Sittings · Document

Draft report (COM(2025)0081 – C100037/2025 – 2025/0045(COD)) 2025-07-08

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 Legal Affairs

Official HTML ↗ PDF DOCX

AM_Com_LegReport

Amendment 470

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 10

Directive 2013/34/EU

Article 33 – paragraph 1- subparagraph 1 – introdutory part

Text proposed by the Commission

Amendment

1. Member States shall ensure that the members of the administrative, management and supervisory bodies of an undertaking, acting within the competences assigned to them by national law, have collective responsibility for ensuring that the following documents are drawn up and published in accordance with the requirements of this Directive and, where applicable, with the international accounting standards adopted pursuant to Regulation (EC) No 1606/2002, with Delegated Regulation (EU) 2019/815, with the sustainability reporting standards referred to in Article 29b of this Directive, and with the requirements of Article 29d of this Directive:

Or. en

Amendment 471

Pascal Canfin

Proposal for a directive

Article 2 – paragraph 1 – point 10

Directive 2013/34/EU

Article 33 – paragraph 1 - subparagraph 1 - introductory part

Text proposed by the Commission

Amendment

Member States shall ensure that the members of the administrative, management and supervisory bodies of an undertaking, acting within the competences assigned to them by national law, have collective responsibility for ensuring that the following documents are drawn up and published in accordance with the requirements of this Directive and, where applicable, with the international accounting standards adopted pursuant to Regulation (EC) No 1606/2002, with Delegated Regulation (EU) 2019/815, with the sustainability reporting standards referred to in Article 29b of this Directive, and with the requirements of Article 29d of this Directive:

Member States shall ensure that the members of the administrative, management and supervisory bodies of an undertaking, acting within the competences assigned to them by national law, have collective responsibility for ensuring that the following documents are drawn up and published in accordance with the requirements of this Directive and, where applicable, with the international accounting standards adopted pursuant to Regulation (EC) No 1606/2002, with Delegated Regulation (EU) 2019/815, with the sustainability reporting standards referred to in Article 29b or Article 29ba of this Directive, and with the requirements of Article 29d of this Directive:

Or. en

Justification

This amendment takes into account the newly created S-ESRS.

Amendment 472

Lara Wolters, René Repasi, Chloé Ridel, Ana Catarina Mendes, Tiemo Wölken, Krzysztof Śmiszek, Kathleen Van Brempt, Eric Sargiacomo, Leire Pajín, José Cepeda, Estelle Ceulemans, Francisco Assis, Brando Benifei, Mohammed Chahim, Victor Negrescu, Evelyn Regner

Proposal for a directive

Article 2 – paragraph 1 – point 10

Directive 2013/34/EU

Article 33 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 473

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 2 – paragraph 1 – point 10

Directive 2013/34/EU

Article 33 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 474

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 10

Directive 2013/34/EU

Article 33 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

By way of derogation from subparagraph 1, Member States shall ensure that the members of the administrative, management and supervisory bodies of an undertaking, acting within the competences assigned to them by national law, do not have collective responsibility for ensuring that the management report, or consolidated management report, where applicable, is prepared in accordance with Article 29d. The liability of the members of the designated bodies should be assessed taking into account the individual circumstances, within the limits freely determined by the Member State.;

Or. en

Amendment 475

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 2 – paragraph 1 – point 11

Directive 2013/34/EU

Article 34 – paragraphs 1 and 2a

Text proposed by the Commission

Amendment

(11) Article 34 is amended as follows:

deleted

(a) paragraph 1, second subparagraph, point (aa), is replaced by the following:

‘(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;’;

(b) the following paragraph 2a is inserted:

‘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.’;

Or. fr

Justification

Limiter la capacité des entreprises à demander les informations nécessaires en matière de durabilité à leurs partenaires commerciaux restreindra leur aptitude à évaluer correctement leur impact en la matière et à prendre les mesures appropriées pour s’améliorer. Restreindre le reporting de la part des partenaires commerciaux réduira la transparence au sein des chaînes de valeur et limitera la capacité des entreprises, des secteurs industriels et des décideurs politiques à mettre en œuvre des changements fondés sur des données probantes. Selon l’avis de la BCE sur le paquet Omnibus, l’actuel manque de disponibilité, de qualité, de granularité, de comparabilité et de transparence des données ESG constitue un défi majeur. La simplification ne doit pas restreindre la collecte de données nécessaires à la gestion des risques ni entraver la supervision. Par ailleurs, la norme volontaire pour les PME a été conçue pour les entreprises de moins de 250 salariés et n’a pas été testée pour des entreprises de taille plus importante. Le rapport Draghi a recommandé d’utiliser la norme applicable aux PME cotées, et non la norme volontaire pour les PME..

Amendment 476

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 11

Directive 2013/34/UE

Article 34 – paragraphs 1 and 2a

Text proposed by the Commission

Amendment

(11) Article 34 is amended as follows:

(11) Article 34 is deleted;

(a) paragraph 1, second subparagraph, point (aa), is replaced by the following:

(b) the following paragraph 2a is inserted:

Or. en

Amendment 477

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 2 – paragraph 1 – point 11 – point a

Directive 2013/34/EU

Article 34 – paragraph 1 – second subparagraph – 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 or article 29c, 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. The opinion shall be focused on the undertaking’s compliance with the topical sustainability reporting standards disclosures, the Minimum Disclosure Requirements on PAT and standardised metrics, and the proper execution of the double materiality assessment;’;

Or. en

Amendment 478

Mario Mantovani

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

Or. it

Justification

The Directive also requires an external attestation for the information provided under the Taxonomy Regulation. However, given that the criteria used for gauging how activities can be considered sustainable presuppose technical skills of a scientific/engineering nature that do not fall within the competence of the attestors, it is proposed to exclude external attestation for this type of information. The amendment also incorporates the change to the mark-up proposed by Article 29d.

Amendment 479

Pascal Canfin

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 or Article 29ba, the relevance of the results of the double materiality assessment allowing to identify the material information to be 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;;

Or. en

Justification

Auditors should express an opinion on the ESRS and the S-ESRS. Moreover, auditors shouldn't focus their opinion on the process but rather the results of un undertaking's report.

Amendment 480

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 and Article 29ca, 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;;

Or. en

Amendment 481

Tobiasz Bocheński, Kosma Złotowski

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

Or. en

Amendment 482

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross

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.;

Or. en

Amendment 483

Mario Mantovani

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

Or. it

Justification

The text opens up the possibility of requiring additional data to the VSME standard, developed through extensive discussion with all stakeholders. The VSME standard includes information on all material impacts. It is necessary to anchor to the VSME standard the level of information that companies falling within the scope of the Directive may require from micro and SMEs. This creates a fundamental guarantee that protects smaller operators against any disproportionate red tape. Therefore, the derogation should be deleted.

Amendment 484

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 with a risk-based approach and does not result in additional requests for information to other entities in the undertaking's value chain, unless there is a reasonable indication of sustainability risks, or the information is necessary for the undertaking's sustainability reporting and cannot reasonably or sufficiently be obtained by other means.

Or. en

Amendment 485

Tobiasz Bocheński, Kosma Złotowski

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 10 000 employees during the financial year any information that exceeds the information specified in the instructions for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned.;

Or. en

Amendment 486

Pascal Canfin

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 possibility of undertakings in the value chain that have up to 500 employees on average during the financial year to decline to provide to the reporting undertakings any information that goes beyond the information specified in the standards for voluntary us by undertakings that are not required to report on their sustainability , except for additional sustainability information that is commonly shared between undertakings in the sector concerned.;

Or. en

Justification

A right is given to undertakings below the 500 employees thresholds to not provide any information beyond the standard for voluntary use. This will allow contractual arrangement and will mean that a large undertaking with thousands of suppliers will not have to know the exact number of employees of undertakings in their value chains before requesting information.

Amendment 487

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

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 250 employees during the financial year any information that exceeds the information specified in the standards for mandatory or voluntary use referred to in Article 29c except for additional sustainability information that is commonly shared between undertakings in the sector concerned.’;

Or. en

Amendment 488

Pascal Canfin

Proposal for a directive

Article 2 – paragraph 1 – point 11 – point b a (new)

Directive 2013/34/EU

Article 34 – paragraph 2b (new)

Text proposed by the Commission

Amendment

(ba) the following paragraph 2b is inserted:

‘Member States shall ensure that the opinion referred to in paragraph 1, second subparagraph, point (aa), is prepared in full respect of the possibility of undertakings in the value chain to omit to provide information in exceptional cases where an undertaking in a non-EU third-country could be sanctioned due to third-country legislation simply by transmitting sustainability data.’

Or. en

Justification

In light of recent attempts of foreign legislation to block the sharing of data from non-EU countries to Union companies, we believe undertakings should not be under sanctions' threats if they want to share data. To prevent these risks, there should be a way for companies to replace these data to default values, which are estimation of the average of an indicator for a given country and sector. When these default values are not available, companies should not be responsible for third country laws. This amendment therefore allows auditors to take this into account.

Amendment 489

Proposal for a directive

Article 2 – paragraph 1 – point 11 – point b a (new)

Directive 2013/34/EU

Article 34 – paragraph 2b (new)

Text proposed by the Commission

Amendment

(ba) the following paragraph 2b is inserted:

‘‘2b. The entity used to provide assurance of the undertaking’s sustainability reporting and disclosures shall not be used to carry out other statutory audits for the same undertaking. When more than one audit firm is used by an undertaking, at least one entity appointed shall have a total market share in the EU of no more than 10%’

Or. en

Amendment 490

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 2 – paragraph 1 – point 11 – point b a (new)

Directive 2013/34/EU

Article 34 – paragraph 3

Present text

Amendment

(ba) paragraph 3 is replaced by the following:

3. Member States may allow a statutory auditor or an audit firm other than the one(s) carrying out the statutory audit of financial statements to express the opinion referred to in point (aa) of the second subparagraph of paragraph 1.

3. Member States shall ensure a statutory auditor or an audit firm other than the one(s) carrying out the statutory audit of financial statements, or an independent assurance services provider that fulfils the requirements set out in paragraph 4, is to express the opinion referred to in point (aa) of the second subparagraph of paragraph 1.’;

Or. en

Amendment 491

Proposal for a directive

Article 2 – paragraph 1 – point 11 – point b b (new)

Directive 2013/34/EU

Article 34 – paragraph 4 –subparagraph 1 – introductory part

Prensent text

Amendment

(bb) in paragraph 4, the introductory part of the first subparagraph is replaced by the following

4. Member States may allow an independent assurance services provider established in their territory to express the opinion referred to in point (aa) of the second subparagraph of paragraph 1, provided that such independent assurance services provider is subject to requirements that are equivalent to those set out in Directive 2006/43/EC of the European Parliament and of the Council as regards the assurance of sustainability reporting as defined in point 22 of Article 2 of that Directive, in particular the requirements on:

4. Member States shall allow an independent assurance services provider established in their territory to express the opinion referred to in point (aa) of the second subparagraph of paragraph 1, provided that such independent assurance services provider is subject to requirements that are equivalent to those set out in Directive 2006/43/EC of the European Parliament and of the Council as regards the assurance of sustainability reporting as defined in point 22 of Article 2 of that Directive, in particular the requirements on:

Or. en

Amendment 492

Proposal for a directive

Article 2 – paragraph 1 – point 11 – point b c (new)

Directive 2013/34/EU

Article 34 – paragraph 6

Present text

Amendment

(bc) paragraph 6 is replaced by the following:

6. Member States shall ensure that where an undertaking is required by Union law to have elements of its sustainability reporting verified by an accredited independent third party, the report of the accredited independent third party is made available either as an annex to the management report or by other publicly accessible means.

'6. Member States shall ensure that where an undertaking is required by Union law to have elements of its sustainability reporting verified by an accredited independent third party, the report of the accredited independent third party is made available either as an annex to the management report or by other publicly accessible means. The report of the accredited independent third party shall include the fees charged for the verification of the undertaking’s sustainability reporting.'

Or. en

Amendment 493

Pascal Canfin

Proposal for a directive

Article 2 – paragraph 1 – point 11 – point b b (new)

Directive 2013/34/EU

Article 34 – paragraph 6 a (new)

Text proposed by the Commission

Amendment

(bb) the following paragraph 7 is added:

‘6 a. Member States shall ensure that the following applies to medium-large undertakings that are referred to in Article 19a(5a), and report in accordance with the simplified sustainability reporting standards under Article 29ba:

(a) Medium-large undertakings that are referred to in Article 19a(5a), and report in accordance with the simplified sustainability reporting standards under Article 29ba of this Directive are exempted from the requirements under Article 34(1)(aa) of this Directive for the two first years of reporting.’

(b) Medium-large undertakings that are referred to in Article 19a(5a), and report in accordance with the simplified sustainability reporting standards under Article 29ba of this Directive may, after the two first years of reporting referred in paragraph (a) above, apply the requirements under Article 34(1)(aa) of this Directive every other year.

(c) Medium-large undertakings that are referred to in Article 19a(5a), and report in accordance with the simplified sustainability reporting standards under Article 29ba of this Directive will only need to apply the auditing requirements under Article 34(1)(aa) of this Directive on the quantitative indicators for their first report referred in paragraph (b) above. The auditing requirements under Article 34(1)(aa) will fully apply for the next ones.

Or. en

Justification

Alongside the S-ESRS, medium-large undertaking should not have the same level of auditing that applies to large undertakings. For that reason, this amendment creates a five-year phasing in approach, whereby there is no need to have any audit on the report for the first two years, and after that only every other year. Moreover, for the first report medium-large undertakings will only need to apply the audit requirements on quantitative indicators. Other indicators will be audited in the next report.

Amendment 494

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 2 – paragraph 1 – point 12

Directive 2013/34/EU

Article 40a – paragraph 1 – second, fourth and fifth subparagraph

Text proposed by the Commission

Amendment

(12) in Article 40a, paragraph 1 is amended as follows:

deleted

(a) the second subparagraph is replaced by the following:

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

(b) the fourth and fifth subparagraphs are replaced by the following:

‘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.

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. ’;

Or. en

Amendment 495

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 12 – introductory part

Directive 2013/34/EU

Article 40a – paragraph 1 – second, fourth and fifth subparagraph

Text proposed by the Commission

Amendment

(12) in Article 40a, paragraph 1 is amended as follows:

[...]

(12) Article 40a is deleted;

Or. en

Amendment 496

Pascal Canfin

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point -a (new)

Directive 2013/34/EU

Article 40a – paragraph 1 – subparagraph 1

Present text

Amendment

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

A Member State shall require that a subsidiary undertaking established in its territory whose ultimate parent undertaking is governed by the law of a third country publish and make accessible a sustainability report covering the information specified in points (a)(iii) to (a)(v), points (b) to (f) and, where appropriate, point (h) of Article 29a(2) at the group level of that ultimate third-country parent undertaking.

A Member State shall require that a subsidiary undertaking established in its territory whose ultimate parent undertaking is governed by the law of a third country publish and make accessible a sustainability report covering the information specified in paragraph 2 at the group level of that ultimate third-country parent undertaking.

Or. en

Justification

To preserve a level playing-field between EU and non-EU companies, we believe that the threshold of turnover should be lowered to EUR 150 million in the European Union to trigger a consolidated report under article 40(a) for third-country companies. Moreover, as the ESRS will be considerably simplified and as the European companies have to report under the ESRS for the worldwide activities, we propose to level the playing-field with third-country companies and have them report under the ESRS.

Amendment 497

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point a

Directive 2013/34/EU

Article 40a – paragraph 1 – second subparagraph

Text proposed by the Commission

Amendment

(a) the second subparagraph is replaced by the following:

deleted

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

Or. fr

Amendment 498

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point a

Directive 2013/34/EU

Article 40a – paragraph 1 – second subparagraph

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 subsidiary undertakings which on their balance sheet dates exceed at least two of the three following criteria:

(i) balance sheet total: EUR 2 000 000 000;

(ii) net turnover: EUR 500 000 000;

(iii) average number of employees during the financial year: 10 000’;

Or. en

Amendment 499

Angelika Niebler, Christian Doleschal, Stefan Köhler, Markus Ferber, Andrea Wechsler, Andreas Schwab, Christine Schneider, Ralf Seekatz, David McAllister, Oliver Schenk, Daniel Caspary, Norbert Lins, Sabine Verheyen, Christian Ehler, Isabelle Le Callennec, Laurent Castillo, François-Xavier Bellamy, Christophe Gomart, Lukas Mandl, Céline Imart, Verena Mertens, Marion Walsmann, Angelika Winzig

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 subsidiary undertakings which, on their balance sheet dates, exceed the average number of 5000 employees and a net turnover of EUR 1.5 billion in the preceding financial year.’;

Or. en

Amendment 500

Maravillas Abadía Jover, Adrián Vázquez Lázara

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point a

Directive 2013/34

Art 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 3000 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year;

(This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

Or. en

Amendment 501

Pascal Canfin

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, except micro undertakings, which are public-interest entities as defined in point (a) of point (1) of Article 2. ’

Or. en

Justification

Amendment 502

Pascal Canfin

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point a a (new)

Directive 2013/34/EU

Article 40a – paragraph 1 – suparagraph 3

Present text

Amendment

(aa) the third subparagraph is amended as followed:

A Member State shall require that a branch located in its territory, and which is a branch of an undertaking governed by the law of a third country, which is either not part of a group or is ultimately held by an undertaking that is formed in accordance with the law of a third country publish and make accessible a sustainability report covering the information specified in points (a)(iii) to (a)(v), points (b) to (f) and, where appropriate, point (h) of Article 29a(2), at the group level, or, if not applicable, the individual level, of the third-country undertaking.

'A Member State shall require that a branch located in its territory, and which is a branch of an undertaking governed by the law of a third country, which is either not part of a group or is ultimately held by an undertaking that is formed in accordance with the law of a third country publish and make accessible a sustainability report specified in paragraph 2 at the group level, or, if not applicable, the individual level, of the third-country undertaking'

Or. en

Justification

Amendment 503

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point b

Directive 2013/34/EU

Article 40a – paragraph 1 – subparagraphs 4 and 5

Text proposed by the Commission

Amendment

(b) the fourth and fifth subparagraphs are replaced by the following:

deleted

Or. en

Amendment 504

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point b

Directive 2013/34/EU

Article 40a – paragraph 1 – subparagraph 4

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.

Or. en

Amendment 505

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point b

Directive 2013/34/EU

Article 40a – paragraph 1 – fifth subparagraph

Text proposed by the Commission

Amendment

‘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.’;

deleted

Or. fr

Justification

The threshold for inclusion in the scope of the CSRD should not be raised and the same applies to the thresholds for third-country undertakings. It should be noted that the ECB opinion on the Omnibus proposal recommends not amending the turnover thresholds for third-country undertakings.

Amendment 506

Pascal Canfin

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point b

Directive 2013/34/EU

Article 40a – paragraph 1 – subparagraph 5

Text proposed by the Commission

Amendment

The first and third subparagraphs shall only apply where a third-country undertaking has at least one subsidiary or branch in the Union, and where the third-country undertaking, at its group level, or, if not applicable, the individual level, generated a net turnover of more than EUR 150 000 000 in the Union for each of the last two consecutive financial years.

Or. en

Justification

Amendment 507

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point b

Directive 2013/34/EU

Article 40a – paragraph 1 – subparagraph 5

Text proposed by the Commission

Amendment

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 2 000 000 000 for each of the last two consecutive financial years.;

Or. en

Amendment 508

Pascale Piera, Julie Rechagneux, Ton Diepeveen

Proposal for a directive

Article 2 – paragraph 1 – point 12 – point b

Directive 2013/34/EU

Article 40a, paragraph 1 – subparagraph 5

Text proposed by the Commission

Amendment

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 1 000 000 000 for each of the last two consecutive financial years.;

Or. en

Amendment 509

Pascal Canfin

Proposal for a directive

Article 2 – paragraph 1 – point 12 a (new)

Directive 2013/34/EU

Article 40a –– paragraph 2 and 4

Present text

Amendment

(12a) in Article 40a, paragraphs 2 and 4 are amended as follows:

2. Member States shall require that the sustainability report communicated by the subsidiary undertaking or branch as referred to in paragraph 1 is drawn up in accordance with the standards adopted pursuant to Article 40b.

By way of derogation from the first subparagraph of this paragraph, the sustainability report referred to in paragraph 1 of this Article may be drawn up in accordance with the sustainability reporting standards adopted pursuant to Article 29b or in a manner equivalent to those sustainability reporting standards, as determined in accordance with an implementing act on the equivalence of sustainability reporting standards adopted pursuant to the third subparagraph of Article 23(4) of Directive 2004/109/EC.

2. Member States shall require that the group level sustainability report communicated by the subsidiary undertaking or branch as referred to in paragraph 1 is drawn up in accordance with the sustainability reporting standards adopted pursuant to Article 29b or in a manner equivalent to those sustainability reporting standards, as determined in accordance with an implementing act on the equivalence of sustainability reporting standards adopted pursuant to the third subparagraph of Article 23(4) of Directive 2004/109/EC.

Where the information required to draw up the sustainability report referred to in the first subparagraph of this paragraph is not available, the subsidiary undertaking or branch referred to in paragraph 1 shall request the third-country undertaking to provide them with all information necessary to enable them to meet their obligations.

Where the information required to draw up the sustainability report referred to in this article is not available, the subsidiary undertaking or branch referred to in paragraph 1 shall request the third-country undertaking to provide them with all information necessary to enable them to meet their obligations.

In the event that not all the required information is provided, the subsidiary undertaking or branch referred to in paragraph 1 shall draw up, publish and make accessible the sustainability report referred to in paragraph 1, containing all information in its possession, obtained or acquired, and issue a statement indicating that the third-country undertaking did not make the necessary information available. In such a case, and at minimum, the sustainability report referred to in paragraph 1 shall encompass the aggregated information of all the subsidiaries and branches in the Union.

4. Member States may inform the Commission on an annual basis of the subsidiary undertakings or branches of third-country undertakings that fulfilled the publication requirement laid down in Article 40d and of the cases where a report was published but where the subsidiary undertaking or branch has acted in accordance with the fourth subparagraph of paragraph 2 of this Article. The Commission shall make publicly available on its website a list of the third-country undertakings that publish a sustainability report.

4. Member States may inform the Commission on an annual basis of the subsidiary undertakings or branches of third-country undertakings that fulfilled the publication requirement laid down in Article 40d and of the cases where a report was published but where the subsidiary undertaking or branch has acted in accordance with the third subparagraph of paragraph 2 of this Article. The Commission shall make publicly available on its website a list of the third-country undertakings that publish a sustainability report.

Or. en

Justification

Amendment 510

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 12 a (new)

Directive 2013/34/EU

Article 40b

Text proposed by the Commission

Amendment

(12a) Article 40b is deleted;

Or. en

Amendment 511

Pascal Canfin

Proposal for a directive

Article 2 – paragraph 1 – point 12 b (new)

Directive 2013/34/EU

Article 40b

Text proposed by the Commission

Amendment

(12b) Article 40b is deleted

Or. en

Justification

If non-EU group undertakings report under the ESRS to ensure a level-playing field with Union undertakings, non-EU standards will not be needed.

Amendment 512

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 12 b (new)

Directive 2013/34/EU

Article 40c

Text proposed by the Commission

Amendment

(12b) Article 40c is deleted;

Or. en

Amendment 513

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 2 – paragraph 1 – point 12 c (new)

Directive 2013/34/EU

Article 40d

Text proposed by the Commission

Amendment

(12c) Article 40d is deleted;

Or. en

Amendment 514

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 2 – paragraph 1 – point 13 – point -a (new)

Directive 2013/34/EU

Article 49 – paragraph 2

Present text

Amendment

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

2. The power to adopt delegated acts referred to in Article 1(2), Article 3(13), Articles 29b, 29c and 40b, and Article 46(2) shall be conferred on the Commission for a period of 5 years from 5 January 2023. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the 5-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

2. The power to adopt delegated acts referred to in Article 1(2), Article 3(13), Articles 19b(5), 29aa(5), 29b, 29c, 29ca, 40b, and Article 46(2) shall be conferred on the Commission for a period of 5 years from 5 January 2023. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the 5-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

Or. en

Amendment 515

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 2 – paragraph 1 – point 13 – point - -aa (new)

Directive 2013/34/EU

Article 49 – paragraph 3

Present text

Amendment

(-aa) paragraph 3 is replaced by the following:

3. The delegation of power referred to in Article 1(2), Article 3(13), Articles 29b, 29c and 40b, and Article 46(2) 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 that 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.

3. The delegation of power referred to in Article 1(2), Article 3(13), Articles 19b(5), 29aa(5), 29b, 29c, 29ca, 40b, and Article 46(2) 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 that 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.

Or. en

Amendment 516

Proposal for a directive

Article 2 – paragraph 1 – point 13 – point - -a (new)

Directive 2013/34/UE

Article 49 – paragraph 3b

Present text

Amendment

(-a) in paragraph 3b, the introductory part and the fourth and sixt subparagraphs are amended as follows:

3b. When adopting delegated acts pursuant to Articles 29b and 29c, the Commission shall take into consideration technical advice from EFRAG, provided that:

'3b. When adopting delegated acts pursuant to Articles 29b and 29ca, the Commission shall take into consideration technical advice from EFRAG, provided that:

The Commission shall consult jointly the Member State Expert Group on Sustainable Finance, referred to in Article 24 of Regulation (EU) 2020/852, and the Accounting Regulatory Committee, referred to in Article 6 of Regulation (EC) No 1606/2002, on the draft delegated acts prior to their adoption as referred to in Articles 29b and 29c of this Directive.

The Commission shall also consult the European Environment Agency, the European Union Agency for Fundamental Rights, the European Central Bank, the Committee of European Auditing Oversight Bodies and the Platform on Sustainable Finance established pursuant to Article 20 of Regulation (EU) 2020/852 on the technical advice provided by EFRAG prior to the adoption of delegated acts referred to in Articles 29b and 29c of this Directive. If any of those bodies decide to submit an opinion, they shall do so within two months of the date of being consulted by the Commission.

The Commission shall also consult the European Environment Agency, the European Union Agency for Fundamental Rights, the European Central Bank, the Committee of European Auditing Oversight Bodies and the Platform on Sustainable Finance established pursuant to Article 20 of Regulation (EU) 2020/852 on the technical advice provided by EFRAG prior to the adoption of delegated acts referred to in Articles 29b and 29ca of this Directive. If any of those bodies decide to submit an opinion, they shall do so within two months of the date of being consulted by the Commission.

Or. en

Amendment 517

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Raffaele Stancanelli

Proposal for a directive

Article 2 – paragraph 1 – point 13

Directive 2013/34/EU

Article 49 – paragraphs 3c to 3e

Text proposed by the Commission

Amendment

(13) Article 49 is amended as follows:

deleted

(a) the following paragraphs 3c to 3e are inserted:

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].

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.

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. ’;

(b) paragraph 5 is replaced by the following:

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.’

Or. en

Amendment 518

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 2 – paragraph 1 – point 13 – point a

Directive 2013/34/EU

Article 49 – paragraphs 3c to 3e

Text proposed by the Commission

Amendment

(a) the following paragraphs 3c to 3e are inserted:

deleted

Or. en

Amendment 519

Proposal for a directive

Article 2 – paragraph 1 – point 13 – point a – introductory part

Directive 2013/34/EU

Article 49 – paragraphs 3c to 3e

Text proposed by the Commission

Amendment

(a) the following paragraphs 3c to 3e are inserted:

(a) the following paragraphs 3c and 3d are inserted:

Or. en

Amendment 520

Pascal Canfin

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 19b(5), 29aa(5), 29ba and 29ca shall be conferred on the Commission for an indeterminate period from [date of entry into force of amending Directive].

Or. en

Justification

The delegated act for the new S-ESRS should also be included.

Amendment 521

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 Article 29ca shall be conferred on the Commission for an indeterminate period from [date of entry into force of amending Directive].

Or. en

Amendment 522

Pascal Canfin

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), 29ba 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.

Or. en

Justification

The delegated act for the new S-ESRS should also be included.

Amendment 523

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 Article 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.

Or. en

Amendment 524

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

deleted

Or. en

Amendment 525

Pascal Canfin

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), 29aa(5) and 29ba 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.;

Or. en

Justification

The delegated act for the new S-ESRS should also be included.

Amendment 526

Pascal Canfin

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), Article 19b, Article 29aa, Articles 29b, 29ba, 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..

Or. en

Justification

The delegated act for the new S-ESRS should also be included.

Amendment 527

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), 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.

Or. en

Amendment 528

Arash Saeidi, Mario Furore

on behalf of The Left Group

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), Article 19b, Article 29aa, Articles 29b 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 of the Council.’.

Or. fr

Justification

La publication simplifiée d’informations en matière de durabilité ne doit pas être remplacée par la norme volontaire pour les PME. La norme volontaire pour les PME a été conçue pour les PME, et non pour les entreprises comptant entre 250 et 1 000 salariés. Elle n’a pas été testée pour ces grandes entreprises. L’objectif des PME volontaires était d’établir une base pour les demandes de données adressées aux PME en détaillant les données ESG essentielles pertinentes pour toutes les PME. Il omet toutefois des informations importantes concernant l’exposition à des chaînes de valeur à haut risque, les risques climatiques et les émissions de gaz à effet de serre, mais aussi la durabilité sociale.

Amendment 529

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 3

Directive (EU) 2022/2464

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

Article 3

deleted

Amendments to Directive (EU) 2022/2464

In Directive (EU) 2022/2464, Article 5(2) is amended as follows:

(1) the first subparagraph is amended as follows:

(a) point (a) is deleted;

(b) point (b) is amended as follows:

(i) point (i) is replaced by the following:

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

(ii) point (ii) is replaced by the following:

(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’;

(2) the third subparagraph is amended as follows:

(a) point (a) is deleted;

(b) point (b) is amended as follows:

(i) point (i) is replaced by the following:

(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’;

(ii) point (ii) is replaced by the following:

(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’;

Or. en

Amendment 530

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross

Proposal for a directive

Article 3 - title

Directive 2022/2464/EU

Title

Text proposed by the Commission

Amendment

Amendments to Directive (EU) 2022/2464

Repeal of Directive (EU) 2022/2464

Or. en

Amendment 531

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross

Proposal for a directive

Article 3 – introductory part

Directive 2022/2464/EU

Title

Text proposed by the Commission

Amendment

In Directive (EU) 2022/2464, Article 5(2) is amended as follows:

Directive (EU) 2022/2464 is repealed.

Or. en

Amendment 532

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 3 – introductory part

Text proposed by the Commission

Amendment

In Directive (EU) 2022/2464, Article 5(2) is amended as follows:

Directive (EU) 2022/2464 is repealed.

Or. en

Amendment 533

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 3 – paragraph 1 – point 1

Directive (EU) 2022/2464

Article 5 – paragraph 2 – first subparagraph

Text proposed by the Commission

Amendment

(1) the first subparagraph is amended as follows:

deleted

(a) point (a) is deleted;

(b) point (b) is amended as follows:

(i) point (i) is replaced by the following:

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

(ii) point (ii) is replaced by the following:

‘(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;’;

Or. fr

Justification

Increasing the threshold for CSRD reporting to 1 000 employees will remove 80 % of companies from the scope and seriously reduce the effectiveness of the Directive in driving positive change in companies. Moreover, SMEs that are public-interest undertakings should not be excluded from the scope of the CSRD as some of them can have significant environmental and social impacts.

Amendment 534

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 3 – paragraph 1 – point 1 – point b

Directive (EU) 2022/2464

Article 5 – paragraph 2 – first subparagraph – point b

Text proposed by the Commission

Amendment

(b) point (b) is amended as follows:

deleted

(i) point (i) is replaced by the following:

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

(ii) point (ii) is replaced by the following:

‘(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;’;

Or. fr

Amendment 535

Tobiasz Bocheński, Kosma Złotowski

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 10 000 employees and a net turnover above EUR 2 000 000 000 or a balance sheet total above EUR 500 000 000 during the financial year;

Or. en

Amendment 536

Maravillas Abadía Jover, Adrián Vázquez Lázara

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 3000 employees and a net worldwide turnover of more than EUR 450 000 000 during the financial year;

Or. en

Amendment 537

Emil Radev

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 undertakings which, on their balance sheet dates, exceed the average number of 5000 employees and a net turnover of EUR 700 000 000 during the financial year;’;

(This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

Or. en

Amendment 538

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 undertakings which, on their balance sheet dates, exceed the average number of 5000 employees and a net turnover of EUR 1.5 billion during the financial year ;;

Or. en

Amendment 539

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross

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 10000 employees during the financial year;;

Or. en

Amendment 540

Pascal Canfin

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 500 employees during the financial year;;

Or. en

Amendment 541

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 500 employees during the financial year;;

Or. en

Amendment 542

Adrián Vázquez Lázara, Maravillas Abadía Jover

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 3000 employees and a net worldwide turnover of more than EUR 450 000 000, on a consolidated basis, during the financial year;

Or. en

Amendment 543

Tobiasz Bocheński, Kosma Złotowski

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 10 000 employees and a net turnover above EUR 2 000 000 000 or a balance sheet total above EUR 500 000 000, on a consolidated basis, during the financial year;

Or. en

Amendment 544

Angelika Winzig, Lukas Mandl

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 3 000 employees, on a consolidated basis, during the financial year and whose turnover exceeds EUR 450 million;

Or. de

Amendment 545

Emil Radev

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 group which, on their balance sheet dates, exceed the average number of 5000 employees and a net turnover of EUR 700 000 000, on a consolidated basis, during the financial year;’;

Or. en

Amendment 546

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross

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 10000 employees, on a consolidated basis, during the financial year;;

Or. en

Amendment 547

Pascal Canfin

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 500 employees, on a consolidated basis, during the financial year;;

Or. en

Amendment 548

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 500 employees, on a consolidated basis, during the financial year;;

Or. en

Amendment 549

Adrián Vázquez Lázara, Maravillas Abadía Jover

Proposal for a directive

Article 3 – paragraph 1 – point 1 – point b – point ii a (new)

Directive (EU) 2022/2464

Article 5 – paragraph 2 – subparagraph 1 – point b – point ii a (new)

Text proposed by the Commission

Amendment

The following point iia is added

(iia) Member States shall not adopt or maintain national provisions that would have the effect of reducing the average number of employees below the threshold of 3,000.

Or. en

Amendment 550

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 3 – paragraph 1 – point 1 – point c

Directive (EU) 2022/2464

Article 5 – paragraph 2 – first subparagraph – point c

Text proposed by the Commission

Amendment

deleted

Or. fr

Justification

SMEs that are public-interest undertakings should not be excluded from the scope of the CSRD as some of them can have significant environmental and social impacts.

Amendment 551

Proposal for a directive

Article 3 – paragraph 1 – point 1 – point c

Directive (EU) 2022/2464

Article 5 – paragraph 2 –subparagraph 1 – point c

Text proposed by the Commission

Amendment

‘(i) to large undertakings within the meaning of Article 3(4) of Directive 2013/34/EU, other than those referred to in point (b)(i) of this subparagraph;

(ii) to parent undertakings of a large group within the meaning of Article 3(7) of Directive 2013/34/EU, other than those referred to in point (b)(ii) of this subparagraph;'

Or. en

Amendment 552

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 3 – paragraph 1 – point 2 – 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 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;;

Or. en

Amendment 553

Maravillas Abadía Jover, Adrián Vázquez Lázara

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 – subpoint i

Text proposed by the Commission

Amendment

Or. en

Amendment 554

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

Or. en

Amendment 555

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross

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

Or. en

Amendment 556

Pascal Canfin

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

Or. en

Amendment 557

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

Or. en

Amendment 558

Tobiasz Bocheński, Kosma Złotowski

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 of 10 000 employees and a net turnover above EUR 2 000 000 000 or a balance sheet total above EUR 500 000 000, on a consolidated basis, during the financial year;

Or. en

Amendment 559

Maravillas Abadía Jover, Adrián Vázquez Lázara

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 – subpoint 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 3000 employees and a net worldwide turnover of more than EUR 450 000 000, on a consolidated basis, during the financial year;;

Or. en

Amendment 560

Pascal Canfin

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 i

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 500 employees , on a consolidated basis, during the financial year;;

Or. en

Amendment 561

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 i

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 500 employees , on a consolidated basis, during the financial year;;

Or. en

Amendment 562

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 i

Text proposed by the Commission

Amendment

(ii) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which, on its balance sheet dates, exceed the average number of 5000 employees and a net turnover of EUR 1.5 billion, on a consolidated basis, during the financial year;’;

Or. en

Amendment 563

Proposal for a directive

Article 3 – paragraph 1 – point 2 – point b – point ii a (new)

Directive (EU) 2022/2464

Article 5 – paragraph 2 – subparagraph 3 – point b – point ii a (new)

Text proposed by the Commission

Amendment

(iia) The following point (ii a) is inserted:

"Member States may exempt undertakings which do not exceed the average number of 5000 employees and a net turnover of EUR 1.5 billion during the financial year, on a consolidated basis, where applicable, from complying with Article 1, with the exception of point (14) , and with Article 2, for financial years beginning 1 January 2025 and 31 December 2026. "

Or. en

(Directive (EU) 2022/2464)

Amendment 564

Proposal for a directive

Article 3 – paragraph 1 – point 2 – point b – point ii a (new)

Directive (EU) 2022/2464

Article 5 – paragraph 2 – subparagraph 3 – point c

Text proposed by the Commission

Amendment

(i) to issuers as defined in point (d) of Article 2(1) of Directive 2004/109/EC which are large undertakings within the meaning of Article 3(4) of Directive 2013/34/EU other than those referred to in point (b) (i) of this subparagraph;

(ii) to issuers as defined in point (d) of Article 2(1) of Directive 2004/109/EC which are parent undertakings of a large group within the meaning of Article 3(7) of Directive 2013/34/EU other than those referred to in point (b) (ii) of this subparagraph;

Or. en

Amendment 565

Mario Mantovani

Proposal for a directive

Article 3 – paragraph 1 b (new)

Directive (EU) 2022/2464

Article 5 - paragraph 3 a (new)

Text proposed by the Commission

Amendment

(2a ) In Article 5, the following paragraph 3a. is added:

3a. By way of derogation from point (a) of the first subparagraph and point (a) of the third subparagraph, Member States may exempt undertakings or issuers that do not exceed the average number of 3 000 employees, on a consolidated basis, where applicable, during the financial year, from the measures necessary to comply with Article 1, with the exception of point (14), and with Article 2, for the financial year starting between 1 January and 31 December 2026.

Or. it

Amendment 566

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross, Raffaele Stancanelli

Proposal for a directive

Article 4 – paragraph 1 – introductory part

Directive (EU) 2024/1760

Text proposed by the Commission

Amendment

Amendments to Directive (EU) 2024/1760

Repeal of Directive (EU) 2024/1760

Or. en

Amendment 567

Henrik Dahl

Proposal for a directive

Article 4 – paragraph 1 – introductory part

Directive (EU)2024/1760

Text proposed by the Commission

Amendment

Directive (EU) 2024/1760 is amended as follows:

Directive (EU) 2024/1760 is repealed.

Or. en

Amendment 568

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Directive (EU)2024/1760

Article 4 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

Directive (EU) 2024/1760 is amended as follows:

Directive (EU) 2024/1760 is repealed;

Or. en

Amendment 569

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross, Raffaele Stancanelli

Proposal for a directive

Article 4 – paragraph 1 – introductory part

Directive (EU) 2024/1760

Text proposed by the Commission

Amendment

Directive (EU) 2024/1760 is amended as follows:

Directive (EU) 2024/1760 is repealed.

Or. en

Amendment 570

Proposal for a directive

Article 4 – paragraph 1 – introductory part

Directive (EU) 2024/1760

Text proposed by the Commission

Amendment

Directive (EU) 2024/1760 is amended as follows:

Directive (EU) 2024/1760 is repealed.

Or. en

Justification

The Commission has set itself a clear objective of simplifying the regulatory environment in order to reduce the administrative burden on European businesses by at least 25% (35% for SMEs). The changes to the CS3D proposed by the Commission below only partially address the concerns of the 5,300 European companies directly affected and their subcontractors, who will continue to face the double risk of costly administrative burdens and legal uncertainty. Simply postponing or watering down the directive is not a satisfactory solution for achieving the EU's objectives of simplification and competitiveness. Moreover, many reporting obligations throughout the chain of activities are already covered by CSRD reporting. Therefore,repealing Directive (EU) 2024/1760 would help avoid duplicate reporting.

Amendment 571

Proposal for a directive

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

Directive (EU) 2024/1760

Article 1 – paragraph 1 – point a

Present text

Amendment

(- 1) In Article 1(1), point (a) is replaced by the following:

(a) obligations for companies regarding actual and potential human rights adverse impacts and environmental adverse impacts, with respect to their own operations, the operations of their subsidiaries, and the operations carried out by their business partners in the chains of activities of those companies;

"(a) obligations for companies regarding actual human rights adverse impacts and environmental adverse impacts, with respect to their own operations, the operations of their subsidiaries, and the operations carried out by their direct business partners located outside the European Union in the chains of activities of those companies;’

Or. en

Amendment 572

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

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

Directive (EU) 2024/1760

Article 1 – paragraph 1 – point a

Present text

Amendment

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

(a) recommendations for companies regarding actual and potential human rights adverse impacts and environmental adverse impacts, with respect to their own operations, the operations of their subsidiaries, and the operations carried out by their business partners in the chains of activities of those companies;

Or. en

Amendment 573

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

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

Directive (EU) 2024/1760

Article 1 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(-1aa) in Article 1(1), point (b) is deleted;

Or. en

Amendment 574

Emil Radev

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

(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

Amendment 575

Axel Voss, Angelika Niebler

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

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

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

Or. en

Amendment 576

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross, Raffaele Stancanelli

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

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

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

deleted

Or. en

Amendment 577

Tobiasz Bocheński, Kosma Złotowski

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

Or. en

Amendment 578

Angelika Winzig, Lukas Mandl

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) this Directive lays down certain obligations for companies to identify and mitigate the climate-related impacts of their operations;

Or. de

Justification

This proposed amendment is intended to narrow the substantive scope of reporting obligations and make them clearer and more concise in terms of language in order to lessen regulatory burden. The obligation to adopt a transition plan for climate change mitigation is already included in the CSRD. This prevents legislative redundancies and cuts costs for firms and public authorities.

Amendment 579

Arash Saeidi, Mario Furore

on behalf of The Left Group

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 to adopt and implement 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. fr

Justification

Remplacer l’obligation actuelle par une simple exigence « d’adopter un plan de transition » élimine l’obligation juridique de mettre ce plan en œuvre. En conséquence, la proposition impose uniquement aux entreprises de soumettre une documentation relative à leur plan climatique, sans les inciter à prendre des mesures concrètes, comme le prévoyait initialement la CSDDD. Ce changement ne facilitera pas les activités des entreprises ; au contraire, il augmentera le risque de contentieux liés au climat, les juridictions nationales ayant déjà reconnu que les grandes entreprises ont la responsabilité de réduire leur empreinte carbone. De plus, la suppression de l’obligation de « mise en œuvre » d’un plan de transition climatique pourrait encourager les entreprises à recourir au greenwashing, ce qui les exposerait à des plaintes fondées sur la directive sur les pratiques commerciales déloyales ainsi que sur la future directive sur les allégations écologiques (« Green Claims Directive »). L’avis de la BCE sur le paquet Omnibus « recommande que la rédaction de la disposition concernée soit clarifiée dans les amendements proposés à la CSDDD afin de garantir que les plans de transition soient effectivement mis en œuvre », ajoutant qu’« il existe un risque que la nouvelle rédaction soit interprétée comme signifiant que les entreprises sont tenues d’adopter des plans de transition, mais pas de les appliquer ».

Amendment 580

Lara Wolters, René Repasi, Chloé Ridel, Ana Catarina Mendes, Tiemo Wölken, Krzysztof Śmiszek, Kathleen Van Brempt, Eric Sargiacomo, Leire Pajín, Raphaël Glucksmann, José Cepeda, Estelle Ceulemans, Francisco Assis, Brando Benifei, Mohammed Chahim, Evelyn Regner

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 and implement 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

Amendment 581

Pascal Canfin

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 and, through all reasonable efforts, put into effect a transition plan for climate change mitigation 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 to in line with the Paris Agreement.;

Or. en

Justification

We reinsert “put into effect” so the obligation is not merely to adopt but act on the transition plan. Later, in article 22, we clarify that the putting into effect part is an obligation of means, not result and that it should be proportional and reasonable. in the same article 22 we define “all reasonable efforts” to express the differences with the concept of “best efforts”We delete the 1.5 reference to stick to the Paris Agreement, which provides for holding the temperature increase well below 2 degrees and pursuing effort to limit the temperature increase to 1.5 thus making sure the transition plans are better aligned with the obligations stemming from the Agreement.

Amendment 582

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

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, develop and implement a comprehensive transition plan for climate change mitigation 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 to 1,5 oC in line with the Paris Agreement.’;

Or. en

Amendment 583

Axel Voss, Radan Kanev, Angelika Niebler

Proposal for a directive

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

Directive (EU) 2024/1760

Article 1 – paragraph 3

Present text

Amendment

(1a) in Article 1, paragraph 3 is replaced by the following:

3. This Directive shall be without prejudice to obligations in the areas of human, employment and social rights, and of protection of the environment and climate change under other Union legislative acts. If a provision of this Directive conflicts with a provision of another Union legislative act pursuing the same objectives and providing for more extensive or more specific obligations, the provision of that other Union legislative act shall prevail to the extent of the conflict and shall apply as regards those specific obligations.

Or. en

Justification

The sustainability omnibus was created to reduce the regulatory burden on companies. The CSDDD is not the only burdensome exercise. Several sector specific laws create additional due diligence requirements for specific sectors and products, creating doubling obligations for companies. These are redundant if a risk-based CSDDD covering all sectors and products already applies. The CSDDD is therefore sufficient and should prevail over sector-specific legislation (including the Deforestation Regulation, the Batteries Regulation, provisions of the Forced Labour Regulation and others).

Amendment 584

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) Article 2 is amended as follows:

(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 5.000 employees on average and had a net turnover of more than EUR 1.5 billion in the last financial year for which annual financial statements have been or should have been adopted;’

Or. en

Amendment 585

Emil Radev

Proposal for a directive

Article 4 – paragraph 1 a (new)

Directive (EU) 2024/1760

Article 2 – paragraph 1 – point a

Present text

Amendment

(1a) Article 2 is amended as follows:

(a) in paragraph 1, 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 5 000 employees on average and had a net turnover of more than EUR 700 000 000 in the last financial year for which annual financial statements have been or should have been adopted;’

Or. en

Amendment 586

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

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

Directive (EU) 2024/1760

Article 2 – paragraph 1 - points (a) and (c)

Present text

Amendment

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

(a) point (a) is replaced by the following:

‘(a) the company had more than 10 000 employees on average and had a net turnover of more than EUR 2 000 000 000 in the last financial year for which annual financial statements have been or should have been adopted;’

(b) point (c) is replaced by the following:

(c) the company entered into or is the ultimate parent company of a group that entered into franchising or licensing agreements in the Union in return for royalties with independent third-party companies, where those agreements ensure a common identity, a common business concept and the application of uniform business methods, and where those royalties amounted to more than EUR 22 500 000 in the last financial year for which annual financial statements have been or should have been adopted, and provided that the company had or is the ultimate parent company of a group that had a net worldwide turnover of more than EUR 80 000 000 in the last financial year for which annual financial statements have been or should have been adopted.

‘(c) the company entered into or is the ultimate parent company of a group that entered into franchising or licensing agreements in the Union in return for royalties with independent third-party companies, where those agreements ensure a common identity, a common business concept and the application of uniform business methods, and where those royalties amounted to more than EUR 22 500 000 in the last financial year for which annual financial statements have been or should have been adopted, and provided that the company had or is the ultimate parent company of a group that had a net worldwide turnover of more than EUR 2 000 000 000 in the last financial year for which annual financial statements have been or should have been adopted.’

Or. en

Amendment 587

Emil Radev

Proposal for a directive

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

Directive (EU) 2024/1760

Article 2 – paragraphs 1 and 2 – point a

Present text

Amendment

(1a) Article 2 is amended as follows:

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

‘(a) the company had more than 5 000 employees on average and had a net worldwide turnover of more than EUR 1.5 billion in the last financial year for which annual financial statements have been or should have been adopted;’;

(b) in paragraph 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 generated a net turnover of more than EUR 1.5 billion in the Union in the financial year preceding the last financial year;’;

Or. en

Amendment 588

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

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

Directive (EU) 2024/1760

Article 2 – paragraph 2 – points (a) and (c)

Present text

Amendment

(1b) Article 2(2)is amended as follows:

(a) 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 generated a net turnover of more than EUR 2 000 000 000 in the Union in the financial year preceding the last financial year;`

(b) point (c) is replaced by the following:

(c) the company entered into or is the ultimate parent company of a group that entered into franchising or licensing agreements in the Union in return for royalties with independent third-party companies, where those agreements ensure a common identity, a common business concept and the application of uniform business methods, and where those royalties amounted to more than EUR 22 500 000 in the Union in the financial year preceding the last financial year; and provided that the company generated, or is the ultimate parent company of a group that generated, a net turnover of more than EUR 80 000 000 in the Union in the financial year preceding the last financial year.

‘(c) the company entered into or is the ultimate parent company of a group that entered into franchising or licensing agreements in the Union in return for royalties with independent third-party companies, where those agreements ensure a common identity, a common business concept and the application of uniform business methods, and where those royalties amounted to more than EUR 22 500 000 in the Union in the financial year preceding the last financial year; and provided that the company generated, or is the ultimate parent company of a group that generated, a net turnover of more than EUR 2 000 000 000 in the Union in the financial year preceding the last financial year.’;

Or. en

Amendment 589

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross, Raffaele Stancanelli

Proposal for a directive

Article 4 – paragraph 1 – point 2 – introductory part

Directive (EU) 2024/1760

Article 3 – paragraph 1

Text proposed by the Commission

Amendment

(2) in Article 3(1), point (n) is replaced by the following:

(2) Article 3(1) is amended as follows:

Or. en

Justification

We are willing to modify other definitions from CS3D.

Amendment 590

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point f

Present text

Amendment

(a) Point (f) is replaced by the following:

(f) ‘business partner’ means an entity:

(i) with which the company has a commercial agreement related to the operations, products or services of the company or to which the company provides services pursuant to point (g) (‘direct business partner’); or

(f) ‘business partner’ means an entity with more than 10 000 employees with which the company has concluded a commercial agreement relating to the company's activities, products or services or to which it provides services in accordance with point (g).’

(ii) which is not a direct business partner but which performs business operations related to the operations, products or services of the company (‘indirect business partner’).

Or. en

Amendment 591

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point g – point (iii) (new)

Text proposed by the Commission

Amendment

(a) In Article 3(1), point g, a new point (iii) is added:

‘(iii) as regards companies within the meaning of point (a)(iii), in addition to point (i) and (ii), services including the activities of the clients receiving a loan, credit, and other financial services as well as activities of other companies belonging to the same group whose activities are linked to the contract in question, excluding SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;’;

Or. en

Amendment 592

Michał Wawrykiewicz

Proposal for a directive

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

Direttiva (EU) 2024/1760

Article 3 – paragraph 1 – point g

Present text

Amendment

(a) In Article 3 (1) point (g) is replaced by the following:

(g) ‘chain of activities’ means:

(i) activities of a company’s upstream business partners related to the production of goods or the provision of services by that company, including the design, extraction, sourcing, manufacture, transport, storage and supply of raw materials, products or parts of products and the development of the product or the service; and

‘(g) ‘supply chain’ means activities of a company’s upstream business partners related to the production of goods or the provision of services by that company, including the design, extraction, sourcing, manufacture, transport, storage and supply of raw materials, products or parts of products and the development of the product or the service;’;

(ii) activities of a company’s downstream business partners related to the distribution, transport and storage of a product of that company, where the business partners carry out those activities for the company or on behalf of the company, and excluding the distribution, transport and storage of a product that is subject to export controls under Regulation (EU) 2021/821 or to the export controls relating to weapons, munitions or war materials, once the export of the product is authorised.

Or. en

Amendment 593

Mario Mantovani

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point g – point iii (new)

Text proposed by the Commission

Amendment

(a) In article 3(1) point (g), a new point (iii) is added:

(iii) For regulated financial undertakings, the definition of the term ‘chain of activities’ does not include business partners that receive their products or services downstream. Therefore, as regards regulated financial undertakings, only the upstream part of their chain of activities is covered by this Directive.

Or. it

Amendment 594

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point n

Text proposed by the Commission

Amendment

(2a) Point (n) is replaced by the following:

‘(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries and of its business partners, and their trade unions and workers’ representatives, and individuals or communities whose rights or interests are or could be directly affected by the products, services and operations of the company, its subsidiaries and its business partners and the legitimate representatives of those individuals or communities;’

(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries and its business partners

Or. en

Amendment 595

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point o

Present text

Amendment

(2a) in Article 3(1), point (o) is replaced by the following:

(o) ‘appropriate measures’ means measures that are capable of achieving the objectives of due diligence by effectively addressing adverse impacts in a manner commensurate to the degree of severity and the likelihood of the adverse impact, and reasonably available to the company, taking into account the circumstances of the specific case, including the nature and extent of the adverse impact and relevant risk factors;

"‘(o) ‘appropriate measures’ means measures aiming of achieving the objectives of due diligence and reasonably implementable by the company, taking into account the circumstances of the specific case, including the nature and extent of the adverse impact and relevant risk factors;’;"

Or. en

Amendment 596

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross, Raffaele Stancanelli

Proposal for a directive

Article 4 – paragraph 1 – point 2

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point n

Text proposed by the Commission

Amendment

(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries and of its business partners, and their trade unions and workers’ representatives, and individuals or communities whose rights or interests are or could be directly affected by the products, services and operations of the company, its subsidiaries and its business partners and the legitimate representatives of those individuals or communities;

deleted

Or. en

Amendment 597

Axel Voss, Radan Kanev

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point g – point ii

Text proposed by the Commission

Amendment

(a) in Article 3 (1), point (g), point (ii) is deleted

Or. en

Justification

This is deleting the downstream chain of activities. Distribution, transport and storage are either done by the company itself - thus it is covered in the companies own operations - or done on behalf of the company, which would be a service provided to the company, thus implying an upstream relationship.

Amendment 598

Mario Mantovani

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point l

Present text

Amendment

(a) Article 3(1) point (l) is amended as follows:

(1) ‘severe adverse impact’ means an adverse impact that is especially significant on account of its nature, such as an impact that entails harm to human life, health or liberty, or on account of its scale, scope or irremediable character, taking into account its gravity, including the number of individuals that are or may be affected, the extent to which the environment is or may be damaged or otherwise affected, its irreversibility and the limits on the ability to restore affected individuals or the environment to a situation equivalent to their situation prior to the impact within a reasonable period of time;

(1) ‘severe adverse impact’ means an adverse impact that is especially significant on account of its scale, scope and irreparable nature;

Or. it

Justification

The concept of adverse impact should be defined as precisely as possible, in particular on the basis of its scale, scale and irreparability, in line with the UN Guiding Principles on Business and Human Rights. This amendment aligns with the provisions on civil liability which focus on responding to actual damage rather than creating wide-ranging liability.

Amendment 599

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 4 – paragraph 1 – point 2

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point n

Text proposed by the Commission

Amendment

(n) ‘stakeholders’ means:

(i) the company’s employees, the employees of its subsidiaries and of its business partners, and their trade unions and workers’ representatives,

(ii) the company’s smallholders and those of its subsidiaries and business partners,

(iii consumers and other individuals, groupings, entities or communities, including indigenous people, whose rights or interests are or could be directly affected by the products, services and operations of the company, its subsidiaries and its business partners and the legitimate representatives of those individuals, groupings, entities or communities;’

(iv) civil society organisations and other entities who have as a statutory purpose the defence of human rights, good governance, the environment or climate, and environmental and human rights defenders;

Or. en

Amendment 600

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 4 – paragraph 1 – point 2

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point n

Text proposed by the Commission

Amendment

‘(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries and of its business partners, and their trade unions and workers’ representatives, consumers and other individuals, groupings, communities or entities whose rights or interests are or could be directly affected by the products, services and operations of the company, its subsidiaries and its business partners, including the employees of the company’s business partners and their trade unions and workers’ representatives, national human rights and environmental institutions, civil society organisations whose purposes include the protection of the environment and the legitimate representatives of those individuals, groupings, entities or communities;’;

Or. fr

Justification

L’exigence selon laquelle les parties prenantes doivent être « directement » affectées constitue une limitation injustifiée et redondante, qui n’est pas conforme au reste de la législation, en particulier en ce qui concerne la définition des impacts négatifs. Par ailleurs, lors de l’identification des risques, des individus ou organisations qui ne sont pas directement affectés peuvent néanmoins disposer d’informations pertinentes pour les entreprises. Par exemple, les organisations œuvrant pour la protection de l’environnement ne seront pas directement touchées par un dommage, mais elles constituent des parties prenantes clés qu’il convient de prendre en compte. Dans d’autres cas, comme le travail forcé, notamment lorsqu’il s’agit de travail forcé systémique imposé par l’État, les victimes ne disposent souvent pas de l’espace civique nécessaire pour s’organiser et participer à des mécanismes d’engagement, devant alors s’en remettre à des relais. En cas d’accidents industriels, comme l’effondrement du Rana Plaza en 2013, les familles des victimes ne sont peut-être pas considérées comme directement affectées, mais elles devraient être reconnues comme des parties prenantes essentielles avec lesquelles les entreprises doivent dialoguer.

Amendment 601

Proposal for a directive

Article 4 – paragraph 1 – point 2

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point n

Text proposed by the Commission

Amendment

(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries and of its business partners, trade unions and workers’ representatives, and individuals or communities whose rights or interests are or could be affected by the products, services and operations of the company, its subsidiaries and its business partners and the legitimate representatives of those individuals or communities, national human rights and environmental institutions, and, where the company can reasonably be aware of them, relevant civil society organisations, including consumer organisations. ;

Or. en

Amendment 602

Adrián Vázquez Lázara, Maravillas Abadía Jover

Proposal for a directive

Article 4 – paragraph 1 – point 2

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point n

Text proposed by the Commission

Amendment

(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries and of its direct business partners, and their trade unions and workers’ representatives, and individuals or communities, where relevant, whose rights or interests are or could be directly affected by the adverse impacts on human rights and the environment clearly identified and stem from the products, services and operations of the company, its subsidiaries and its direct business partners and the legitimate representatives of those individuals or communities;

Or. en

Justification

This amendment aims to ensure legal clarity and proportionality by focusing the definition of stakeholders on those directly affected by adverse impacts clearly linked to the company, its subsidiaries, or its direct business partners. It avoids disproportionate burdens linked to remote or indirect impacts and ensures that stakeholder engagement remains effective, relevant, and within the company’s sphere of influence.

Amendment 603

Proposal for a directive

Article 4 – paragraph 1 – point 2

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point n

Text proposed by the Commission

Amendment

(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries, and their trade unions and workers’ representatives, and individuals or communities whose rights or interests are or could be directly affected by the operations of the company, or its subsidiaries;’;

Or. en

Amendment 604

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point p

Present text

Amendment

(2 b) in Article 3(1), point (p) is replaced by the following:

(p) ‘business relationship’ means the relationship of a company with a business partner;

"(p) ‘business relationship’ means the direct relationship of a company with a business partner;

Or. en

Amendment 605

Axel Voss, Radan Kanev

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point u b

Present text

Amendment

(2a) in Article 3(1), point (u) is replaced by the following:

(u) ‘risk factors’ means facts, situations or circumstances that relate to the severity and likelihood of an adverse impact, including company-level, business operations, geographic and contextual, product and service, and sectoral facts, situations or circumstances;

(u) ‘risk factors’ means facts, situations or circumstances that determine the severity and likelihood of an adverse impact, including company-level (including poor working conditions and discriminatory practices), business operations, geographic and contextual (including weak rule of law, armed conflict, poor labour and environmental protections), product and service (including materials associated with environmental damage and child labour), and sectoral facts, situations or circumstances (including industries that are inherently higher risk due to the nature of their operations);

Or. en

Justification

Companies have a hard time understanding the risk based approach. Thus, the text needs to be clear on risk factors, which determine where companies need to have a look.

Amendment 606

Javier Zarzalejos, Miriam Lexmann

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point u a

Text proposed by the Commission

Amendment

(2a) in Article 3(1),the following point ua (new) is inserted:

‘(ua) ‘high-risk geographical area’ means an area where systematic and wide spread human rights and environmental due diligence violations occur; ;

Or. en

Amendment 607

Javier Zarzalejos, Miriam Lexmann

Proposal for a directive

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

Directive (EU) 2024/1760

Article 3 – paragraph 1 – point u b

Text proposed by the Commission

Amendment

(2 b) in Article 3(1), the following point (ub) is inserted:

‘(ub) ‘high-risk sector’ means an industry sector where systematic and wide spread human rights and environmental due diligence violations occur; ;

Or. en

Amendment 608

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4

Text proposed by the Commission

Amendment

(3) Article 4 is replaced by the following:

deleted

‘Article 4

Level of harmonisation

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.

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.; ’

Or. en

Amendment 609

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 4 – paragraph 1 – point 3 – introductory part

Directive (EU) 2024/1760

Article 4

Text proposed by the Commission

Amendment

(3) Article 4 is replaced by the following:

(3) Article 4 is deleted;

Or. en

Amendment 610

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – title

Text proposed by the Commission

Amendment

Level of harmonisation

deleted

Or. en

Amendment 611

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 1

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 612

Lukas Mandl

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 1

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 613

Angelika Winzig, Lukas Mandl

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 1

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.

(1) Without prejudice to Article 1(2) and (3), Member States may not, within the scope of this Directive, adopt national provisions diverging from or going beyond its human rights and environmental due diligence obligations.

Or. de

Justification

The aim of the amendment is to clarify that the directive aims to fully harmonise human rights and environmental due diligence obligations. Isolated efforts undertaken at national level would lead to a fragmentation of the internal market and, in particular, give rise to additional legal uncertainty and red tape for companies operating across borders. A uniform Europe-wide regulation is crucial to ensure companies enjoy certainty for planning purposes and remain competitive.

Amendment 614

Lukas Mandl

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 1

Text proposed by the Commission

Amendment

Or. en

Amendment 615

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 1

Text proposed by the Commission

Amendment

Or. fr

Justification

Member States should not be limited in their ability to set higher standards for the measures that companies must take to address and reduce their adverse impacts, or for complaints procedures, to allow Member States to be better aligned with the UN Guiding Principles on Business and Human Rights.

Amendment 616

Axel Voss, Radan Kanev, Angelika Niebler

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 1

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 2 and 3, Articles 6 to 16 and Articles 24, 25 and 26.

Or. en

Justification

Both EU and non-EU entities require full harmonisation. Supply chains always operate across borders. Having 27 different interpretations of the same law makes every companies' compliance more complicated and duplicates the obligations for suppliers.

Amendment 617

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 1

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 contrary to 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.

Or. en

Amendment 618

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 1

Text proposed by the Commission

Amendment

Or. en

Amendment 619

Angelika Winzig, Lukas Mandl, Angelika Niebler

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 2

Text proposed by the Commission

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.’;

deleted

Or. de

Justification

See justification at Article 4(1).

Amendment 620

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 2

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 621

Axel Voss, Radan Kanev, Angelika Niebler

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 2

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 622

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 4 – paragraph 1 – point 3

Directive (EU) 2024/1760

Article 4 – paragraph 2

Text proposed by the Commission

Amendment

2. Notwithstanding paragraph 1, this Directive shall not preclude Member States from introducing, in their national law, specific or less stringent provisions adapting the due diligence obligations to local circumstances, the macroeconomic situation and the economic policy of the Member State, in particular in view of the characteristics of trade and cross-border cooperation.;

Or. en

Amendment 623

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

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

Directive (EU) 2024/1760

Article 5

Text proposed by the Commission

Amendment

(3 a) Article 5 is deleted.

Or. en

Amendment 624

Mario Mantovani

Proposal for a directive

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

Directive (EU) 2024/1760

Article 5 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

(3a) In Article 5, the following paragraph 1a. is inserted:

1a. Member States shall ensure that, where a direct business partner is a small or medium-sized enterprise (SME) established in a Member State of the European Union, the undertaking subject to this Directive may presume that that SME complies with the due diligence set out in this Directive, as it operates within a national legal framework that complies with EU law.

This does not relieve the competent authorities of their responsibility to supervise and ensure the effective enforcement of existing legislation.

Or. it

Justification

Limiting obligations to direct trading partners alone is a step forward in limiting disproportionate red tape for SMEs. However, a distinction should be made between SMEs established in third countries and those operating within the EU, which are already subject to a strict legal framework. In this sense, the introduction of a presumption of conformity for EU SMEs, without prejudice to the supervisory functions of the authorities, would reduce the administrative obligations for the contracting undertakings, while ensuring respect for human rights and the environment.

Amendment 625

Mario Mantovani

Proposal for a directive

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

Directive (EU) 2024/1760

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

(3b) Article 5 is amended as follows:

(a) Paragraph (2) is deleted.

Or. it

Justification

Limiting obligations to direct trading partners alone is a positive element in limiting disproportionate red tape for SMEs. However, a distinction should be made between SMEs established in third countries and those operating within the EU. The latter are already subject to a strict national and EU legal framework, in line with this Directive. The introduction of a presumption of conformity for European SMEs would reduce red tape for contracting undertakings, ensuring compliance with rules on human rights and the environment.

Amendment 626

Mario Mantovani

Proposal for a directive

Article 4 – paragraph 1 – point 3 c (new)

Directive (EU) 2024/1760

Article 5 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

(3c) The following paragraph 2a is inserted:

2a. Member States shall ensure that, for the purposes of the due diligence obligations set out in this Directive, companies falling under the scope of this Directive do not seek to obtain information from 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.

Or. it

Justification

At several points in the text, it is proposed to anchor to the VSME standard the level of information that companies falling within the scope of the Directive may require from micro and SMEs. This ensures a fundamental guarantee that protects smaller operators against any disproportionate red tape. This choice should be of a general nature and should apply to all types of due diligence obligations set out in this Directive.

Amendment 627

Lukas Mandl

Proposal for a directive

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

Directive (EU) 2024/1760

Article 8 – paragraph 1

Present text

Amendment

(-a) Article 8 paragraph (1) is replaced by the following

1. Member States shall ensure that companies take appropriate measures to identify and assess actual and potential adverse impacts arising from their own operations or those of their subsidiaries and, where related to their chains of activities, those of their business partners, in accordance with this Article.

"1. Member States shall ensure that companies take appropriate measures to identify and assess actual and potential adverse impacts arising from their own operations or those of their subsidiaries and, where related to their chains of activities, those of their direct business partners, in accordance with this Article. For supply chains that are entirely located within the European Union, the non-existence of an adverse impact can be assumed, provided there is no specific confirmed evidence of an adverse impact."

Or. en

Amendment 628

Angelika Winzig, Lukas Mandl

Proposal for a directive

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

Directive (EU) 2024/1760

Article 8 – paragraph 1

Present text

Amendment

(-a) paragraph 1 is amended as follows:

Member States shall ensure that companies take appropriate measures to identify and assess actual and potential adverse impacts arising from their own operations or those of their subsidiaries and, where related to their chains of activities, those of their business partners, in accordance with this Article.

‘Member States shall ensure that companies take appropriate measures to identify and assess actual and potential adverse impacts arising from their own operations or those of their subsidiaries and of their direct business partners, where detrimental effects have been demonstrated and plausible information is available.’

Or. de

Justification

The amendment ensures that companies are obliged to carry out an in-depth assessment only if adverse impacts have been demonstrated or plausibly documented. This establishes a proportionate and workable criterion, avoids the need for checks along the supply chain where there is no particular reason for them, and lessens burdens on companies. The directive’s safeguarding objective will be upheld in the process.

Amendment 629

Axel Voss, Radan Kanev

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point a – introductory part

Directive (EU) 2024/1760

Article 8 – paragraph 2

Text proposed by the Commission

Amendment

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

(a) paragraph 2 is replaced by the following:

Or. en

Amendment 630

Arash Saeidi, Mario Furore

on behalf of The Left Group

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

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

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. fr

Justification

L’évaluation doit porter sur les activités des partenaires commerciaux directs et indirects afin de garantir la couverture de toutes les incidences négatives potentielles. Limiter l’évaluation approfondie aux partenaires commerciaux directs (niveau 1) pourrait exclure arbitrairement les parties les plus à risque de la chaîne d’approvisionnement d’une entreprise, ce qui invaliderait l’approche fondée sur les risques sur laquelle repose la CSDDD. La meilleure façon d’accroître la flexibilité pour les entreprises serait de se concentrer sur les parties les plus risquées de la chaîne d’approvisionnement, plutôt que de limiter arbitrairement le devoir de vigilance à certains niveaux de la chaîne d’approvisionnement.

Amendment 631

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

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

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

deleted

Or. en

Amendment 632

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

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

(a) paragraph 2 is replaced by the following:

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

(a) carry out a scoping exercise, including by mapping their chain of activities, to identify general areas across their own operations, those of their subsidiaries and, where related to their chains 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 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 business partners, in the areas where adverse impacts were identified to be most likely to occur and most severe, including where necessary an assessment at the level of the relevant business partners;

Or. en

Amendment 633

Pascal Canfin

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point a

Directive (EU) 2024/1760

Article 8 – paragraph 2 – point a

Text proposed by the Commission

Amendment

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

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

(a) carry out a scoping of their own operations, those of their subsidiaries and, where relevant 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. Such scoping relies on readily available information companies can obtain on their own, such as, contractual information, information made public, information gathered in the context of multi-stakeholder initiatives, sectoral knowledge or information sent by stakeholders as defined by this directive.

Or. en

Justification

Based on risk-based approach we set up a three stages approach : 1/ A scoping exercise where risks are identified based on information the company can obtain on their own (publicly available information, information in the contracts of the company, human rights reports, information which are common knowledge in a given sector or shared through private initiatives such a fora or alliances of businesses). 2/ Based on this scoping, an in-depth assessment takes place based, this time, on information the company can gather contacting their business partners, direct or indirect. This assessment must be gradual and proportionate, extending from tier to tier. 3/ If after this assessment, the information cannot be obtain a potential risk must be deemed identifiable and the next stage of the due diligence process must be triggered (preventing an adverse impact) with the last identifiable link of the chain. Meanwhile, the company can notify the supervisory authority to prove its good faith and seek guidance.

Amendment 634

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point a – introductory part

Directive (EU) 2024/1760

Article 8 – paragraph 2

Text proposed by the Commission

Amendment

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

(a) paragraph 2 is replaced by the following:

Or. en

Amendment 635

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.;

deleted

Or. en

Amendment 636

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point a

Directive (EU) 2024/1760

Article 8 – paragraph 2

Text proposed by the Commission

Amendment

‘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 located outside the European Union, in the areas where adverse impacts have been demonstrated or where factual and reliable information indicating such effects.

Or. en

Amendment 637

Axel Voss, Radan Kanev

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point a

Directive (EU) 2024/1760

Article 8 – paragraph 2

Text proposed by the Commission

Amendment

2. As part of the obligation set out in paragraph 1, and adopting a risk-based approach, companies shall take appropriate measures to:

(a) carry out a scoping exercise, based on risk factors, across 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;

(b) based on the results of the scoping as referred to in point (a), carry out an in-depth assessment of their own operations, those of their subsidiaries and, where related to their chains of activities, those of their business partners, only in those areas where adverse impacts were identified to most likely to occur and to be most severe. Companies shall not request any information from business partners where no severe and likely risks were identified.

Or. en

Justification

The concept of plausible information would take away control from companies, which would let external actors decide which risks beyond their tier 1 are severe. Companies shall check where in their supply chain risks are very likely to occur AND where they are severe. There are hundreds of digital solutions that provide companies with reliable information on their risks beyond Tier 1, which depends on your risk factors. E.g. if you work in the leather industry (high sectoral risk) and source from Brazil (high geographic risk for the sector), you will likely have a severe risk. Only then should you try to gather information on that risk, which might require entity-based information (from your suppliers).

Amendment 638

Lukas Mandl

Proposal for a directive

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

Directive (EU) 2024/1760

Article 8 – paragraph 2 – point a

Present text

Amendment

(-a) 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 their own operations, those of their subsidiaries and, where related to their chains of activities, those of their direct business partners, in order to identify general areas where adverse impacts are most likely to occur and to be most severe drawing on reasonably available information; "

Or. en

Amendment 639

Pascal Canfin

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

'(b) based on the results of the scoping 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 business partners, in the areas where adverse impacts were identified to be most likely to occur and most severe. This assessment relies on both readily available information companies can obtain on their own and information they shall obtain from their subsidiaries, business partners or stakeholders. This assessment shall be gradually extended beyond the first tiers and shall be commensurate with the severity or likelihood of the adverse impacts.'

Or. en

Justification

Amendment 640

Angelika Winzig, Lukas Mandl

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) as part of the obligation set out in paragraph 1, taking into account relevant risk factors, companies shall take appropriate measures in order, on the basis of the mapping carried out, as referred to in point (a), to conduct an in-depth assessment of their own activities, those of their subsidiaries and, where related to their chains of activities, those of their direct business partners in those areas where detrimental impacts have been demonstrated or there is plausible information about such impacts.

Or. de

Justification

The amendment increases legal certainty and replaces vague terms with comprehensible criteria. Companies should only be required to conduct in-depth investigations if there are specific indications that risks are likely. This avoids blanket audit requirements and reduces the administrative burden, particularly on SMEs, without compromising the directive’s objective of effectively identifying and mitigating actual risks.

Amendment 641

Arash Saeidi, Mario Furore

on behalf of The Left Group

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 an in-depth assessment of their own operations, those of their subsidiaries and, where related to their chains of activities, those of their business partners, in the areas where adverse impacts were identified to be most likely to occur and most severe.’;

Or. fr

Justification

The objective of the proposed changes is to remove the limitation on direct business relationships, but equally to clarify further that the in-depth assessment needs to happen first in the areas and with the business partners that present high risks.

Amendment 642

Pascal Canfin

Proposal for a directive

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

Directive (EU) 2024/1760

Article 8 – paragraph 2 – point c (new)

Text proposed by the Commission

Amendment

(a a) In paragraph 2, point (c) is added:

(c) 'Where a company cannot obtain information under point (b) either because a business partner cannot be identified in the chain of activities or because a business partner did not respond to repeated queries during the in-depth assessment, the company shall consider a potential adverse impact to have been identified and proceed to seeking the prevention thereof under Article 10 of this Directive. At the same time, the company may also notify the supervisory authorities designated by the Member states under Article 24 and ask for guidance.'

Or. en

Justification

Amendment 643

Angelika Winzig, Lukas Mandl

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.’

Or. de

Justification

Even in the case of direct business partners, an in-depth assessment should only be carried out if there is plausible information. Automatically extending this to indirect business partners – regardless of the information available or scope for influence – would be disproportionate and impracticable.

Amendment 644

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

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.

’

Or. en

Amendment 645

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross, Raffaele Stancanelli

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

Or. en

Amendment 646

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

Or. en

Amendment 647

Pascal Canfin

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

Or. en

Justification

Based on risk-based approach we set up a three stages approach. For this reason, the definition of plausible information is not needed anymore.

Amendment 648

Adrián Vázquez Lázara, Maravillas Abadía Jover

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

Or. en

Justification

Reaching the start of the supply chain is often highly complex, especially with multiple tiers involved. This leads to excessive bureaucracy that hinders efficient due diligence. The amendment allows companies to focus on direct suppliers, ensuring effective implementation of due diligence in line with the Directive’s goals. It simplifies obligations, relying on reliable information and reducing the scope to direct business relationships.

Amendment 649

Axel Voss, Radan Kanev

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

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.

deleted

Or. en

Amendment 650

Pascal Canfin

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

deleted

Or. en

Justification

Based on risk-based approach we set up a three stages approach. For this reason, the definition of plausible information is not needed anymore.

Amendment 651

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – point 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.

deleted

Or. fr

Justification

The Commission’s approach is practically the same approach as the German Supply Chain law. Experience shows that reducing due diligence to tier 1 and relying on “plausible information” (in Germany: “substantiated knowledge”) does not reduce bureaucracy. In fact, it removes the preventive nature of due diligence, and would mean that companies do not “own” their due diligence process, but wait for external information to emerge.This, in turn, also increases costs; the German Federal Office for Economic Affairs and Export Control (BAFA) itself noted: “Companies that consider the risks in the extended supply chain from the very beginning will not have to bear the high costs of ad hoc risk analyses or modify their preventative measures as a result.” The approach of activating due diligence after “plausible information” has emerged means due diligence itself becomes a pure paper tiger that does not serve to identify issues. German practitioners and experts were therefore enthusiastic about the risk-based Tier-N focus, which gives companies the freedom to focus efforts on where it really matters.Further, the Commission proposal is not aligned with international standards (such as the OECD Guidelines and the UNGPs). The UNGPs in comparison have a risk-based approach: “Where business enterprises have large numbers of entities in their value chains it may be unreasonably difficult to conduct due diligence for adverse human rights impacts across them all. If so, business enterprises should identify general areas where the risk of adverse human rights impacts is most significant (...) and prioritize these for human rights due diligence.”

Amendment 652

Michał Wawrykiewicz

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2a – subparagraph 1

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 653

Pascal Canfin

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2a – subparagraph 1

Text proposed by the Commission

Amendment

deleted

Or. en

Justification

Based on risk-based approach we set up a three stages approach. For this reason, the definition of plausible information is not needed anymore.

Amendment 654

Lukas Mandl

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2a – subparagraph 1

Text proposed by the Commission

Amendment

Where a company has specific confirmed evidence 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.

Or. en

Amendment 655

Mario Mantovani

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2a – subparagraph 1

Text proposed by the Commission

Amendment

the following paragraph 2a is inserted:

Based on the mapping referred to in subparagraph 1(a), and where a company has plausible information pursuant to the guidelines referred to in Article 19 or the OECD Guidelines 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 first subparagraph is without prejudice to the company considering available information about indirect business partners and whether those business partners can follow the rules set out in this Directive when selecting a direct business partner. Companies falling within the scope support their business partners in adapting their business to the guidelines published by the European Commission pursuant to Article 19.

Or. it

Justification

The text does not provide sufficient clarity for companies as regards the obligation to carry out mapping to detect (actual or potential) adverse impacts. For reasons of legal certainty, such mapping should be based on information from reliable and defined ex-ante sources.

Amendment 656

Javier Zarzalejos, Miriam Lexmann

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

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 or its indirect business partner operates in an high-risk sector or high-risk geographical area, it shall carry out an in-depth assessment. The company shall always carry out such an assessment where the indirect, rather than direct, nature of the relationship with the business partner is the result of an artificial arrangement that does not reflect economic reality but points to a circumvention of paragraph 2, point (b). Where the assessment confirms the likelihood or existence of the adverse impact, it is deemed to have been identified.

Or. en

Amendment 657

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – point 1

Text proposed by the Commission

Amendment

Where a company has, or can reasonably be expected to have, plausible information that suggests that adverse impacts at the level of the operations of an indirect business partner have arisen or may arise, it shall carry out an in-depth assessment. The company shall always carry out such an assessment where the indirect, rather than direct, nature of the relationship with the business partner is the result of an artificial arrangement that does not reflect economic reality but points to a circumvention of paragraph 2, point (b). Where the assessment confirms the likelihood or existence of the adverse impact, it is deemed to have been identified.

Or. fr

Justification

Referring to information that a company should reasonably be expected to have will prevent a situation whereby a company does not have information on adverse impacts because it has not sought that information or has not done adequate mapping in accordance with Article 8(2)(a). It is also in line with the United Nations Guiding Principles on Business and Human Rights.

Amendment 658

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2a – subparagraph 1

Text proposed by the Commission

Amendment

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 located outside the European Union 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 existence of the adverse impact, it is deemed to have been identified.

Or. en

Amendment 659

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

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 is recommend to carry out such an assessment where the indirect, rather than direct, nature of the relationship with the business partner is the result of an artificial arrangement that does not reflect economic reality but points to a circumvention of paragraph 2, point (b). Where the assessment confirms the likelihood or existence of the adverse impact, it is deemed to have been identified.

Or. en

Amendment 660

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – point 1 a (new)

Text proposed by the Commission

Amendment

For the purposes of the first subparagraph, plausible information shall mean any of the following:

(a) any single piece of explicit documentary proof of adverse impacts, in written, video, audio or physical format;

(b) any report of adverse impacts that is raised by the police forces, judiciary or national authorities of a Member State or a third country;

(c) any report of adverse impacts that is raised by a non-governmental organisation, trade union, community group or other entity, where the entity has been in existence for at least 12 months and can demonstrate that its activities promote environmental protection or human rights.

Or. fr

Justification

Plausible information is a vague term and requires a definition, so that companies have a clear obligation to follow up on any concerns raised.

Amendment 661

Pascal Canfin

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – subparagraph 2

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 662

Michał Wawrykiewicz

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – subparagraph 2

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 663

Lukas Mandl

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – subparagraph 2

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 664

Mario Mantovani

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – subparagraph 2

Text proposed by the Commission

Amendment

Or. it

Amendment 665

Lukas Mandl

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – subparagraph 3

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 666

Pascal Canfin

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – subparagraph 3

Text proposed by the Commission

Amendment

deleted

Or. en

Amendment 667

Michał Wawrykiewicz

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – subparagraph 3

Text proposed by the Commission

Amendment

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.;

Or. en

Justification

The in-depth assessment conducted by the company in order to identify general areas where adverse impacts are most likely to occur and to be most severe should only be limited to direct business partners. Conducting such an assessment for indirect business partners increases significantly the administrative burden for companies conducting the assessment.

Amendment 668

Tobiasz Bocheński, Kosma Złotowski

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point b

Directive (EU) 2024/1760

Article 8 – paragraph 2 a – subparagraph 3

Text proposed by the Commission

Amendment

Notwithstanding the first subparagraph, irrespective of whether plausible information is available about indirect business partners, a company can 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.;

Or. en

Amendment 669

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

(b a) paragraph 3 is replaced by the following:

'3. For the purposes of the scoping exercise in accordance with paragraph 1, point (a), companies shall rely in first instance on reasonably available, credible and timely information, including the company's own data and information, publicly-accessible sources, reports, studies and impact assessments by other parties, data produced by government and inter-governmental bodies, and information gathered through industry and multi-stakeholder initiatives, and through the notification mechanism and the complaints procedure provided for in Article 14.'

Or. en

Amendment 670

Angelika Winzig, Lukas Mandl, Angelika Niebler

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

deleted

‘

(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.’;

‘

Or. de

Justification

Since the reporting obligation has already been restricted to adverse impacts that have been demonstrated and plausibly documented, additional categorisation based on probability is no longer necessary. The paragraph is therefore obsolete and only brings about needless complexity. Deleting it will enhance legal certainty and reduce implementation burden.

Amendment 671

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

deleted

‘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.;’

Or. en

Amendment 672

Adrián Vázquez Lázara, Maravillas Abadía Jover

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

deleted

Or. en

Justification

Amendment 673

Axel Voss, Radan Kanev

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point c

Directive (EU) 2024/1760

Article 8 – paragraph 3 and 4

Text proposed by the Commission

Amendment

Or. en

Amendment 674

Axel Voss, Radan Kanev

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point c

Directive (EU) 2024/1760

Article 8 – paragraph 3

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.;

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, digital solutions, industry or multi-stakeholder intiatives, collaboration and information gathered through the notification mechanism and the complaints procedure provided for in Article 14. Where, despite having taken appropriate measures to identify adverse impacts, companies do not have all the necessary information regarding their chains of activities, they should explain why that information could not be obtained and should take the necessary and reasonable steps to obtain it in the future. Companies that reasonably explained why they could not obtain necessary information and as a result could not take appropriate measures to prevent, mitigate, bring to an end or minimise the adverse impact, they shall not be penalised.

Or. en

Justification

It also needs to be considered that companies may not have all necessary information. If they tried to get information but were not able to, they should not be penalised.

Amendment 675

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

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 the business partners concerned, the company shall aim to request such information directly from those business partners. When information is required of a business partner that is a small or medium-sized enterprise, the company shall exercise restraint, prioritise using publicly available sources. This includes, where applicable, requesting information specified in the standards for mandatory or voluntary use referred to in Article 29a of Directive 2013/34/EU and making best efforts to obtain information through collective action, including through the use of industry or multistakeholder initiatives and comprehensive stakeholder consultation;

Or. en

Amendment 676

Tobiasz Bocheński, Kosma Złotowski

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 is recommended to prioritise requesting such information, where reasonable, directly from the business partner or partners where the adverse impacts are most likely to occur.;

Or. en

Amendment 677

Mario Mantovani

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 directly from the business partner or partners where the adverse impacts are most likely to occur.’;

Or. it

Justification

In order to prevent any disproportionate or unjustified red tape, information requests should always be addressed to the business partners where adverse impacts are most likely to occur, without introducing generic alternatives.

Amendment 678

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point d

Directive (EU) 2024/1760

Article 8 – paragraph 5

Text proposed by the Commission

Amendment

(d) the following paragraph 5 is added:

deleted

‘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.

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.’;

Or. fr

Justification

This paragraph could result in companies not obtaining information on high-risk parts of their supply chains, based only on the size of their business partner. It also creates ambiguity in cases where companies with fewer than 500 employees are part of a larger corporate group. It raises uncertainty about whether and to what extent information can be requested from the parent company, despite it being the liable entity under the CSDDD.

Amendment 679

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point d

Directive (EU) 2024/1760

Article 8 – paragraph 5

Text proposed by the Commission

Amendment

(d) the following paragraph 5 is added:

deleted

Or. en

Amendment 680

Kira Marie Peter-Hansen

on behalf of the Verts/ALE Group

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point d

Directive (EU) 2024/1760

Article 8 – paragraph 5

Text proposed by the Commission

Amendment

(d) the following paragraph 5 is added:

deleted

Or. en

Amendment 681

Arash Saeidi, Mario Furore

on behalf of The Left Group

Proposal for a directive

Article 4 – paragraph 1 – point 4 – point d

Directive (EU) 2024/1760

Article 8 – paragraph 5 – first subparagraph

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.

deleted

Or. fr

Amendment 682

Angelika Winzig, Lukas Mandl

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 that qualify as small mid-caps under the provisions of the Commission Recommendation of 21 May 2025 on the definition of small mid-cap enterprises, that exceeds the information specified in the standards for voluntary use referred to in Article 29a of Directive 2013/34/EU.

Or. de

Justification

Small mid-caps often do not have the internal structures that enable large corporations to provide complex supply chain data. Limiting the scope of the requirements to the voluntary provision of standard information prevents excessive administrative burdens and strengthens competitiveness, while maintaining transparency towards business partners.

Amendment 683

Tobiasz Bocheński, Kosma Złotowski

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 10 000 employees.

Or. en

Amendment 684

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross, Raffaele Stancanelli

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 any information from direct business partners with fewer than 10000 employees.

Or. en

Amendment 685

Axel Voss, Radan Kanev

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

For the purposes of the scoping provided for in paragraph 2, point (a), companies shall not seek to obtain information from their business partners but rely solely on information that is already reasonably available, including risk factors.

Or. en

Justification

The scoping exercise does not require any entity level information, as it is done to identify general areas, see justification above.

Amendment 686

Pascal Canfin

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 in-depth assessment provided for in paragraph 2, point (b), companies do not seek to obtain information from 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.

Or. en

Justification

Our version of scoping relies on information the company can obtain on its own so, per definition, no request can be made under the scoping, only during the in-depth assessment.

Amendment 687

Angelika Winzig, Lukas Mandl

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

deleted

Or. de

Justification

The provision is incompatible with the proportionality principle and creates additional compliance pressure, in particular for SMEs. It effectively obliges companies to proactively obtain information from business partners, even where information is unclear or risks are purely hypothetical. As reporting is already only required where adverse impacts have been demonstrated or plausibly documented, the provision is superfluous and should be deleted.

Amendment 688

Mario Mantovani

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

deleted

Or. it

Justification

The text opens up the possibility of requiring that additional information be provided to that under the VSME standard. However, it is necessary to anchor to this standard the level of information that companies falling within the scope of the Directive may require from micro and SMEs. This creates a fundamental guarantee that protects smaller operators against any disproportionate red tape.

Amendment 689

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

deleted

Or. en

Amendment 690

Axel Voss, Radan Kanev

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

deleted

Or. en

Amendment 691

Tobiasz Bocheński, Kosma Złotowski

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

deleted

Or. en

Amendment 692

Pascale Piera, Julie Rechagneux, Ton Diepeveen, Ernő Schaller-Baross, Raffaele Stancanelli

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

deleted

Or. en

Amendment 693

Pascal Canfin

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 in-depth assessment provided for in paragraph 2, point (b), 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.;

Or. en

Justification

Our version of scoping relies on information the company can obtain on its own so, per definition, no request can be made under the scoping, only during the in-depth assessment.