Sittings · Document

OPINION (COM(2025)0081 – C100037/2025 – 2025/0045(COD)) 2025-07-17

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

Committee on the Environment, Climate and Food Safety · Rapporteur: Jessica Polfjärd

PA_Legam

AMENDMENTS

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

Amendment 1

Proposal for a directive

Recital 21

Text proposed by the Commission

Amendment

(21) Article 5 of Directive (EU) 2024/1760 obliges Member States to ensure that large companies above a certain size conduct risk-based human rights and environmental due diligence. To reduce burdens on companies that have to comply with that obligation, the required due diligence should, as a general rule, be limited to the company’s own operations, those of its subsidiaries and those of its direct business partners (‘tier 1’). Consequently, when it comes to business relationships, companies should, after having mapped their chains of activities, be required to carry out in-depth assessments as regards direct business partners only. Companies should, however, look beyond their direct business relationships where they have plausible information that suggests an adverse impact at the level of an indirect business partner. Plausible information means information of an objective character that allows the company to conclude that there is a reasonable likelihood that the information is true. This may be the case where the company concerned has received a complaint or is in the possession of information, for example through credible media or NGO reports, reports of recent incidents, or through recurring problems at certain locations about likely or actual harmful activities at the level of an indirect business partner. Where the company has such information, it should carry out an in-depth assessment. Companies should also carry out in-depth assessments with respect to adverse impacts arising beyond their direct business partner where the structure of this business relationship lacks economic rationale and suggests that it was chosen to remove an otherwise direct supplier with harmful activities from the purview of the company. Where the in-depth assessment confirms the likelihood or existence of the adverse impact, it should then be deemed to be identified. In addition, companies should seek to ensure that their code of conduct – which is part of their due diligence policy and sets out the expectations as to how to protect human, including labour, rights and the environment in business operations – is followed throughout the chain of activities in accordance with contractual cascading and SME support.

(21) Article 5 of Directive (EU) 2024/1760 obliges Member States to ensure that large companies above a certain size conduct risk-based human rights and environmental due diligence. To reduce burdens on companies that have to comply with that obligation, the required due diligence should, as a general rule, be limited to the company’s own operations, those of its subsidiaries and those of its direct business partners (‘tier 1’). Consequently, when it comes to business relationships, companies should, after having mapped their chains of activities, be required to carry out in-depth assessments as regards direct business partners only. Companies should, however, look beyond their direct business relationships where they have plausible information that suggests an adverse impact at the level of an indirect business partner. Plausible information should be understood as information of an objective and verifiable nature, which is readily available to the company and, taking into account its source, reliability, and context, is sufficient to enable the company to reasonably assume that a potential or actual adverse impact may have occurred or is likely to occur. In line with the OECD guidelines, plausible information may derive, inter alia, from substantiated complaints, credible reports issued by cross-sectorial stakeholders, civil society organisations, trade unions, international organisations or national authorities, media investigations, and from recurring incidents in the company’s own operations, those of its subsidiaries, or within its chain of activities, including through indirect business relationships. Where the company has such information, it should carry out an in-depth assessment. Where the in-depth assessment confirms the likelihood or existence of the adverse impact, it should then be deemed to be identified. In addition, companies should also seek to ensure that their code of conduct – which is part of their due diligence policy and sets out the expectations as to how to protect human, including labour, rights and the environment in business operations – is followed throughout the chain of activities. This should, however, not prevent companies from seeking contractual assurances from their business partners to ensure compliance with company’s code of conduct and affect information requests for purposes other than for identifying and assessing actual and potential adverse impacts, including Union requirements on undertakings to conduct a due diligence process.

Amendment 2

Proposal for a directive

Article 1 – paragraph 1 – point 1

Directive 2006/43/EC

Article 26a – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

The Commission shall be empowered to adopt delegated acts in accordance with Article 48a in order to supplement this Directive in order to provide for limited assurance standards setting out the procedures that the auditor(s) and the audit firm(s) shall perform in order to draw his, her or its conclusions on the assurance of sustainability reporting, including engagement planning, risk consideration and response to risks and type of conclusions to be included in the assurance report on sustainability reporting, or, where relevant, in the audit report.

The Commission shall, no later than 1 October 2028, adopt delegated acts in accordance with Article 48a in order to supplement this Directive in order to provide for limited assurance standards setting out the procedures that the auditor(s) and the audit firm(s) shall perform in order to draw his, her or its conclusions on the assurance of sustainability reporting, including engagement planning, risk consideration and response to risks and type of conclusions to be included in the assurance report on sustainability reporting, or, where relevant, in the audit report.

Amendment 3

Proposal for a directive

Article 1 – paragraph 1 – point 1

Directive 2006/43/EC

Article 26a – paragraph 3 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

The Commission shall, no later than 1 October 2028, conduct an assessment on the impact of reasonable assurance standards on the costs for undertakings, and the feasibility for auditors and for undertakings, and whether such standards provide a clear added value and contribute meaningfully to the sustainability efforts of the undertakings.

Amendment 4

Proposal for a directive

Article 1 – paragraph 1 – point 1

Directive 2006/43/EC

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

Text proposed by the Commission

Amendment

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

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

Amendment 5

Proposal for a directive

Article 2 – paragraph 1 – point 1 – point a

Directive 2013/34/EU

Article 1 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

The coordination measures prescribed by Articles 19a, 19b, 29a, 29aa, 29d, 30 and 33, Article 34(1), second subparagraph, point (aa), Article 34(2) and (3), and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings are large undertakings which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year:

The coordination measures prescribed by Articles 19a, 29a, 29d, 30 and 33, Article 34(1), second subparagraph, point (aa), Article 34(2) and (3) and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings are large undertakings which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year:

Amendment 6

Proposal for a directive

Article 2 – paragraph 1 – point 2 – point a

Directive 2013/34/EU

Article 19a – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

Large undertakings which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.;

Large undertakings which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.;

Amendment 7

Proposal for a directive

Article 2 – paragraph 1 – point 2 – point b – point i

Directive 2013/34/EU

Article 19a – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned. Undertakings that report the necessary value chain information without reporting from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned, shall be deemed to have complied with the obligation to report value chain information set out in this paragraph.;

Where applicable, the material information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca.

Undertakings referred to in paragraph 1 of this Article shall inform undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year which information falls outside the information referred to in Article 29ca.

Undertakings that report the necessary value chain information without having obtained from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, shall be deemed to have complied with the obligation to report value chain information set out in this paragraph. Where such information is not available, undertakings may briefly mention any resulting limitations in their sustainability reporting.

Amendment 8

Proposal for a directive

Article 2 – paragraph 1 – point 2 – point b – point i

Directive 2013/34/EU

Article 19a – paragraph 3 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

Nothing in this paragraph shall affect information requests made for purposes other than the reporting of sustainability information as required by this Directive, including Union requirements on undertakings to conduct a due diligence process. Such requests may also include, where required by Union law, information necessary to calculate the undertaking’s greenhouse gas emissions.;

Amendment 9

Proposal for a directive

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

Directive 2013/34/EU

Article 19a – paragraph 10

Present text

Amendment

(ca) paragraph 10 is replaced by the following:

10. The exemption laid down in paragraph 9 shall also apply to public-interest entities subject to the requirements of this Article, with the exception of large undertakings which are public-interest entities defined in point (a) of point (1) of Article 2 of this Directive.

‘10. The exemption laid down in paragraph 9 shall also apply to public-interest entities subject to the requirements of this Article and of Article 4(5) of Directive 2004/109/EC.’

(02013L00034)

Amendment 10

Proposal for a directive

Article 2 – paragraph 1 – point 3

Directive 2013/34/EU

Article 19b

Text proposed by the Commission

Amendment

[...]

deleted

Amendment 11

Proposal for a directive

Article 2 – paragraph 1 – point 4 – point a

Directive 2013/34/EU

Article 29a – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

Parent undertakings of a large group which, on their balance sheet dates, exceed the average number of 1000 employees, on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.;

Parent undertakings of a large group which, on its balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000, on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.;

Amendment 12

Proposal for a directive

Article 2 – paragraph 1 – point 4 – point b – point i

Directive 2013/34/EU

Article 29a – paragraph 3 – subparagraph 1

Text proposed by the Commission

Amendment

Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned. Undertakings that report the necessary value chain information without reporting from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned, shall be deemed to have complied with the obligation to report value chain information set out in this paragraph.;

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 13

Proposal for a directive

Article 2 – paragraph 1 – point 4 – point b – point i

Directive 2013/34/EU

Article 29a – paragraph 3 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

Amendment 14

Proposal for a directive

Article 2 – paragraph 1 – point 4 – point b – point ii

Directive 2013/34/EU

Article 29a – paragraph 3 – subparagraph 4a

Text proposed by the Commission

Amendment

(ii) the following subparagraph is added:

deleted

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

Amendment 15

Proposal for a directive

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

Directive 2013/34/EU

Article 29a – paragraph 9

Present text

Amendment

(ba) paragraph 9 is replaced by the following:

9. The exemption laid down in paragraph 8 shall also apply to public-interest entities subject to the requirements of this Article, with the exception of large undertakings which are public-interest entities defined in point (a) of point (1) of Article 2 of this Directive.

‘9. The exemption laid down in paragraph 8 shall also apply to public-interest entities subject to the requirements of this Article and of Article 4(5) of Directive 2004/109/EC.’

(02013L00034)

Amendment 16

Proposal for a directive

Article 2 – paragraph 1 – point 5

Directive 2013/34/EU

Article 29aa

Text proposed by the Commission

Amendment

[...]

deleted

Amendment 17

Proposal for a directive

Article 2 – paragraph 1 – point 6 – point -a (new)

Directive 2013/34/EU

Article 29b – paragraph 1 – subparagraph 1

Present text

Amendment

(-a) in paragraph 1, the first subparagraph is replaced by the following:

The Commission shall adopt delegated acts in accordance with Article 49 supplementing this Directive to provide for sustainability reporting standards. Those sustainability reporting standards shall specify the information that undertakings are to report in accordance with Articles 19a and 29a and, where relevant, shall specify the structure to be used to present that information.

‘The Commission shall adopt delegated acts in accordance with Article 49 supplementing this Directive to provide for sustainability reporting standards. Those sustainability reporting standards shall specify the relevant information that undertakings are to report in accordance with Articles 19a and 29a and, where relevant, shall specify the structure to be used to present that information.

(02013L00034)

Amendment 18

Proposal for a directive

Article 2 – paragraph 1 – point 6 – point -a a (new)

Directive 2013/34/EU

Article 29b – paragraph 1 – subparagraph 2 a (new)

Present text

Amendment

(-aa) in paragraph 1, the following subparagraph is added after the second subparagraph:

‘The Commission shall adopt, in close cooperation with EFRAG and stakeholders, sector-specific guidelines on sustainability reporting to assist undertakings in applying the standards referred to in the second subparagraph to ensure a high level of consistency within the relevant sector.’

(02013L00034)

Amendment 19

Proposal for a directive

Article 2 – paragraph 1 – point 6 – point -a b (new)

Directive 2013/34/EU

Article 29b – paragraph 1 – subparagraph 2 b (new)

Present text

Amendment

(-ab) in paragraph 1, the following subparagraph is added after the second subparagraph:

‘The Commission shall assess the necessity of developing sector-specific sustainability reporting standards to assist undertakings in applying the horizontal standards in a manner that ensures a high level of relevance and consistency within the relevant sector. Where such sector-specific standards are deemed necessary and subsequently adopted, they shall replace, rather than supplement, those elements of the horizontal standards which they specifically address.’

(02013L00034)

Amendment 20

Proposal for a directive

Article 2 – paragraph 1 – point 6 – point a a (new)

Directive 2013/34/EU

Article 29b – paragraph 2 – subparagraph 1

Present text

Amendment

(aa) in paragraph 2, the first subparagraph is replaced by the following:

The sustainability reporting standards shall ensure the quality of reported information, by requiring that it is understandable, relevant, verifiable, comparable and represented in a faithful manner. The sustainability reporting standards shall avoid imposing a disproportionate administrative burden on undertakings, including by taking account, to the greatest extent possible, of the work of global standard-setting initiatives for sustainability reporting as required by point (a) of paragraph 5.

‘The sustainability reporting standards shall ensure the quality of reported information, by requiring that it is understandable, relevant, verifiable, comparable and represented in a faithful manner. The sustainability reporting standards shall emphasize the use of quantitative data and shall ensure interoperability with reporting requirements in accordance with other Union legislative acts, and shall avoid imposing a disproportionate financial and administrative burden on undertakings and shall ensure interoperability and compatibility with internationally-recognised standards set by global standard-setting initiatives for sustainability reporting as required by point (a) of paragraph 5.’

(02013L00034)

Amendment 21

Proposal for a directive

Article 2 – paragraph 1 – point 6 – point b

Directive 2013/34/EU

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

Text proposed by the Commission

Amendment

Sustainability reporting standards shall not specify disclosures that would require undertakings to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of1000 employees during the financial year any information that exceeds the information to be disclosed pursuant to the sustainability reporting standards for voluntary use referred to in Article 29ca.;

Sustainability reporting standards shall not specify disclosures that would require undertakings to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information to be disclosed pursuant to the sustainability reporting standards for voluntary use referred to in Article 29ca.

Amendment 22

Proposal for a directive

Article 2 – paragraph 1 – point 8

Directive 2013/34/EU

Article 29ca – paragraph 1

Text proposed by the Commission

Amendment

1. To facilitate voluntary reporting of sustainability information by undertakings other than those referred to in Articles 19a(1) and 29a(1), the Commission shall adopt a delegated act by [4 months after entry into force of this Directive] in accordance with Article 49 supplementing this Directive to provide for sustainability reporting standards for voluntary use by such undertakings.

Amendment 23

Proposal for a directive

Article 2 – paragraph 1 – point 8

Directive 2013/34/EU

Article 29ca – paragraph 2

Text proposed by the Commission

Amendment

2. The sustainability reporting standards referred to in paragraph 1 shall be proportionate to and relevant for the capacities and the characteristics of the undertakings for which they are designed and to the scale and complexity of their activities. They shall also, to the extent possible, specify the structure to be used to present such sustainability information.;

2. The sustainability reporting standards referred to in paragraph 1 shall be proportionate to and relevant for the capacities and the characteristics of the undertakings for which they are designed and to the scale and complexity of their activities, while preserving the high quality of data, ensuring precise information and effective assessments of sustainability performance and guiding investment towards the green and clean transition, in line with the overall objectives. They shall also, to the extent possible, specify the structure to be used to present such sustainability information.;

Amendment 24

Proposal for a directive

Article 2 – paragraph 1 – point 11 – point a

Directive 2013/34/EU

Article 34 – paragraph 1 – subparagraph 2 – point aa

Text proposed by the Commission

Amendment

(aa) where applicable, express an opinion based on a limited assurance engagement as regards the compliance of the sustainability reporting with the requirements of this Directive, including the compliance of the sustainability reporting with the sustainability reporting standards adopted pursuant to Article 29b, the process carried out by the undertaking to identify the information reported pursuant to those sustainability reporting standards, and the compliance with the requirement to mark up sustainability reporting in accordance with Article 29d, and as regards the compliance with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852;;

(aa) where applicable, express an opinion based on a limited assurance engagement as regards the compliance of the sustainability reporting with the requirements of this Directive, including the compliance of the sustainability reporting with the sustainability reporting standards adopted pursuant to Article 29b, the process carried out by the undertaking to identify the information reported pursuant to those sustainability reporting standards, as regards the compliance with the requirement to mark up sustainability reporting in accordance with Article 29d, and as regards the compliance with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852;

Amendment 25

Proposal for a directive

Article 2 – paragraph 1 – point 11 – point b

Directive 2013/34/EU

Article 34 – paragraph 2a

Text proposed by the Commission

Amendment

2a. Member States shall ensure that the opinion referred to in paragraph 1, second subparagraph, point (aa), is prepared in full respect of the obligation on undertakings not to seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned.;

2a. Member States shall ensure that the opinion referred to in paragraph 1, second subparagraph, point (aa), is prepared in full respect of the obligation on undertakings not to seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 750 employees and a net turnover of EUR 150 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca.;

Amendment 26

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point a

Directive 2013/34/EU

Article 40a – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

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

The first subparagraph shall only apply to large subsidiary undertakings as defined in Article 3(4) of this Directive, which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year.

Amendment 27

Proposal for a directive

Article 2 – paragraph 1 – point 13 – point a

Directive 2013/34/EU

Article 49 – paragraph 3c

Text proposed by the Commission

Amendment

3c. The power to adopt delegated acts referred to in Articles 19b(5), 29aa(5) and 29ca shall be conferred on the Commission for an indeterminate period from [date of entry into force of amending Directive].

3c. The power to adopt delegated acts referred to in Articles 29ca shall be conferred on the Commission for an indeterminate period from [date of entry into force of amending Directive].

Amendment 28

Proposal for a directive

Article 2 – paragraph 1 – point 13 – point a

Directive 2013/34/EU

Article 49 – paragraph 3d

Text proposed by the Commission

Amendment

3d. The delegations of powers referred to in Articles 19b(5), 29aa(5) and 29ca may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

3d. The delegations of powers referred to in Articles 29ca may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

Amendment 29

Proposal for a directive

Article 2 – paragraph 1 – point 13 – point a

Directive 2013/34/EU

Article 49 – paragraph 3e

Text proposed by the Commission

Amendment

3e. The Commission shall gather all necessary expertise, prior to the adoption and during the development of delegated acts pursuant to Articles 19b(5) and 29aa(5), including through the consultation of the experts of the Member State Expert Group on Sustainable Finance referred to in Article 24 of Regulation (EU) 2020/852.;

deleted

Amendment 30

Proposal for a directive

Article 2 – paragraph 1 – point 13 – point b

Directive 2013/34/EU

Article 49 – paragraph 5

Text proposed by the Commission

Amendment

5. A delegated act adopted pursuant to Article 1(2), Article 3(13), Article 19b, Article 29aa, Articles 29b, 29ca or 40b, or Article 46(2) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.

5. A delegated act adopted pursuant to Article 1(2), Article 3(13), Articles 29b, 29ca or 40b, or Article 46(2) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.

Amendment 31

Proposal for a directive

Article 3 – paragraph 1 – point 1 – point b – point i

Directive (EU) 2022/2464

Article 5 – paragraph 2 –subparagraph 1 – point b – point i

Text proposed by the Commission

Amendment

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

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

Amendment 32

Proposal for a directive

Article 3 – paragraph 1 – point 1 – point b – point ii

Directive (EU) 2022/2464

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

Text proposed by the Commission

Amendment

(ii) to parent undertakings of a large group which, on their balance sheet dates, exceed the average number of 1000 employees, on a consolidated basis, during the financial year;;

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

Amendment 33

Proposal for a directive

Article 3 – paragraph 1 – point 2 – point b – point i

Directive (EU) 2022/2464

Article 5 – paragraph 2 – subparagraph 3 – point b – point i

Text proposed by the Commission

Amendment

(i) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are large undertakings within the meaning of Article 3(4) of Directive 2013/34/EU which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year;;

(i) to issuers as defined in Article 2(1), point (d), of Directive 2004/109/EC which are large undertakings within the meaning of Article 3(4) of Directive 2013/34/EU which, on their balance sheet dates, exceed the average number of 1750 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year;

Amendment 34

Proposal for a directive

Article 3 – paragraph 1 – point 2 – point b – point ii

Directive (EU) 2022/2464

Article 5 – paragraph 2 – subparagraph 3 – point b – point ii

Text proposed by the Commission

Amendment

(ii) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are parent undertakings of a large group which, on its balance sheet dates, exceed the average number of 1000 employees , on a consolidated basis, during the financial year;;

(ii) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are parent undertakings of a large group which, on its balance sheet dates, exceed the average number 1750 employees and a net worldwide turnover of more than EUR 450 000 000, on a consolidated basis, during the financial year;

Amendment 35

Proposal for a directive

Article 4 – paragraph 1 – point 1

Directive (EU) 2024/1760

Article 1 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) the obligation for companies to adopt a transition plan for climate change mitigation, including implementing actions which aim to ensure, through best efforts, compatibility of the business model and of the strategy of the company with the transition to a sustainable economy and with the limiting of global warming to 1,5 oC in line with the Paris Agreement.;

(c) the obligation for companies with more than 3000 employees and an annual turnover of more than EUR 450 000 000 in the last financial year to adopt a transition plan for climate change mitigation, and to make all reasonable efforts and put into effect proportional implementing actions which aim to ensure, compatibility of the business model and of the strategy of the company with the transition to a sustainable economy and with the limiting of global warming in line with the Paris Agreement.;

Amendment 36

Proposal for a directive

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

Directive (EU) 2024/1760

Article 2 – paragraph 1 – point a

Present text

Amendment

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

(a) the company had more than 1 000 employees on average and had a net worldwide turnover of more than EUR 450 000 000 in the last financial year for which annual financial statements have been or should have been adopted;

‘(a) the company had more than 1750 employees on average and had a net worldwide turnover of more than EUR 450 000 000 in the last financial year for which annual financial statements have been or should have been adopted;’

(02024L1760)

Amendment 37

Proposal for a directive

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

Directive (EU) 2024/1760

Article 2 – paragraph 2 – point a

Present text

Amendment

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

(a) the company generated a net turnover of more than EUR 450 000 000 in the Union in the financial year preceding the last financial year;

‘(a) the company had more than 1750 employees on average and generated a net turnover of more than EUR 450 000 000 in the Union in the financial year preceding the last financial year;’

(02024L1760)

Amendment 38

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point v a (new)

Text proposed by the Commission

Amendment

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

‘(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.'

Amendment 39

Proposal for a directive

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

Directive (EU) 2024/1760

Article 8 – paragraph 2 – introductory part

Present text

Amendment

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

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

‘As part of the obligation set out in paragraph 1, taking into account relevant risk factors, including geographical and contextual risk factors, sectoral, product or service risk factors, as well as business operation or business partners’ risk factors, companies shall take appropriate measures to:’

(02024L1760)

Amendment 40

Proposal for a directive

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

Directive (EU) 2024/1760

Article 8 – paragraph 2 – point a

Present text

Amendment

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

(a) map their own operations, those of their subsidiaries and, where related to their chains of activities, those of their business partners, in order to identify general areas where adverse impacts are most likely to occur and to be most severe;

‘(a) map general risk areas across their own operations, those of their subsidiaries and, where related to their chains of activities, those of their direct and indirect business partners, in order to identify general areas where adverse impacts are most likely to occur and to be most severe;’

(02024L1760)

Amendment 41

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point a

Directive (EU) 2024/1760

Article 8 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) based on the results of the mapping as referred to in point (a), carry out and in-depth assessment of their own operations, those of their subsidiaries and, where related to their chains of activities, those of their direct business partners, in the areas where adverse impacts were identified to be most likely to occur and most severe.;

(b) based on the results of the risk mapping as referred to in point (a), carry out and in-depth assessment of their own operations, those of their subsidiaries and, where related to their chains of activities, of their direct business partners in areas where the potential risk of adverse impacts is high, have arisen or may arise;;

Amendment 42

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point a

Directive (EU) 2024/1760

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

Text proposed by the Commission

Amendment

(ba) carry out an in-depth assessment of an indirect business partner where there is plausible information suggesting that adverse impacts have arisen or may arise at the level of that indirect partner's operations.

Amendment 43

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2a

Text proposed by the Commission

Amendment

(b) the following paragraph 2a is inserted:

deleted

‘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.

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 3

Present text

Amendment

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

3. Member States shall ensure that, for the purposes of identifying and assessing the adverse impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the notification mechanism and the complaints procedure provided for in Article 14.

‘3. Member States shall ensure that, for the purposes of identifying and assessing the adverse impacts referred to in paragraph 2(b) based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the notification mechanism and the complaints procedure provided for in Article 14.’

(02024L1760)

Amendment 45

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point c

Directive (EU) 2024/1760

Article 8 – paragraph 4

Text proposed by the Commission

Amendment

4. Where information necessary for the in-depth assessment provided for in paragraph 2, point (b), and in paragraph 2a can be obtained from different business partners, the company shall prioritise requesting such information, where reasonable, directly from the business partner or partners where the adverse impacts are most likely to occur.

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.

Amendment 46

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point d

Directive (EU) 2024/1760

Article 8 – paragraph 5 – subparagraph 1

Text proposed by the Commission

Amendment

Member States shall ensure that, for the mapping provided for in paragraph 2, point (a), companies do not seek to obtain information from direct business partners with fewer than 500 employees that exceeds the information specified in the standards for voluntary use referred to in Article 29a of Directive 2013/34/EU.

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.

Amendment 47

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point d

Directive (EU) 2024/1760

Article 8 – paragraph 5 – subparagraph 2

Text proposed by the Commission

Amendment

By way of derogation to the first sub-paragraph, where additional information is necessary for the mapping provided for in paragraph 2, point (a), in light of indications of likely adverse impacts or because the standards do not cover relevant impacts, and where such additional information cannot reasonably be obtained by other means, the company may seek such information from that business partner.;

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.

Amendment 48

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point d

Directive (EU) 2024/1760

Article 8 – paragraph 5 – subparagraph 2 a (new)

Text proposed by the Commission

Amendment

Companies as referred to in Article 19a of Directive 2013/34/EU shall inform companies in their value chain with fewer than 750 employees and a net worldwide turnover of less than EUR 150 000 000 in the last financial year which information falls outside the information referred to in Article 29ca of Directive 2013/34/EU.

Amendment 49

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point d

Directive (EU) 2024/1760

Article 8 – paragraph 5 – 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.

Amendment 50

Proposal for a directive

Article 4 – paragraph 1 – point 7 – point a

Directive (EU) 2024/1760

Article 13 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

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

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

Amendment 51

Proposal for a directive

Article 4 – paragraph 1 – point 8

Directive (EU) 2024/1760

Article 15 – paragraph 1 – sentence 2

Text proposed by the Commission

Amendment

Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out without undue delay after a significant change occurs, but at least every 5 years and whenever there are reasonable grounds to believe that the measures are no longer adequate or effective or that new risks of the occurrence of those adverse impacts may arise.;

Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out without undue delay after a significant change occurs, but at least every 4 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.;

Amendment 52

Proposal for a directive

Article 4 – paragraph 1 – point 9

Directive (EU) 2024/1760

Article 19 – paragraph 3

Text proposed by the Commission

Amendment

3. The guidelines referred to in paragraph 2, point (a), shall be made available by 26 July 2026, those referred to in paragraph 2, points (d) and (e), by 26 January 2027, and those referred to in paragraph 2, points (b), (f) and (g), by 26 July 2027.;

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

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 10

Directive (EU) 2024/1760

Article 22 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

Member States shall ensure that companies referred to in Article 2(1), points (a), (b) and (c), and Article 2(2), points (a), (b) and (c), adopt a transition plan for climate change mitigation, including implementing actions, which aim to ensure, through best efforts, that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5°C in line with the Paris Agreement and the objective of achieving climate neutrality as established in Regulation (EU) 2021/1119, including its intermediate and 2050 climate neutrality targets, and where relevant, the exposure of the company to coal-, oil- and gas-related activities.;

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 54

Proposal for a directive

Article 4 – paragraph 1 – point 10

Directive (EU) 2024/1760

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

Text proposed by the Commission

Amendment

All reasonable efforts in the context of this Article shall be understood as taking proportional and reasonable implementing actions to ensure compatibility with the transition to a sustainable economy in line with the Paris Agreement, without having to exhaust all possible means at their disposal. Member States shall ensure that the obligation laid down in this Article is an obligation of means, not an obligation of results.;

Amendment 55

Proposal for a directive

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

Directive (EU) 2024/1760

Article 22 – paragraph 1 – subparagraph 2

Present text

Amendment

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

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

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

(a) time-bound targets related to climate change for 2030 and in five-year steps up to 2050 based on conclusive scientific evidence and, where appropriate, absolute emission reduction targets for greenhouse gas for scope 1, scope 2 and scope 3 greenhouse gas emissions for each significant category;

(a) objectives related to climate change for 2030 and in five-year steps up to climate neutrality in 2050 based on conclusive scientific evidence and, where appropriate, absolute emission reduction targets for greenhouse gas for scope 1, scope 2 and scope 3 greenhouse gas emissions for each significant category;

(b) a description of decarbonisation levers identified and key actions planned to reach the targets referred to in point (a), including, where appropriate, changes in the product and service portfolio of the company and the adoption of new technologies;

(b) a description of key decarbonisation levers identified and outlining implementation actions towards the objectives and targets referred to in point (a);

(c) an explanation and quantification of the investments and funding supporting the implementation of the transition plan for climate change mitigation; and

(c) a brief description of the investments and funding supporting the implementation of the transition plan for climate change mitigation.’

(d) a description of the role of the administrative, management and supervisory bodies with regard to the transition plan for climate change mitigation.

(02024L1760)

Amendment 56

Proposal for a directive

Article 4 – paragraph 1 – point 10 b (new)

Directive (EU) 2024/1760

Article 22 – paragraph 3

Present text

Amendment

(10b) in Article 22, paragraph 3 is replaced by the following:

3. Member States shall ensure that the transition plan for climate change mitigation referred to in paragraph 1 is updated every 12 months and contains a description of the progress the company has made towards achieving the targets referred to in paragraph 1, second subparagraph, point (a).

‘3. Member States shall ensure that the transition plan for climate change mitigation referred to in paragraph 1 is updated every 12 months, including a brief progress description.’;

(02024L1760)

Amendment 57

Proposal for a directive

Article 4 – paragraph 1 – point 11

Directive (EU) 2024/1760

Article 27 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission, in collaboration with Member States, shall issue guidance to assist supervisory authorities in determining the level of penalties in accordance with this Article. Member States shall not set a maximum limit of pecuniary penalties in their national law transposing this Directive that would prevent supervisory authorities from imposing penalties in accordance with the principles and factors set out in paragraphs 1 and 2.;

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.

ANNEX: DECLARATION OF INPUT

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:

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

Orgalim

Dansk Industri

Teknikföretagen

DigitalEurope

Hyundai Motor Europe

Swedish Society for Nature Conservation (Naturskyddsföreningen)

Confederation of Swedish Enterprise

BusinessEurope

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

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

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that 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.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Amending Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464 and (EU) 2024/1760 as regards certain corporate sustainability reporting and due diligence requirements

References

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

Committee(s) responsible

Date announced in plenary

JURI

31.3.2025

Opinion by

Date announced in plenary

ENVI

31.3.2025

Rapporteur for the opinion

Date appointed

Jessica Polfjärd

23.4.2025

Simplified procedure - date of decision

10.3.2025

Date adopted

15.7.2025

Result of final vote

–:

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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