;


### 12. considers that the sustainability strategy should identify and address , in line with companies’ due diligence obligations , the significant impacts that the company might have on environmental , climate , social and employee matters , respect for human rights and anti-corruption and bribery matters connected to the company’s business model , operations and supply chains , including outside the european union; considers that the duty of care that directors owe to the company requires also taking into consideration the interest of stakeholders who may be adversely impacted by the company’s activities; ### 12. considers that the sustainability strategy should identify and address , in line with companies’ due diligence obligations , the significant impacts that the company might have on environmental , climate , social and workers and trade union matters , respect for human rights and anti-corruption and bribery matters connected to the company’s business model , operations and supply chains , including outside the european union; considers that the duty of care that directors owe to the company requires also taking into consideration the interest of stakeholders who may be adversely impacted by the company’s activities;


### 13. further considers that the sustainability strategy should include measurable , specific , time-bound and science-based targets aligned with the union’s commitments at international level on the environment , climate change , particularly the paris agreement , biodiversity , and deforestation; stresses that it should also include policies on gender equality , the better integration of employee’s rights in the business activities and a definition of a fair salary policy , and sector-specific and/or geographical matters; believes that the variable part of the remuneration of directors should be linked to the achievement of the measurable targets set in the company’s sustainability strategy; ### 13. further considers that the sustainability strategy should include measurable , specific , time-bound and science-based targets and transition plans aligned with the union’s commitments at international level on the environment , climate change , particularly the paris agreement , biodiversity , and deforestation; stresses that it should also include policies on gender equality , the rights of persons belonging to particularly vulnerable groups or communities , the better integration of workers and trade union rights in the business activities and a definition of a fair salary policy , and sector-specific and/or geographical matters; believes that the variable part of the remuneration of directors should be linked to the achievement of the measurable targets set in the company’s sustainability strategy; and concretely , that a minimum of 50 per cent of the variable remuneration should be based on non-financial criteria.


### 13. further considers that the sustainability strategy should include measurable , specific , time-bound and science-based targets aligned with the union’s commitments at international level on the environment , climate change , particularly the paris agreement , biodiversity , and deforestation; stresses that it should also include policies on gender equality , the better integration of employee’s rights in the business activities and a definition of a fair salary policy , and sector-specific and/or geographical matters; believes that the variable part of the remuneration of directors should be linked to the achievement of the measurable targets set in the company’s sustainability strategy; ### 13. further considers that the sustainability strategy should include measurable , specific , time-bound and science-based targets aligned with the union’s commitments at international level on the environment , climate change , particularly the paris agreement , biodiversity , and deforestation; stresses that it should also include policies on gender equality , the better integration of employee’s rights in the business activities and a definition of a fair salary policy , and sector-specific and/or geographical matters; believes that the variable part of the remuneration of executive directors should be linked to the achievement of the measurable targets set in the company’s sustainability strategy;


### 14. considers that , in the process of defining and monitoring their sustainability strategy , companies should engage with all relevant stakeholders , including shareholders , employees’ representatives or spokespersons , and stakeholders external to them but who are affected by their activities and supply chains; ### 14. considers that , in the process of defining and monitoring their sustainability strategy , companies should engage with all relevant stakeholders; the concept of stakeholder should be broadly interpreted and include all persons whose rights and interests may be affected by the decisions of the company , which includes , but is not limited to , workers , local communities , indigenous peoples , citizens’ associations and shareholders , and organisations whose statutory purpose is to ensure that human and social rights , environmental and good governance standards are respected , such as trade unions and civil society organisations;


### 1. believes that as asia is home to the world’s largest population and fastest-growing economies , increasing connectivity between the eu and asia , with an open , rules-based multilateral trading system that ensures a level playing field , will play a key role in mutual economic growth and will be an important factor in the recovery from the ongoing covid-19 pandemic; ### 1. believes that as asia is home to the world’s largest population and fastest-growing economies , increasing connectivity between the eu and asia , with an open , rules-based multilateral trading system that ensures a level playing field , will play a key role in global stability , in regional prosperity and in mutual economic growth and will be an important factor in the recovery from the ongoing covid-19 pandemic;


### 2. regrets that many countries in asia still apply protectionist economic policies creating an unfair playing field for european businesses; notes that allowing free trade flows will build economic resilience and ensure the global availability of products through the diversification of supply chains; ### 2. regrets that several countries in asia still apply protectionist economic policies creating an unfair playing field for european businesses; notes that allowing free trade flows will build economic resilience and ensure the global availability of products through the diversification of supply chains; calls for a due diligence framework that protects valuable economic assets , secures access to markets and materials , preserves human , social and environmental rights; stresses the need to enhance cooperation regarding intellectual property provisions and geographical indications;


### 2. welcomes the ongoing extension of the eu’s trans-european transport network (ten-t) in the western balkans and the eastern partnership countries , and calls on the commission to speed up the review process of ten-t and its external dimension and to come up with a comprehensive transport initiative to connect ten-t with strategic networks in asia; ### 2. welcomes the ongoing extension of the eu’s trans-european transport network (ten-t) in the western balkans and the eastern partnership countries , and calls on the commission to speed up the review process of ten-t and its external dimension and to come up with a comprehensive , efficient and sustainable transport initiative to connect ten-t with strategic networks in asia , so as to ensure good connectivity with remote regions also;


### 3. believes that efficient connections and networks between europe and asia through priority transport corridors , including air , sea and land transport , and high-capacity network links will increase trade flows between the eu and asia; acknowledges the existence of an investment gap in connectivity and recognises the need to mobilise and strengthen cooperation with private investors , national and international institutions , and multilateral development banks; ### 3. believes that efficient connections and networks between europe and asia through priority transport corridors , including air , sea and land transport , and high-capacity network of digital , energy and people-to-people tools will increase trade flows and data transfers between the eu and asia; acknowledges the existence of an investment gap in connectivity and recognises the need to mobilise and strengthen cooperation with private investors , national and international institutions , and multilateral development banks;


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


### 4. calls on the commission to pursue further progress in its maritime transport initiatives to digitalise and simplify administrative formalities and strengthen maritime security at ports in asia via the international maritime organization and through maritime transport agreements; ### 4. calls on the commission to pursue further progress in its maritime transport initiatives to digitalise and simplify administrative formalities with a view to increasing transport flows in this sector and strengthen maritime safety and security at ports in asia via the international maritime organization and through maritime transport agreements;


### 5. calls on the commission to ensure the enforcement of trade agreements and make existing ones more ambitious , in particular by promoting sustainable eu norms and standards. ### 5. calls on the commission to ensure the enforcement of trade agreements and make existing ones more ambitious , in particular by promoting sustainable eu norms and standards , in line with the paris agreement and the un sustainable goals , and by introducing the enforceability of tsd chapters including via last resort sanctions-based mechanism.


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


### 5. recalls that , in order to generate sustainable growth and jobs , connectivity investments need to respect the public good , market efficiency and fiscal viability , while avoiding debt entrapment; highlights that such investments need to support economic resilience and decarbonisation of the economy , and respect high environmental and biodiversity standards; stresses that they need to adhere to high standards of social and labour rights , transparency , human rights , due diligence , and good governance , and give a voice to the people affected by the projects; ### 5. recalls that , in order to generate sustainable growth and jobs , connectivity investments need to respect the public good , market efficiency and fiscal viability , while avoiding debt entrapment; highlights that such investments need to support economic resilience and decarbonisation of the economy , and respect high environmental and biodiversity standards; stresses that they need to adhere to high standards of social and labour rights , transparency , human rights , due diligence , and good governance , and give a voice to the people affected by the projects; calls for the strategy to be enshrined in the future ndici instrument enabling the eu to meet efficiently the objectives of the strategy;


### 5. recalls that , in order to generate sustainable growth and jobs , connectivity investments need to respect the public good , market efficiency and fiscal viability , while avoiding debt entrapment; highlights that such investments need to support economic resilience and decarbonisation of the economy , and respect high environmental and biodiversity standards; stresses that they need to adhere to high standards of social and labour rights , transparency , human rights , due diligence , and good governance , and give a voice to the people affected by the projects; ### 5. recalls that , in order to generate sustainable growth and jobs , connectivity investments need to respect the public good , market efficiency and fiscal viability , while avoiding debt entrapment; highlights that such investments need to support economic resilience and decarbonisation of the economy , and respect high environmental and biodiversity standards; stresses that they need to adhere to high standards of social and labour rights , transparency , human rights , due diligence , interoperability and good governance , and give a voice to the people affected by the projects;


### 8. underlines the multidimensional nature of the strategy , which requires effective coordination of already existing strategies , policies and projects for international connectivity; ### 8. underlines the multidimensional nature of the strategy , which requires effective coordination of already existing strategies , policies and projects for international connectivity and interoperability;


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


### 12. strongly believes that european development banks should play a central role in managing investment in international connectivity projects in particular with regard to the mobilisation of private sector investment; ### 12. strongly believes that european development banks , including the european investment bank , should play a central role in managing investment in international connectivity projects in particular with regard to the mobilisation of private sector investment , and provide advice on investment needs and on existing investment frameworks;


### 13. believes that the fight against climate change , for the decarbonisation of economies , for the preservation of biodiversity and the environment should be an overarching priority of the strategy , in particular with regard to infrastructure development; calls for a systematic greening of all connectivity investments; attaches high priority to the greening of development cooperation , infrastructure investment across the board , and in particular the energy dimension; ### 13. believes that the fight against climate change , for the decarbonisation of economies , for the preservation of biodiversity and the environment should be an overarching priority of the strategy , in particular with regard to infrastructure development; calls for a systematic greening of all connectivity investments; attaches high priority to the greening of development cooperation , infrastructure investment across the board , and in particular the energy dimension; points out that maintaining the existing infrastructure for environmentally friendly modes of transport in europe and beyond is central.


### 20. strongly welcomes the establishment of the eu-japan partnership on sustainable connectivity and quality infrastructure , with its focus on the western balkans , eastern europe , central asia , the indo-pacific and africa; applauds japan for pro-actively proposing practical steps to realise agreed ambitions; hopes that the eu and japan will manage to kick-start the operationalisation of the partnership in the first half of 2021; ### 20. strongly welcomes the establishment of the eu-japan partnership on sustainable connectivity and quality infrastructure , with its focus on the western balkans , eastern europe , central asia , the indo-pacific and africa; applauds japan for pro-actively proposing practical steps to realise agreed ambitions; welcomes increased coordination between the eib and japan international cooperation agency (jica); hopes that the eu and japan will manage to kick-start the operationalisation of the partnership in the first half of 2021;


### 21. strongly welcomes ongoing negotiations for building a connectivity partnership with india; hopes that the rotating eu council presidencies , as well as the subsequent g20 presidencies , of italy and india will use their leverage to move forward; welcomes also the eu-korean exploratory exchanges on a connectivity partnership , and hopes it will make good headway in 2021; advocates the establishment of an eu-asean connectivity partnership aiming at interconnecting with asean’s already existing connectivity master plan and project pipeline; ### 21. strongly welcomes ongoing negotiations for building a connectivity partnership with india; hopes that the rotating eu council presidencies , as well as the subsequent g20 presidencies , of italy and india will use their leverage to move forward; welcomes also the eu-korean exploratory exchanges on a connectivity partnership , and hopes it will make good headway in 2021; advocates the establishment of an eu-asean connectivity partnership aiming at interconnecting with asean’s already existing connectivity master plan and project pipeline; encourages the establishment of the eu-taiwan connectivity partnership , through which both sides can enhance mutually beneficial cooperation;


### 23. is also willing to consider partnership with the chinese belt and road initiative in specific cases where this does not compromise core eu principles; ### 23. is also willing to consider partnership with the chinese belt and road initiative in specific cases where this does not compromise core eu principles; in this context , a focus should be placed on improving the eurasian transport infrastructure , especially for multimodal and sustainable transport.


### 23. is also willing to consider partnership with the chinese belt and road initiative in specific cases where this does not compromise core eu principles; ### 23. is also willing to consider partnership with the chinese belt and road initiative in specific cases where this does not compromise core eu principles; stresses that such partnership should be based on the sustainable fiscal , economical , social and environmental standards;


### 1. believes that the deep and comprehensive free trade area (dcfta) has contributed to the positive evolution of trade and to economic modernisation , has boosted foreign direct investments and has created new jobs on both sides; welcomes the continuous positive results achieved in bilateral trade and economic relations , with ukrainian imports growing by 12.3 % and exports by 9.7 % , amounting to eur 43.3 billion in 2019; ### 1. believes that the deep and comprehensive free trade area (dcfta) has contributed to the positive evolution of trade and to economic modernisation , has boosted foreign direct investments and has created new jobs on both sides; welcomes the continuous positive results achieved in bilateral trade and economic relations , with ukrainian imports growing by 12.3 % and exports by 9.7 % , amounting to eur 43.3 billion in 2019; underlines that the european union remains the main trading partner of ukraine;


### 1. recalls that the eu’s industrial future is linked to an alignment of the economy with the principles of the european green deal , a roadmap towards a new growth policy for the eu , bringing citizens , cities and regions together , and allowing for a just transition; ### 1. recalls that the eu’s industrial future is linked to an alignment of the economy with the principles set out in the european green deal , involving a roadmap towards a new growth policy for the eu , bringing citizens , cities and regions together , and allowing for a just transition fostering cohesion between regions through innovation and a new sustainable economic model , leaving no one behind;


### a. whereas today eu industry employs around 35 million people and accounts for over 80 % of exports; whereas women still remain under-represented across industrial sectors , occupations and management levels; ### a. whereas today eu industry employs around 35 million people and accounts for over 80 % of exports; whereas women still remain under-represented across industrial sectors , occupations and management levels and more often employed in industrial sectors with a lower value-added or sub-sectors


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


### b. whereas the eu’s smes have traditionally generated a high share of the eu’s employment , and in so doing have ensured social and economic well-being and prosperity; ### b. whereas the eu’s smes have traditionally generated a high share of the eu’s employment , and in so doing have ensured social and economic well-being and prosperity; whereas they are often hit hard in times of crisis such as that generated by the current covid-19 pandemic;


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


### 3. stresses that in supporting smes through the european structural and investment funds (esif) the goal should be , inter alia , an innovative and smart economic transformation , a greener and low carbon eu , as well as an eu which is more connected and aims to ensure long-term and sustainable employment; ### 3. stresses that in supporting smes through the european structural and investment funds (esif) the goal should be , inter alia , an innovative and smart economic transformation , a greener and low carbon eu , as well as an eu which is more connected and aims to ensure long-term and sustainable employment; notes that esif can play a relevant role in supporting the digital transition of smes , many of which still lack the skills to successfully cope with the forth industrial revolution;


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


### 4. reiterates that the public sector has an important new role to play in facilitating a just transition by promoting a green and fair energy transition , green and blue investments , the circular economy , as well as climate adaptation and risk prevention in all eu regions; ### 4. reiterates that the public sector has an important new role to play in facilitating a just transition by promoting a green and fair energy transition , green and blue investments , the circular economy , as well as climate adaptation and risk prevention in all eu regions , focusing on local investment and education programmes to promote energy self-sufficiency , the use of renewables and improved energy efficiency;


### 4. reiterates that the public sector has an important new role to play in facilitating a just transition by promoting a green and fair energy transition , green and blue investments , the circular economy , as well as climate adaptation and risk prevention in all eu regions; ### 4. reiterates that the public sector has an important new role to play in facilitating a just transition by promoting a green and fair energy transition , green and blue investments , the circular economy , as well as climate adaptation and risk prevention in all eu regions; underlines in this regard that public procurement can be an effective tool in order to lead and promote the transition towards a cleaner economy;


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


### 6. believes that the eu should be attentive to preserving and developing an industrial strategy and production which ensure european strategic autonomy , as well as the availability and delivery of essential products and equipment for citizens if the need arises in the single market; ### 6. believes that the eu should be attentive to preserving and developing an industrial strategy and production which ensure european strategic autonomy , as well as the availability and delivery of essential products and equipment for citizens if the need arises in the single market; recalls that social economy enterprises should be fully involved in the outcome of the industrial strategy since they create public value and leave an essential impact on the local communities they are grounded in;


### 6. believes that the eu should be attentive to preserving and developing an industrial strategy and production which ensure european strategic autonomy , as well as the availability and delivery of essential products and equipment for citizens if the need arises in the single market; ### 6. believes that the eu should be attentive to preserving and developing an industrial strategy and production which ensure european strategic autonomy , as well as the availability and delivery of essential products and equipment for citizens if the need arises in the single markets , especially in key sectors such as health supplies;


### 7. considers that esif financial support should prioritise investments in new or transformed industrial production in carbon-intensive regions in order to facilitate achieving the goals of a just transition. ### 7. considers that esif financial support should prioritise investments in new or transformed industrial production in carbon-intensive regions with low air quality but nevertheless committed to the emissions reduction goals set out in the european green pact , regions in industrial decline with high levels of unemployment , depopulated regions and interregional areas that combine some of these characteristics , in order to facilitate achieving the goals of a just transition , the protection of air quality and interregional cooperation , leaving no one behind.


### 7. considers that esif financial support should prioritise investments in new or transformed industrial production in carbon-intensive regions in order to facilitate achieving the goals of a just transition. ### 7. considers that esif financial support should prioritise investments in new or transformed industrial production in carbon-intensive regions that are nevertheless committed to the emissions reduction targets set out in the european green pact , in order to facilitate achieving the goals of a just transition.


### 7. considers that esif financial support should prioritise investments in new or transformed industrial production in carbon-intensive regions in order to facilitate achieving the goals of a just transition. ### 7. maintains that in view of reaching a just transition towards a climate-neutral economy of the union by 2050 , the investments in new or transformed industrial production in carbon-intensive regions should benefit from a solid financial support from the just transition funds.


### 1. welcomes the progress made through forest law enforcement , governance and trade (flegt) voluntary partnership agreements (vpas) , especially in indonesia , and the increased dialogue between governments , industry and civil society in several countries resulting from the vpa process; is convinced that the eu should continue to engage with vpa countries to ensure it remains an attractive alternative to export markets with less stringent environmental standards; welcomes the commission’s upcoming fitness check of the flegt regulation and the eu timber regulation; ### 1. welcomes the progress made through forest law enforcement , governance and trade (flegt) voluntary partnership agreements (vpas) , especially in indonesia , and the increased dialogue between governments , industry and civil society in several countries resulting from the vpa process; is convinced that the eu should continue to engage with vpa countries to ensure it remains an attractive alternative to export markets with less stringent environmental standards; acknowledges the importance of the flegt regulation and the eu timber regulation in preventing the entry of illegally harvested timber to the eu markets; calls on the eu to increase funding for flegt; welcomes the commission’s upcoming fitness check of the flegt regulation and the eu timber regulation as an opportunity to strengthen their enforcement and to widen their scope to cover e.g. printed products and wooden products; calls on the role of civil society , as a crucial source of information on deforestation , to be strengthened;


### 1. calls on the eu to increase its investments in programmes for climate resilient agriculture , sustainable intensification and diversification , agroecology and agroforestry , with the aim of stopping the expansion of land use at the expense of forests while feeding and providing economic opportunities for a growing population; ### 1. calls on the eu to increase its investments in programmes for research and innovation , climate resilient agriculture , sustainable intensification and diversification , agroecology and agroforestry , with the aim of stopping the expansion of land use at the expense of forests while feeding and providing socioeconomic opportunities for a growing population; underlines in particular the importance of increasing tree cover , restoring damaged ecosystems and regenerating soils through reforestation and afforestation programmes , as indicated in sdg 15 targets;


### 1. calls on the eu to increase its investments in programmes for climate resilient agriculture , sustainable intensification and diversification , agroecology and agroforestry , with the aim of stopping the expansion of land use at the expense of forests while feeding and providing economic opportunities for a growing population; ### 1. calls on the eu to increase its investments in programmes for more climate resilient , more sustainable and more extensive agriculture , sustainable intensification and diversification , agroecology and agroforestry , with the aim of stopping the expansion of land use at the expense of forests while feeding and providing economic opportunities for a growing population;


### 1. emphasises the important role played by farmers in food production and how this is dependent on natural resources such as soil , water and forests; recognises the multifunctionality of forests; ### 1. emphasises the important role played by farmers in food production and how this is dependent on natural resources; recognises the multifunctionality of forests , and emphasises the important role forests play in connection with biodiversity , water quality , carbon storage and erosion prevention , along with other important ecosystem services;


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


### 2. underlines that eu cooperation measures need to tackle corruption , weak governance and institutions , lack of trained personnel , impunity and insecure land tenure as major causes of illegal logging , fraud , tax evasion and violations of human rights; ### 2. underlines that eu cooperation measures need to tackle corruption , weak governance and institutions , lack of trained personnel , impunity and insecure land tenure as major causes of illegal logging , fraud , tax evasion and violations of human rights; recognizes the relevance of international frameworks such as the fao voluntary guidelines on the responsible governance of tenure of land , fisheries and forests (vggt) to offer legal clarity and internationally accepted standards of good practices for the responsible governance of land tenure; invites the commission to support the diffusion and use of the vggt at global , regional and country level.;


### 3. calls on the eu to more closely cooperate with like-minded importing countries in the fight against deforestation and climate change while safeguarding avenues for legal trade; ### 3. calls on the eu to more closely cooperate with other importing countries in the fight against global deforestation and climate change while safeguarding avenues for legal trade and strengthening sustainable land management and agriculture , as well as land tenure and good governance in the third countries;


### 3. deeply regrets that , despite the efforts of the eu and its member states , the eu’s objective of reducing gross tropical deforestation by 50 % by 2020 is unlikely to be met , and therefore strongly supports the commission in its proposal to step up action in protecting and restoring the world’s forests; ### 3. deeply regrets that , despite the efforts of the eu and its member states , the eu’s objective of reducing gross tropical deforestation by 50 % by 2020 is unlikely to be met , and therefore strongly supports the commission in its proposal to step up action in protecting and restoring the world’s forests; points out that deforestation deprives of their habitats animal species carrying viruses and bacteria , driving them towards areas inhabited by human beings and increasing the risk of cross-species transmission of dangerous diseases;


### 3. recalls that indigenous people , local communities , smallholder farmers and women possess and heavily rely on indispensable knowledge regarding forests; calls on the eu to ensure their participation in the design and implementation of eu development programmes which have an impact on them; calls on the eu , furthermore , to increase the transparency of voluntary partnership agreements; ### 3. recalls that indigenous people , local communities , smallholder farmers and women possess and heavily rely on indispensable knowledge regarding forests; stresses the fact that preserving natural resources is not just a matter of protecting biodiversity , but also a question of social justice in the vision of an ecological restoration , whereby the needs of both nature and human beings are balanced ; calls on the eu to ensure the recognition of their land tenure and basic human rights , as well as their participation in the design and implementation of eu development programmes which have an impact on them; calls on the eu , furthermore , to increase the transparency of voluntary partnership agreements;


### 4. underlines the importance of measures ensuring that demand is in line with the stated goals , as the eu is a major importer of commodities associated with deforestation; ### 4. underlines the importance of measures ensuring that demand is in line with the stated goals , as the eu is an important importer of commodities associated with deforestation;


### 5. stresses the importance of partnership with third countries in order to strengthen sustainable forest management , the wood-based circular economy and the strong relationship between them in combating deforestation; ### 5. stresses the importance of partnership with third countries in order to strengthen sustainable forest management , the wood-based circular economy and the strong relationship between them in combating deforestation. sustainable forest management can prevent the deforestation and has positive impact on the health and diversity of the forests. preventing deforestation and promoting sustainable forestry should be supported through partnership approach at all levels;


### 5. urges the eu to discuss deforestation issues in bilateral dialogues with partner countries in order to encourage them to include forests in their nationally determined contributions (ndcs) under the paris agreement , to work on internationally binding forest protection schemes and to coordinate with international initiatives; ### 5. urges the eu to discuss deforestation issues in bilateral and regional dialogues with partner countries in order to encourage them to include forests in their nationally determined contributions (ndcs) under the paris agreement , to work on internationally binding forest protection schemes and to coordinate with international initiatives;


### — having regard to the draft feasibility study on options to step up eu action against deforestation , commissioned by the commission’s directorate general for environment (2017) , ### — having regard to the feasibility study on options to step up eu action against deforestation , commissioned by the commission’s directorate general for environment (2018) ,


### a. whereas , despite all efforts so far , conservation and sustainable use of the world’s forests cannot be adequately ensured by current policies; ### a. whereas forests are essential to preserve the world’s biodiversity and climate , and to directly sustain millions of people’s livelihoods; however whereas , despite all efforts so far , conservation , preservation and sustainable use of the world’s forests as well as the protection of indigenous peoples and local communities cannot be adequately ensured by current policies;


### b. whereas stepping up action to protect existing forests and actively and sustainably create new forest coverage has to play a crucial role in the eu’s sustainability policies; ### b. whereas newly planted forests cannot replace primary forests; whereas stepping up action to protect existing forests and actively and sustainably restore the integrity of forest ecosystems before creating new forest coverage has to play a crucial role in the eu’s sustainability policies;


### 6. welcomes the commitment by the commission to increase supply chain sustainability and transparency; calls for the adoption of regulatory measures while ensuring a level playing field to avoid income loss in developing countries and unfair competition; ### 6. welcomes the commitment by the commission to increase supply chain sustainability and transparency; calls to this regard for the adoption of mandatory due diligence obligations to be applied to all operators involved in forest-risk commodity supply chains and invites the commission to promote such a binding regulatory framework at international level , with the aim of promoting transparency and enforcing proportionate but dissuasive sanctioning mechanisms , also in line with the un guiding principles on business and human rights; is of the opinion that such approach is conducive to a more level playing field to avoid income loss in developing countries , tackle unfair competition and incentivise global sustainable forest management at the same time;


### 7. calls on the eu to make sure that policies in all areas are coherent with its commitments to protect and restore forests; recalls that the sustainability chapters of trade agreements need to contain forest-specific and responsible business conduct provisions , as well as mechanisms to oversee the effective implementation of these provisions. ### 7. calls on the eu to make sure that policies in all areas are coherent with its commitments to protect and restore forests; insists on the strategic importance of robust , coherent and enforceable sustainability chapters in trade agreements , along with an effective implementation of multilateral environmental and climate agreements; invites the commission to carefully assess the impacts of trade agreements on deforestation in the sustainability impact assessments (sias) and other relevant assessments , based on solid data and evaluation methodologies; urges the commission to include clear reference to forest-specific and responsible business conduct provisions , as well as mechanisms to oversee the effective implementation of these provisions.


### 3. recalls that parliament aims to reinforce the economic integration of the eap countries and that the common goal remains to create and make use of additional market opportunities such as business development , increased connectivity and the digital economy; calls on the eap countries to fund the necessary reforms and to further deepen their relations with the eu; ### 3. recalls that parliament aims to reinforce the economic integration of the eap countries and that the common goal remains to create and make use of additional market opportunities such as business development , increased digital economy and connectivity , especially for energy and transport infrastructure; calls on the eap countries to fund the necessary reforms and to further deepen their relations with the eu;


### 4. is aware that common problems in the eap countries are a high level of corruption , bank fraud , the influence of oligarchs , the informal economy and poor governance; calls on the eap countries to improve the rule of law , to eliminate these problems and to tackle illicit trade; ### 4. is aware that common problems in the eap countries are a high level of corruption , bank fraud , the influence of oligarchs , the informal economy and poor governance; calls on the eap countries to improve the rule of law , to eliminate these problems and to tackle illicit trade; encourages european policies in order to support the eap countries to improve the quality of governance and to modernise their societies.


### – having regard to the communications from the commission and the european external action service (eeas) on [...] , ### – having regard to the joint communication of the commission and the vice president/high representative of the union for foreign affairs and security policy to the european parliament , the european council , the council , the european economic and social committee and the committee of the regions: eastern partnership policy beyond 2020 , reinforcing resilience – an eastern partnership that delivers for all ,


### 1. notes that preservation of forests is one of the biggest sustainability challenges of our times , without which the objectives of the paris agreement and the green deal cannot be achieved; stresses that the sustainable use of forests cannot be ensured with current policies; ### 1. notes that preservation of forests and preventing the degradation of forests are some of the biggest sustainability challenges of our times , without which the objectives of the paris agreement and the green deal cannot be achieved; stresses that the sustainable use of forests cannot be ensured with current policies;


### 1. underlines that approximately 80 % of global deforestation is caused by the expansion of land used for agriculture; stresses in this context that the commission communication on stepping up eu action to protect and restore the world’s forests of july 2019 recognises that union demand for products such as palm oil , meat , soy , cocoa , maize , timber , rubber , including in the form of processed products or services , is a large driver of deforestation , ecosystem destruction and human rights violations across the globe; ### 1. underlines that approximately 80 % of global deforestation is caused by the expansion of land used for agriculture; stresses in this context that the commission communication on stepping up eu action to protect and restore the world’s forests of july 2019 recognises that union demand for products such as palm oil , meat , soy , cocoa , maize , timber , rubber , including in the form of processed products or services , contributes to a significant increase in deforestation , ecosystem destruction and human rights violations across the globe; emphasises in this regard that eu consumption represents 10% of the global share of deforestation embodied in the total final consumption of commodities driving deforestation;


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


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


### 2. welcomes the good results the cooperation with third countries under the eu flegt action plan and voluntary partnership agreements have shown in addressing the supply-side challenge of illegal logging and stresses that this work should be stepped up , also in terms of offering capacity building; ### 2. welcomes the good results the cooperation with third countries under the eu flegt action plan and voluntary partnership agreements (vpas) have shown in addressing the supply-side challenge of illegal logging and stresses that this work should be stepped up , also in terms of offering capacity building; is of the opinion that the vpa model can be extended to cover new fercs;


### 3. recommends that all new trade agreements include provisions on the conservation and sustainable management of forests and the obligation to ensure multilateral environmental agreements , such as the paris agreement and the convention on biological diversity , are implemented effectively; ### 3. requires that all new trade agreements include binding and enforceable provisions , as well as co-operation mechanisms , on the conservation and sustainable management of forests and the obligation to ensure multilateral environmental agreements , such as the paris agreement and the convention on biological diversity , are implemented effectively; recommends that the eu promotes voluntary sustainable forest management certification as a tool for verifying sustainability;


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


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


### a. whereas biologically diverse forests being natural carbon sinks are indispensable in the fight against climate change in line with the paris agreement’s goals to hold the increase in the global average temperature to well below 2°c above pre-industrial levels and pursue efforts to limit the temperature increase to 1 , 5°c above pre-industrial levels , as well as for climate change adaptation and biodiversity conservation; ### a. whereas biologically diverse forests being natural carbon sinks are indispensable in the fight against climate change in line with the paris agreement’s goals to hold the increase in the global average temperature to well below 2°c above pre-industrial levels and pursue efforts to limit the temperature increase to 1 ,5°c above pre-industrial levels , and that the best available science indicates that limiting the increase to 1.5 degrees would substantially reduce harm to people and natural ecosystems in relation to the 2 degrees scenario , as well as for climate change adaptation and biodiversity conservation;


### b. whereas according to union legislation woody raw material should emanate only from forests that are harvested in accordance with the principles of sustainable forest management that are developed under international forest processes such as forest europe; ### b. whereas according to union legislation woody raw material should emanate only from forests that are harvested in accordance with the principles of sustainable forest management that are developed under international forest processes such as forest europe; whereas that sustainable forest management can have a significant impact on prevention of deforestation and has a positive impact on the health and diversity of forests; whereas healthy and multifunctional forests are essential to contribute to policy objectives of the union;


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


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


### a. whereas micro , small and medium-sized enterprises (smes) in the transport and tourism sectors are being most affected by the covid-19 outbreak owing to the enforcement of mobility restrictions; ### a. whereas micro , small and medium-sized enterprises (smes) in the transport and tourism sectors are being most affected by the covid-19 outbreak owing to mobility restrictions , and urgent steps must be taken in support of smes to help them emerge from this crisis;


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


### b. whereas , following the covid-19 outbreak , inequality between member states in terms of the support they are able to give their smes is likely to exacerbate distortions of competition on the single market between smes from different countries; ### b. whereas , following the covid-19 outbreak , inequality between member states in terms of the support they are able to give their smes is likely to exacerbate distortions of competition on the single market between smes from different countries and would lead to fragmentation of the single market;


### 1. notes that the covid-19 crisis has demonstrated the importance for the economy and for business of smes operating in the transport sector , bearing in mind that uninterrupted freight transport has been essential to ensure the functioning of supply chains for various types of goods , as has the transport of workers in key sectors; stresses that smes in the tourism sector are facing unprecedented difficulties including a serious liquidity crisis due to the pandemic; stresses the importance of state intervention to shore up smes in difficulty , ensuring job retention , the protection of earnings and respect for workers' rights; underlines the need to step up support for smes in these sectors at eu level and address the enormous inequalities resulting from different levels of national support; calls on the commission to monitor developments and assess the possibility of emergency support in addition to measures already announced , including funding and capitalisation , until tourist and transport flows have returned to their previous levels; ### 1. notes that the covid-19 crisis has demonstrated the importance for the economy and for business of smes operating in the transport sector , bearing in mind that uninterrupted freight transport has been essential to ensure the functioning of supply chains for various types of goods , as well as the transport of workers from key sectors; stresses that smes in the tourism sector are facing unprecedented difficulties including a serious liquidity crisis due to the pandemic; stresses the importance of state intervention to shore up smes in difficulty , ensuring job retention , the protection of earnings and respect for workers' rights; underlines the need to step up support for smes in these sectors at eu level by addressing the enormous inequalities resulting from different levels of national support; calls on the commission to monitor developments and assess the possibility of emergency support in addition to measures already announced , including funding and capitalisation , until tourist and transport flows have returned to their previous levels; warns , once again , of the importance of creating a financial instrument to respond to future crises that the transport and tourism sectors may face , given their increased value for the development of europe's economy;


### 1. notes that the covid-19 crisis has demonstrated the importance for the economy and for business of smes operating in the transport sector , bearing in mind that uninterrupted freight transport has been essential to ensure the functioning of supply chains for various types of goods , as has the transport of workers in key sectors; stresses that smes in the tourism sector are facing unprecedented difficulties including a serious liquidity crisis due to the pandemic; stresses the importance of state intervention to shore up smes in difficulty , ensuring job retention , the protection of earnings and respect for workers' rights; underlines the need to step up support for smes in these sectors at eu level and address the enormous inequalities resulting from different levels of national support; calls on the commission to monitor developments and assess the possibility of emergency support in addition to measures already announced , including funding and capitalisation , until tourist and transport flows have returned to their previous levels; ### 1. notes that the covid-19 crisis has demonstrated the importance for the economy and for business of smes operating in the transport sector , bearing in mind that uninterrupted freight transport has been essential to ensure the functioning of supply chains for various types of goods as has the transport of workers in key sectors; stresses that smes in the tourism sector are facing unprecedented difficulties including a serious liquidity crisis due to the pandemic; stresses the importance of state intervention to shore up smes in difficulty , ensuring job retention , the protection of earnings and respect for workers' rights; underlines the need to step up support for smes in these sectors at eu level and address the enormous inequalities resulting from different levels of national support; calls on the commission to monitor developments and assess the possibility of emergency support in addition to measures already announced , including funding and capitalisation , so as to ensure that smes can continue operating until tourist and transport flows have returned to their previous levels;


### 1. underlines the decisive contribution of smes to innovation , job creation and an inclusive labour market; is extremely concerned about the rising unemployment rates in the eu and the risk of millions of people losing their jobs as a result of the covid-19 crisis; recognises that at present smes are faced with severe liquidity problems and , in this context , highlights the need for sustainable finance to bridge the current investment gap and to reinforce smes’ ability to innovate and move towards more sustainable , resource-efficient , circular and climate-neutral solutions , ensuring the successful implementation of the european green deal and the related just transition; ### 1. underlines the decisive contribution of smes to innovation , job creation and an inclusive labour market; is extremely concerned about the rising unemployment rates in the eu and the risk of millions of people losing their jobs as a result of the covid-19 crisis; recognises that at present smes are faced with severe liquidity problems and , in this context , highlights the need for sustainable finance to bridge the current investment gap and to reinforce smes’ ability to innovate and move towards more sustainable , resource-efficient , circular and climate-neutral solutions , thereby contributing to the principles and objectives of the european pillar of social rights (epsr) as well as the european green deal and the related just transition;


### 2. considers that the objectives of the 'sme strategy for a sustainable and digital europe’ should be fully matched by financial and other resources to enable member states to promote sme transition towards sustainability and digitisation , which is of particular importance for the least developed countries and regions in the context of cohesion policy; stresses that such objectives cannot be contradictory and must , on the contrary , accompany measures to safeguard employment with rights and improve working conditions in the various sectors of activity; ### 2. considers that the objectives of the 'sme strategy for a sustainable and digital europe’ should be fully matched by financial and other resources to enable member states to promote sme transition towards sustainability and digitisation , which is of particular importance for the least developed countries and regions in the context of cohesion policy; takes the view that in order to ensure that smes enjoy a smooth transition to digitalisation , direct funding should be provided for training and upgrading smes' human resources so that they acquire the skills that digitalisation demands; stresses that such objectives cannot be contradictory and must , on the contrary , accompany measures to safeguard employment with rights and improve working conditions in the various sectors of activity;


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


### 3. recognises that a number of states and cities are able to prohibit or closely regulate the activity of so-called digital platforms; underlines the urgent need for regulation of these platforms on a broader basis to prevent unfair competition and ensure respect for workers' rights and user safety; underlines at the same time the need for specific measures to modernise taxi services. ### 3. recognises that a number of states and cities are able to prohibit or closely regulate the activity of so-called digital platforms; underlines the urgent need for regulation of these platforms on a broader basis , through the harmonisation of european legislation , to prevent unfair competition and ensure respect for workers' rights and user safety throughout the eu; underlines at the same time the need for specific measures to modernise taxi services.


### (1) council regulation (ec) no 1215/20092 provided for unlimited duty free access to the union market for nearly all products originating in the participants of the stabilisation and association process to the extent and until such time as bilateral agreements with those parties were concluded. ### (1) council regulation (ec) no 1215/20092 provided for unlimited duty free access to the union market for nearly all products originating in the participants of the stabilisation and association process to the extent and until such time as bilateral agreements with those beneficiary parties were concluded.


### (2) stabilisation and association agreements have now been concluded with all six parties , the last one between the european union and the european atomic energy community , of the one part , and kosovo3 , of the other part , entered into force on 1 april 2016. ### (2) stabilisation and association agreements have now been concluded with all six beneficiary parties. the stabilisation and association agreement between the european union and the european atomic energy community , of the one part , and kosovo3 , of the other part , was the last one and entered into force on 1 april 2016.


### (3) commission delegated regulation (eu) 2017/14644 amended regulation (ec) no 1215/2009 to remove the bilateral preferences granted to kosovo but maintaining the unilateral preference granted to all western balkan beneficiaries in the form of the suspension of all duties for products covered by chapters 7 and 8 of the combined nomenclature and their access to the global wine tariff rate quota of 30 000 hl. ### (3) commission delegated regulation (eu) 2017/14644 amended regulation (ec) no 1215/2009 to remove the bilateral preferences granted to kosovo but maintaining the unilateral preference granted to all western balkan beneficiary parties in the form of the suspension of all duties for products covered by chapters 7 and 8 of the combined nomenclature and their access to the global wine tariff rate quota of 30 000 hl.


### 1. products originating in albania , bosnia and herzegovina , kosovo5 , montenegro , north macedonia , and serbia covered by chapters 7 and 8 of the combined nomenclature shall be admitted for import into the union without quantitative restrictions or measures having equivalent effect and with exemption from custom duties and charges having equivalent effect. ### 1. products originating in albania , bosnia and herzegovina , kosovo5 , montenegro , north macedonia , and serbia beneficiary parties covered by chapters 7 and 8 of the combined nomenclature shall be admitted for import into the union without quantitative restrictions or measures having equivalent effect and with exemption from custom duties and charges having equivalent effect.


### concerning the tariff quotas referred to in article 1(2) ### concerning the tariff quotas referred to in article 3(1)


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


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


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


### 8. in order to ensure a level playing field the responsibility for companies to respect human rights under international standards should be transformed into a legal duty at union level. by coordinating safeguards for the protection of human rights , the environment and good governance , this directive will ensure that all undertakings operating in the internal market are subject to harmonised minimum due diligence obligations , which will improve the functioning of that market. ### 8. in order to guarantee a level playing field this directive will ensure that all undertakings operating in the internal market are subject to harmonised minimum due diligence requirements and liability rules , which will improve the functioning of that market. at present , undertakings established and operating in various member states are subject to different substantive and procedural rules that significantly influence the extent to which they can be held liable for damage resulting from human rights and environmental impacts. these disparities in enforcing the right to compensation in union law can not only give a competitive advantage to certain undertakings that do not comply with the rules , but can also deter undertakings from taking advantage of the right of establishment and the freedom to provide goods and services in member states in which the right to compensation is enforced more effectively. as the differences between the liability rules that apply in the member states can have an adverse impact on competition and the smooth functioning of the internal market , this directive will ensure that liability rules are harmonised.


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


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


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


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


### 13. the directive applies to all undertakings governed by the law of a member state or established in the territory of the union regardless of their size , sector , and whether they are private or state-owned. all economic sectors , including the financial sector , are covered by this directive. ### 13. the directive applies to all large undertakings , as defined in article 3(4) of the accounting directive , governed by the law of a member state or established in the territory of the union regardless of their size , sector , and whether they are private or state-owned. all economic sectors , including the financial sector , are covered by this directive. the commission shall identify high-risk sectors of economic activity with a significant impact on human rights , environmental and good governance matters in order to include the small and medium-sized enterprises in those sectors within the scope of this directive.


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


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


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


### 17. in relation to human rights risks , this directive lists a number of instruments undertakings should take into consideration when assessing their potential risks. the list is conceived as non-exhaustive , undertakings being strongly encouraged to take into consideration other human rights instruments that would enable them to carry out a complete due diligence process to prevent any risk for human rights. ### 17. human rights should be understood , at a minimum , as those expressed in the international bill of human rights , the united nations human rights instruments on the rights of persons belonging to particularly vulnerable groups or communities , and the principles concerning fundamental rights set out in the ilo declaration on fundamental principles and rights at work , as well as those recognised in the ilo convention on freedom of association and the effective recognition of the right to collective bargaining , the ilo convention on the elimination of all forms of forced or compulsory labour , the ilo convention on the effective abolition of child labour , and the ilo convention on the elimination of discrimination in respect of employment and occupation. they further include , but are not restricted to , adverse impacts in relation to other rights recognised in a number of ilo conventions , such as freedom of association , minimum age , occupational safety and health , and equal remuneration , and the rights recognised in the convention on the rights of the child , the african charter of human and peoples’ rights , the american convention on human rights , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , and national constitutions and laws recognising or implementing human rights.


### 20. this directive also requires undertakings to carry out due diligence in order to prevent any adverse impact on the good governance of the countries , regions or territories in which they carry out their business activities. in particular , undertakings should comply with the oecd anti-bribery convention and take measures to prevent any undue influence being exercised on public officials with a view to obtaining privileges or unfair favourable treatment that is in breach of the law. undertakings should also abstain from improperly influencing local political activities and should strictly comply with the applicable tax legislation. ### 20. this directive also requires undertakings to carry out due diligence in order to prevent any adverse impact on the good governance of the countries , regions or territories in which they carry out their business activities. governance risks include , but are not limited to , non-compliance with oecd guidelines for multinational enterprises , chapter vii on combatting bribery , bribe solicitation and extortion and the principles of the oecd convention on combating bribery of foreign public officials in international business transactions and situations of corruption and bribery where an undertaking exercises undue influence on , or channels undue pecuniary advantages to , public officials to obtain privileges or unfair favourable treatment in breach of the law , and including situations in which an undertaking becomes improperly involved in local political activities , makes illegal campaign contributions , breaches the whistle-blowers protection or fails to comply with the application tax legislation. in particular , undertakings take measures to prevent any undue influence being exercised on public officials with a view to obtaining privileges or unfair favourable treatment that is in breach of the law. undertakings should also abstain from improperly influencing local political activities and should strictly comply with the applicable tax legislation.


### 22. adverse impacts or violations of human rights and social and environmental standards by undertakings can be the result of their own activities or of those of their business relationships , in particular suppliers , sub-contractors and investee undertakings. in order to be effective , undertakings’ due diligence should encompass the entire value chain. ### 22. adverse impacts or violations of human rights and social and environmental standards by undertakings can be the result of their own activities or of those of their business relationships , in particular suppliers , sub-contractors and investee undertakings. in order to be effective , undertakings’ due diligence should encompass the entire value chain. member states should introduce further legislation to ensure that undertakings can be held liable for damage caused by undertakings under their control where they have , in the course of business , committed or contributed to violations of human rights and environmental standards.


### 22. adverse impacts or violations of human rights and social and environmental standards by undertakings can be the result of their own activities or of those of their business relationships , in particular suppliers , sub-contractors and investee undertakings. in order to be effective , undertakings’ due diligence should encompass the entire value chain. ### 22. adverse impacts or violations of human rights and social and environmental standards by undertakings can be the result of their own activities or of those of their business relationships , in particular suppliers , sub-contractors and investee undertakings. in order to be effective , large undertakings’ due diligence should encompass the entire value chain. however , the traceability of all undertakings intervening in the value chain can be difficult. the commission should thus evaluate and propose tools in order to help undertakings with the traceability of their value chains.


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


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


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