Sittings · Compare
What changed
PA_Legam
SHORT JUSTIFICATION
The European Commission published a Proposal for a Directive of the European Parliament and of the Council amending Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464 and (EU) 2024/1760 as regards certain corporate sustainability reporting and due diligence requirements on 26 of February 2025.
As a reminder, the European Commission’s proposal for a Corporate Sustainability Reporting Directive (CSRD) ((EU) 2022/2464) formed part of its commitment to a European Green Deal and strengthened the foundations for sustainable investment. The European Commission’s proposal for a Corporate Sustainability Due Diligence Directive (CSDDD) ((EU) 2024/1760) put forward and detailed mandatory due diligence processes for companies to fulfil their responsibilities and to be held liable for failures to do so, codifying already existing international standards.
DROI adopted opinions on both proposals.
CSRD established the extension of sustainability reporting requirements to all large companies and listed companies (except micro-enterprises) and more detailed reporting requirements, particularly on areas relating to UN Guiding Principles on Business and Human rights, according to mandatory EU sustainability reporting standards.
CSDDD contributed to fostering positive behavioural change by companies towards identification, prevention and mitigation of harmful impacts of their operations and relationships in their global value chains.
The rapporteur welcomes the spirit of the new proposal to simplify and reduce the burden on European Union enterprises. Nevertheless, this goal should not put into question the European Union responsibilities in the defence of human rights including their defenders.
Human rights reporting is very much an area in development and guidance and clarity of process and definitions need more time to bear their results.
The CSDDD has given the EU an opportunity to assert itself as a global normative power by showing leadership in addressing the serious sustainable development challenge faced by societies collectively and globally. The Directive should not be reviewed just after its adoption - as it punishes those companies who have already started working towards future implementation - and if so, it should be done rather limitedly and based on extensive consultation.
The EU had established a policy coherence and complementarity forming a meaningful ensemble with all these Directives that are now under revision. The rapporteur agrees on eliminating an unnecessary extra burden on companies in case it is identified but not at the cost of human rights standards and their promotion.
The CSDDD presents an unparalleled occasion for the EU to integrate human and environmental sustainability into business and corporate practices and to drive change on the global level. Therefore, to review it now could endanger this approach in a current world situation in which human rights standards are increasingly challenged. Furthermore, many EU companies implement already on a voluntary basis these due diligence standards.
To this end, the following elements that are in the current legislation could be kept:
- ensuring that the definition of stakeholders remains adequately wide, in order to ensure that all relevant voices are heard, at the different stages of the due diligence process;
- ensuring that companies do not carry out due diligence efforts solely with their direct business partners, but based on the risk of adverse impacts determined by their sector of activity and the context of their operations;
- requiring companies to meaningfully engage with stakeholders with the aim of informing and improving their corporate decisions and due diligence practices, as well as to ensure protection and safety of all stakeholders from retaliation and reprisal for their participation;
- requiring Member States to provide an option for companies to suspend a business relationship for a defined period of time
- ensuring liability of companies and guaranteeing access to justice and legal remedies for victims of harm linked to violations of due diligence obligations.
AMENDMENTS
The Committee on the Environment, Climate and FoodForeign SafetyAffairs submits the following to the Committee on Legal Affairs, as the committee responsible:
Amendment 1
Proposal for a directive
Recital 21
Article 4 – paragraph 1 – point 2
Text proposed by the Commission
Amendment
(21) Article 5 of Directive (EU) 2024/1760 obliges Member States to ensure that large companies above a certain size conduct risk-based human rights and environmental due diligence. To reduce burdens on companies that have to comply with that obligation, the required due diligence should, as a general rule, be limited to the company’s own operations, those of its subsidiaries and those of its direct business partners (‘tier 1’). Consequently, when it comes to business relationships, companies should, after having mapped their chains of activities, be required to carry out in-depth assessments as regards direct business partners only. Companies should, however, look beyond their direct business relationships where they have plausible information that suggests an adverse impact at the level of an indirect business partner. Plausible information means information of an objective character that allows the company to conclude that there is a reasonable likelihood that the information is true. This may be the case where the company concerned has received a complaint or is in the possession of information, for example through credible media or NGO reports, reports of recent incidents, or through recurring problems at certain locations about likely or actual harmful activities at the level of an indirect business partner. Where the company has such information, it should carry out an in-depth assessment. Companies should also carry out in-depth assessments with respect to adverse impacts arising beyond their direct business partner where the structure of this business relationship lacks economic rationale and suggests that it was chosen to remove an otherwise direct supplier with harmful activities from the purview of the company. Where the in-depth assessment confirms the likelihood or existence of the adverse impact, it should then be deemed to be identified. In addition, companies should seek to ensure that their code of conduct – which is part of their due diligence policy and sets out the expectations as to how to protect human, including labour, rights and the environment in business operations – is followed throughout the chain of activities in accordance with contractual cascading and SME support.
(21) Article 5 of Directive (EU) 2024/1760 obliges Member States to ensure that large companies above a certain size conduct risk-based human rights and environmental due diligence. To reduce burdens on companies that have to comply with that obligation, the required due diligence should, as a general rule, be limited to the company’s own operations, those of its subsidiaries and those of its direct business partners (‘tier 1’). Consequently, when it comes to business relationships, companies should, after having mapped their chains of activities, be required to carry out in-depth assessments as regards direct business partners only. Companies should, however, look beyond their direct business relationships where they have plausible information that suggests an adverse impact at the level of an indirect business partner. Plausible information should be understood as information of an objective and verifiable nature, which is readily available to the company and, taking into account its source, reliability, and context, is sufficient to enable the company to reasonably assume that a potential or actual adverse impact may have occurred or is likely to occur. In line with the OECD guidelines, plausible information may derive, inter alia, from substantiated complaints, credible reports issued by cross-sectorial stakeholders, civil society organisations, trade unions, international organisations or national authorities, media investigations, and from recurring incidents in the company’s own operations, those of its subsidiaries, or within its chain of activities, including through indirect business relationships. Where the company has such information, it should carry out an in-depth assessment. Where the in-depth assessment confirms the likelihood or existence of the adverse impact, it should then be deemed to be identified. In addition, companies should also seek to ensure that their code of conduct – which is part of their due diligence policy and sets out the expectations as to how to protect human, including labour, rights and the environment in business operations – is followed throughout the chain of activities. This should, however, not prevent companies from seeking contractual assurances from their business partners to ensure compliance with company’s code of conduct and affect information requests for purposes other than for identifying and assessing actual and potential adverse impacts, including Union requirements on undertakings to conduct a due diligence process.
Amendment 2
Proposal for a directive
Article 1 – paragraph 1 – point 1
Directive 2006/43/EC
Article 26a – paragraph 3 – subparagraph 1
Text proposed by the Commission
Amendment
The Commission shall be empowered to adopt delegated acts in accordance with Article 48a in order to supplement this Directive in order to provide for limited assurance standards setting out the procedures that the auditor(s) and the audit firm(s) shall perform in order to draw his, her or its conclusions on the assurance of sustainability reporting, including engagement planning, risk consideration and response to risks and type of conclusions to be included in the assurance report on sustainability reporting, or, where relevant, in the audit report.
The Commission shall, no later than 1 October 2028, adopt delegated acts in accordance with Article 48a in order to supplement this Directive in order to provide for limited assurance standards setting out the procedures that the auditor(s) and the audit firm(s) shall perform in order to draw his, her or its conclusions on the assurance of sustainability reporting, including engagement planning, risk consideration and response to risks and type of conclusions to be included in the assurance report on sustainability reporting, or, where relevant, in the audit report.
Amendment 3
Proposal for a directive
Article 1 – paragraph 1 – point 1
Directive 2006/43/EC
Article 26a – paragraph 3 – subparagraph 1 a (new)
Text proposed by the Commission
Amendment
The Commission shall, no later than 1 October 2028, conduct an assessment on the impact of reasonable assurance standards on the costs for undertakings, and the feasibility for auditors and for undertakings, and whether such standards provide a clear added value and contribute meaningfully to the sustainability efforts of the undertakings.
Amendment 4
Proposal for a directive
Article 1 – paragraph 1 – point 1
Directive 2006/43/EC
Article 26a – paragraph 3 – subparagraph 2 – introductory part
Text proposed by the Commission
Amendment
The Commission may adopt the assurance standards referred to in the first subparagraph only where those standards:
The Commission may adopt the assurance standards referred to in the first subparagraph after having obtained an opinion from EFRAG and only where those standards:
Amendment 5
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point a
Directive 2013/34/EU
Article 1 – paragraph 3 – introductory part
Text proposed by the Commission
Amendment
The coordination measures prescribed by Articles 19a, 19b, 29a, 29aa, 29d, 30 and 33, Article 34(1), second subparagraph, point (aa), Article 34(2) and (3), and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings are large undertakings which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year:
The coordination measures prescribed by Articles 19a, 29a, 29d, 30 and 33, Article 34(1), second subparagraph, point (aa), Article 34(2) and (3) and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings are large undertakings which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year:
Amendment 6
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point a
Directive 2013/34/EU
Article 19a – paragraph 1 – subparagraph 1
Text proposed by the Commission
Amendment
Large undertakings which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.;
Large undertakings which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.;
Amendment 7
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b – point i
Directive 2013/34/EU
Article 19a – paragraph 3 – subparagraph 1
Text proposed by the Commission
Amendment
Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned. Undertakings that report the necessary value chain information without reporting from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned, shall be deemed to have complied with the obligation to report value chain information set out in this paragraph.;
Where applicable, the material information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca.
Undertakings referred to in paragraph 1 of this Article shall inform undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year which information falls outside the information referred to in Article 29ca.
Undertakings that report the necessary value chain information without having obtained from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, shall be deemed to have complied with the obligation to report value chain information set out in this paragraph. Where such information is not available, undertakings may briefly mention any resulting limitations in their sustainability reporting.
Amendment 8
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b – point i
Directive 2013/34/EU
Article 19a – paragraph 3 – subparagraph 1 a (new)
Text proposed by the Commission
Amendment
Nothing in this paragraph shall affect information requests made for purposes other than the reporting of sustainability information as required by this Directive, including Union requirements on undertakings to conduct a due diligence process. Such requests may also include, where required by Union law, information necessary to calculate the undertaking’s greenhouse gas emissions.;
Amendment 9
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point c a (new)
Directive 2013/34/EU
Article 19a – paragraph 10
Present text
Amendment
(ca) paragraph 10 is replaced by the following:
10. The exemption laid down in paragraph 9 shall also apply to public-interest entities subject to the requirements of this Article, with the exception of large undertakings which are public-interest entities defined in point (a) of point (1) of Article 2 of this Directive.
‘10. The exemption laid down in paragraph 9 shall also apply to public-interest entities subject to the requirements of this Article and of Article 4(5) of Directive 2004/109/EC.’
(02013L00034)
Amendment 10
Proposal for a directive
Article 2 – paragraph 1 – point 3
Directive 2013/34/EU
Article 19b
Text proposed by the Commission
Amendment
[...]
deleted
Amendment 11
Proposal for a directive
Article 2 – paragraph 1 – point 4 – point a
Directive 2013/34/EU
Article 29a – paragraph 1 – subparagraph 1
Text proposed by the Commission
Amendment
Parent undertakings of a large group which, on their balance sheet dates, exceed the average number of 1000 employees, on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.;
Parent undertakings of a large group which, on its balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000, on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.;
Amendment 12
Proposal for a directive
Article 2 – paragraph 1 – point 4 – point b – point i
Directive 2013/34/EU
Article 29a – paragraph 3 – subparagraph 1
Text proposed by the Commission
Amendment
Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned. Undertakings that report the necessary value chain information without reporting from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned, shall be deemed to have complied with the obligation to report value chain information set out in this paragraph.;
Where applicable, the material information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain.
Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca.
Undertakings referred to in paragraph 1 of this Article shall inform undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year which information falls outside the information referred to in Article 29ca.
Undertakings that report the necessary value chain information without having obtained from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, shall be deemed to have complied with the obligation to report value chain information set out in this paragraph. Where such information is not available, undertakings may briefly mention any resulting limitations in their sustainability reporting.
Amendment 13
Proposal for a directive
Article 2 – paragraph 1 – point 4 – point b – point i
Directive 2013/34/EU
Article 29a – paragraph 3 – subparagraph 1 a (new)
Text proposed by the Commission
Amendment
Nothing in this paragraph shall affect information requests made for purposes other than the reporting of sustainability information as required by this Directive, including Union requirements on undertakings to conduct a due diligence process. Such requests may also include, where required by Union law, information necessary to calculate the undertaking’s greenhouse gas emissions.;
Amendment 14
Proposal for a directive
Article 2 – paragraph 1 – point 4 – point b – point ii
Directive 2013/34/EU
Article 29a – paragraph 3 – subparagraph 4a
Text proposed by the Commission
Amendment
(ii) the following subparagraph is added:
deleted
‘The first subparagraph is without prejudice to Union requirements on undertakings to conduct a due diligence process.’;
Amendment 15
Proposal for a directive
Article 2 – paragraph 1 – point 4 – point b a (new)
Directive 2013/34/EU
Article 29a – paragraph 9
Present text
Amendment
(ba) paragraph 9 is replaced by the following:
9. The exemption laid down in paragraph 8 shall also apply to public-interest entities subject to the requirements of this Article, with the exception of large undertakings which are public-interest entities defined in point (a) of point (1) of Article 2 of this Directive.
‘9. The exemption laid down in paragraph 8 shall also apply to public-interest entities subject to the requirements of this Article and of Article 4(5) of Directive 2004/109/EC.’
(02013L00034)
Amendment 16
Proposal for a directive
Article 2 – paragraph 1 – point 5
Directive 2013/34/EU
Article 29aa
Text proposed by the Commission
Amendment
[...]
deleted
Amendment 17
Proposal for a directive
Article 2 – paragraph 1 – point 6 – point -a (new)
Directive 2013/34/EU
Article 29b – paragraph 1 – subparagraph 1
Present text
Amendment
(-a) in paragraph 1, the first subparagraph is replaced by the following:
The Commission shall adopt delegated acts in accordance with Article 49 supplementing this Directive to provide for sustainability reporting standards. Those sustainability reporting standards shall specify the information that undertakings are to report in accordance with Articles 19a and 29a and, where relevant, shall specify the structure to be used to present that information.
‘The Commission shall adopt delegated acts in accordance with Article 49 supplementing this Directive to provide for sustainability reporting standards. Those sustainability reporting standards shall specify the relevant information that undertakings are to report in accordance with Articles 19a and 29a and, where relevant, shall specify the structure to be used to present that information.
(02013L00034)
Amendment 18
Proposal for a directive
Article 2 – paragraph 1 – point 6 – point -a a (new)
Directive 2013/34/EU
Article 29b – paragraph 1 – subparagraph 2 a (new)
Present text
Amendment
(-aa) in paragraph 1, the following subparagraph is added after the second subparagraph:
‘The Commission shall adopt, in close cooperation with EFRAG and stakeholders, sector-specific guidelines on sustainability reporting to assist undertakings in applying the standards referred to in the second subparagraph to ensure a high level of consistency within the relevant sector.’
(02013L00034)
Amendment 19
Proposal for a directive
Article 2 – paragraph 1 – point 6 – point -a b (new)
Directive 2013/34/EU
Article 29b – paragraph 1 – subparagraph 2 b (new)
Present text
Amendment
(-ab) in paragraph 1, the following subparagraph is added after the second subparagraph:
‘The Commission shall assess the necessity of developing sector-specific sustainability reporting standards to assist undertakings in applying the horizontal standards in a manner that ensures a high level of relevance and consistency within the relevant sector. Where such sector-specific standards are deemed necessary and subsequently adopted, they shall replace, rather than supplement, those elements of the horizontal standards which they specifically address.’
(02013L00034)
Amendment 20
Proposal for a directive
Article 2 – paragraph 1 – point 6 – point a a (new)
Directive 2013/34/EU
Article 29b – paragraph 2 – subparagraph 1
Present text
Amendment
(aa) in paragraph 2, the first subparagraph is replaced by the following:
The sustainability reporting standards shall ensure the quality of reported information, by requiring that it is understandable, relevant, verifiable, comparable and represented in a faithful manner. The sustainability reporting standards shall avoid imposing a disproportionate administrative burden on undertakings, including by taking account, to the greatest extent possible, of the work of global standard-setting initiatives for sustainability reporting as required by point (a) of paragraph 5.
‘The sustainability reporting standards shall ensure the quality of reported information, by requiring that it is understandable, relevant, verifiable, comparable and represented in a faithful manner. The sustainability reporting standards shall emphasize the use of quantitative data and shall ensure interoperability with reporting requirements in accordance with other Union legislative acts, and shall avoid imposing a disproportionate financial and administrative burden on undertakings and shall ensure interoperability and compatibility with internationally-recognised standards set by global standard-setting initiatives for sustainability reporting as required by point (a) of paragraph 5.’
(02013L00034)
Amendment 21
Proposal for a directive
Article 2 – paragraph 1 – point 6 – point b
Directive 2013/34/EU
Article 29b – paragraph 4 – subparagraph 1 – last sentence
Text proposed by the Commission
Amendment
Sustainability reporting standards shall not specify disclosures that would require undertakings to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of1000 employees during the financial year any information that exceeds the information to be disclosed pursuant to the sustainability reporting standards for voluntary use referred to in Article 29ca.;
Sustainability reporting standards shall not specify disclosures that would require undertakings to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information to be disclosed pursuant to the sustainability reporting standards for voluntary use referred to in Article 29ca.
Amendment 22
Proposal for a directive
Article 2 – paragraph 1 – point 8
Directive 2013/34/EU
Article 29ca – paragraph 1
Text proposed by the Commission
Amendment
1. To facilitate voluntary reporting of sustainability information by undertakings other than those referred to in Articles 19a(1) and 29a(1), the Commission shall adopt a delegated act by [4 months after entry into force of this Directive] in accordance with Article 49 supplementing this Directive to provide for sustainability reporting standards for voluntary use by such undertakings.
1. To facilitate voluntary reporting of sustainability information by undertakings other than those referred to in Articles 19a(1) and 29a(1), the Commission shall adopt a delegated act by [4 months after entry into force of this Directive] in accordance with Article 49 supplementing this Directive to provide for sustainability reporting standards for voluntary use by such undertakings in line with the standards specified in Article 29b.
Amendment 23
Proposal for a directive
Article 2 – paragraph 1 – point 8
Directive 2013/34/EU
Article 29ca – paragraph 2
Text proposed by the Commission
Amendment
2. The sustainability reporting standards referred to in paragraph 1 shall be proportionate to and relevant for the capacities and the characteristics of the undertakings for which they are designed and to the scale and complexity of their activities. They shall also, to the extent possible, specify the structure to be used to present such sustainability information.;
2. The sustainability reporting standards referred to in paragraph 1 shall be proportionate to and relevant for the capacities and the characteristics of the undertakings for which they are designed and to the scale and complexity of their activities, while preserving the high quality of data, ensuring precise information and effective assessments of sustainability performance and guiding investment towards the green and clean transition, in line with the overall objectives. They shall also, to the extent possible, specify the structure to be used to present such sustainability information.;
Amendment 24
Proposal for a directive
Article 2 – paragraph 1 – point 11 – point a
Directive 2013/34/EU
Article 34 – paragraph 1 – subparagraph 2 – point aa
Text proposed by the Commission
Amendment
(aa) where applicable, express an opinion based on a limited assurance engagement as regards the compliance of the sustainability reporting with the requirements of this Directive, including the compliance of the sustainability reporting with the sustainability reporting standards adopted pursuant to Article 29b, the process carried out by the undertaking to identify the information reported pursuant to those sustainability reporting standards, and the compliance with the requirement to mark up sustainability reporting in accordance with Article 29d, and as regards the compliance with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852;;
(aa) where applicable, express an opinion based on a limited assurance engagement as regards the compliance of the sustainability reporting with the requirements of this Directive, including the compliance of the sustainability reporting with the sustainability reporting standards adopted pursuant to Article 29b, the process carried out by the undertaking to identify the information reported pursuant to those sustainability reporting standards, as regards the compliance with the requirement to mark up sustainability reporting in accordance with Article 29d, and as regards the compliance with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852;
Amendment 25
Proposal for a directive
Article 2 – paragraph 1 – point 11 – point b
Directive 2013/34/EU
Article 34 – paragraph 2a
Text proposed by the Commission
Amendment
2a. Member States shall ensure that the opinion referred to in paragraph 1, second subparagraph, point (aa), is prepared in full respect of the obligation on undertakings not to seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned.;
2a. Member States shall ensure that the opinion referred to in paragraph 1, second subparagraph, point (aa), is prepared in full respect of the obligation on undertakings not to seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca.;
Amendment 26
Proposal for a directive
Article 2 – paragraph 1 – point 12 – point a
Directive 2013/34/EU
Article 40a – paragraph 1 – subparagraph 2
Text proposed by the Commission
Amendment
The first subparagraph shall only apply to large subsidiary undertakings as defined in Article 3(4) of this Directive;
The first subparagraph shall only apply to large subsidiary undertakings as defined in Article 3(4) of this Directive, which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year.
Amendment 27
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point a
Directive 2013/34/EU
Article 49 – paragraph 3c
Text proposed by the Commission
Amendment
3c. The power to adopt delegated acts referred to in Articles 19b(5), 29aa(5) and 29ca shall be conferred on the Commission for an indeterminate period from [date of entry into force of amending Directive].
3c. The power to adopt delegated acts referred to in Articles 29ca shall be conferred on the Commission for an indeterminate period from [date of entry into force of amending Directive].
Amendment 28
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point a
Directive 2013/34/EU
Article 49 – paragraph 3d
Text proposed by the Commission
Amendment
3d. The delegations of powers referred to in Articles 19b(5), 29aa(5) and 29ca may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
3d. The delegations of powers referred to in Articles 29ca may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
Amendment 29
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point a
Directive 2013/34/EU
Article 49 – paragraph 3e
Text proposed by the Commission
Amendment
3e. The Commission shall gather all necessary expertise, prior to the adoption and during the development of delegated acts pursuant to Articles 19b(5) and 29aa(5), including through the consultation of the experts of the Member State Expert Group on Sustainable Finance referred to in Article 24 of Regulation (EU) 2020/852.;
deleted
Amendment 30
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point b
Directive 2013/34/EU
Article 49 – paragraph 5
Text proposed by the Commission
Amendment
5. A delegated act adopted pursuant to Article 1(2), Article 3(13), Article 19b, Article 29aa, Articles 29b, 29ca or 40b, or Article 46(2) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.
5. A delegated act adopted pursuant to Article 1(2), Article 3(13), Articles 29b, 29ca or 40b, or Article 46(2) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.
Amendment 31
Proposal for a directive
Article 3 – paragraph 1 – point 1 – point b – point i
Directive (EU) 2022/2464
Article 5 – paragraph 2 –subparagraph 1 – point b – point i
Text proposed by the Commission
Amendment
(i) to large undertakings which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year;;
(i) to large undertakings which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year;
Amendment 32
Proposal for a directive
Article 3 – paragraph 1 – point 1 – point b – point ii
Directive (EU) 2022/2464
Article 5 – paragraph 2 – subparagraph 1 – point b – point ii
Text proposed by the Commission
Amendment
(ii) to parent undertakings of a large group which, on their balance sheet dates, exceed the average number of 1000 employees, on a consolidated basis, during the financial year;;
(ii) to parent undertakings of a large group which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000, on a consolidated basis, during the financial year;
Amendment 33
Proposal for a directive
Article 3 – paragraph 1 – point 2 – point b – point i
Directive (EU) 2022/2464
Article 5 – paragraph 2 – subparagraph 3 – point b – point i
Text proposed by the Commission
Amendment
(i) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are large undertakings within the meaning of Article 3(4) of Directive 2013/34/EU which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year;;
(i) to issuers as defined in Article 2(1), point (d), of Directive 2004/109/EC which are large undertakings within the meaning of Article 3(4) of Directive 2013/34/EU which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year;
Amendment 34
Proposal for a directive
Article 3 – paragraph 1 – point 2 – point b – point ii
Directive (EU) 2022/2464
Article 5 – paragraph 2 – subparagraph 3 – point b – point ii
Text proposed by the Commission
Amendment
(ii) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are parent undertakings of a large group which, on its balance sheet dates, exceed the average number of 1000 employees , on a consolidated basis, during the financial year;;
(ii) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are parent undertakings of a large group which, on its balance sheet dates, exceed the average number 1750 employees and a net worldwide turnover of more than EUR 450 000 000, on a consolidated basis, during the financial year;
Amendment 35
Proposal for a directive
Article 4 – paragraph 1 – point 1
Directive (EU) 2024/1760
Article 1 – paragraph 1 – point c
Text proposed by the Commission
Amendment
(c) the obligation for companies to adopt a transition plan for climate change mitigation, including implementing actions which aim to ensure, through best efforts, compatibility of the business model and of the strategy of the company with the transition to a sustainable economy and with the limiting of global warming to 1,5 oC in line with the Paris Agreement.;
(c) the obligation for companies with more than 3000 employees and an annual turnover of more than EUR 450 000 000 in the last financial year to adopt a transition plan for climate change mitigation, and to make all reasonable efforts and put into effect proportional implementing actions which aim to ensure, compatibility of the business model and of the strategy of the company with the transition to a sustainable economy and with the limiting of global warming in line with the Paris Agreement.;
Amendment 36
Proposal for a directive
Article 4 – paragraph 1 – point 1 a (new)
Directive (EU) 2024/1760
Article 2 – paragraph 1 – point a
Present text
Amendment
(1a) in Article 2(1), point a is replaced by the following:
(a) the company had more than 1 000 employees on average and had a net worldwide turnover of more than EUR 450 000 000 in the last financial year for which annual financial statements have been or should have been adopted;
‘(a) the company had more than 1750 employees on average and had a net worldwide turnover of more than EUR 450 000 000 in the last financial year for which annual financial statements have been or should have been adopted;’
(02024L1760)
Amendment 37
Proposal for a directive
Article 4 – paragraph 1 – point 1 b (new)
Directive (EU) 2024/1760
Article 2 – paragraph 2 – point a
Present text
Amendment
(1b) in Article 2(2), point a is replaced by the following:
(a) the company generated a net turnover of more than EUR 450 000 000 in the Union in the financial year preceding the last financial year;
‘(a) the company had more than 1750 employees on average and generated a net turnover of more than EUR 450 000 000 in the Union in the financial year preceding the last financial year;’
(02024L1760)
Amendment 38
Proposal for a directive
Article 4 – paragraph 1 – point 2 a (new)
Directive (EU) 2024/1760
Article 3 – paragraph 1 – point v a (new)n
Text proposed by the Commission
Amendment
(2a) in Article 3(1), the following point is added:
(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries and of its business partners, and their trade unions and workers’ representatives, and individuals or communities whose rights or interests are or could be directly affected by the products, services and operations of the company, its subsidiaries and its business partners and the legitimate representatives of those individuals or communities;;
‘(va) 'plausible information’ means information of an objective and verifiable nature, which is readily available to the company and, taking into account its source, reliability, and context, is sufficient to enable the company to reasonably assume that a potential or actual adverse impact may have occurred or is likely to occur.'
(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries and of its business partners, and their trade unions and workers’ representatives, and individuals or communities whose rights or interests are or could be affected by the products, services and operations of the company, its subsidiaries and its business partners, including, where relevant, civil society organisations whose purposes include the protection of human rights and the environment and the legitimate representatives of those individuals or communities;
Amendment 39
Or. en
Proposal for a directive
Justification
Article 4 – paragraph 1 – point 4 – point -a (new)
This revised wording recognises the function of CSOs in due diligence and aligns with international standards. Requiring stakeholders to be ‘directly’ affected would mean that many key stakeholders, such as families of victims, might be excluded. At the same time, it adds flexibility with the addition of the words “where relevant,” making the definition adaptable depending on sectors and legal contexts.
Directive (EU) 2024/1760
Amendment 2
Article 8 – paragraph 2 – introductory part
Present text
Amendment
(-a) in paragraph 2, the introductory part is replaced by the following:
As part of the obligation set out in paragraph 1, taking into account relevant risk factors, companies shall take appropriate measures to:
‘As part of the obligation set out in paragraph 1, taking into account relevant risk factors, including geographical and contextual risk factors, sectoral, product or service risk factors, as well as business operation or business partners’ risk factors, companies shall take appropriate measures to:’
(02024L1760)
Amendment 40
Proposal for a directive
Article 4 – paragraph 1 – point 4 – point -a a (new)
Directive (EU) 2024/1760
Article 8 – paragraph 2 – point a
Present text
Amendment
(-aa) in paragraph 2, point a is replaced by the following:
(a) map their own operations, those of their subsidiaries and, where related to their chains of activities, those of their business partners, in order to identify general areas where adverse impacts are most likely to occur and to be most severe;
‘(a) map general risk areas across their own operations, those of their subsidiaries and, where related to their chains of activities, those of their direct and indirect business partners, in order to identify general areas where adverse impacts are most likely to occur and to be most severe;’
(02024L1760)
Amendment 41
Proposal for a directive
(b) based on the results of the mapping as referred to in point (a), carry out and in-depth assessment of their own operations, those of their subsidiaries and, where related to their chains of activities, those of their direct business partners, in the areas where adverse impacts were identified to be most likely to occur and most severe.;
(b) based on the results of the risk mapping as referred to in point (a), carry out and in-depth assessment of their own operations, those of their subsidiaries and, where related to their chains of activities, those of their direct business partnerspartners, in the areas where theadverse potentialimpacts riskwere ofidentified adverseto impactsbe ismost high,likely haveto arisenoccur orand maymost arise;;severe.;
Amendment 42
Or. en
Justification
The objective of the deletion is to remove the limitation on direct business relationships only. Although paragraph 2, part (a) is not being amended here, we would hope that the lead committee will revert to a risk-based approach that brings the CSDDD back in line with international guidelines, by removing the focus on tier 1. The removal of the word ‘direct’ means that companies can focus resources where it is strictly needed, based on the mapping done in (a).
Amendment 3
Proposal for a directive
Article 4 – paragraph 1 – point 4 – point a6
Directive (EU) 2024/1760
Article 811 – paragraph 2 – point b a (new)7
Text proposed by the Commission
Amendment
(ba) carry out an in-depth assessment of an indirect business partner where there is plausible information suggesting that adverse impacts have arisen or may arise at the level of that indirect partner's operations.
As regards actual adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 3, 5 and 6, the company shall, as a last resort:
Amendment 43
As regards actual adverse impacts as referred to in paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures set out in paragraphs 3, 5 and 6, the company shall, as a last resort:
Or. en
Justification
Article 11 deals with “bringing actual adverse impacts to an end” not “preventing potential adverse impacts” which is covered by Article 10.
Amendment 4
Proposal for a directive
Article 4 – paragraph 1 – point 4 – point b6
Directive (EU) 2024/1760
Article 811 – paragraph 2a7
Text proposed by the Commission
Amendment
(b) the following paragraph 2a is inserted:
(b) where the law governing its relation with the business partner concerned so entitles it, adopt and implement an enhanced prevention action plan for the specific adverse impact without undue delay, provided that there is a reasonable expectation that those efforts will succeed, and
deleted
(b) where the law governing its relation with the business partner concerned so entitles it, adopt and implement an enhanced corrective action plan for the specific adverse impact without undue delay, provided that there is a reasonable expectation that those efforts will succeed, and
‘2a. Where a company has plausible information that suggests that adverse impacts at the level of the operations of an indirect business partner have arisen or may arise, it shall carry out an in-depth assessment. The company shall always carry out such an assessment where the indirect, rather than direct, nature of the relationship with the business partner is the result of an artificial arrangement that does not reflect economic reality but points to a circumvention of paragraph 2, point (b). Where the assessment confirms the likelihood or existence of the adverse impact, it is deemed to have been identified.
Or. en
The first subparagraph is without prejudice to the company considering available information about indirect business partners and whether those business partners can follow the rules and principles set out in the company’s code of conduct when selecting a direct business partner.
Justification
Notwithstanding the first subparagraph, irrespective of whether plausible information is available about indirect business partners, a company shall seek contractual assurances from a direct business partner that that business partner will ensure compliance with the company’s code of conduct by establishing corresponding contractual assurances from its business partners. Article 10(2), points (b) and (e) shall apply accordingly.’;
Article 11 deals with “bringing actual adverse impacts to an end” not “preventing potential adverse impacts” which is covered by Article 10.
Amendment 445
Proposal for a directive
Article 4 – paragraph 1 – point 4 – point b a (new)
Directive (EU) 2024/1760
Article 8 – paragraph 3
Present text
Amendment
(ba) in Article 8, paragraph 3 is replaced by the following:
3. Member States shall ensure that, for the purposes of identifying and assessing the adverse impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the notification mechanism and the complaints procedure provided for in Article 14.
‘3. Member States shall ensure that, for the purposes of identifying and assessing the adverse impacts referred to in paragraph 2(b) based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the notification mechanism and the complaints procedure provided for in Article 14.’
(02024L1760)
Amendment 45
Proposal for a directive
Article 4 – paragraph 1 – point 4 – point c6
Directive (EU) 2024/1760
Article 811 – paragraph 47
Text proposed by the Commission
Amendment
4. Where information necessary for the in-depth assessment provided for in paragraph 2, point (b), and in paragraph 2a can be obtained from different business partners, the company shall prioritise requesting such information, where reasonable, directly from the business partner or partners where the adverse impacts are most likely to occur.
As long as there is a reasonable expectation that the enhanced prevention action plan will succeed, the mere fact of continuing to engage with the business partner shall not trigger the company’s liability.
4. Where information necessary for the in-depth assessment provided for in paragraph 2, points (b) and (c), can be obtained from different business partners, the company shall prioritise requesting such information, where reasonable, directly from the business partner or partners where the adverse impacts are most likely to occur.
As long as there is a reasonable expectation that the enhanced corrective action plan will succeed, the mere fact of continuing to engage with the business partner shall not trigger the company’s liability.
Amendment 46
Or. en
Justification
Article 11 deals with “bringing actual adverse impacts to an end” not “preventing potential adverse impacts” which is covered by Article 10.
Amendment 6
Proposal for a directive
Article 4 – paragraph 1 – point 4 – point d6
Directive (EU) 2024/1760
Article 811 – paragraph 5 – subparagraph 17
Text proposed by the Commission
Amendment
Member States shall ensure that, for the mapping provided for in paragraph 2, point (a), companies do not seek to obtain information from direct business partners with fewer than 500 employees that exceeds the information specified in the standards for voluntary use referred to in Article 29a of Directive 2013/34/EU.
Prior to suspending a business relationship, the company shall assess whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be prevented or adequately mitigated. Should that be the case, the company shall not be required to suspend the business relationship and shall be in a position to report to the competent supervisory authority about the duly justified reasons for such decision.
Member States shall ensure that, for the obligation laid down in paragraph 2, points (b) and (c), companies do not seek to obtain from direct business partners with fewer than 750 employees and a net worldwide turnover of less than EUR 150 000 000 in the last financial year information that exceeds the information specified in the standards for voluntary use referred to in Article 29a of Directive 2013/34/EU.
Prior to suspending a business relationship, the company shall assess whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be brought to an end or adequately mitigated. Should that be the case, the company shall not be required to suspend the business relationship and shall be in a position to report to the competent supervisory authority about the duly justified reasons for such decision.
Amendment 47
Or. en
Justification
Article 11 deals with “bringing actual adverse impacts to an end” not “preventing potential adverse impacts” which is covered by Article 10.
Amendment 7
Proposal for a directive
Article 4 – paragraph 1 – point 4 – point d6
Directive (EU) 2024/1760
Article 811 – paragraph 5 – subparagraph 27
Text proposed by the Commission
Amendment
By way of derogation to the first sub-paragraph, where additional information is necessary for the mapping provided for in paragraph 2, point (a), in light of indications of likely adverse impacts or because the standards do not cover relevant impacts, and where such additional information cannot reasonably be obtained by other means, the company may seek such information from that business partner.;
Member States shall provide for an option to suspend the business relationship in contracts governed by their laws in accordance with the first subparagraph, except for contracts where the parties are obliged by law to enter into them.
By way of derogation to the first sub-paragraph, where additional information is necessary for the in-depth assessment provided for in paragraph 2, points (b) and (c), in light of indications of likely adverse impacts identified by risk-based assessment or by plausible information or because the standards do not cover relevant impacts, and where such additional information cannot reasonably be obtained by other means, the company may seek such information from that business partner, only in duly justified cases with reasonable indication of potential or actual adverse impacts or risks and only after having thoroughly consulted publicly available sources and making best efforts to obtain information through collective action, including through the use of industry or multi-stakeholder initiatives and comprehensive stakeholder consultation.
Member States shall provide for an option to suspend, for a defined period of time, the business relationship in contracts governed by their laws in accordance with the first subparagraph, except for contracts where the parties are obliged by law to enter into them.
Amendment 48
Or. en
Justification
This amendment clarifies that any suspension of the business relationship must be defined, in order to provide greater clarity and certainty to SMEs, who must be protected from indefinite suspension.
Amendment 8
Proposal for a directive
Article 4 – paragraph 1 – point 4 – point d6
Directive (EU) 2024/1760
Article 811 – paragraph 5 – subparagraph 2 a (new)7
Text proposed by the Commission
Amendment
Companies as referred to in Article 19a of Directive 2013/34/EU shall inform companies in their value chain with fewer than 750 employees and a net worldwide turnover of less than EUR 150 000 000 in the last financial year which information falls outside the information referred to in Article 29ca of Directive 2013/34/EU.
Where the company decides to suspend the business relationship, it shall take steps to prevent, mitigate or bring to an end the impacts of the suspension, shall provide reasonable notice to the business partner concerned and shall keep that decision under review.
Amendment 49
Where the company decides to suspend the business relationship, it shall take steps to prevent, mitigate or bring to an end the impacts of the suspension, shall provide reasonable notice to the business partner concerned and shall keep that decision under review. In case of suspension, it shall provide a clear end date, which is reasonable and does not jeopardise the viability of the business partner.
Or. en
Justification
This amendment clarifies that any suspension of the business relationship must be defined, in order to provide greater clarity and certainty to SMEs, who must be protected from indefinite suspension.
Amendment 9
Proposal for a directive
Article 4 – paragraph 1 – point 4 – point d6
Directive (EU) 2024/1760
Article 811 – paragraph 5 – subparagraph 2 b (new)7
Text proposed by the Commission
Amendment
Nothing in this paragraph shall prevent the companyfrom seeking contractual assurances from its business partners to ensure compliance with company’s code of conduct and affects information requests for purposes other than for the requirements in this Article, including Union requirements on undertakings to conduct a due diligence process.
Where the company decides not to suspend the business relationship pursuant to this Article, it shall monitor the potential adverse impact and periodically assess its decision and whether further appropriate measures are available.;
Amendment 50
Where the company decides not to suspend the business relationship pursuant to this Article, it shall monitor the actual adverse impact and periodically assess its decision and whether further appropriate measures are available.;
Or. en
Justification
Article 11 deals with “bringing actual adverse impacts to an end” not “preventing potential adverse impacts” which is covered by Article 10.
Amendment 10
Proposal for a directive
Article 4 – paragraph 1 – point 7 – point ab
Directive (EU) 2024/1760
Article 13 – paragraph 3 – introductorypoint partc
Text proposed by the Commission
Amendment
Consultation of relevant stakeholders shall take place at the following stages of the due diligence process:;
(b) points (c) and (e) are deleted;
Consultation of stakeholders shall take place at the following stages of the due diligence process:
(b) point (c) is replaced by:
Amendment 51
‘(c) when deciding to suspend a business relationship pursuant to Article 10(6) and Article 11(7);’
Or. en
Justification
Regarding the revision of (c), responsible engagement with stakeholders under Articles 10(6) and 11(7) are core parts of the UNGP and stakeholder input provides relevant information during this process. Regarding the deletion of (e), stakeholder engagement is critical during monitoring, as outlined in Article 15.
Amendment 11
Proposal for a directive
Directive (EU) 2024/1760
Article 15 – paragraph 1 – sentence 2
Article 15
Text proposed by the Commission
Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out without undue delay after a significant change occurs, but at least every 5 years and whenever there are reasonable grounds to believe that the measures are no longer adequate or effective or that new risks of the occurrence of those adverse impacts may arise.;
Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out without undue delay after a significant change occurs, but at least every 4 yearsyear and whenever there are reasonable grounds to believe that the measures are no longer adequate or effective or that new risks of the occurrence of those adverse impacts may arise.;
Amendment 52
Or. en
Justification
Assessments of companies implementation of the due diligence process must take place at regular intervals. A yearly review is in line with international standards.
Amendment 12
Proposal for a directive
Article 4 – paragraph 1 – point 912 – point a
Directive (EU) 2024/1760
Article 1929 – paragraph 31 – point a
Text proposed by the Commission
Amendment
3. The guidelines referred to in paragraph 2, point (a), shall be made available by 26 July 2026, those referred to in paragraph 2, points (d) and (e), by 26 January 2027, and those referred to in paragraph 2, points (b), (f) and (g), by 26 July 2027.;
(a) paragraph 1 is deleted;
3. The guidelines referred to in paragraph 2, point (a), (b) and (d) to (g) shall be made available by 26 July 2026.
deleted
Or. en
Justification
Accelerating the publication of guidelines is crucial for clarifying the provisions and their implementation.
This deletion of the Commission's proposed amendment would reinstate the harmonised civil liability regime across Member States originally in Article 29(1) of the CSDDD. A specific EU-wide civil liability regime prevents distortions in the internal market and ensures a level-playing field for Member States
Amendment 5313
Proposal for a directive
Article 4 – paragraph 1 – point 1012 – point c
Directive (EU) 2024/1760
Article 2229 – paragraph 13 – subparagraphpoint 1d
Text proposed by the Commission
Amendment
Member States shall ensure that companies referred to in Article 2(1), points (a), (b) and (c), and Article 2(2), points (a), (b) and (c), adopt a transition plan for climate change mitigation, including implementing actions, which aim to ensure, through best efforts, that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5°C in line with the Paris Agreement and the objective of achieving climate neutrality as established in Regulation (EU) 2021/1119, including its intermediate and 2050 climate neutrality targets, and where relevant, the exposure of the company to coal-, oil- and gas-related activities.;
(c) in paragraph 3, point (d) is deleted;
Member States shall ensure that companies with more than 3000 employees and a net worldwide turnover of more than EUR 450 000 000 in the last financial year, adopt a transition plan for climate change mitigation, and shall make all reasonable efforts and put into effect proportional implementing actions, to ensure that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming in line with the Paris Agreement and the objective of achieving climate neutrality as established in Regulation (EU) 2021/1119 and where relevant, the exposure of the company to coal-, oil- and gas-related activities.
deleted
Amendment 54
Or. en
Justification
This amendment reinstates the original Article 29(3)(d). Without this Article, many victims of corporate abuse would not have effective access to justice, thus limiting their human right to remedy under Article 47 of the Charter of Fundamental Rights.
Amendment 14
Proposal for a directive
Article 4 – paragraph 1 – point 1012 – point e
Directive (EU) 2024/1760
Article 2229 – paragraph 15 – subparagraph 1 afirst (new)subparagraph
Text proposed by the Commission
Amendment
All reasonable efforts in the context of this Article shall be understood as taking proportional and reasonable implementing actions to ensure compatibility with the transition to a sustainable economy in line with the Paris Agreement, without having to exhaust all possible means at their disposal. Member States shall ensure that the obligation laid down in this Article is an obligation of means, not an obligation of results.;
(e) in paragraph 5, the first subparagraph is replaced by the following:
Amendment 55
deleted
Proposal for a directive
‘The civil liability of a company for damages as referred to in this Article shall be without prejudice to the civil liability of its subsidiaries or of any direct and indirect business partners in the chain of activities of the company.;’
Article 4 – paragraph 1 – point 10 a (new)
Or. en
Directive (EU) 2024/1760
Justification
Article 22 – paragraph 1 – subparagraph 2
This deletion of the Commission's proposed amendment would reinstate the harmonised civil liability regime across Member States originally in Article 29(5) of the CSDDD.
Present text
Amendment 15
Amendment
(10a) in Article 22(1), the second subparagraph is replaced by the following:
The design of the transition plan for climate change mitigation referred to in the first subparagraph shall contain:
‘The design of the transition plan for climate change mitigation referred to in the first subparagraph shall contain:
(a) time-bound targets related to climate change for 2030 and in five-year steps up to 2050 based on conclusive scientific evidence and, where appropriate, absolute emission reduction targets for greenhouse gas for scope 1, scope 2 and scope 3 greenhouse gas emissions for each significant category;
(a) objectives related to climate change for 2030 and in five-year steps up to climate neutrality in 2050 based on conclusive scientific evidence and, where appropriate, absolute emission reduction targets for greenhouse gas for scope 1, scope 2 and scope 3 greenhouse gas emissions for each significant category;
(b) a description of decarbonisation levers identified and key actions planned to reach the targets referred to in point (a), including, where appropriate, changes in the product and service portfolio of the company and the adoption of new technologies;
(b) a description of key decarbonisation levers identified and outlining implementation actions towards the objectives and targets referred to in point (a);
(c) an explanation and quantification of the investments and funding supporting the implementation of the transition plan for climate change mitigation; and
(c) a brief description of the investments and funding supporting the implementation of the transition plan for climate change mitigation.’
(d) a description of the role of the administrative, management and supervisory bodies with regard to the transition plan for climate change mitigation.
(02024L1760)
Amendment 56
Proposal for a directive
Article 4 – paragraph 1 – point 10 b (new)
Directive (EU) 2024/1760
Article 22 – paragraph 3
Present text
Amendment
(10b) in Article 22, paragraph 3 is replaced by the following:
3. Member States shall ensure that the transition plan for climate change mitigation referred to in paragraph 1 is updated every 12 months and contains a description of the progress the company has made towards achieving the targets referred to in paragraph 1, second subparagraph, point (a).
‘3. Member States shall ensure that the transition plan for climate change mitigation referred to in paragraph 1 is updated every 12 months, including a brief progress description.’;
(02024L1760)
Amendment 57
Proposal for a directive
Article 4 – paragraph 1 – point 1112 – point f
Directive (EU) 2024/1760
Article 2729 – paragraph 47
Text proposed by the Commission
Amendment
4. The Commission, in collaboration with Member States, shall issue guidance to assist supervisory authorities in determining the level of penalties in accordance with this Article. Member States shall not set a maximum limit of pecuniary penalties in their national law transposing this Directive that would prevent supervisory authorities from imposing penalties in accordance with the principles and factors set out in paragraphs 1 and 2.;
(f) paragraph 7 is deleted;
4. The Commission, in collaboration with Member States, shall issue guidance on the appropriate level of penalties, taking into account the net profits of companies, to assist supervisory authorities in determining the level of penalties in accordance with this Article.
deleted
ANNEX: DECLARATION OF INPUT
Or. en
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that she included in her opinion input on matters pertaining to the subject of the file that she received, in the preparation of the opinion, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
Justification
1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register
This amendment would reinstate the overriding mandatory application of Article 29. This provision would ensure that both civil liability and relevant access to justice measures (such as time limitations) are applicable law. Removal of overriding mandatory application would lead to greater legal divergence and fragmentation.
Orgalim
ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR FOR OPINION HAS RECEIVED INPUT
Dansk Industri
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion in declares that he received input from the following entities or persons in the preparation of the (draft) opinion, prior to the adoption thereof in committee:
Teknikföretagen
Entity and/or person
DigitalEurope
IBEC
Hyundai Motor Europe
Christian Aid Ireland
Swedish Society for Nature Conservation (Naturskyddsföreningen)
World Benchmarking Alliance
Confederation of Swedish Enterprise
BusinessEurope
2. Representatives of public authorities of third countries, including their diplomatic missions and embassies
Fairtrade Advocacy
Banking & Payments Federation Ireland
European Coalition for Corporate Justice
Clean Clothes Campaign
European Central Bank
Office of the United Nations High Commissioner for Human Rights
Tony’s Chocolonely
Nestlé
The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that shehe has submitted to the natural persons concerned the European Parliament'sParliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.
PROCEDURE – COMMITTEE ASKED FOR OPINION
Title
Amending Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464 and (EU) 2024/1760 as regards certain corporate sustainability reporting and due diligence requirements
References
COM(2025)0081 – C10-0037/2025 – 2025/0045(COD)
Committee(s) responsible
Date announced in plenary
JURI
31.3.2025
Opinion by
Date announced in plenary
ENVI
31.3.2025
Rapporteur for the opinion
Date appointed
Jessica Polfjärd
23.4.2025
Simplified procedure - date of decision
10.3.2025
Date adopted
15.7.2025
Result of final vote
+:
–:
0:
45
24
14
Members present for the final vote
Grégory Allione, Vytenis Povilas Andriukaitis, Bartosz Arłukowicz, Sakis Arnaoutoglou, Anja Arndt, Thomas Bajada, Stine Bosse, Lynn Boylan, Pascal Canfin, Laurent Castillo, Mohammed Chahim, Christophe Clergeau, Annalisa Corrado, Ivan David, Antonio Decaro, Viktória Ferenc, Pietro Fiocchi, Heléne Fritzon, Gerben-Jan Gerbrandy, Roman Haider, Esther Herranz García, Martin Hojsík, Pär Holmgren, Romana Jerković, Radan Kanev, Ondřej Knotek, Stefan Köhler, András Tivadar Kulja, Katri Kulmuni, Peter Liese, César Luena, Ignazio Roberto Marino, Catarina Martins, Jana Nagyová, Rasmus Nordqvist, Jacek Ozdoba, Jutta Paulus, Jessica Polfjärd, Carola Rackete, Silvia Sardone, Majdouline Sbai, Oliver Schenk, Lena Schilling, Christine Schneider, Günther Sidl, Jonas Sjöstedt, Sander Smit, Susana Solís Pérez, Claudiu-Richard Târziu, Marta Temido, Ingeborg Ter Laak, Beatrice Timgren, Zala Tomašič, Dimitris Tsiodras, Ana Vasconcelos, Aurelijus Veryga, Kristian Vigenin, Alexandr Vondra, Emma Wiesner, Michal Wiezik, Tiemo Wölken, Anna Zalewska
Substitutes present for the final vote
Marie-Luce Brasier-Clain, Daniel Buda, Stefano Cavedagna, Susanna Ceccardi, Raúl de la Hoz Quintano, Margarita de la Pisa Carrión, Michalis Hadjipantela, Adam Jarubas, Nora Junco García, Letizia Moratti, Danuše Nerudová, Maria Noichl, Valentina Palmisano, Elena Sancho Murillo, Antonella Sberna, Liesbet Sommen, Sebastiaan Stöteler, Marie Toussaint, Roberto Vannacci
Members under Rule 216(7) present for the final vote
Magdalena Adamowicz, Milan Mazurek
FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION
Key to symbols: