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From · report parliamentary committee draft · 2025-06-06 JURI-PR-774282 on the 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

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To · opinion parliamentary committee · 2025-07-17 ENVI-AD-775696 on the 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

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~~PR_COD_1amCom~~

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~~Symbols for procedures~~

AMENDMENTS

* Consultation procedure

The Committee on the Environment, Climate and Food Safety submits the following to the Committee on Legal Affairs, as the committee responsible:

*** Consent procedure

***I Ordinary legislative procedure (first reading)

***II Ordinary legislative procedure (second reading)

***III Ordinary legislative procedure (third reading)

~~(The type of procedure depends on the legal basis proposed by the draft act.)~~

~~Amendments to a draft act~~

~~Amendments by Parliament set out in two columns~~

~~Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column.~~

The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend.

~~Amendments by Parliament in the form of a consolidated text~~

New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced.

~~By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted.~~

~~DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION~~

on the 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

~~(COM(2025)0081 – C100037/2025 – 2025/0045(COD))~~

~~(Ordinary legislative procedure: first reading)~~

~~– having regard to the Commission proposal to Parliament and the Council (COM(2025)0081),~~

– having regard to Article 294(2) and Article 50 and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100037/2025),

~~– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,~~

~~– having regard to the opinion of the European Economic and Social Committee of ...,~~

~~– having regard to Rule 60 of its Rules of Procedure,~~

– having regard to the opinions of the Committee on Foreign Affairs, Committee on International Trade, Committee on Economic and Monetary Affairs, Committee on Employment and Social Affairs and Committee on the Environment Climate and Food Safety,

~~– having regard to the report of the Committee on Legal Affairs (A100000/2025),~~

~~1. Adopts its position at first reading hereinafter set out;~~

~~2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;~~

~~3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.~~

Amendment 1

Proposal for a directive

~~Recital 3~~

~~Text proposed by the Commission~~

~~Amendment~~

(3) Article 26a(1) of Directive 2006/43/EC requires Member States to ensure that statutory auditors and audit firms carry out the assurance of sustainability reporting in compliance with limited assurance standards to be adopted by the Commission. Article 26a(3) of that Directive requires the Commission to adopt those standards by 1 October 2026. Undertakings have raised concerns on the work carried out by the assurance providers and have expressed the need for flexibility in addressing specific risks and critical issues identified in the areas of sustainability assurance. To enable the Commission to take account of those concerns, it should be given more flexibility in adopting those standards. In any case, the Commission will issue targeted assurance guidelines by 2026 that clarify the necessary procedures that assurance providers are to perform as part of their limited assurance engagement before adopting the standards by delegated act.

(3) Article 26a(1) of Directive 2006/43/EC requires Member States to ensure that statutory auditors and audit firms carry out the assurance of sustainability reporting in compliance with limited assurance standards to be adopted by the Commission. Article 26a(3) of that Directive requires the Commission to adopt those standards by 1 October 2026. Undertakings have raised concerns on the work carried out by the assurance providers and have expressed the need for flexibility in addressing specific risks and critical issues identified in the areas of sustainability assurance. The Commission should duly take into account those concerns when working on the limited assurance standards. That deadline of 1 October 2026 should be retained in order to ensure that undertakings know what to expect when it comes to sustainability assurance.

~~Or. en~~

~~Amendment 2~~

~~Proposal for a directive~~

~~Recital 5~~

~~Text proposed by the Commission~~

~~Amendment~~

(5) Article 19a(1) of Directive 2013/34/EU requires large undertakings and small and medium-sized undertakings with securities admitted to trading on an EU regulated market, excluding micro-undertakings, to prepare and publish a sustainability statement at individual level. To reduce the reporting burden on undertakings, the obligation to prepare and publish a sustainability statement at individual level should be reduced to large undertakings with an average of more than 1000 employees during the financial year. Considering that for an undertaking to be large it has to exceed two out of the three criteria in Article 3(4) of Directive 2013/34/EU, this means that to be subject toto the reporting requirements an undertakings must have an average of more than 1000 employees during the financial year and either a net turnover above EUR 50 million or a balance sheet total above EUR 25 million.

(5) Article 19a(1) of Directive 2013/34/EU requires large undertakings and small and medium-sized undertakings with securities admitted to trading on an EU regulated market, excluding micro-undertakings, to prepare and publish a sustainability statement at individual level. To reduce the reporting burden on undertakings, the obligation to prepare and publish a sustainability statement at individual level should be reduced to undertakings with an average of more than 3000 employees and a net turnover of more than EUR 450 000 000 during the financial year. It should be possible to exempt ultimate parent undertakings which are financial holding undertakings not involved in management activities from complying with reporting obligations provided that an operational subsidiary of such undertakings is designated to comply with such obligations.

~~Or. en~~

~~Amendment 3~~

~~Proposal for a directive~~

~~Recital 6~~

~~Text proposed by the Commission~~

~~Amendment~~

(6) A balance needs to be found between the objectives of data generation and reduction of administrative burden. Sustainability reporting, including the information referred to in Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council9, of large undertakings with an average of more than 1000 employees during the financial year is indispensable to understand the transition to a climate-neutral economy. In the light of the balance to be found between the objectives of data generation and reduction of administrative burden, large undertakings within the new scope for sustainability reporting that have a net turnover not exceeding EUR 450 000 000 during the financial year should be able to disclose information referred to in Article 8 of Regulation (EU) 2020/852 in a more flexible way. The Commission should be empowered to set out rules supplementing the reporting regime for those undertakings. It should in particular be clarified that the Commission is empowered to specify the reporting regime for activities that are only partially taxonomy aligned.

(6) A balance needs to be found between the objectives of data generation and reduction of administrative burden. Sustainability reporting, including the information referred to in Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council9, of undertakings with an average of more than 3000 employees and a net turnover of more than EUR 450 000 000 during the financial year is indispensable to understand the transition to a climate-neutral economy. In the light of the balance to be found between the objectives of data generation and reduction of administrative burden, undertakings within the new scope for sustainability reporting should be able to disclose information referred to in Article 8 of Regulation (EU) 2020/852 in a more flexible way. The Commission should be empowered to set out rules supplementing the reporting regime for those undertakings. It should in particular be clarified that the Commission is empowered to specify the reporting regime for activities that are only partially taxonomy aligned.

~~__________________~~

9 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13, ELI: http://data.europa.eu/eli/reg/2020/852/oj).

~~Or. en~~

~~Amendment 4~~

~~Proposal for a directive~~

~~Recital 7~~

~~Text proposed by the Commission~~

~~Amendment~~

(7) Article 1(3) of Directive 2013/34/EU specifies that credit institutions and insurance undertakings that are large undertakings or small and medium-size undertakings – excluding micro-undertakings – with securities admitted to trading on an EU regulated market are subject to the sustainability reporting requirements set out in that Directive, regardless of their legal form. Considering that the scope of individual sustainability reporting should be reduced to large undertakings with an average of more than 1000 employees during the financial year, that reduction in scope should also apply to credit institutions and insurance undertakings.

(7) Article 1(3) of Directive 2013/34/EU specifies that credit institutions and insurance undertakings that are large undertakings or small and medium-size undertakings – excluding micro-undertakings – with securities admitted to trading on an EU regulated market are subject to the sustainability reporting requirements set out in that Directive, regardless of their legal form. Considering that the scope of individual sustainability reporting should be reduced to undertakings with an average of more than 3000 employees and a net turnover of more than EUR 450 000 000 during the financial year, that reduction in scope should also apply to credit institutions and insurance undertakings. Moreover, and in order to ensure a level playing field, the applicable thresholds should not differ based on whether undertakings are established in or outside the Union.

~~Or. en~~

~~Amendment 5~~

~~Proposal for a directive~~

~~Recital 9~~

~~Text proposed by the Commission~~

~~Amendment~~

(9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings established in or outside of the Union in its value chain that have up to 1000 employees on average during the financial year any information that goes beyond the information specified in the standards for voluntary use by undertakings that are not required to report on their sustainability. The reporting undertaking should, however, be allowed to collect from such undertakings in its value chain any additional sustainability information that is commonly shared between undertakings in the sector concerned. Undertakings reporting on their value chain in accordance with those limitations should be deemed to comply with the obligation to report on their sustainability. Assurance providers should prepare their assurance opinion respecting the obligation on undertakings not to seek to obtain from undertakings in their value chain that have up to 1000 employees on average during the financial year any information that goes beyond the information specified in the standards for voluntary use by undertakings that are not required to report on their sustainability. For that purpose, the Commission should be empowered to adopt a delegated act to provide for sustainability reporting standards for voluntary use by undertakings that are not required to report on their sustainability. Those standards should be proportionate to, and relevant for, the capacities and the characteristics of those undertakings and to the scale and complexity of their activities. Those standards should also specify, where possible, the structure to be used to present that information.

(9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. To reach closer alignment with the criteria used to define the terminology used in Directive (EU) 2024/1760, the notion of ‘value chain’ should be replaced by ‘chain of activities’. It is necessary to reduce the reporting burden for undertakings in the chain of activities that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings established in or outside of the Union in its chain of activities that have up to 3000 employees and a net turnover of up to EUR 450 000 000 on average during the financial year any information that goes beyond the information specified in the standards for voluntary use by undertakings that are not required to report on their sustainability. The reporting undertaking should, however, be allowed to collect from such undertakings in its chain of activities any additional sustainability information that is commonly shared between undertakings in the sector concerned. Where not all the necessary information regarding their chain of activities is available, or such information is incomplete or subject to legal limitations, the undertakings should be allowed, without any time limitation, to explain the efforts made to obtain the necessary information about their chain of activities, the reasons why that information could not be obtained, and their plans to obtain such information in the future. Undertakings reporting on their chain of activities in accordance with those limitations should be deemed to comply with the obligation to report on their sustainability. Assurance providers should prepare their assurance opinion respecting the obligation on undertakings not to seek to obtain from undertakings in their chain of activities that have up to 3000 employees and a net turnover of up to EUR 450 000 000 on average during the financial year any information that goes beyond the information specified in the standards for voluntary use by undertakings that are not required to report on their sustainability. For that purpose, the Commission should be empowered to adopt a delegated act to provide for sustainability reporting standards for voluntary use by undertakings that are not required to report on their sustainability. Those standards should be proportionate to, and relevant for, the capacities and the characteristics of those undertakings and to the scale and complexity of their activities. Those standards should also effectively contribute to the undertakings’ compliance with their reporting obligations. Those standards should also specify, where possible, the structure to be used to present that information.

~~Or. en~~

~~Amendment 6~~

~~Proposal for a directive~~

~~Recital 9 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

(9a) Article 19a(2), point (a)(iii), and Article 29a(2), point (a)(iii), of Directive 2013/34/EU require undertakings and groups to include in their management reports and consolidated management reports, respectively, their climate transition plans. In order to avoid disproportionately burdensome requirements, on the one hand, but allow for transparency as regards the transition to a sustainable economy, on the other hand, undertakings should include in their management report information on any transition plans they have, if any.

~~Or. en~~

~~Amendment 7~~

~~Proposal for a directive~~

~~Recital 12~~

~~Text proposed by the Commission~~

~~Amendment~~

(12) Article 29a(1) of Directive 2013/34/EU requires parent undertakings of large groups to prepare and publish a sustainability statement at consolidated level. To reduce the reporting burden on those parent undertakings, the scope of that obligation should be reduced to parent undertakings of large groups with an average of more than 1000 employees, on a consolidated basis, during the financial year.

(12) Article 29a(1) of Directive 2013/34/EU requires parent undertakings of large groups to prepare and publish a sustainability statement at consolidated level. To reduce the reporting burden on those parent undertakings, the scope of that obligation should be reduced to parent undertakings of groups with an average of more than 3000 employees and a net turnover of more than EUR 450 000 000, on a consolidated basis, during the financial year.

~~Or. en~~

~~Amendment 8~~

~~Proposal for a directive~~

~~Recital 14~~

~~Text proposed by the Commission~~

~~Amendment~~

(14) Article 29b(4) of Directive 2013/34/EU requires sustainability reporting standards to not specify disclosures requiring undertakings to obtain from small and medium-sized undertakings in their value chain any information that goes beyond the information to be disclosed pursuant to the sustainability reporting standards for small and medium-sized undertakings with securities admitted to trading on an EU regulated market. Considering that small and medium-sized undertakings with securities admitted to trading on an EU regulated market should be excluded from sustainability reporting, and in order to reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability, the sustainability reporting standards should not specify disclosures requiring undertakings to obtain from undertakings in their value chain that have up to 1000 employees on average during the financial year any information that goes beyond the information to be disclosed pursuant to the sustainability reporting standards for voluntary use by undertakings that are not required to report on their sustainability.

(14) Article 29b(4) of Directive 2013/34/EU requires sustainability reporting standards to not specify disclosures requiring undertakings to obtain from small and medium-sized undertakings in their value chain any information that goes beyond the information to be disclosed pursuant to the sustainability reporting standards for small and medium-sized undertakings with securities admitted to trading on an EU regulated market. Considering that small and medium-sized undertakings with securities admitted to trading on an EU regulated market should be excluded from sustainability reporting, and in order to reduce the reporting burden for undertakings in the chain of activities that are not required to report on their sustainability, the sustainability reporting standards should not specify disclosures requiring undertakings to obtain from undertakings in their chain of activities that have up to 3000 employees and a net turnover of up to EUR 450 000 000 on average during the financial year any information that goes beyond the information to be disclosed pursuant to the sustainability reporting standards for voluntary use by undertakings that are not required to report on their sustainability.

~~Or. en~~

~~Amendment 9~~

~~Proposal for a directive~~

~~Recital 15~~

~~Text proposed by the Commission~~

~~Amendment~~

(15) Article 29d of Directive 2013/34/EU requires undertakings subject to the requirements in Articles 19a and 29a of that Directive to prepare their management report, or consolidated management report, where applicable, in the electronic reporting format specified in Article 3 of Commission Delegated Regulation (EU) 2019/81511 and to mark up their sustainability reporting, including the disclosures provided for in Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council12 , in accordance with the electronic reporting format to be specified in that Delegated Regulation. To provide clarity to undertakings, it should be specified that until such rules on the marking up are adopted by way of that a Delegated Regulation, for the marking up of sustainability reporting is adopted, undertakings are should not be required to mark-up their sustainability reporting.

(15) Article 29d of Directive 2013/34/EU requires undertakings subject to the requirements in Articles 19a and 29a of that Directive to prepare their management report, or consolidated management report, where applicable, in the electronic reporting format specified in Article 3 of Commission Delegated Regulation (EU) 2019/81511 and to mark up their sustainability reporting, including the disclosures provided for in Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council12, in accordance with the electronic reporting format to be specified in that Delegated Regulation. To provide clarity to undertakings, it should be specified that until such rules on the marking up of sustainability reporting are adopted by way of that Delegated Regulation, undertakings are not required to mark-up their sustainability reporting.

~~__________________~~

11 Commission Delegated Regulation (EU) 2018/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format (OJ L 143, 29.5.2019, p. 1, ELI: http://data.europa.eu/eli/reg_del/2019/815/oj).

12 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13, ELI: http://data.europa.eu/eli/reg/2020/852/oj).

~~Or. en~~

~~Amendment 10~~

~~Proposal for a directive~~

~~Recital 16~~

~~Text proposed by the Commission~~

~~Amendment~~

(16) Article 33(1) of Directive 2013/34/EU specifies that the members of the administrative, management and supervisory bodies of an undertaking have collective responsibility for ensuring that the following documents are drawn up and published in accordance with the requirements of that Directive. To provide flexibility do for undertakings and reduce their reporting burden, it should be specified that the collective responsibility of the members of the administrative, management and supervisory bodies of an undertaking for compliance with the requirements of Article 29d of that Directive as regards the digitalisation of the management report is limited to its publication in the single electronic format, including the marking up of the sustainability reporting therein.

(16) Article 33(1) of Directive 2013/34/EU specifies that the members of the administrative, management and supervisory bodies of an undertaking have collective responsibility for ensuring that certain documents are drawn up and published in accordance with the requirements of that Directive. To provide flexibility for undertakings and reduce their reporting burden, it should be specified that the collective responsibility of the members of the administrative, management and supervisory bodies of an undertaking for compliance with the requirements of Article 29d of that Directive as regards the digitalisation of the management report is limited to its publication in the single electronic format, including the marking up of the sustainability reporting therein.

~~Or. en~~

~~Amendment 11~~

~~Proposal for a directive~~

~~Recital 17~~

~~Text proposed by the Commission~~

~~Amendment~~

(17) Pursuant to Article 40a(1), fourth and fifth subparagraph of Directive 2013/34/EU, a subsidiary in the Union of a third-county undertaking that generates a net turnover of more than EUR 150 million in the Union, or, in the absence of such subsidiary, a branch in the Union that generates a net turnover of more than EUR 40 million, is to publish and make accessible sustainability information at the group level of the third-country parent undertaking. To reach closer alignment with the criteria used to define which undertakings are in the scope of Directive (EU) 2024/1760, the net turnover threshold for the third-country undertaking should be raised from EUR 150 000 000 to EUR 450 000 000. For reasons of consistency and burden reduction, the size for a subsidiary undertaking and a branch to be in scope of Article 40a should be adjusted. The size of the subsidiary undertaking should be that of a large undertaking, whilst the net turnover criteria for the branch should be raised from EUR 40 000 000 to EUR 50 000 000, to align with the net turnover threshold for large undertakings.

(17) Pursuant to Article 40a(1), fourth and fifth subparagraphs, of Directive 2013/34/EU, a subsidiary in the Union of a third-county undertaking that generates a net turnover of more than EUR 150 million in the Union, or, in the absence of such subsidiary, a branch in the Union that generates a net turnover of more than EUR 40 million, is to publish and make accessible sustainability information at the group level of the third-country parent undertaking. The criteria used to determine the undertakings subject to reporting obligations, whether formed in accordance with the law of a Member State or as subsidiaries and branches of third-country undertakings, should be aligned and consistent with the scope of Directive (EU) 2024/1760. For reasons of consistency and burden reduction, and in order to ensure a level playing field, the size for a subsidiary undertaking and a branch to be in scope of Article 40a should be adjusted. The size of the subsidiary undertaking should be set at undertakings with more than 3000 employees and with a net turnover of more than EUR 450 000 000, whilst the net turnover criteria for the branch should be raised from EUR 40 000 000 to EUR 450 000 000.

~~Or. en~~

~~Amendment 12~~

~~Proposal for a directive~~

~~Recital 18~~

~~Text proposed by the Commission~~

~~Amendment~~

(18) Article 5(2), first subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2013/34/EU, with different dates depending on the size of the undertaking concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only large undertakings with more than 1000 employees on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the reference to small and medium-sized undertakings with securities admitted to trading on an EU regulated market should be removed.

(18) Article 5(2), first subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2013/34/EU, with different dates depending on the size of the undertaking concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only undertakings with more than 3000 employees and a net turnover of more than EUR 450 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the reference to small and medium-sized undertakings with securities admitted to trading on an EU regulated market should be removed.

~~Or. en~~

~~Amendment 13~~

~~Proposal for a directive~~

~~Recital 19~~

~~Text proposed by the Commission~~

~~Amendment~~

(19) Article 5(2), third subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2004/109/EC, with different dates depending on the size of the issuer concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only large undertakings with more than 1000 employees on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the reference to small and medium-sized undertakings should be removed.

(19) Article 5(2), third subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2004/109/EC, with different dates depending on the size of the issuer concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only undertakings with more than 3000 employees and a net turnover of more than EUR 450 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the reference to small and medium-sized undertakings should be removed.

~~Or. en~~

~~Amendment 14~~

~~Proposal for a directive~~

~~Recital 20~~

~~Text proposed by the Commission~~

~~Amendment~~

(20) Article 4(1) of Directive (EU) 2024/1760 prohibits Member States from introducing, in their national law, provisions within the field covered by the Directive laying down human rights and environmental due diligence obligations diverging from those laid down in Article 8(1) and (2), and Article 10(1) of that Directive. To ensure that Member States do not go beyond that Directive and to avoid the creation of a fragmented regulatory landscape resulting in legal uncertainty and unnecessary burden, the full harmonisation provisions of Directive (EU) 2024/1760 should be expanded to additional provisions regulating the core aspects of the due diligence process. That includes, in particular, the identification duty, the duties to address adverse impacts that have been or should have been identified, the duties to engage with stakeholders in certain cases, and the duty to provide for a complaints and notification mechanism. At the same time, Member States should be allowed to introduce more stringent or more specific provisions on other aspects, including to address emerging risks linked to new products or services.

(20) Article 4(1) of Directive (EU) 2024/1760 prohibits Member States from introducing, in their national law, provisions within the field covered by the Directive laying down human rights and environmental due diligence obligations diverging from those laid down in Article 8(1) and (2), and Article 10(1) of that Directive. To ensure that Member States do not go beyond that Directive and to avoid the creation of a fragmented regulatory landscape resulting in legal uncertainty and unnecessary burden, the full harmonisation provisions of Directive (EU) 2024/1760 should be expanded to additional provisions regulating the core aspects of the due diligence process. That includes, in particular, the provisions on scope, definitions, due diligence at group level, identification duty, the duties to address adverse impacts that have been or should have been identified, prioritisation, the duties to engage with stakeholders in certain cases, and the duty to provide for a complaints and notification mechanism, supervisory authorities and their powers, and the substantiated concerns procedure.

~~Or. en~~

~~Amendment 15~~

~~Proposal for a directive~~

Recital 21

(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 ~~ensure effectiveness,~~ reduce burdens on companies that have to comply with that ~~obligation and ensure that their resources are used purposefully,~~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’). 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Companies should, however, look beyond their~~occur. ~~direct~~In ~~business~~line ~~relationships~~with ~~where~~the ~~they~~OECD ~~have~~guidelines, plausible information ~~that~~may ~~suggests~~derive, aninter ~~adverse~~alia, ~~impact~~from atsubstantiated ~~the~~complaints, ~~level~~credible ofreports anissued ~~indirect~~by ~~business~~cross-sectorial ~~partner.~~stakeholders, ~~Plausible~~civil ~~information~~society ~~means~~organisations, ~~information~~trade ofunions, aninternational ~~objective~~organisations ~~character,~~or ~~that~~national isauthorities, ~~factual~~media investigations, and ~~verifiable~~from ~~and~~recurring ~~that~~incidents ~~allows~~in the ~~company to~~company’s ~~conclude~~own ~~that~~operations, ~~there~~those isof aits ~~reasonable~~subsidiaries, ~~likelihood~~or ~~that~~within ~~the~~its ~~information~~chain isof ~~true.~~activities, ~~This~~including ~~may~~through beindirect ~~the~~business ~~case~~relationships. ~~where~~Where the company ~~concerned~~ has ~~received~~such ainformation, ~~complaint~~it orshould iscarry inout ~~the~~an ~~possession~~in-depth ofassessment. ~~information,~~Where ~~for~~the ~~example~~in-depth ~~through~~assessment ~~credible~~confirms ~~media~~the likelihood or ~~NGO~~existence ~~reports,~~of ~~reports~~the ofadverse ~~recent~~impact, ~~incidents,~~it orshould ~~through~~then ~~recurring~~be ~~problems~~deemed atto ~~certain~~be ~~locations~~identified. ~~about~~In ~~likely~~addition, orcompanies ~~actual~~should ~~harmful~~also ~~activities~~seek atto ~~the~~ensure ~~level~~that oftheir ancode ~~indirect~~of ~~business~~conduct ~~partner.~~– ~~Where~~which ~~the~~is ~~company~~part ~~has~~of ~~such~~their ~~information,~~due itdiligence ~~should~~policy ~~carry~~and ~~out~~sets aout ~~further~~the ~~assessment.~~expectations ~~Companies~~as ~~should~~to ~~also~~how ~~carry~~to ~~out~~protect ~~further~~human, ~~assessments~~including ~~with~~labour, ~~respect~~rights toand ~~adverse~~the ~~impacts~~environment ~~arising~~in ~~beyond~~business ~~their~~operations ~~direct~~– ~~business~~is ~~partner~~followed ~~where~~throughout the ~~structure~~chain of ~~this~~activities. ~~business~~This ~~relationship~~should, ~~lacks~~however, ~~economic~~not ~~rationale~~prevent ~~and~~companies ~~suggests~~from ~~that~~seeking itcontractual ~~was~~assurances ~~chosen~~from totheir ~~remove~~business anpartners ~~otherwise~~to ~~direct~~ensure ~~supplier~~compliance with ~~harmful~~company’s ~~activities~~code ~~from~~of ~~the~~conduct ~~purview~~and ofaffect ~~the~~information ~~company.~~requests ~~Where~~for ~~the~~purposes ~~further~~other ~~assessment~~than ~~confirms~~for ~~the~~identifying ~~likelihood~~and orassessing ~~existence~~actual ofand ~~the~~potential adverse ~~impact,~~impacts, itincluding ~~should~~Union ~~then~~requirements beon ~~deemed~~undertakings to beconduct ~~identified.~~a due diligence process.

~~Or. en~~

Amendment 2

~~Amendment 16~~

~~Proposal for a directive~~

~~Recital 22~~

~~Text proposed by the Commission~~

~~Amendment~~

(22) To limit the trickle-down effect on small and medium-sized undertakings and small midcap companies when it comes to mapping the value chain to identify adverse impacts, large companies should limit information requests to the information specified in the standards for voluntary use referred to in Article 29a of Directive (EU) 2013/34/EU, unless they need additional information to carry out the mapping and they cannot obtain that information in any other reasonable way.

(22) To limit the trickle-down effect on small and medium-sized undertakings and small midcap companies when it comes to the scoping of the chain of activities to identify adverse impacts, companies within the scope should not seek to obtain information from their business partners but rely only on information that is already reasonably available such as publicly known information, information from searches and information gained through earlier cooperation. Entity-level information is not relevant at this stage, nor is any communication with business partners. It should only be possible to seek such information for further assessments under certain conditions. In such a case, it should be possible to seek information from direct business partners with fewer than 3000 employees that exceeds the information specified in the standards for voluntary use only where, following a risk-based approach, such information is necessary 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, mainly from existing or secondary sources. The same should apply where companies are required to look beyond their direct business partners because they have plausible information suggesting an adverse impact at the level of an indirect business partner. In order to facilitate compliance for companies and the relevant business partners, it should be possible to obtain the necessary information either individually or collaboratively.

~~Or. en~~

~~Amendment 17~~

~~Proposal for a directive~~

~~Recital 22 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

(22a) While keeping with the objective of prioritising the most adverse and likely impacts, companies should be given significant flexibility in deciding which risks to address first on the basis of the severity and likelihood of an adverse impact. Such a decision should be based on the scale, scope or irremediable character of the adverse impact, taking into account the gravity of the impact. Once the most severe and likely adverse impacts are addressed in reasonable time, companies should address less severe and less likely adverse impacts. However, companies should not be penalised for any harm stemming from less significant adverse impacts that were not yet addressed according to the prioritisation in line with these principles.

~~Or. en~~

~~Amendment 18~~

~~Proposal for a directive~~

~~Recital 23~~

~~Text proposed by the Commission~~

~~Amendment~~

(23) Companies may find themselves in situations where their production heavily relies on inputs from one or several specific suppliers. At the same time, where the business operations of such a supplier are linked to severe adverse impacts, including child labour or significant environmental harm, and the company has unsuccessfully exhausted all due diligence measures to address those impacts, the company, as a last resort should suspend the business relationship while continuing to work with the supplier towards a solution, where possible using any increased leverage resulting from the suspension. Such a suspension should not lead to a substantial prejudice for the company, including where crucial business partners provide raw materials, products or services which are essential to the company’s business. Substantial prejudice should be interpreted as a negative and significant effect on the company’s legal, financial or economic situation or its production capacity, including in the long term, such as an effect giving rise to the likelihood of insolvency. In order not to undermine the aims of this Directive, the decision not to suspend the business relationship should be subject to conditions, including reporting to the competent supervisory authority about the duly justified reasons for such a decision. Companies should also assess if the adverse impacts from suspension 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 should not be required to suspend the business relationship and should be in a position to report to the competent supervisory authority about the duly justified reasons for such a decision.

~~Or. en~~

~~Amendment 19~~

~~Proposal for a directive~~

~~Recital 25~~

~~Text proposed by the Commission~~

~~Amendment~~

(25) To reduce administrative burdens on companies, the Commission’s deadline for the adoption of general due diligence guidelines should be advanced to 26 July 2026. In parallel, the application deadline for Directive (EU) 2024/1760 for the first group of companies should be deferred to 26 July 2028 in accordance with Directive (EU) XXX/XXX13 . That two-year interval will should provide companies with sufficient time to take into account the practical guidance and best practices included in the Commission’s guidelines when implementing due diligence measures.

(25) To reduce administrative burdens on companies, the Commission’s deadline for the adoption of general due diligence guidelines should be advanced to 26 July 2026. In parallel, the application deadline for Directive (EU) 2024/1760 for the first group of companies should be deferred to 26 July 2028 in accordance with Directive (EU) XXX/XXX13. That two-year interval should provide companies with sufficient time to take into account the practical guidance and best practices included in the Commission’s guidelines when implementing due diligence measures.

~~__________________~~

~~13 Directive (EU) 2025/XX of ……….~~

~~Or. en~~

~~Amendment 20~~

~~Proposal for a directive~~

~~Recital 26~~

~~Text proposed by the Commission~~

~~Amendment~~

(26) To ensure better alignment of Directive (EU) 2024/1760 with the sustainability reporting regime laid down in Directive (EU) 2022/2464, the requirement to put into effect the transition plan for climate change mitigation should be replaced by a clarification that the obligation of companies to adopt a transition plan includes outlining implementing actions, planned and taken. The obligation to adopt the plan and its initial and updated design remains subject to administrative supervision.

(26) The provisions of Directive (EU) 2024/1760 on the transition plan for climate change have been deemed to be disproportionate, particularly due to the administrative burden on companies and competent authorities, and could lead to legal uncertainty. It is necessary to repeal those provisions in order to streamline obligations and support a more targeted and efficient implementation of that Directive.

~~Or. en~~

~~Amendment 21~~

Proposal for a directive

~~Recital 29 a (new)~~

Article 1 – paragraph 1 – point 1

Directive 2006/43/EC

Article 26a – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

(29a) In order to facilitate compliance by companies with reporting and due diligence obligations under Union law, and to enhance the accessibility and usability of sustainability-related information, the Commission should establish a dedicated digital reporting portal. That portal should serve as a one-stop shop, providing companies, free of charge, with tailored access to templates, reporting requirements, and information on funding and tendering opportunities. To ensure the effective functioning of the portal, the Commission should promote the interoperability of existing data platforms, enabling seamless transmission, exchange and analysis of data. Furthermore, and in view of the rapid technological developments, the Commission should assess the potential of technological solutions, including the use of trustworthy artificial intelligence in accordance with Regulation (EU) 2024/1689 of the European Parliament and of the Council1a to support the digitalisation of reporting and improve the quality and accessibility of sustainability-related data.

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.

1a Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence and amending Regulations (EC) No 300/2008, (EU) No 167/2013, (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1139 and (EU) 2019/2144 and Directives 2014/90/EU, (EU) 2016/797 and (EU) 2020/1828 (Artificial Intelligence Act) (OJ L, 2024/1689, 12.7.2024, ELI: http://data.europa.eu/eli/reg/2024/1689/oj).

Amendment 3

~~Or. en~~

~~Amendment 22~~

Proposal for a directive

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.

The Commission shall, no later than 1 October 2026, 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 4

~~Or. en~~

~~Amendment 23~~

Proposal for a directive

Directive 2006/43/EC

Article 26a – paragraph 3 – subparagraph 2–2 – introductory part

Text proposed by the Commission

The Commission may adopt the assurance standards referred to in the first subparagraph only where those standards:

The Commission ~~shall~~may adopt the assurance standards referred to in the first subparagraph ~~while~~after ~~ensuring~~having ~~that~~obtained ~~the~~an opinion from EFRAG and only where those standards:

~~Or. en~~

Amendment 5

~~Amendment 24~~

Proposal for a directive

Amendment

~~‘The~~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:’;~~year:

~~‘The~~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),~~(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 ~~exceed,~~are large undertakings which, on their balance sheet dates, exceed the average number of ~~3000~~1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial ~~year:’;~~year:

~~Or. en~~

Amendment 6

~~Amendment 25~~

~~Proposal for a directive~~

~~Article 2 – paragraph 1 – point 1 a (new)~~

~~Directive 2013/34/EU~~

~~Article 19 – paragraph 1 – subparagraph 4~~

~~Present text~~

~~Amendment~~

~~(1a) in Article 19(1), the fourth subparagraph is replaced by the following:~~

Large undertakings, and small and medium-sized undertakings, except micro undertakings, which are public-interest entities as defined in point (a) of point (1) of Article 2 shall report information on the key intangible resources and explain how the business model of the undertaking fundamentally depends on such resources and how such resources are a source of value creation for the undertaking.

‘Undertakings which, on their balance sheet dates, exceed the average number of 3000 employees and a net turnover of EUR 450 000 000 during the financial year, shall report information on the key intangible resources and explain how the business model of the undertaking fundamentally depends on such resources and how such resources are a source of value creation for the undertaking.’;

~~Or. en~~

~~Amendment 26~~

Proposal for a directive

Directive 2013/34/EU

Article 19a – paragraph 1 – ~~subparagraph1~~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.’;

‘Undertakings which, on their balance sheet dates, exceed the average number of 3000 employees and a net turnover of EUR 450 000 000 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.’;

~~Or. en~~

~~Amendment 27~~

~~Proposal for a directive~~

~~Article 2 – paragraph 1 – point 2 – point a a (new)~~

~~Directive 2013/34/EU~~

~~Article 19a – paragraph 1 – subparagraph 2 a (new)~~

Text proposed by the Commission

Amendment

~~(aa) in paragraph 1, the following subparagraph is added:~~

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.;

‘Where the ultimate parent undertaking is a financial holding undertaking as defined in Article 2(15), it may be exempted from carrying out the obligations under this Directive. That exemption is subject to the condition that one of the ultimate parent undertaking’s subsidiaries established in the Union is designated to comply with those obligations on behalf of the ultimate parent undertaking.’;

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.;

~~Or. en~~

Amendment 7

~~Amendment 28~~

~~Proposal for a directive~~

~~Article 2 – paragraph 1 – point 2 – point a b (new) – point i~~

~~Directive 2013/34/EU~~

~~Article 19a – paragraph 2 – point a – point iii~~

~~Present text~~

~~Amendment~~

~~(ab) paragraph 2 is amended as follows:~~

~~(i) in point (a), point (iii) is replaced by the following:~~

(iii) the plans of the undertaking, including implementing actions and related financial and investment plans, to ensure that its business model and strategy 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 under the United Nations Framework Convention on Climate Change adopted on 12 December 2015 (the ‘Paris Agreement’) and the objective of achieving climate neutrality by 2050 as established in Regulation (EU) 2021/1119 of the European Parliament and of the Council(1), and, where relevant, the exposure of the undertaking to coal-, oil- and gas-related activities;

~~‘(iii) any climate-related transition plans of the undertaking, if such a plan exists;’;~~

~~Or. en~~

~~Amendment 29~~

~~Proposal for a directive~~

~~Article 2 – paragraph 1 – point 2 – point a b (new) – point ii~~

~~Directive 2013/34/EU~~

~~Article 19a – paragraph 2 – point f – point ii~~

~~Present text~~

~~Amendment~~

~~(ii) in point (f), point (ii) is replaced by the following:~~

(ii) the principal actual or potential adverse impacts connected with the undertaking’s own operations and with its value chain, including its products and services, its business relationships and its supply chain, actions taken to identify and monitor those impacts, and other adverse impacts which the undertaking is required to identify pursuant to other Union requirements on undertakings to conduct a due diligence process

‘(ii) the principal actual or potential adverse impacts connected with the undertaking’s own operations and with its chain of activities, including its products and services, its business relationships and its supply chain, actions taken to identify and monitor those impacts, and other adverse impacts which the undertaking is required to identify pursuant to other Union requirements on undertakings to conduct a due diligence process;’;

~~Or. en~~

~~Amendment 30~~

Proposal for a directive

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;~~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 ~~chain of~~value ~~activities,~~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 chain of activities which, on their balance sheet dates, do not exceed the average number of 3000 employees and a net turnover of EUR 450 000 000 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 information about their chain of activities without reporting from undertakings in theirvalue chain ~~of activities~~ which, on their balance sheet dates, do not exceed the average number of ~~3000~~750 employees and a net turnover of EUR ~~450~~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, 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 information about their chain of activities set out in this paragraph;29ca.

~~Or. en~~

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.

~~Amendment 31~~

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.

~~Proposal for a directive~~

Amendment 8

~~Article 2 – paragraph 1 – point 2 – point b – point i a (new)~~

~~Directive 2013/34/EU~~

~~Article 19a – paragraph 3– subparagraph 2~~

~~Present text~~

~~Amendment~~

~~(ia) the second subparagraph is replaced by the following:~~

For the first three years of the application of the measures to be adopted by the Member States in accordance with Article 5(2) of Directive (EU) 2022/2464 of the European Parliament and of the Council*, and in the event that not all the necessary information regarding its value chain is available, the undertaking shall explain the efforts made to obtain the necessary information about its value chain, the reasons why not all of the necessary information could be obtained, and its plans to obtain the necessary information in the future.

‘In the event that not all the necessary information regarding its chain of activities is available, the undertaking shall explain the efforts made to obtain the necessary information about its chain of activities, the reasons why not all of the necessary information could be obtained, and its plans to obtain the necessary information in the future.’;

~~________________~~

* Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting (OL L 322, 16.12.2022, p. 15).

~~Or. en~~

~~Amendment 32~~

Proposal for a directive

Article 2 – paragraph 1 – point 2 – point b – point iii

Directive 2013/34/EU

Article 19a – paragraph 3 – subparagraph 41 a (new)

Text proposed by the Commission

Amendment

‘The reporting obligations set out in this Article are without prejudice to Directive (EU) 2016/943 of the European Parliament and of the Council*. Therefore, undertakings shall not be required to disclose information on intellectual capital, intellectual property or know how, business information or technological information which constitutes trade secrets as defined in Article 2, point (1), of Directive (EU) 2016/943.’;

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

* Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure (OJ L 157, 15.6.2016, p. 1, ELI: http://data.europa.eu/eli/dir/2016/943/oj).

~~Or. en~~

~~Amendment 33~~

Proposal for a directive

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.’;~~Article and of Article 4(5) of Directive 2004/109/EC.’

~~Or. en~~

(02013L00034)

Amendment 3410

Proposal for a directive

Directive 2013/34/EU

Article 19b ~~– paragraph 1~~

Text proposed by the Commission

Amendment

1. Member States shall ensure that, by way of derogation from Article 8 of Regulation (EU) 2020/852, undertakings as referred to in Article 19a(1) of this Directive which, on their balance sheet dates, do not exceed a net turnover of EUR 450 000 000 during the financial year shall apply the paragraphs 2, 3 and 4 of this Directive.

[...]

1. Member States shall ensure that, by way of derogation from Article 8 of Regulation (EU) 2020/852, undertakings as referred to in Article 19a(1) of this Directive shall apply paragraphs 2, 3 and 4 of this Article.

deleted

~~Or. en~~

Amendment 11

~~Amendment 35~~

Proposal for a directive

Amendment

~~‘Parent~~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.’;~~position.;

~~‘Parent~~Parent undertakings of a large group which, on ~~their~~its balance sheet dates, exceed the average number of ~~3000~~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.’;~~position.;

~~Or. en~~

Amendment 12

~~Amendment 36~~

~~Proposal for a directive~~

~~Article 2 – paragraph 1 – point 4 – point a a (new)~~

~~Directive 2013/34/EU~~

~~Article 29a – paragraph 1 – subparagraph 2 a new~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(aa) in paragraph 1, the following subparagraph is added:~~

‘Where the ultimate parent undertaking of a group is a financial holding undertaking as defined in Article 2(15), it may be exempted from complying with the obligations set out in this Directive. That exemption is subject to the condition that one of the ultimate parent undertaking’s subsidiaries established in the Union is designated to comply with those obligations on behalf of the ultimate parent undertaking’;

~~Or. en~~

~~Amendment 37~~

~~Proposal for a directive~~

~~Article 2 – paragraph 1 – point 4 – point a b (new) – point i~~

~~Directive 2013/34/EU~~

~~Article 29a – paragraph 2 – point a – point iii~~

~~Present text~~

~~Amendment~~

~~(ab) paragraph 2 is amended as follows:~~

~~(i) in point (a), point (iii) is replaced by following:~~

(iii) the plans of the group, including implementing actions and related financial and investment plans, to ensure that its business model and strategy 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 by 2050 as established in Regulation (EU) 2021/1119 and where relevant, the exposure of the group to coal-, oil- and gas-related activities;

~~‘(iii) any climate-related transition plans of the undertaking, if such a plan exists;’;~~

~~Or. en~~

~~Amendment 38~~

~~Proposal for a directive~~

~~Article 2 – paragraph 1 – point 4 – point a b (new) – point ii~~

~~Directive 2013/34/EU~~

~~Article 29a – paragraph 2 – point f – point ii~~

~~Present text~~

~~Amendment~~

~~(ii) in point (f), point (ii) is replaced by the following:~~

(ii) the principal actual or potential adverse impacts connected with the group’s own operations and with its value chain, including its products and services, its business relationships and its supply chain, actions taken to identify and monitor those impacts, and other adverse impacts which the parent undertaking is required to identify pursuant to other Union requirements to conduct a due diligence process;

‘(ii) the principal actual or potential adverse impacts connected with the group’s own operations and with its chain of activities, including its products and services, its business relationships and its supply chain, actions taken to identify and monitor those impacts, and other adverse impacts which the parent undertaking is required to identify pursuant to other Union requirements to conduct a due diligence process;’;

~~Or. en~~

~~Amendment 39~~

Proposal for a directive

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 information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its chain of activities, 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 chain of activities which, on their balance sheet dates, do not exceed the average number of 3000 employees and a net turnover of EUR 450 000 000 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 information about their chain of activities without reporting from undertakings in their chain of activities which, on their balance sheet dates, do not exceed the average number of 3000 employees and a net turnover of EUR 450 000 000 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 information about their chain of activities 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.

~~Or. en~~

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.

~~Amendment 40~~

Amendment 13

Proposal for a directive

Article 2 – paragraph 1 – point 4 – point b – point i ~~a (new)~~

Directive 2013/34/EU

Article 29a – paragraph 3 – subparagraph 21 a (new)

~~Present text~~

Text proposed by the Commission

Amendment

~~(ia) the second subparagraph is replaced by the following:~~

For the first three years of the application of the measures to be adopted by the Member States in accordance with Article 5(2) of Directive (EU) 2022/2464, and in the event that not all the necessary information regarding its value chain is available, the parent undertaking shall explain the efforts made to obtain the necessary information about its value chain, the reasons why not all of the necessary information could be obtained, and its plans to obtain the necessary information in the future.

Amendment 14

‘In the event that not all the necessary information regarding its chain of activities is available, the parent undertaking shall explain the efforts made to obtain the necessary information about its chain of activities, the reasons why not all of the necessary information could be obtained, and its plans to obtain the necessary information in the future.’;

~~Or. en~~

~~Amendment 41~~

Proposal for a directive

Directive 2013/34/EU

Article 29a – paragraph 3 – subparagraph ~~5 a (new)~~4a

Text proposed by the Commission

Amendment

‘The reporting obligations set out in this Article are without prejudice to Directive (EU) 2016/943. Therefore, undertakings shall not be required to disclose information on intellectual capital, intellectual property or know how, business information or technological information which constitutes trade secrets as defined in Article 2, point (1), of Directive (EU) 2016/943.’;

(ii) the following subparagraph is added:

~~Or. en~~

deleted

~~Amendment 42~~

‘The first subparagraph is without prejudice to Union requirements on undertakings to conduct a due diligence process.’;

Amendment 15

Proposal for a directive

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.’;~~Article and of Article 4(5) of Directive 2004/109/EC.’

~~Or. en~~

(02013L00034)

Amendment 4316

Proposal for a directive

Directive 2013/34/EU

Article 29aa ~~– paragraph 1~~

Text proposed by the Commission

Amendment

1. Member States shall ensure that, by way of derogation from Article 8 of Regulation (EU) 2020/852, parent undertakings as referred to in Article 29a(1) of this Directive which, on their balance sheet dates, do not exceed a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year shall apply the paragraphs 2, 3 and 4 of this Directive.

[...]

1. Member States shall ensure that, by way of derogation from Article 8 of Regulation (EU) 2020/852, parent undertakings as referred to in Article 29a(1) of this Directive shall apply paragraphs 2, 3 and 4 of this Article.

deleted

~~Or. en~~

Amendment 17

~~Amendment 44~~

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)

Amendment

(aa) in paragraph 22, the first subparagraph is replaced by the following:

2. 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.

~~‘2. The~~‘The sustainability reporting standards shall ensure the quality of reported information, by requiring that it is ~~simple, streamlined,~~ understandable, ~~proportionate,~~ relevant, verifiable, comparable and represented in a faithful manner. The sustainability reporting standards ~~shall:~~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.’

~~(a) to the extent possible, be quantitative in nature;~~

(02013L00034)

~~(b) avoid double reporting and any overlap with obligations stemming from other legislative instruments;~~

Amendment 21

~~(c) avoid imposing a disproportionate administrative and financial burden on undertakings; and~~

~~(d) ensure interoperability with internationally recognised standards set by global standard-setting initiatives for sustainability reporting as required by paragraph 5, point (a).’;~~

~~Or. en~~

~~Amendment 45~~

Proposal for a directive

Directive 2013/34/EU

Article 29b – paragraph 4 – subparagraph 1 – last sentence

Text proposed by the Commission

Amendment

~~(b) in paragraph 4, first subparagraph, the last sentence is replaced by the following:~~

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.;

~~(b) in paragraph 4, the first subparagraph is replaced by the following:~~

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.

‘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.’;

Amendment 22

‘Sustainability reporting standards shall take account of the difficulties that undertakings might encounter in gathering information from actors throughout their chain of activities, especially from those which are not subject to the sustainability reporting requirements laid down in Article 19a or 29a and from suppliers in emerging markets and economies. Sustainability reporting standards shall specify disclosures on chains of activities that are proportionate and relevant to the capacities and characteristics of undertakings in the chains of activities, and to the scale and complexity of their activities, especially those of undertakings that are not subject to the sustainability reporting requirements laid down in Article 19a or 29a. Sustainability reporting standards shall not specify disclosures that would require undertakings to obtain from undertakings in their chain of activities which, on their balance sheet dates, do not exceed the average number of 3000 employees and a net turnover of EUR 450 000 000 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.’;

~~Or. en~~

~~Amendment 46~~

Proposal for a directive

Article 2 – paragraph 1 – point 8

~~Article~~Directive 2013/34/EU

Article 29ca – paragraph 1

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) and to limit the information that can be requested from such undertakings for the purposes of this Directive,~~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.~~undertakings in line with the standards specified in Article 29b.

~~Or. en~~

Amendment 23

~~Amendment 47~~

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

Amendment

~~‘2a.~~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.’;~~concerned.;

~~‘2a.~~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 ~~chain of~~value ~~activities~~chain which, on their balance sheet dates, do not exceed the average number of ~~3000~~750 employees and a net turnover of EUR ~~450~~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, except for additional sustainability information that is commonly shared between undertakings in the sector concerned.’;~~29ca.;

~~Or. en~~

Amendment 26

~~Amendment 48~~

Proposal for a directive

Amendment

~~‘The~~The first subparagraph shall only apply to large subsidiary undertakings as defined in Article 3(4) of this ~~Directive.’;~~Directive;

~~‘The~~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 ~~3000~~1750 employees and a net worldwide turnover of more than EUR 450 000 000 induring the ~~preceding~~ financial ~~year.’;~~year.

~~Or. en~~

Amendment 27

~~Amendment 49~~

Proposal for a directive

Article 2 – paragraph 1 – point 1213 – point ba

Directive 2013/34/EU

Article ~~40a~~49 – paragraph ~~1 – subparagraphs 4 and 5~~3c

Text proposed by the Commission

Amendment

‘The rule referred to in the third subparagraph shall only apply to a branch where the third-country undertaking does not have a subsidiary undertaking as referred to in the first subparagraph, and where the branch generated a net turnover exceeding the threshold referred to in Article 3(4) point (b) of this Directive in the preceding financial year.

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].

‘The rule referred to in the third subparagraph shall only apply to a branch where the third-country undertaking does not have a subsidiary undertaking as referred to in the first subparagraph, and where the branch generated a net turnover exceeding EUR 450 000 000 in the preceding financial year.’

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].

The first and third subparagraphs shall only apply to the subsidiary undertakings or branches referred to in those subparagraphs where the third-country undertaking, at its group level, or, if not applicable, the individual level, generated a net turnover in the Union exceeding EUR 450 000 000 for each of the last two consecutive financial years.’

Amendment 28

~~Or. en~~

~~Amendment 50~~

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~~–subparagraph 1 – point b -– point i

Text proposed by the Commission

Amendment

~~‘(i)~~(i) to large undertakings which, on their balance sheet dates, exceed the average number of 1000 employees during the financial ~~year;’;~~year;;

~~‘(i)~~(i) to large undertakings which, on their balance sheet dates, exceed the average number of ~~3000~~1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial ~~year;’;~~year;

~~Or. en~~

Amendment 32

~~Amendment 51~~

Proposal for a directive

Directive (EU) 2022/2464

Article 5 – paragraph 2 – subparagraph 1 – point b -– point ii

Text proposed by the Commission

Amendment

~~‘(ii)~~(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;’;~~year;;

~~‘(ii)~~(ii) to parent undertakings of a large group which, on their balance sheet dates, exceed the average number of ~~3000~~1750 employees and a net worldwide turnover of more than EUR 450 000 000, on a consolidated basis, during the financial ~~year;’;~~year;

~~Or. en~~

Amendment 33

~~Amendment 52~~

Proposal for a directive

Amendment

~~‘(i)~~(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;’;~~year;;

~~‘(i)~~(i) to issuers as defined in Article 2(1), point ~~(d)~~(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 ~~3000~~1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial ~~year;’;~~year;

~~Or. en~~

Amendment 34

~~Amendment 53~~

Proposal for a directive

Amendment

~~‘(ii)~~(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;’;~~year;;

~~‘(ii)~~(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 3000~~1750 employees and a net worldwide turnover of more than EUR 450 000 000, on a consolidated basis, during the financial ~~year;’;~~year;

~~Or. en~~

Amendment 35

~~Amendment 54~~

Proposal for a directive

Amendment

~~(1) in Article 1(1), point (c) is replaced by the following:~~

~~(1) in Article 1(1), point (c) is deleted.~~

(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.;

~~Or. en~~

(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 5536

Proposal for a directive

Article 4 – paragraph 1 – point 1 a (new) ~~– point a~~

Directive (EU) 2024/1760

Amendment

~~(1a) Article 2 is amended as follows:~~

(1a) in Article 2(1), point a is replaced by the following:

~~(a) in paragraph 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 ~~3 000~~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;’

~~Or. en~~

(02024L1760)

Amendment 5637

Proposal for a directive

Article 4 – paragraph 1 – point 1 ab (new) ~~– point b~~

Directive (EU) 2024/1760

Article 2 – paragraph 32 – ~~subparagraph~~point 1a

Present text

Amendment

~~(b)~~(1b) in ~~paragraph 3,~~Article ~~the~~2(2), ~~first~~point ~~subparagraph~~a is replaced by the following:

3. Where the ultimate parent company has as its main activity the holding of shares in operational subsidiaries and does not engage in taking management, operational or financial decisions affecting the group or one or more of its subsidiaries, it may be exempted from carrying out the obligations under this Directive. That exemption is subject to the condition that one of the ultimate parent company’s subsidiaries established in the Union is designated to fulfil the obligations set out in Articles 6 to 16 and Article 22 on behalf of the ultimate parent company, including the obligations of the ultimate parent company with respect to the activities of its subsidiaries. In such a case, the designated subsidiary is given all the necessary means and legal authority to fulfil those obligations in an effective manner, in particular to ensure that the designated subsidiary obtains from the companies of the group the relevant information and documents to fulfil the obligations of the ultimate parent company under this Directive.

(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;

‘3. Where the ultimate parent company has as its main activity the holding of shares in operational subsidiaries and does not engage in taking management, operational or financial decisions affecting the group or one or more of its subsidiaries, it may be exempted from carrying out the obligations under this Directive. That exemption is subject to the condition that one of the ultimate parent company’s subsidiaries established in the Union is designated to fulfil the obligations set out in Articles 6 to 16 on behalf of the ultimate parent company, including the obligations of the ultimate parent company with respect to the activities of its subsidiaries. In such a case, the designated subsidiary is given all the necessary means and legal authority to fulfil those obligations in an effective manner, in particular to ensure that the designated subsidiary obtains from the companies of the group the relevant information and documents to fulfil the obligations of the ultimate parent company under this Directive.’;

‘(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;’

~~Or. en~~

(02024L1760)

Amendment 5738

Proposal for a directive

Article 4 – paragraph 1 – point 32 a (new)

Directive (EU) 2024/1760

Article 43 – paragraph 1 – point v a (new)

Text proposed by the Commission

Amendment

1. Without prejudice to Article 1(2) and (3), Member States shall not introduce, in their national law, provisions within the field covered by this Directive laying down human rights and environmental due diligence obligations diverging from those laid down in Articles 6 and 8, Article 10(1) to (5), Article 11(1) to (6) and Article 14.

(2a) in Article 3(1), the following point is added:

Without prejudice to Article 1(2) and (3), Member States shall not introduce, in their national law, provisions within the field covered by this Directive diverging from those laid down in Articles 2 and 3, Articles 6 to 16 and Articles 24, 25 and 26.

‘(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.'

~~Or. en~~

Amendment 39

~~Amendment 58~~

Proposal for a directive

Article 4 – paragraph 1 – point 34 – point -a (new)

Directive (EU) 2024/1760

Article 48 – paragraph 2 – introductory part

~~Text proposed by the Commission~~

Present text

Amendment

2. Notwithstanding paragraph 1, this Directive shall not preclude Member States from introducing, in their national law, more stringent provisions diverging from those laid down in provisions other than Articles 6 and, 8, Article 10(1) to (5), Article 11(1) to (6) and Article 14, or provisions that are more specific in terms of the objective or the field covered, including by regulating specific products, services or situations, in order to achieve a different level of protection of human, employment and social rights, the environment or the climate.

(-a) in paragraph 2, the introductory part is replaced by the following:

~~deleted~~

As part of the obligation set out in paragraph 1, taking into account relevant risk factors, companies shall take appropriate measures to:

~~Or. en~~

‘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:’

~~Amendment 59~~

(02024L1760)

Amendment 40

Proposal for a directive

Article 4 – paragraph 1 – point ~~3 a (new)~~4 – point -a a (new)

Directive (EU) 2024/1760

Article 68 – paragraph 12 – point a

Present text

Amendment

~~(3a) Article 6 is amended as follows:~~

(-aa) in paragraph 2, point a is replaced by the following:

~~(a) paragraph 1 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;

1. Member States shall ensure that parent companies falling under the scope of this Directive are allowed to fulfil the obligations set out in Articles 7 to 11 and Article 22 on behalf of companies which are subsidiaries of those parent companies and fall under the scope of this Directive, if this ensures effective compliance. This is without prejudice to such subsidiaries being subject to the exercise of the supervisory authority’s powers in accordance with Article 25 and to their civil liability in accordance with Article 29.

‘(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;’

‘1 Member States shall ensure that parent companies falling under the scope of this Directive are allowed to fulfil the obligations set out in Articles 7 to 11 on behalf of companies which are subsidiaries of those parent companies and fall under the scope of this Directive, if this ensures effective compliance. This is without prejudice to such subsidiaries being subject to the exercise of the supervisory authority’s powers in accordance with Article 25 and to their civil liability in accordance with Article 29.’

(02024L1760)

~~Or. en~~

Amendment 41

~~Amendment 60~~

Proposal for a directive

Article 4 – paragraph 1 – point ~~3 a (new)~~4 – point ba

Directive (EU) 2024/1760

Article 68 – paragraph 32 – point b

Text proposed by the Commission

Amendment

~~(b) paragraph 3 is deleted.~~

(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.;

~~Or. en~~

(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, of their direct business partners in areas where the potential risk of adverse impacts is high, have arisen or may arise;;

Amendment 6142

Proposal for a directive

Directive (EU) 2024/1760

Article 8 – paragraph 2 – point b a (new)

Text proposed by the Commission

Amendment

~~(a) in paragraph 2, point (b) is replaced by the following:~~

(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.

~~(a) paragraph 2 is replaced by the following:~~

Amendment 43

'(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.';

‘2. As part of the obligation set out in paragraph 1, and adopting a risk-based approach that takes 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:

(a) carry out a scoping, based on reasonably available information, to identify general areas across their own operations, those of their subsidiaries and, where related to their chain of activities, those of their business partners where adverse impacts are most likely to occur and to be most severe;

(b) based on the results of the scoping referred to in point (a), carry out a further 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.’;

~~Or. en~~

~~Amendment 62~~

Proposal for a directive

Directive (EU) 2024/1760

Article 8 – paragraph 2a ~~– subparagraph 1~~

Text proposed by the Commission

Amendment

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.

(b) the following paragraph 2a is inserted:

Where a company has plausible information that is objective, factual and verifiable and 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 a further 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.

deleted

~~Or. en~~

‘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.

~~Amendment 63~~

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.

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.’;

Amendment 44

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b a (new)

Directive (EU) 2024/1760

Article 8 – paragraph ~~2a – subparagraph~~ 3

~~Text proposed by the Commission~~

Present text

Amendment

(ba) in Article 8, paragraph 3 is replaced by the following:

~~deleted~~

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.

~~Or. en~~

‘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.’

~~Amendment 64~~

(02024L1760)

Amendment 45

Proposal for a directive

Amendment

~~(c) paragraph 4 is replaced by the following:~~

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.

~~(c) paragraph 4 is deleted;~~

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.

'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.';

Amendment 46

~~Or. en~~

~~Amendment 65~~

Proposal for a directive

Amendment

~~(d) the following paragraph 5 is added:~~

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.

~~(d) the following paragraphs are added:~~

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.

'5. 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.

Amendment 47

‘5. Member States shall ensure that, for the purposes of the scoping provided for in paragraph 2 point (a), companies do not seek to obtain the information from their business partners but rely solely on information that is already reasonably available.

~~Or. en~~

~~Amendment 66~~

Proposal for a directive

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.;

5a. Member States shall ensure that, for the purposes of the further assessment provided for in paragraph 2, point (b), of this Article companies do not seek to obtain information from direct business partners with fewer than 3000 employees that exceeds the information specified in the standards for voluntary use referred to in Article 29ca of Directive 2013/34/EU. That shall apply mutatis mutandis, where relevant, in the cases provided for in paragraph 2a of this Article.

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.

By way of derogation from the first sub-paragraph, where additional information is necessary for the further assessment provided for in paragraph 2, point (b), and where relevant in paragraph 2a, 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, mainly from existing or secondary sources, the company may seek such information from that business partner and, where reasonable, directly from the business partners where the adverse impacts are most likely to occur. Information may be sought individually or collaboratively.’;

Amendment 48

~~Or. en~~

~~Amendment 67~~

~~Proposal for a directive~~

~~Article 4 – paragraph 1 – point 4 a (new)~~

~~Directive (EU) 2024/1760~~

~~Article 9~~

~~Present text~~

~~Amendment~~

~~(4a) Article 9 is replaced by the following:~~

~~Article 9~~

~~Prioritisation of identified actual and potential adverse impacts~~

~~‘Article 9~~

~~Prioritisation of identified actual and potential adverse impacts~~

1. Member States shall ensure that, where it is not feasible to prevent, mitigate, bring to an end or minimise all identified adverse impacts at the same time and to their full extent, companies prioritise adverse impacts identified pursuant to Article 8 in order to fulfil the obligations laid down in Article 10 or 11.

1. Member States shall ensure that, where it is not feasible for companies to prevent, mitigate, bring to an end or minimise all adverse impacts identified pursuant to Article 8, companies are able to prioritise the most severe and most likely adverse impacts in order to fulfil the obligations laid down in Article 10 or 11.’

~~2. The prioritisation referred to in paragraph 1 shall be based on the severity and likelihood of the adverse impacts.~~

3. Once the most severe and most likely adverse impacts are addressed in accordance with Article 10 or 11 within a reasonable time, the company shall address less severe and less likely adverse impacts.

2. Where prioritisation decisions are made in accordance with this Article, Member States shall ensure that companies are not penalised under Article 25 or 27 for any harm stemming from any less significant adverse impacts that have not yet been addressed.’;

~~Or. en~~

~~Amendment 68~~

~~Proposal for a directive~~

~~Article 4 – paragraph 1 – point 5~~

~~Directive (EU) 2024/1760~~

~~Article 10 – paragraph 6 – subparagraph 2~~

~~Text proposed by the Commission~~

~~Amendment~~

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.

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 expose the company to penalties pursuant to Article 27 or to liability under Article 29.

~~Or. en~~

~~Amendment 69~~

~~Proposal for a directive~~

~~Article 4 – paragraph 1 – point 5~~

~~Directive (EU) 2024/1760~~

~~Article 10 – paragraph 6 – subparagraph 3~~

~~Text proposed by the Commission~~

~~Amendment~~

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.

Prior to suspending a business relationship, the company shall assess whether such a suspension would cause substantial prejudice to the company or 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.

~~Or. en~~

~~Amendment 70~~

~~Proposal for a directive~~

~~Article 4 – paragraph 1 – point 6~~

~~Directive (EU) 2024/1760~~

~~Article 11 – paragraph 7 – subparagraph 1 – introductory part~~

~~Text proposed by the Commission~~

~~Amendment~~

‘7. 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:’

‘7. 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~~

~~Amendment 71~~

Proposal for a directive

Article 4 – paragraph 1 – point 64 – point d

Directive (EU) 2024/1760

Article 118 – paragraph 75 – subparagraph ~~1 –~~2 ~~point~~a b(new)

Text proposed by the Commission

Amendment

(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

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.

(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

Amendment 49

~~Or. en~~

~~Amendment 72~~

Proposal for a directive

Article 4 – paragraph 1 – point 64 – point d

Directive (EU) 2024/1760

Article 118 – paragraph 75 – subparagraph 2 b (new)

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.

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 expose the company to penalties pursuant to Article 27 or to liability pursuant to Article 29.

Amendment 50

~~Or. en~~

~~Amendment 73~~

Proposal for a directive

Article 4 – paragraph 1 – point 67 – point a

Directive (EU) 2024/1760

Article 1113 – paragraph 73 – ~~subparagraph~~introductory 3part

Text proposed by the Commission

Amendment

Consultation of relevant stakeholders shall take place at the following stages of the due diligence process:;

Prior to suspending a business relationship, the company shall assess whether such a suspension would cause substantial prejudice to the company or 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 the extent of which could not be adequately minimised. 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.

Consultation of stakeholders shall take place at the following stages of the due diligence process:

~~Or. en~~

Amendment 51

~~Amendment 74~~

Proposal for a directive

Article 4 – paragraph 1 – point 68

Directive (EU) 2024/1760

Article 1115 – paragraph 71 – ~~subparagraph~~sentence 62

Text proposed by the Commission

Amendment

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.

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.;

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.

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 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.;

~~Or. en~~

Amendment 52

~~Amendment 75~~

Proposal for a directive

Article 4 – paragraph 1 – point ~~8 a (new)~~9

Directive (EU) 2024/1760

Article 19 – paragraph ~~2 – point b~~3

Text proposed by the Commission

Amendment

~~(8a) in Article 19(2), point (b) is deleted;~~

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.;

~~Or. en~~

3. The guidelines referred to in paragraph 2, point (a), (b) and (d) to (g) shall be made available by 26 July 2026.

~~Amendment 76~~

Justification

Accelerating the publication of guidelines is crucial for clarifying the provisions and their implementation.

Amendment 53

Proposal for a directive

Article 4 – paragraph 1 – point ~~9 a (new)~~10

Directive (EU) 2024/1760

Article 22 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

~~(9a) Article 22 is deleted;~~

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.;

~~Or. en~~

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.

Amendment 7754

Proposal for a directive

Article 4 – paragraph 1 – point 10

Directive ~~(EU)2024/1760~~(EU) 2024/1760

Article 22 – paragraph 1 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

~~(10) in Article 22(1), the first subparagraph is replaced by the following:~~

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.;

~~deleted~~

Amendment 55

~~Or. en~~

~~Amendment 78~~

Proposal for a directive

Directive (EU) 2024/1760

Article 2422 – paragraph 1 – subparagraph 2

Present text

Amendment

(10a) in Article ~~24,~~22(1), ~~paragraph~~the 1second subparagraph is replaced by the following:

1. Each Member State shall designate one or more supervisory authorities to supervise compliance with the obligations laid down in the provisions of national law adopted pursuant to Articles 7 to 16 and Article 22.

The design of the transition plan for climate change mitigation referred to in the first subparagraph shall contain:

‘1. Each Member State shall designate one or more supervisory authorities to supervise compliance with the obligations laid down in the provisions of national law adopted pursuant to Articles 7 to 16.’;

‘The design of the transition plan for climate change mitigation referred to in the first subparagraph shall contain:

~~Or. en~~

(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;

~~Amendment 79~~

(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

Directive (EU) 2024/1760

Article 2522 – paragraph 13

Present text

Amendment

(10b) in Article ~~25,~~22, paragraph 13 is replaced by the following:

1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to require companies to provide information and carry out investigations related to compliance with the obligations set out in Articles 7 to 16. Member States shall require the supervisory authorities to supervise the adoption and design of the transition plan for climate change mitigation in accordance with the requirements provided for in Article 22(1).

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).

‘1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to require companies to provide information and carry out investigations related to compliance with the obligations set out in Articles 7 to 16.’;

‘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.’;

~~Or. en~~

(02024L1760)

Amendment 8057

~~Proposal for a directive~~

~~Article 4 – paragraph 1 – point 10 c (new)~~

~~Directive (EU) 2024/1760~~

~~Article 27 – paragraph 2 – point d~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(10c) in Article 27(2), point (d) is deleted;~~

~~Or. en~~

~~Amendment 81~~

Proposal for a directive

Article 4 – paragraph 1 – point ~~13 a (new)~~11

Directive (EU) 2024/1760

Article 3627 – paragraph ~~2 – point e~~4

~~Text proposed by the Commission~~

~~Amendment~~

~~(13a) in Article 36(2), point (e) is deleted.~~

~~Or. en~~

~~Amendment 82~~

~~Proposal for a directive~~

~~Article 4 a (new)~~

Text proposed by the Commission

Amendment

~~Article 4a~~

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.;

~~Digital solutions~~

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.

1. The Commission shall establish a dedicated digital reporting portal serving as a one-stop-shop for companies. The portal shall provide free access to all templates and information relating to all reporting requirements imposed on companies in Union law, tailored to a company’s size, sector, products and services, and risk exposure. It shall also provide access to information on funding and tendering opportunities to help companies implement, comply with and benefit from their due diligence obligations.

ANNEX: DECLARATION OF INPUT

For the purposes of the first subparagraph, the Commission shall ensure that the relevant data platforms providing information to companies and data users are interoperable and that data can be transmitted, exchanged and analysed in a technically seamless manner.

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:

2. The Commission shall submit a report to the European Parliament and the Council by ... [24 months after the entry into force of this Directive] on the need to provide for technological solutions, including the use of trustworthy artificial intelligence in accordance with Regulation (EU) 2024/1689.

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

~~Or. en~~

Orgalim

~~ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT~~

Dansk Industri

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he received input from the following entities or persons in the preparation of the draft report, prior to the adoption thereof in committee:

Teknikföretagen

~~Entity and/or person~~

DigitalEurope

~~EDEKA ZENTRALE Stiftung & Co. KG~~

Hyundai Motor Europe

~~Save the Children Europe~~

Swedish Society for Nature Conservation (Naturskyddsföreningen)

~~Finance Sweden~~

~~Morningstar, Inc~~

~~Shift~~

Confederation of Swedish Enterprise

~~Confederation of Finnish Industries EK~~

BusinessEurope

~~Business Europe~~

2. Representatives of public authorities of third countries, including their diplomatic missions and embassies

~~Ragn Sells AS~~

The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.

~~Brussels Office of the Swedish Trade Unions~~

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that she has submitted to the natural persons concerned the European Parliament'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.

~~EcoVadis~~

PROCEDURE – COMMITTEE ASKED FOR OPINION

~~Responsible Business Alliance~~

Title

~~FERMA~~

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

~~Teneo Brussels~~

References

~~Hagainitiativet~~

COM(2025)0081 – C10-0037/2025 – 2025/0045(COD)

~~EUROPEAN TRADE UNION CONFEDERATION~~

Committee(s) responsible

~~European Coalition for Corporate Justice~~

Date announced in plenary

~~Fair Trade Advocacy Office~~

JURI

~~EuropeanIssuers~~

31.3.2025

~~European Banking Federation~~

Opinion by

~~DIGITALEUROPE~~

Date announced in plenary

~~SME United~~

ENVI

~~WWF~~

31.3.2025

~~Frank Bold Society~~

Rapporteur for the opinion

~~Miele~~

Date appointed

~~COMPAGNIE NATIONALE DES COMMISSAIRES AUX COMPTES~~

Jessica Polfjärd

~~FBF~~

23.4.2025

~~Foundation for Family Businesses and Politics~~

Simplified procedure - date of decision

~~Mouvement Impact France~~

10.3.2025

~~EUROCHAMBRES – Association of European Chambers of Commerce and Industry~~

Date adopted

~~Finance Sweden~~

15.7.2025

~~OECD~~

Result of final vote

~~ExxonMobil~~

~~The Walt Disney Company Benelux BVBA~~

–:

~~The list above is drawn up under the exclusive responsibility of the rapporteur.~~

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

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