Certain corporate sustainability reporting and due diligence requirements (Omnibus I)

Amendments tabled for the plenary sitting on this text, in their own numbering series. This is a different set from the committee amendments tracked elsewhere on AmendEU, and is not counted in any of the site’s amendment totals.

1. Amendment 1Proposal for a directive · Recital 3
   Current text

   (3) Article 26a(1) of Directive 2006/43/EC requires Member States to ensure that statutory auditors and audit firms carry out the assurance of sustainability reporting in compliance with limited assurance standards to be adopted by the Commission. Article 26a(3) of that Directive requires the Commission to adopt those standards by 1 October 2026. Undertakings have raised concerns on the work carried out by the assurance providers and have expressed the need for flexibility in addressing specific risks and critical issues identified in the areas of sustainability assurance. To enable the Commission to take account of those concerns, it should be given more flexibility in adopting those standa…

   Amendment

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

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2. Amendment 2Proposal for a directive · Recital 5
   Current text

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

   Amendment

   (5) Article 19a(1) of Directive 2013/34/EU requires large undertakings and small and medium-sized undertakings with securities admitted to trading on an EU regulated market, excluding micro-undertakings, to prepare and publish a sustainability statement at individual level. To reduce the reporting burden on undertakings, the obligation to prepare and publish a sustainability statement at individual level should be reduced to undertakings with an average of more than 1000 employees and a net turnover of EUR 450 000 000 during the financial year. It should be possible to exempt ultimate parent undertakings which are financial holding undertakings not involved in management activities from comp…

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3. Amendment 3Proposal for a directive · Recital 6
   Current text

   (6) A balance needs to be found between the objectives of data generation and reduction of administrative burden. Sustainability reporting, including the information referred to in Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council9 , of large undertakings with an average of more than 1000 employees during the financial year is indispensable to understand the transition to a climate-neutral economy. In the light of the balance to be found between the objectives of data generation and reduction of administrative burden, large undertakings within the new scope for sustainability reporting that have a net turnover not exceeding EUR 450 000 000 during the financi…

   Amendment

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4. Amendment 4Proposal for a directive · Recital 7
   Current text

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

   Amendment

   (7) Article 1(3) of Directive 2013/34/EU specifies that credit institutions and insurance undertakings that are large undertakings or small and medium-size undertakings – excluding micro-undertakings – with securities admitted to trading on an EU regulated market are subject to the sustainability reporting requirements set out in that Directive, regardless of their legal form. Considering that the scope of individual sustainability reporting should be reduced to undertakings with an average of more than 1000 employees and a net turnover of EUR 450 000 000 during the financial year, that reduction in scope should also apply to credit institutions and insurance undertakings.

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5. Amendment 5Proposal for a directive · Recital 7 a (new)
   Amendment

   (7 a) For the purpose of consistency with this Directive, it is important that financial sector legislation remains coherent with its provisions. In this context, it should be considered whether requirements for the financial sector ought to be framed in a way that does not create an obligation for financial undertakings to obtain any information from undertakings which are not obliged to publish non-financial information pursuant to Article 19a or 29a of Directive 2013/34/EU. It should also be considered whether sector-specific financial services legislation, including delegated acts, guidelines by the ESAs and supervisory expectations, ought to be adapted to take into account the content o…

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6. Amendment 6Proposal for a directive · Recital 9
   Current text

   (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings established in or outside of the Union in its value chain that have up to 1000 employees on average during the f…

   Amendment

   (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to provide clarity and reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings with an average of more than 1000 employees and a net turnover of EUR 450 000 000 on average…

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7. Amendment 7Proposal for a directive · Recital 9 a (new)
   Amendment

   (9 a) Until the Commission adopts sustainability reporting standards for voluntary use, undertakings that report sustainability information voluntarily may do so according to the Commission recommendation 2025/4984, which is based on the voluntary standard for SMEs (VSME) developed by EFRAG. To ensure continuity and proportionality, the sustainability reporting standards for voluntary use adopted by the Commission as a delegated act should be based on that recommendation, and should be proportionate and take into account the think small first principle; should use simplified language and modularity allowing for flexibility and progression in the disclosures. The objective of this voluntary s…

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8. Amendment 8Proposal for a directive · Recital 9 b (new)
   Amendment

   (9 b) Sustainability reporting requirements should not oblige an undertaking to disclose information such as intellectual capital, intellectual property, know-how or the results of innovation that would qualify as trade secrets as defined in Directive (EU) 2016/943 of the European Parliament and of the Council. The reporting requirements provided for in this amending Directive should therefore be without prejudice to Directive (EU) 2016/943.

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9. Amendment 9Proposal for a directive · Recital 12
   Current text

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

   Amendment

   (12) Article 29a(1) of Directive 2013/34/EU requires parent undertakings of large groups to prepare and publish a sustainability statement at consolidated level. To reduce the reporting burden on those parent undertakings, the scope of that obligation should be reduced to parent undertakings of groups with an average of more than 1000 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year.

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10. Amendment 10Proposal for a directive · Recital 12 a (new)
    Amendment

    (12 a) Directive (EU) 2022/2464 requires undertakings in scope to report sustainability information according to mandatory European Sustainability Reporting Standards (ESRS). In July 2023 the Commission adopted a first set of ESRS. To deliver swiftly on the simplification and streamlining of sustainability reporting the Commission should adopt a delegated act as soon as possible, and at the latest six months after the entry into force of this directive, to revise the first set of ESRS to substantially reform the standards by: (i) removing datapoints deemed least important for general purpose sustainability reporting, (ii) prioritising quantitative indicators over narrative text, (iii) provid…

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11. Amendment 11Proposal for a directive · Recital 12 b (new)
    Amendment

    (12 b) To better clarify the demands made to financial holding undertakings that are parent undertakings, only these are exempted from complying with the obligations set out in this directive. Likewise, to decrease the administrative burden on undertakings, for recent acquisitions of subsidiaries that are not reporting yet, parent undertaking should benefit of a 24 months transition period.

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12. Amendment 12Proposal for a directive · Recital 13
    Current text

    (13) Article 29b(1), third subparagraph, Directive 2013/34/EU empowers the Commission to adopt sector-specific reporting standards by way of delegated acts, with a first set of such standards to be adopted by 30 June 2026. To avoid an increase in the number of prescribed datapoints that undertakings should report, that empowerment should be removed.

    Amendment

    (13) Article 29b(1), third subparagraph, Directive 2013/34/EU empowers the Commission to adopt sector-specific reporting standards by way of delegated acts, with a first set of such standards to be adopted by 30 June 2026. To avoid an increase in the number of prescribed datapoints that undertakings should report, that empowerment should be removed. The Commission should instead issue voluntary sector-specific guidelines to support undertakings and auditors in assessing their risks, opportunities and impacts in specific sectors, to facilitate the application of ESRS within a given sector, to identify the sustainability matters likely to be material for a specific sector and to reduce the bur…

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13. Amendment 13Proposal for a directive · Recital 14
    Current text

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

    Amendment

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

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14. Amendment 14Proposal for a directive · Recital 14 a (new)
    Amendment

    (14 a) Article 29b(4) of Directive 2013/34/EU requires sustainability reporting standards to take into account the difficulties undertakings may encounter in gathering information from actors throughout their value chain. In knowledge of recent attempts from third countries to block the sharing of data from non-EU countries to EU companies, Member States should allow information required by this Directive, 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, to replace the information not provided by the undertaking of a non-EU third country by default values. This default value, w…

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15. Amendment 15Proposal for a directive · Recital 15
    Current text

    (15) Article 29d of Directive 2013/34/EU requires undertakings subject to the requirements in Articles 19a and 29a of that Directive to prepare their management report, or consolidated management report, where applicable, in the electronic reporting format specified in Article 3 of Commission Delegated Regulation (EU) 2019/81511 and to mark up their sustainability reporting, including the disclosures provided for in Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council12 , in accordance with the electronic reporting format to be specified in that Delegated Regulation. To provide clarity to undertakings, it should be specified that until such rules on the marking…

    Amendment

    (15) Article 29d of Directive 2013/34/EU requires undertakings subject to the requirements in Articles 19a and 29a of that Directive to prepare their management report, or consolidated management report, where applicable, in the electronic reporting format specified in Article 3 of Commission Delegated Regulation (EU) 2019/81511 and to mark up their sustainability reporting, including the disclosures provided for in Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council12 , in accordance with the electronic reporting format to be specified in that Delegated Regulation. To provide clarity to undertakings, it should be specified that until such rules on the marking…

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16. Amendment 16Proposal for a directive · Recital 16
    Current text

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

    Amendment

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

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17. Amendment 17Proposal for a directive · Recital 17
    Current text

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

    Amendment

    (17) Pursuant to Article 40a(1), fourth and fifth subparagraphs of Directive 2013/34/EU, a subsidiary in the Union of a third-country undertaking that generates a net turnover of more than EUR 150 million in the Union, or, in the absence of such subsidiary, a branch in the Union that generates a net turnover of more than EUR 40 million, is to publish and make accessible sustainability information at the group level of the third-country parent undertaking. For reasons of consistency and burden reduction, and in order to ensure a level playing field, the size for a subsidiary undertaking and a branch to be in scope of Article 40a should be adjusted. The size of the subsidiary undertaking and t…

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18. Amendment 18Proposal for a directive · Recital 18
    Current text

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

    Amendment

    (18) Article 5(2), first subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2013/34/EU, with different dates depending on the size of the undertaking concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only undertakings with more than 1000 employees and a net turnover of EUR 450 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the…

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19. Amendment 19Proposal for a directive · Recital 19
    Current text

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

    Amendment

    (19) Article 5(2), third subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2004/109/EC, with different dates depending on the size of the issuer concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only undertakings with more than 1000 employees and a net turnover of EUR 450 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the ref…

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20. Amendment 20Proposal for a directive · Recital 20
    Current text

    (20) Article 4(1) of Directive (EU) 2024/1760 prohibits Member States from introducing, in their national law, provisions within the field covered by the Directive laying down human rights and environmental due diligence obligations diverging from those laid down in Article 8(1) and (2), and Article 10(1) of that Directive. To ensure that Member States do not go beyond that Directive and to avoid the creation of a fragmented regulatory landscape resulting in legal uncertainty and unnecessary burden, the full harmonisation provisions of Directive (EU) 2024/1760 should be expanded to additional provisions regulating the core aspects of the due diligence process. That includes, in particular, t…

    Amendment

    (20) Article 4(1) of Directive (EU) 2024/1760 prohibits Member States from introducing, in their national law, provisions within the field covered by the Directive laying down human rights and environmental due diligence obligations diverging from those laid down in Article 8(1) and (2), and Article 10(1) of that Directive. To ensure that Member States do not go beyond that Directive and to avoid the creation of a fragmented regulatory landscape resulting in legal uncertainty and unnecessary burden, the full harmonisation provisions of Directive (EU) 2024/1760 should be expanded to additional provisions regulating the core aspects of the due diligence process. That includes, in particular, t…

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21. Amendment 21Proposal for a directive · Recital 21
    Current text

    (21) Article 5 of Directive (EU) 2024/1760 obliges Member States to ensure that large companies above a certain size conduct risk-based human rights and environmental due diligence. To reduce burdens on companies that have to comply with that obligation, the required due diligence should, as a general rule, be limited to the company’s own operations, those of its subsidiaries and those of its direct business partners (‘tier 1’). Consequently, when it comes to business relationships, companies should, after having mapped their chains of activities, be required to carry out in-depth assessments as regards direct business partners only. Companies should, however, look beyond their direct busine…

    Amendment

    (21) Article 5 of Directive (EU) 2024/1760 obliges Member States to ensure that large companies above a certain size conduct risk-based human rights and environmental due diligence. To ensure effectiveness, reduce burdens on companies that have to comply with that obligation and ensure that their resources are used purposefully, the required due diligence and measures taken should take into account relevant risk factors, including company-level risk factors, such as whether the business partner is not a company covered by this Directive, business operation risk factors, geographic and contextual risk factors, such as the level of law enforcement with respect to the type of adverse impacts; p…

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22. Amendment 22Proposal for a directive · Recital 22
    Current text

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

    Amendment

    (22) To limit the trickle-down effect on other companies, including small and medium-sized undertakings and small midcap companies when it comes to the scoping of the chain of activities to identify adverse impacts, companies within the scope should not seek to obtain information from their business partners but rely only on information that is already reasonably available, such as publicly known information, information from searches and information gained through earlier cooperation. Entity-level information and communication with business partners is not relevant at this stage. It should only be possible to seek such information for further assessments under certain conditions. In such a…

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23. Amendment 23Proposal for a directive · Recital 22 a (new)
    Amendment

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

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24. Amendment 24Proposal for a directive · Recital 23
    Current text

    (23) Companies may find themselves in situations where their production heavily relies on inputs from one or several specific suppliers. At the same time, where the business operations of such a supplier are linked to severe adverse impacts, including child labour or significant environmental harm, and the company has unsuccessfully exhausted all due diligence measures to address those impacts, the company, as a last resort should suspend the business relationship while continuing to work with the supplier towards a solution, where possible using any increased leverage resulting from the suspension.

    Amendment

    (23) Companies may find themselves in situations where their production heavily relies on inputs from one or several specific suppliers. At the same time, where the business operations of such a supplier are linked to severe adverse impacts, including child labour or significant environmental harm, and the company has unsuccessfully exhausted all due diligence measures to address those impacts, the company, as a last resort should temporarily suspend the business relationship while continuing to work with the supplier towards a solution, where possible using any increased leverage resulting from the suspension. The company should assess, in consultation with relevant stakeholders, whether su…

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25. Amendment 25Proposal for a directive · Recital 24
    Current text

    (24) To reduce burdens on companies and make stakeholder engagement more proportionate, companies should only have to engage with workers, their representatives including trade unions, and individuals and 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 that have a link to the specific stage of the due diligence process being carried out. That includes individuals or communities in the neighbourhood of plants operated by business partners where those individuals or communities are directly affected by pollution, or indigenous people whose right to lands or resources…

    Amendment

    (24) To reduce burdens on companies and make stakeholder engagement more proportionate, companies should only have to engage with their employees, the employees of their subsidiaries and of their business partners, the representatives of those employees including trade unions, and individuals and communities whose rights or interests are or could be directly affected by the adverse impacts on human rights and the environment that stem from the products, services and operations of the company, its subsidiaries and its business partners. In line with the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, this includes the legitimate representatives of those individu…

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26. Amendment 26Proposal for a directive · Recital 25
    Current text

    (25) To reduce administrative burdens on companies, the Commission’s deadline for the adoption of general due diligence guidelines should be advanced to 26 July 2026. In parallel, the application deadline for Directive (EU) 2024/1760 for the first group of companies should be deferred to 26 July 2028 in accordance with Directive (EU) XXX/XXX13 . That two-year interval will should provide companies with sufficient time to take into account the practical guidance and best practices included in the Commission’s guidelines when implementing due diligence measures. __________________ 13 Directive (EU) 2025/XX of ……….

    Amendment

    (25) To reduce administrative burdens on companies, the Commission’s deadline for the adoption of general due diligence guidelines should be advanced to 26 July 2026. In parallel, the application deadline for Directive (EU) 2024/1760 for the first group of companies should be deferred to 26 July 2028 in accordance with Directive (EU) XXX/XXX 13 . That two-year interval should provide companies with sufficient time to take into account the practical guidance and best practices included in the Commission’s guidelines when implementing due diligence measures. __________________ 13 Directive (EU) 2025/XX of ……….

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27. Amendment 27Proposal for a directive · Recital 26
    Current text

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

    Amendment

    (26) The requirement to put into effect the transition plan for climate change mitigation should be replaced by a clarification that companies adopt a transition plan which aims to ensure, through reasonable efforts, that the business model and strategy of the company are compatible with the transition to a sustainable economy. Member States should ensure that this obligation is an obligation of means, not an obligation of results. The obligation to adopt the plan remains subject to administrative supervision.

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28. Amendment 28Proposal for a directive · Recital 27
    Current text

    (27) Article 27(1) of Directive EU 2024/1760 requires Member States to lay down penalties that are to be “effective, proportionate and dissuasive”. Article 27(2) of that Directive requires Member States, when deciding whether to impose penalties and, if so, when determining their nature and appropriate level, to take due account of a series of factors that determine the gravity of the infringement and attenuating or aggravating circumstances. Article 27(4) of that Directive requires Member States to base any imposed pecuniary penalties on the net worldwide turnover of the company concerned. However, given the fact that Member States already have to take into account the series of factors lai…

    Amendment

    (27) Article 27(1) of Directive EU 2024/1760 requires Member States to lay down penalties that are to be “effective, proportionate and dissuasive”. Article 27(2) of that Directive requires Member States, when deciding whether to impose penalties and, if so, when determining their nature and appropriate level, to take due account of a series of factors that determine the gravity of the infringement and attenuating or aggravating circumstances. Article 27(4) of that Directive requires Member States to base any imposed pecuniary penalties on the net worldwide turnover of the company concerned. In order to ensure proportionate penalties, Member States should guarantee that the maximum limit for…

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29. Amendment 29Proposal for a directive · Recital 29 a (new)
    Amendment

    (29 a) In order to facilitate compliance by companies with reporting and due diligence obligations under Union law, and to enhance the accessibility and usability of sustainability-related information, the Commission should establish a dedicated digital reporting portal. That portal should serve as a one-stop shop, providing companies, free of charge, with tailored access to templates, guidelines, reporting requirements, including voluntary tools, and information on funding and tendering opportunities. To ensure the effective functioning of the portal, the Commission should promote the interoperability of existing data platforms, enabling seamless transmission, exchange and analysis of data,…

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30. Amendment 30Proposal for a directive · Article 1 – paragraph 1 – point 1 · Directive 2006/43/EC · Article 26a – paragraph 3 – subparagraph 1
    Current text

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

    Amendment

    The Commission shall, no later than 1 October 2026, adopt delegated acts in accordance with Article 48a in order to supplement this Directive in order to provide for limited assurance standards setting out the procedures that the auditor(s) and the audit firm(s) shall perform in order to draw his, her or its conclusions on the assurance of sustainability reporting, including engagement planning, risk consideration and response to risks and type of conclusions to be included in the assurance report on sustainability reporting, or, where relevant, in the audit report.

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31. Amendment 31Proposal for a directive · Article 1 – paragraph 1 – point 1 · Directive 2006/43/EC · Article 26a – paragraph 3 – subparagraph 2 – introductory wording
    Current text

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

    Amendment

    The Commission shall adopt the assurance standards referred to in the first subparagraph after having obtained an opinion from EFRAG while ensuring that the standards:

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32. Amendment 32Proposal for a directive · Article 2 – paragraph 1 – point 1 – point a · Directive 2013/34/EU · Article 1 – paragraph 3 – introductory wording
    Current text

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

    Amendment

    ‘The coordination measures prescribed by Articles 19a, 19b, 29a, 29aa, 29d, 30 and 33, Article 34(1), second subparagraph, point (aa), Article 34(2) and (3), and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings exceed, on their balance sheet dates, the average number of 1000 employees and a net turnover of EUR 450 000 000 during the financial year:’;

    official amendment document ↗
33. Amendment 33Proposal for a directive · Article 2 – paragraph 1 – point 1 a (new) · Directive 2013/34/EU · Article 19 – paragraph 1 – subparagraph 4
    Amendment

    (1 a) in Article 19(1), the fourth subparagraph is replaced by the following: ‘Undertakings which, on their balance sheet dates, exceed the average number of 1000 employees and a net turnover of EUR 450 000 000 during the financial year, shall report information on the key intangible resources and explain how the business model of the undertaking fundamentally depends on such resources and how such resources are a source of value creation for the undertaking.’ ;

    official amendment document ↗
34. Amendment 34Proposal for a directive · Article 2 – paragraph 1 – point 2 – point a · Directive 2013/34/EU · Article 19a – paragraph 1 – subparagraph 1
    Current text

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

    Amendment

    ‘Undertakings which, on their balance sheet dates, exceed the average number of 1000 employees and a net turnover of EUR 450 000 000 during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.’;

    official amendment document ↗
35. Amendment 35Proposal for a directive · Article 2 – paragraph 1 – point 2 – point a a (new) · Directive 2013/34/EU · Article 19a – paragraph 1 – subparagraph 2a (new)
    Amendment

    (a a) in paragraph 1, the following subparagraph is added: ‘Undertakings that are a financial holding undertaking as defined in Article 2(15), shall be exempted from carrying out the obligations under this Directive.’;

    official amendment document ↗
36. Amendment 36Proposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i · Directive 2013/34/EU · Article 19a – paragraph 3 – subparagraph 1
    Current text

    ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainabili…

    Amendment

    ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees and a net turnover of EUR 450 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29…

    Excerpt — full text in the official PDF.
    official amendment document ↗
37. Amendment 37Proposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i a (new) · Directive 2013/34/EU · Article 19a – paragraph 3 – subparagraph 2
    Current text

    For the first three years of the application of the measures to be adopted by the Member States in accordance with Article 5(2) of Directive (EU) 2022/2464 of the European Parliament and of the Council (13), and in the event that not all the necessary information regarding its value chain is available, the undertaking shall explain the efforts made to obtain the necessary information about its value chain, the reasons why not all of the necessary information could be obtained, and its plans to obtain the necessary information in the future.

    Amendment

    (i a) the second subparagraph is replaced by the following: ‘In the event that not all the necessary information regarding its value chain is available, the undertaking shall explain the efforts made to obtain the necessary information about its value chain, the reasons why not all of the necessary information could be obtained, and, its plans to obtain the necessary information in the future. If an information regarding its value chain cannot be obtained because the legal framework of a third country prevents a business partner to do so, the undertaking shall inform the supervisory authority which, in turn, shall inform the Commission. Where possible, the undertaking shall replace the infor…

    Excerpt — full text in the official PDF.
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38. Amendment 38Proposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point ii · Directive 2013/34/EU · Article 19a – paragraph 3 – subparagraph 4 a
    Current text

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

    Amendment

    ‘The first subparagraph is without prejudice to information requests made for purposes other than the reporting of sustainability information as required by this Directive, including Union requirements on undertakings to conduct a due diligence process.’;

    official amendment document ↗
39. Amendment 39Proposal for a directive · Article 2 – paragraph 1 – point 2 – point b a (new) · Directive 2013/34/EU · Article 19a – paragraph 4 a (new)
    Amendment

    (b a) the following paragraph 4a is inserted: ‘4a. The reporting obligations set out in this Article are without prejudice to Directive (EU) 2016/943 of the European Parliament and of the Council. Therefore, undertakings shall not be required to disclose information on intellectual capital, intellectual property or know-how, business information or technological information which constitutes trade secrets as defined in Article 2, point (1), of Directive (EU) 2016/943.’;

    official amendment document ↗
40. Amendment 40Proposal for a directive · Article 2 – paragraph 1 – point 2 – point c a (new) · Directive 2013/34/EU · Article 19a – paragraph 10
    Current text

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

    Amendment

    (c a) paragraph 10 is replaced by the following: ‘10. The exemption laid down in paragraph 9 shall also apply to public-interest entities subject to the requirements of this Article.’;

    official amendment document ↗
41. Amendment 41Proposal for a directive · Article 2 – paragraph 1 – point 3 · Directive 2013/34/EU · Article 19b
    Current text

    (3) the following Article 19b is inserted : [...]

    Amendment

    deleted

    official amendment document ↗
42. Amendment 42Proposal for a directive · Article 2 – paragraph 1 – point 4 – point a · Directive 2013/34/EU · Article 29a – paragraph 1 – subparagraph 1
    Current text

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

    Amendment

    ‘Parent undertakings of a group which, on their balance sheet dates, exceed the average number of 1000 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.’;

    official amendment document ↗
43. Amendment 43Proposal for a directive · Article 2 – paragraph 1 – point 4 – point a a (new) · Directive 2013/34/EU · Article 29a – paragraph 1 – subparagraph 1a and 1b (new)
    Amendment

    (a a) in paragraph 1, the following subparagraphs are added: ‘Parent undertakings that are a financial holding undertaking as defined in Article 2(15), shall be exempted from carrying out the obligations under this Article. In case of recent acquisitions of subsidiaries that are not subject to the reporting of information referred to in the first subparagraph, the parent undertaking will benefit of a 24 months transition period before being required to integrate information on its new subsidiary, within its consolidated sustainability report.’;

    official amendment document ↗
44. Amendment 44Proposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point i · Directive 2013/34/EU · Article 29a – paragraph 3 – subparagraph 1
    Current text

    Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability info…

    Amendment

    ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees and a net turnover of EUR 450 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, ex…

    Excerpt — full text in the official PDF.
    official amendment document ↗
45. Amendment 45Proposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point i a (new) · Directive 2013/34/EU · Article 29a – paragraph 3 – subparagraph 2
    Current text

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

    Amendment

    (i a) the second subparagraph is replaced by the following: ‘In the event that not all the necessary information regarding its value chain is available, the undertaking shall explain the efforts made to obtain the necessary information about its value chain, the reasons why not all of the necessary information could be obtained, and its plans to obtain the necessary information in the future. If an information regarding its value chain cannot be obtained because the legal framework of a third country prevents a business partner to do so, the undertaking shall inform the supervisory authority which, in turn, shall inform the Commission. Where possible, the undertaking shall replace the inform…

    Excerpt — full text in the official PDF.
    official amendment document ↗
46. Amendment 46Proposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point ii · Directive 2013/34/EU · Article 29a – paragraph 3 – subparagraph 4 a
    Current text

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

    Amendment

    ‘The first subparagraph is without prejudice to information requests made for purposes other than the reporting of sustainability information as required by this Directive, including Union requirements on undertakings to conduct a due diligence process.’;

    official amendment document ↗
47. Amendment 47Proposal for a directive · Article 2 – paragraph 1 – point 4 – point b a (new) · Directive 2013/34/EU · Article 29a – paragraph 3 – subparagraph 5a (new)
    Amendment

    (b a) the following subparagraph 5a is added: ‘5a. The reporting obligations set out in this Article are without prejudice to Directive (EU) 2016/943. Therefore, undertakings shall not be required to disclose information on intellectual capital, intellectual property or know-how, business information or technological information which constitutes trade secrets as defined in Article 2, point (1), of Directive (EU) 2016/943.’;

    official amendment document ↗
48. Amendment 48Proposal for a directive · Article 2 – paragraph 1 – point 4 – point b b (new) · Directive 2013/34/EU · Article 29a – paragraph 8 – subparagraph 1
    Current text

    ‘Provided that the conditions set out in the second subparagraph of this paragraph are met, a parent undertaking which is a subsidiary undertaking shall be exempted from the obligations set out in paragraphs 1 to 5 of this Article (the “exempted parent undertaking”) if such parent undertaking and its subsidiary undertakings are included in the consolidated management report of another undertaking, drawn up in accordance with Article 29 and this Article. A parent undertaking which is a subsidiary undertaking of a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 5 of this Article where such parent undertaking and i…

    Amendment

    (b b) in paragraph 8, the first subparagraph is replaced by the following: ‘Provided that the conditions set out in the second subparagraph of this paragraph are met, a parent undertaking which is a subsidiary undertaking shall be exempted from the obligations set out in paragraphs 1 to 5 of this Article (the “exempted parent undertaking”) if such parent undertaking and its subsidiary undertakings are included in the consolidated management report of another undertaking, drawn up in accordance with Article 29 and this Article. A parent undertaking which is a subsidiary undertaking of a parent undertaking that is established in a third country shall also be exempted from the obligations set o…

    Excerpt — full text in the official PDF.
    official amendment document ↗
49. Amendment 49Proposal for a directive · Article 2 – paragraph 1 – point 4 – point b c (new) · Directive 2013/34/EU · Article 29a – paragraph 9
    Current text

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

    Amendment

    (b c) paragraph 9 is replaced by the following: ‘9. The exemption laid down in paragraph 8 shall also apply to public-interest entities subject to the requirements of this Article.’;

    official amendment document ↗
50. Amendment 50Proposal for a directive · Article 2 – paragraph 1 – point 5 · Directive 2013/34/EU · Article 29aa
    Current text

    (5) The following Article 29aa is inserted : [...]

    Amendment

    deleted

    official amendment document ↗
51. Amendment 51Proposal for a directive · Article 2 – paragraph 1 – point 6 – point -a · Directive 2013/34/EU · Article 29b – paragraph 1 – subparagraph 2 a (new)
    Amendment

    (-a) in paragraph 1, the following subparagraph is inserted after the second subparagraph: ‘The Commission, after consultation with relevant stakeholders, shall develop voluntary sector-specific guidelines to assist undertakings in the same sector in conducting their materiality assessment. These guidelines shall provide tailored support for identifying and disclosing sector-relevant sustainability impacts, risks, and opportunities, ensuring consistency and comparability across companies operating in the same sector.’;

    official amendment document ↗
52. Amendment 52Proposal for a directive · Article 2 – paragraph 1 – point 6 – point a · Directive 2013/34/EU · Article 29b – paragraph 1
    Current text

    (a) in paragraph 1, the third and fourth subparagraphs are deleted;

    Amendment

    (a) in paragraph 1, the third, fourth and sixth subparagraphs are deleted;

    official amendment document ↗
53. Amendment 53Proposal for a directive · Article 2 – paragraph 1 – point 6 – point a a (new) · Directive 2013/34/EU · Article 29b – paragraph 2 – subparagraph 1
    Current text

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

    Amendment

    (a a) in paragraph 2, the first subparagraph is replaced by the following: ‘The sustainability reporting standards shall ensure the quality of reported information, by requiring that it is simple, accessible, streamlined, understandable, proportionate, relevant, verifiable, comparable and represented in a faithful manner. The sustainability reporting standards shall: (a) to the extent possible, be quantitative in nature; (b) avoid double reporting and any overlap with obligations stemming from other legislative instruments; (c) avoid imposing a disproportionate administrative and financial burden on undertakings; and (d) ensure to the greatest extent possible interoperability with internatio…

    Excerpt — full text in the official PDF.
    official amendment document ↗
54. Amendment 54Proposal for a directive · Article 2 – paragraph 1 – point 6 – point b · Directive 2013/34/EU · Article 29b – paragraph 4 – subparagraph 1
    Current text

    (b) in paragraph 4, first subparagraph is replaced by the following ‘Sustainability reporting standards shall not specify disclosures that would require undertakings to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information to be disclosed pursuant to the sustainability reporting standards for voluntary use referred to in Article 29ca.’;

    Amendment

    (b) in paragraph 4, the first subparagraph is replaced by the following ‘Sustainability reporting standards shall take account of the difficulties, including legal limitations stemming from this Directive, that undertakings might encounter in gathering information from actors throughout their value chain, especially from those which are not subject to the sustainability reporting requirements laid down in Article 19a or 29a and from suppliers in emerging markets and economies. Sustainability reporting standards shall specify disclosures on value chains that are proportionate and relevant to the capacities and characteristics of undertakings in the value chains, and to the scale and complexit…

    Excerpt — full text in the official PDF.
    official amendment document ↗
55. Amendment 55Proposal for a directive · Article 2 – paragraph 1 – point 8 · Directive 2013/34/EU · Article 29ca – paragraph 1
    Current text

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

    Amendment

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

    official amendment document ↗
56. Amendment 56Proposal for a directive · Article 2 – paragraph 1 – point 8 · Directive 2013/34/EU · Article 29ca – paragraph 2
    Current text

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

    Amendment

    2. The sustainability reporting standards referred to in paragraph 1 shall be based on Commission Recommendation 2025/4984 and proportionate to the size of the undertakings, and be relevant for the capacities and the characteristics of the undertakings for which they are designed and to the scale and complexity of their activities. They shall also, to the extent possible, specify the structure to be used to present such sustainability information. Undertakings within the value chain may choose a template for reporting of sustainability information, so that undertakings requesting information are not required to assess or map the size categories of all entities in their value chain.

    official amendment document ↗
57. Amendment 57Proposal for a directive · Article 2 – paragraph 1 – point 8 · Directive 2013/34/EU · Article 29ca – paragraph 3 (new)
    Amendment

    3. The Commission shall, at least every four years after the date of its application, review the delegated act referred to in paragraph 1 and, where necessary, it shall amend it to take into account developments relevant to sustainability reporting.

    official amendment document ↗
58. Amendment 58Proposal for a directive · Article 2 – paragraph 1 – point 8 · Directive 2013/34/EU · Article 29ca – paragraph 4 (new)
    Amendment

    4. When amending delegated acts pursuant to paragraph 3, the Commission shall take into consideration technical advice from EFRAG.’;

    official amendment document ↗
59. Amendment 59Proposal for a directive · Article 2 – paragraph 1 – point 10 · Directive 2013/34/EU · Article 33 – paragraph 1 – subparagraph 2
    Current text

    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.’;

    Amendment

    By way of derogation from subparagraph 1, Member States may provide 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.’;

    official amendment document ↗
60. Amendment 60Proposal for a directive · Article 2 – paragraph 1 – point 11 – point b · Directive 2013/34/EU · Article 34 – paragraph 2 a
    Current text

    ‘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.’;

    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 and a net turnover of EUR 450 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned.’;

    official amendment document ↗
61. Amendment 61Proposal for a directive · Article 2 – paragraph 1 – point 11 – point b a (new) · Directive 2013/34/EU · Article 34 – paragraph 2 b (new)
    Amendment

    (b a) the following paragraph 2b is inserted: ‘2b. 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 established under legislation of a third-country could be sanctioned due to third-country legislation simply by transmitting sustainability data.’;

    official amendment document ↗
62. Amendment 62Proposal for a directive · Article 2 – paragraph 1 – point 12 – point -a (new) · Directive 2013/34/EU · Article 40a – paragraph 1 – subparagraph 1
    Current text

    ‘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.’;

    Amendment

    (- a) 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), and in accordance with Article 29a(3), at the group level of that ultimate third-country parent undertaking.’;

    official amendment document ↗
63. Amendment 63Proposal for a directive · Article 2 – paragraph 1 – point 12 – point a · Directive 2013/34/EU · Article 40a – paragraph 1 – point a
    Current text

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

    Amendment

    ‘The first subparagraph shall only apply to subsidiary undertakings which, on their balance sheet dates, exceed a net turnover of EUR 450 000 000 in the preceding financial year.’;

    official amendment document ↗
64. Amendment 64Proposal for a directive · Article 2 – paragraph 1 – point 12 – point b · Directive 2013/34/EU · Article 40a – paragraph 1 – subpargraph 4
    Current text

    (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.

    Amendment

    (b) the fourth subparagraph is 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 EUR 450 000 000 in the preceding financial year.

    official amendment document ↗
65. Amendment 65Proposal for a directive · Article 2 – paragraph 1 – point 12 – point b a (new) · Directive 2013/34/EU · Article 40a – paragraph 1 – subpargraph 5
    Current text

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

    Amendment

    (ba) the fith subparagraph is deleted

    official amendment document ↗
66. Amendment 66Proposal for a directive · Article 2 – paragraph 1 – point 13 – point -a (new) · Directive 2013/34/EU · Article 49 –paragraph 2 – first sentence
    Amendment

    (-a) in paragraph 2, first sentence, the reference to Article 29c is deleted;

    official amendment document ↗
67. Amendment 67Proposal for a directive · Article 2 – paragraph 1 – point 13 – point -a a (new) · Directive 2013/34/EU · Article 49 – paragraph 3 – first sentence
    Amendment

    (-aa) in paragraph 3, first sentence, the reference to Article 29c is deleted;

    official amendment document ↗
68. Amendment 68Proposal for a directive · Article 2 – paragraph 1 – point 13 – point -a b (new) · Directive 2013/34/EU · Article 49 – paragraph 3b
    Amendment

    (-ab) paragraph 3b is amended as follows: (i) in the first subparagraph, introductory wording, the reference to Article 29c is deleted ; (ii) in the fourth subparagraph, the reference to Article 29c is deleted; (iii) in the sixth subparagraph, the reference to Article 29c is deleted.

    official amendment document ↗
69. Amendment 69Proposal for a directive · Article 2 – paragraph 1 – point 13 – point a – introductory part · Directive 2013/34/EU · Article 49 – paragraph 3c
    Current text

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

    Amendment

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

    official amendment document ↗
70. Amendment 70Proposal for a directive · Article 2 – paragraph 1 – point 13 – point a · Directive 2013/34/EU · Article 49 – paragraph 3c
    Current text

    ‘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].

    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].

    official amendment document ↗
71. Amendment 71Proposal for a directive · Article 2 – paragraph 1 – point 13 – point a · Directive 2013/34/EU · Article 49 – paragraph 3d
    Current text

    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.

    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.

    official amendment document ↗
72. Amendment 72Proposal for a directive · Article 2 – paragraph 1 – point 13 – point a · Directive 2013/34/EU · Article 49 – paragraph 3e
    Current text

    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.’;

    Amendment

    deleted

    official amendment document ↗
73. Amendment 73Proposal for a directive · Article 2 – paragraph 1 – point 13 – point b · Directive 2013/34/EU · Article 49 – paragraph 5
    Current text

    ‘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.’.

    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.’.

    official amendment document ↗
74. Amendment 74Proposal 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
    Current text

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

    Amendment

    ‘(i) to undertakings which, on their balance sheet dates, exceed the average number of 1000 employees and a net turnover of EUR 450 000 000 during the financial year;’;

    official amendment document ↗
75. Amendment 75Proposal 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
    Current text

    ‘(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;’;

    Amendment

    ‘(ii) to parent undertakings of a group which, on their balance sheet dates, exceed the average number of 1000 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year;’;

    official amendment document ↗
76. Amendment 76Proposal 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
    Current text

    ‘(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;’;

    Amendment

    ‘(i) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are undertakings which, on their balance sheet dates, exceed the average number of 1000 employees and a net turnover of EUR 450 000 000 during the financial year;’;

    official amendment document ↗
77. Amendment 77Proposal 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
    Current text

    ‘(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;’;

    Amendment

    ‘(ii) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are parent undertakings of a group which, on its balance sheet dates, exceed the average number of 1000 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year;’;

    official amendment document ↗
78. Amendment 78Proposal for a directive · Article 4 – paragraph 1 – point 1 · Directive (EU) 2024/1760 · Article 1 – paragraph 1 – point c
    Current text

    ‘(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.’;

    Amendment

    ‘(c) the obligation for companies to adopt a transition plan for climate change mitigation, which aim to ensure, through reasonable 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 in line with the Paris Agreement.’;

    official amendment document ↗
79. Amendment 79Proposal for a directive · Article 4 – paragraph 1 – point 1 a (new) · Directive (EU) 2024/1760 · Article 2 – paragraph 1 – point a
    Current text

    ‘(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;’;

    Amendment

    (1 a) 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 ;’;

    official amendment document ↗
80. Amendment 80Proposal for a directive · Article 4 – paragraph 1 – point 1 a (new) – point b (new) · Directive (EU) 2024/1760 · Article 2 – paragraph 2 – point a
    Current text

    ‘(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;’;

    Amendment

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

    official amendment document ↗
81. Amendment 81Proposal for a directive · Article 4 – paragraph 1 – point 2 – introductory part · Directive (EU) 2024/1760 · Article 3 – paragraph 1
    Current text

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

    Amendment

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

    official amendment document ↗
82. Amendment 82Proposal for a directive · Article 4 – paragraph 1 – point 2 – point a (new) · Directive (EU) 2024/1760 · Article 3 – paragraph 1 – point n
    Current text

    ‘(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;’;

    Amendment

    (a) 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 adverse impacts on human rights and the environment that stem from the products, services and operations of the company, its subsidiaries and its business partners and the legitimate representatives of those individuals or communities;’;

    official amendment document ↗
83. Amendment 83Proposal for a directive · Article 4 – paragraph 1 – point 2 – point b (new) · Directive (EU) 2024/1760 · Article 3 – paragraph 1 – point w (new)
    Amendment

    (b) the following point (w) is added: ‘(w) ‘reasonably available information’ means information which can be obtained by the company from its own, or from existing or secondary sources without contacting a business partner.’;

    official amendment document ↗
84. Amendment 84Proposal for a directive · Article 4 – paragraph 1 – point 3 – introductory part · Directive (EU) 2024/1760 · Article 4
    Current text

    (3) Article 4 is replaced by the following:

    Amendment

    (3) Article 4 is amended as follows:

    official amendment document ↗
85. Amendment 85Proposal for a directive · Article 4 – paragraph 1 – point 3 – point a (new) · Directive (EU) 2024/1760 · Article 4 – paragraph 1
    Current text

    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.

    Amendment

    (a) paragraph 1 is replaced by the following: Without prejudice to Article 1(2) and (3), Member States shall not introduce, in their national law, provisions within the field covered by this Directive diverging from those laid down in Articles 6 to 16

    official amendment document ↗
86. Amendment 86Proposal for a directive · Article 4 – paragraph 1 – point 3 – point b (new) · Directive (EU) 2024/1760 · Article 4 – paragraph 2
    Current text

    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.;

    Amendment

    (b) paragraph 2 is deleted;

    official amendment document ↗
87. Amendment 87Proposal for a directive · Article 4 – paragraph 1 – point 3 a (new) · Directive (EU) 2024/1760 · Article 6 – paragraph 4
    Amendment

    3 a. in Article 6 the following paragraph 4 is added: ‘4. When a company covered by this Directive acquires a company that was not in the scope of this Directive, the acquiring company has two years to integrate the processes of the purchased company into its own due diligence policy.’;

    official amendment document ↗
88. Amendment 88Proposal for a directive · Article 4 – paragraph 1 – point 4 – point a · Directive (EU)2024/1760 · Article 8 – paragraph 2
    Current text

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

    Amendment

    (a) paragraph 2 is replaced by the following: ‘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, such as the level of law enforcement; sectoral, product or service risk factors, as well as business operation or business partners risk factors, such as whether the business partner is not a company covered by this Directive, 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 chains of acti…

    Excerpt — full text in the official PDF.
    official amendment document ↗
89. Amendment 89Proposal for a directive · Article 4 – paragraph 1 – point 4 – point b · Directive (EU) 2024/1760 · Article 8 – paragraph 2 a
    Current text

    (b) the following paragraph 2a is inserted: 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 prej…

    Amendment

    deleted

    Excerpt — full text in the official PDF.
    official amendment document ↗
90. Amendment 90Proposal for a directive · Article 4 – paragraph 1 – point 4 – point b a (new) · Directive (EU) 2024/1760 · Article 8 – paragraph 3
    Current text

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

    Amendment

    (b a) paragraph 3 is replaced by the following: ‘3. Member States shall ensure that, for the purposes of the scoping provided for in paragraph 2, point (a), companies do not seek to obtain the information from their business partners but rely solely on information that is already reasonably available, including risk factors.’;

    official amendment document ↗
91. Amendment 91Proposal for a directive · Article 4 – paragraph 1 – point 4 – point c · Directive (EU) 2024/1760 · Article 8 – paragraph 4
    Current text

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

    Amendment

    ‘4. Member States shall ensure that, for the purposes of the further assessment provided for in paragraph 2, point (b), of this Article companies do not seek to obtain information from business partners, unless this is necessary. Where the business partner has fewer than 5000 employees, companies may seek such information only as a last resort, and if it cannot reasonably be obtained by other means, in particular from existing or secondary sources. In any case, any request shall be targeted, reasonable and proportionate. Where information necessary for the further assessment provided for in paragraph 2, point (b) can be obtained from different business partners, the company shall seek such i…

    Excerpt — full text in the official PDF.
    official amendment document ↗
92. Amendment 92Proposal for a directive · Article 4 – paragraph 1 – point 4 – point d · Directive (EU) 2024/1760 · Article 8 – paragraph 5
    Current text

    ‘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…

    Amendment

    ‘5. 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-stakeholders initiatives, 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 shall be able to reasonably explain why…

    Excerpt — full text in the official PDF.
    official amendment document ↗
93. Amendment 93Proposal for a directive · Article 4 – paragraph 1 – point 4 a (new) · Directive (EU) 2024/1760 · Article 9
    Current text

    Article 9 Prioritisation of identified actual and potential adverse impacts 1. Member States shall ensure that, where it is not feasible to prevent, mitigate, bring to an end or minimise all identified adverse impacts at the same time and to their full extent, companies prioritise adverse impacts identified pursuant to Article 8 in order to fulfil the obligations laid down in Article 10 or 11. 2. The prioritisation referred to in paragraph 1 shall be based on the severity and likelihood of the adverse impacts. 3. Once the most severe and most likely adverse impacts are addressed in accordance with Article 10 or 11 within a reasonable time, the company shall address less severe and less likel…

    Amendment

    4 a. Article 9 is replaced by the following : Article 9 Prioritisation of identified actual and potential adverse impacts 1. Member States shall ensure that, where it is not feasible for companies to prevent, mitigate, bring to an end or minimise all adverse impacts identified pursuant to Article 8, companies may prioritise the most severe and most likely adverse impacts in order to fulfil the obligations laid down in Article 10 or 11. 2. Once the most severe and most likely adverse impacts are addressed in accordance with Article 10 or 11 within a reasonable time, the company shall address less severe and less likely adverse impacts. 3. Where prioritisation decisions are made in accordance…

    Excerpt — full text in the official PDF.
    official amendment document ↗
94. Amendment 94Proposal for a directive · Article 4 – paragraph 1 – point 5 · Directive (EU) 2024/1760 · Article 10 – paragraph 6 – subparagraph 1 – point c
    Current text

    (c) use or increase its leverage through the suspension of the business relationship with respect to the activities concerned.

    Amendment

    (c) use or increase its leverage, where possible, through the temporary suspension of the business relationship with respect to the activities concerned.

    official amendment document ↗
95. Amendment 95Proposal for a directive · Article 4 – paragraph 1 – point 5 · Directive (EU) 2024/1760 · Article 10 – paragraph 6 – subparagraph 2
    Current text

    As long as there is a reasonable expectation that the enhanced prevention action plan will succeed, the mere fact of continuing to engage with the business partner shall not trigger the company’s liability.

    Amendment

    As long as there is a reasonable expectation that the enhanced prevention action plan will succeed, the mere fact of continuing to engage with the business partner shall not expose the company to penalties pursuant to Article 27 or to liability under Article 29.

    official amendment document ↗
96. Amendment 96Proposal for a directive · Article 4 – paragraph 1 – point 5 · Directive (EU) 2024/1760 · Article 10 – paragraph 6 – subparagraph 3
    Current text

    Prior to suspending a business relationship, the company shall assess whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be prevented or adequately mitigated. Should that be the case, the company shall not be required to suspend the business relationship and shall be in a position to report to the competent supervisory authority about the duly justified reasons for such decision.

    Amendment

    Prior to temporarily suspending a business relationship, the company shall assess in consultation with relevant stakeholders, whether no available alternative to that business relationship, that provides a raw material, product or service essential to the company’s production of goods or provision of services, exists and the suspension would cause substantial prejudice to the company or whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be prevented or adequately mitigated. Should that be the case, the company shall not be required to suspend the business relationship and shall be in a position to report to…

    Excerpt — full text in the official PDF.
    official amendment document ↗
97. Amendment 97Proposal for a directive · Article 4 – paragraph 1 – point 5 · Directive (EU) 2024/1760 · Article 10 – paragraph 6 – subparagraph 4
    Current text

    Member States shall provide for an option to suspend the business relationship in contracts governed by their laws in accordance with the first subparagraph, except for contracts where the parties are obliged by law to enter into them.

    Amendment

    Member States shall provide for an option to suspend or terminate the business relationship in contracts governed by their laws, except for contracts where the parties are obliged by law to enter into them.

    official amendment document ↗
98. Amendment 98Proposal for a directive · Article 4 – paragraph 1 – point 6 · Directive (EU) 2024/1760 · Article 11 – paragraph 7 – subparagraph 1 – introductory part
    Current text

    ‘7. As regards actual adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 3, 5 and 6, the company shall, as a last resort:

    Amendment

    ‘7. As regards actual adverse impacts as referred to in paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures set out in paragraphs 3, 5 and 6, the company shall, as a last resort:

    official amendment document ↗
99. Amendment 99Proposal for a directive · Article 4 – paragraph 1 – point 6 · Directive (EU) 2024/1760 · Article 11 – paragraph 7 – subparagraph 1 – point b
    Current text

    (b) where the law governing its relation with the business partner concerned so entitles it, adopt and implement an enhanced prevention action plan for the specific adverse impact without undue delay, provided that there is a reasonable expectation that those efforts will succeed, and

    Amendment

    (b) where the law governing its relation with the business partner concerned so entitles it, adopt and implement an enhanced corrective action plan for the specific adverse impact without undue delay, provided that there is a reasonable expectation that those efforts will succeed, and

    official amendment document ↗
100. Amendment 100Proposal for a directive · Article 4 – paragraph 1 – point 6 · Directive (EU) 2024/1760 · Article 11 – paragraph 7 – subparagraph 1 – point c
     Current text

     (c) use or increase its leverage through the suspension of the business relationship with respect to the activities concerned.

     Amendment

     (c) use or increase its leverage, where possible, through the temporary suspension of the business relationship with respect to the activities concerned.

     official amendment document ↗
101. Amendment 101Proposal for a directive · Article 4 – paragraph 1 – point 6 · Directive (EU) 2024/1760 · Article 11 – paragraph 7 – subparagraph 2
     Current text

     As long as there is a reasonable expectation that the enhanced prevention action plan will succeed, the mere fact of continuing to engage with the business partner shall not trigger the company’s liability.

     Amendment

     As long as there is a reasonable expectation that the enhanced corrective action plan will succeed, the mere fact of continuing to engage with the business partner shall not expose the company to penalties pursuant to Article 27 or to liability pursuant to Article 29.

     official amendment document ↗
102. Amendment 102Proposal for a directive · Article 4 – paragraph 1 – point 6 · Directive (EU) 2024/1760 · Article 11 – paragraph 7 – subparagraph 3
     Current text

     Prior to suspending a business relationship, the company shall assess whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be prevented or adequately mitigated. Should that be the case, the company shall not be required to suspend the business relationship and shall be in a position to report to the competent supervisory authority about the duly justified reasons for such decision.

     Amendment

     Prior to temporarily suspending a business relationship, the company shall assess, in consultation with relevant stakeholders, whether no available alternative to that business relationship, that provides a raw material, product or service essential to the company’s production of goods or provision of services, exists and the suspension would cause substantial prejudice to the company, or whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be brought to an end or the extent of which could not be adequately minimised. Should that be the case, the company shall not be required to suspend the business relations…

     Excerpt — full text in the official PDF.
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103. Amendment 103Proposal for a directive · Article 4 – paragraph 1 – point 6 · Directive (EU) 2024/1760 · Article 11 – paragraph 7 – subparagraph 4
     Current text

     Member States shall provide for an option to suspend the business relationship in contracts governed by their laws in accordance with the first subparagraph, except for contracts where the parties are obliged by law to enter into them.

     Amendment

     Member States shall provide for an option to suspend or terminate the business relationship in contracts governed by their laws, except for contracts where the parties are obliged by law to enter into them.

     official amendment document ↗
104. Amendment 104Proposal for a directive · Article 4 – paragraph 1 – point 6 · Directive (EU) 2024/1760 · Article 11 – paragraph 7 – subparagraph 6
     Current text

     Where the company decides not to suspend the business relationship pursuant to this Article, it shall monitor the potential adverse impact and periodically assess its decision and whether further appropriate measures are available.’;

     Amendment

     Where the company decides not to suspend the business relationship pursuant to this Article, it shall monitor the actual adverse impact and periodically assess its decision and whether further appropriate measures are available.’;

     official amendment document ↗
105. Amendment 105Proposal for a directive · Article 4 – paragraph 1 – point 8 · Directive (EU) 2024/1760 · Article 15 – second sentence
     Current text

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

     Amendment

     ‘Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out without undue delay after a significant change occurs, but at least every 4 years and whenever there are reasonable grounds to believe that the measures are no longer adequate or effective or that new risks of the occurrence of those adverse impacts may arise.’;

     official amendment document ↗
106. Amendment 106Proposal for a directive · Article 4 – paragraph 1 – point 9 · Directive (EU) 2024/1760 · Article 19 – paragraph 3
     Current text

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

     Amendment

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

     official amendment document ↗
107. Amendment 107Proposal for a directive · Article 4 – paragraph 1 – point 10 – introductory part · Directive (EU) 2024/1760 · Article 22
     Current text

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

     Amendment

     (10) Article 22 is amended as follows:

     official amendment document ↗
108. Amendment 108Proposal for a directive · Article 4 – paragraph 1 – point 10 – point a (new) · Directive (EU) 2024/1760 · Article 22 – paragraph 1
     Current text

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

     Amendment

     (a) paragraph 1 is amended as follows: ‘1. Member States shall ensure that companies referred to in Article 2(1), points (a), (b) and (c), and Article 2(2), points (a), (b) and (c), adopt a transition plan for climate change mitigation, which aims to ensure, through reasonable efforts, that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming in line with the Paris Agreement and the objective of achieving climate neutrality as established in Regulation (EU) 2021/1119, and where relevant, the exposure of the company to coal-, oil- and gas-related activities.’;

     Excerpt — full text in the official PDF.
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109. Amendment 109Proposal for a directive · Article 4 – paragraph 1 – point 10 – point b (new) · Directive (EU) 2024/1760 · Article 22 – paragraph 1 – subparagraph 1 a (new)
     Amendment

     (b) The following subparagraph is inserted after the first subparagraph: ‘Reasonable efforts in the context of this Article shall be understood as taking proportionate and reasonable actions aiming to ensure compatibility with the transition to a sustainable economy in line with the Paris Agreement, without having to exhaust all possible means at their disposal. Member States shall ensure that the obligation laid down in this Article is an obligation of means, not an obligation of results.’;

     official amendment document ↗
110. Amendment 110Proposal for a directive · Article 4 – paragraph 1 – point 10 – point c (new) · Directive (EU) 2024/1760 · Article 22 – paragraph 1 – subparagraph 3
     Current text

     The design of the transition plan for climate change mitigation referred to in the first subparagraph shall contain: (a) time-bound targets related to climate change for 2030 and in five-year steps up to 2050 based on conclusive scientific evidence and, where appropriate, absolute emission reduction targets for greenhouse gas for scope 1, scope 2 and scope 3 greenhouse gas emissions for each significant category; (b) a description of decarbonisation levers identified and key actions planned to reach the targets referred to in point (a), including, where appropriate, changes in the product and service portfolio of the company and the adoption of new technologies; (c) an explanation and quanti…

     Amendment

     (c) the second subparagraph is replaced by the following: ‘The design of the transition plan for climate change mitigation referred to in the first subparagraph shall contain: (a) objectives related to climate change for 2030 and in five-year steps up to climate neutrality in 2050 based on conclusive scientific evidence and, where appropriate, absolute emission reduction targets for greenhouse gas for scope 1, scope 2 and scope 3 greenhouse gas emissions for each significant category; (b) a description of key decarbonisation levers identified and outlining actions towards the objectives referred to in point (a); (c) a brief description of the investments and funding supporting the implementa…

     Excerpt — full text in the official PDF.
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111. Amendment 111Proposal for a directive · Article 4 – paragraph 1 – point 10 – point d (new) · Directive (EU) 2024/1760 · Article 22 – paragraph 3
     Current text

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

     Amendment

     (d) paragraph 3 is amended as follows: ‘3. Member State shall ensure that the transition plan for climate change mitigation referred to in paragraph 1 is updated every 12 months, including a brief progress descrition.’;

     official amendment document ↗
112. Amendment 112Proposal for a directive · Article 4 – paragraph 1 – point 10 a (new) · Directive (EU) 2024/1760 · Article 25 – paragraph 1
     Current text

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

     Amendment

     (10 a) in Article 25, paragraph 1 is replaced by the following: ‘1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to require companies to provide information and carry out investigations related to compliance with the obligations set out in Articles 7 to 16. Member States shall require the supervisory authorities to supervise the adoption of the transition plan for climate change mitigation in accordance with the requirements provided for in Article 22(1). In carrying out their supervisory function in respect of the adoption of the transition plan for climate cha…

     Excerpt — full text in the official PDF.
     official amendment document ↗
113. Amendment 113Proposal for a directive · Article 4 – paragraph 1 – point 11 – introductory part · Directive (EU) 2024/1760 · Article 27 – paragraph 2
     Current text

     (11) in Article 27, paragraph 4 is replaced by the following;

     Amendment

     (11) Article 27 is amended as follows:

     official amendment document ↗
114. Amendment 114Proposal for a directive · Article 4 – paragraph 1 – point 11 – point a (new) · Directive (EU) 2024/1760 · Article 27 – paragraph 2 – point d
     Amendment

     (a) in paragraph 2, point (d) is deleted;

     official amendment document ↗
115. Amendment 115Proposal for a directive · Article 4 – paragraph 1 – point 11 – point b (new) · Directive (EU) 2024/1760 · Article 27 – paragraph 4
     Current text

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

     Amendment

     (b) paragraph 4 is replaced by the following: 4’. The Commission, in collaboration with Member States, shall issue guidance on the appropriate level of penalties, taking into account the turnover of companies, to assist supervisory authorities in determining the level of penalties in accordance with this Article. Member States shall ensure that the maximum limit of pecuniary penalties is set at 5% of the net worldwide turnover of the company or, in the case of companies referred to in Article 2(1), point (b) and Article 2(2), point (b), 5% of the net consolidated worldwide turnover calculated at the level of the ultimate parent company, in the financial year preceding that of the decision to…

     Excerpt — full text in the official PDF.
     official amendment document ↗
116. Amendment 116Proposal for a directive · Article 4 – paragraph 1 – point 13 – introductory part · Directive (EU) 2024/1760 · Article 36
     Current text

     (13) in Article 36, paragraph 1 is deleted.

     Amendment

     (13) Article 36 is amended as follows:

     official amendment document ↗
117. Amendment 117Proposal for a directive · Article 4 – paragraph 1 – point 13 – point a (new) · Directive (EU) 2024/1760 · Article 36 – paragraph 1
     Amendment

     (a) paragraph 1 is deleted

     official amendment document ↗
118. Amendment 118Proposal for a directive · Article 4 – paragraph 1 – point 13 – point b (new) · Directive (EU) 2024/1760 · Article 36 – paragraph 2 – point f
     Current text

     (f) the effectiveness of the enforcement mechanisms put in place at national level, of the penalties and the rules on civil liability;

     Amendment

     (b) in paragraph 2, point (f) is replaced by the following: ‘(f) the effectiveness of the enforcement mechanisms put in place at national level, of the penalties and whether further rules on civil liability need to be provided for in this Directive;’;

     official amendment document ↗
119. Amendment 119Proposal for a directive · Article 4 a (new)
     Amendment

     Article4a Digital solutions 1. The Commission shall establish a dedicated digital reporting portal serving as a one-stop-shop for companies. The portal shall provide free access to all templates, guidelines and information relating to all reporting requirements imposed on companies in Union law, including voluntary tools, tailored to a company’s size, sector, products and services, and risk exposure. It shall also provide access to information on funding and tendering opportunities to help companies implement, comply with and benefit from their due diligence obligations. For the purposes of the first subparagraph, the Commission shall ensure that the relevant data platforms providing informa…

     Excerpt — full text in the official PDF.
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120. Amendment 120The LeftProposal for a directive

     Replaces or inserts a longer passage — full text in the official document.

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121. Amendment 121The LeftProposal for a directive · Article 1 – paragraph 1 – point 1
     Current text

     (1) in Article 26a, paragraph 3 is replaced by the following: ‘3. The Commission shall be empowered to adopt delegated acts in accordance with Article 48a in order to supplement this Directive in order to provide for limited assurance standards setting out the procedures that the auditor(s) and the audit firm(s) shall perform in order to draw his, her or its conclusions on the assurance of sustainability reporting, including engagement planning, risk consideration and response to risks and type of conclusions to be included in the assurance report on sustainability reporting, or, where relevant, in the audit report. The Commission may adopt the assurance standards referred to in the first su…

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122. Amendment 123The LeftProposal for a directive · Article 1 – paragraph 1 – point 2
     Current text

     (2) in Article 48a(2), the second subparagraph is replaced by the following: ‘The power to adopt delegated acts referred to in Article 26a(3) shall be conferred on the Commission for an indeterminate period of time..’

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123. Amendment 126The LeftProposal for a directive · Article 2 – paragraph 1 – point 1 – point a
     Current text

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

     Amendment

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124. Amendment 128The LeftProposal for a directive · Article 2 – paragraph 1 – point 1 – point b
     Current text

     (b) paragraph 4 is replaced by the following: ‘4. The coordination measures prescribed by Articles 19a, 29a and 29d shall not apply to the European Financial Stability Facility (EFSF) established by the EFSF Framework Agreement nor to financial products listed in Article 2, point (12), (b) and (f) of Regulation (EU) 2019/2088 of the European Parliament and of the Council*. _____________________________________________ * Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1, ELI: http://data.europa.eu/eli/reg/2019/2088/oj).;’

     Amendment

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125. Amendment 130The LeftProposal for a directive · Article 2 – paragraph 1 – point 2
     Current text

     (2) Article 19a is amended as follows: (a) in paragraph 1, the first subparagraph is replaced by the following: ‘Large undertakings which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.;’ (i) the first subparagraph is replaced by the following: ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and abo…

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126. Amendment 131The LeftProposal for a directive · Article 2 – paragraph 1 – point 2 – point a
     Current text

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

     Amendment

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127. Amendment 132The LeftProposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainabilit…

     Amendment

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128. Amendment 133The LeftProposal for a directive · Article 2 – paragraph 1 – point 2 – point c
     Current text

     (c) paragraphs 6 and 7 are deleted;

     Amendment

     deleted

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129. Amendment 134The LeftProposal for a directive · Article 2 – paragraph 1 – point 3
     Current text

     (3) [...]

     Amendment

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130. Amendment 135The LeftProposal for a directive · Article 2 – paragraph 1 – point 4
     Current text

     (4) Article 29a is amended as follows: (a) in paragraph 1, the first subparagraph is replaced by the following: ‘Parent undertakings of a large group which, on their balance sheet dates, exceed the average number of 1000 employees, on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.;’ (i) the first subparagraph is replaced by the following: ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information ab…

     Amendment

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131. Amendment 136The LeftProposal for a directive · Article 2 – paragraph 1 – point 4 – point a
     Current text

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

     Amendment

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132. Amendment 137The LeftProposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability info…

     Amendment

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133. Amendment 138The LeftProposal for a directive · Article 2 – paragraph 1 – point 5
     Current text

     (5) [...]

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134. Amendment 139The LeftProposal for a directive · Article 2 – paragraph 1 – point 6 – point a
     Current text

     (a) in paragraph 1, the third and fourth subparagraphs are deleted;

     Amendment

     deleted

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135. Amendment 140The LeftProposal for a directive · Article 2 – paragraph 1 – point 6 – point b
     Current text

     (b) in paragraph 4, first subparagraph, the last sentence is replaced by the following: ‘Sustainability reporting standards shall not specify disclosures that would require undertakings to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of1000 employees during the financial year any information that exceeds the information to be disclosed pursuant to the sustainability reporting standards for voluntary use referred to in Article 29ca.;’

     Amendment

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136. Amendment 142The LeftProposal for a directive · Article 2 – paragraph 1 – point 7
     Current text

     (7) Article 29c is deleted;

     Amendment

     deleted

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137. Amendment 143The LeftProposal for a directive · Article 2 – paragraph 1 – point 8
     Current text

     (8) the following Article 29ca is inserted: ‘Article 29ca Sustainability reporting standards for voluntary use 1. To facilitate voluntary reporting of sustainability information by undertakings other than those referred to in Articles 19a(1) and 29a(1), the Commission shall adopt a delegated act by [4 months after entry into force of this Directive] in accordance with Article 49 supplementing this Directive to provide for sustainability reporting standards for voluntary use by such undertakings. 2. The sustainability reporting standards referred to in paragraph 1 shall be proportionate to and relevant for the capacities and the characteristics of the undertakings for which they are designed…

     Amendment

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138. Amendment 146The LeftProposal for a directive · Article 2 – paragraph 1 – point 10
     Current text

     (10) in Article 33, paragraph 1 is replaced by the following: ‘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…

     Amendment

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139. Amendment 148The LeftProposal for a directive · Article 2 – paragraph 1 – point 10
     Current text

     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.;

     Amendment

     deleted

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140. Amendment 149The LeftProposal for a directive · Article 2 – paragraph 1 – point 11
     Current text

     (11) Article 34 is amended as follows: (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 comp…

     Amendment

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141. Amendment 150The LeftProposal for a directive · Article 2 – paragraph 1 – point 11 – point a
     Current text

     (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;;

     Amendment

     (aa) deleted

     official amendment document ↗
142. Amendment 151The LeftProposal for a directive · Article 2 – paragraph 1 – point 11 – point b
     Current text

     (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.;’

     Amendment

     deleted

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143. Amendment 152The LeftProposal for a directive · Article 2 – paragraph 1 – point 12
     Current text

     (12) in Article 40a, paragraph 1 is amended as follows: (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;’ ‘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 tho…

     Amendment

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144. Amendment 153The LeftProposal for a directive · Article 2 – paragraph 1 – point 12 – point a
     Current text

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

     Amendment

     deleted

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145. Amendment 154The LeftProposal for a directive · Article 2 – paragraph 1 – point 12 – point b
     Current text

     (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 exceedin…

     Amendment

     deleted

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146. Amendment 157The LeftProposal for a directive · Article 2 – paragraph 1 – point 13
     Current text

     (13) Article 49 is amended as follows: (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 therei…

     Amendment

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147. Amendment 158The LeftProposal for a directive · Article 2 – paragraph 1 – point 13 – point b
     Current text

     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..

     Amendment

     5. deleted

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148. Amendment 159The LeftProposal for a directive · Article 3
     Current text

     Article 3 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) 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:…

     Amendment

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149. Amendment 162The LeftProposal for a directive · Article 3 – paragraph 1 – point 1 – point c
     Current text

     (c) point (c) is deleted;

     Amendment

     deleted

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150. Amendment 163The LeftProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point i
     Current text

     (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;;

     Amendment

     (i) deleted

     official amendment document ↗
151. Amendment 164The LeftProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point ii
     Current text

     (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;;

     Amendment

     (ii) deleted

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152. Amendment 165The LeftProposal for a directive · Article 4 – paragraph 1 – point 1
     Current text

     (1) in Article 1(1), point (c) is replaced by the following: ‘‘(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.;’

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153. Amendment 167The LeftProposal for a directive · Article 4 – paragraph 1 – point 2
     Current text

     (2) in Article 3(1), 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;;’

     Amendment

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154. Amendment 169The LeftProposal for a directive · Article 4 – paragraph 1 – point 3
     Current text

     (3) Article 4 is replaced by the following: ‘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…

     Amendment

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155. Amendment 172The LeftProposal for a directive · Article 4 – paragraph 1 – point 4 – point b
     Current text

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

     Amendment

     Where a company has, or can reasonably be expected to know of, 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.

     official amendment document ↗
156. Amendment 173The LeftProposal for a directive · Article 4 – paragraph 1 – point 4 – point b a (new)
     Amendment

     (b a) the following paragraph is inserted: ‘3a. For the purposes of paragraph 2a, 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, the 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 how its activities promote environmental protection or human rights…

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157. Amendment 174The LeftProposal for a directive · Article 4 – paragraph 1 – point 4 – point c
     Current text

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

     Amendment

     4. deleted

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158. Amendment 175The LeftProposal for a directive · Article 4 – paragraph 1 – point 4 – point d
     Current text

     (d) the following paragraph 5 is added: ‘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,…

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159. Amendment 176The LeftProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     (5) in Article 10, paragraph 6 is replaced by the following: ‘6. As regards potential adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 2, 4 and 5, the company shall, as a last resort: (a) refrain from entering into new, or extending existing, relations with a business partner in connection with which, or in the chain of activities of which, the impact has arisen, (b) where the law governing its relation with the business partner concerned so entitles it, adopt and implement an enhanced prevention action plan for the specific adverse impact without undue delay, provided that there is a reasonable expectatio…

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160. Amendment 177The LeftProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     As regards potential adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 2, 4 and 5, the company shall, as a last resort:

     Amendment

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161. Amendment 178The LeftProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     (a) refrain from entering into new, or extending existing, relations with a business partner in connection with which, or in the chain of activities of which, the impact has arisen,

     Amendment

     (a) deleted

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162. Amendment 179The LeftProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     (c) use or increase its leverage through the suspension of the business relationship with respect to the activities concerned.

     Amendment

     (c) deleted

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163. Amendment 180The LeftProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     As long as there is a reasonable expectation that the enhanced prevention action plan will succeed, the mere fact of continuing to engage with the business partner shall not trigger the company’s liability.

     Amendment

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164. Amendment 181The LeftProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     Prior to suspending a business relationship, the company shall assess whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be prevented or adequately mitigated. Should that be the case, the company shall not be required to suspend the business relationship and shall be in a position to report to the competent supervisory authority about the duly justified reasons for such decision.

     Amendment

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165. Amendment 182The LeftProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     Member States shall provide for an option to suspend the business relationship in contracts governed by their laws in accordance with the first subparagraph, except for contracts where the parties are obliged by law to enter into them.

     Amendment

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166. Amendment 183The LeftProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     Where the company decides to suspend the business relationship, it shall take steps to prevent, mitigate or bring to an end the impacts of the suspension, shall provide reasonable notice to the business partner concerned and shall keep that decision under review.

     Amendment

     deleted

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167. Amendment 184The LeftProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     Where the company decides not to suspend the business relationship pursuant to this Article, it shall monitor the potential adverse impact and periodically assess its decision and whether further appropriate measures are available.;

     Amendment

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168. Amendment 185The LeftProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     As regards actual adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 3, 5 and 6, the company shall, as a last resort:

     Amendment

     deleted

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169. Amendment 186The LeftProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     (a) refrain from entering into new, or extending existing, relations with a business partner in connection with which, or in the chain of activities of which, the impact has arisen,

     Amendment

     (a) deleted

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170. Amendment 187The LeftProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     (b) where the law governing its relation with the business partner concerned so entitles it, adopt and implement an enhanced prevention action plan for the specific adverse impact without undue delay, provided that there is a reasonable expectation that those efforts will succeed, and

     Amendment

     (b) deleted

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171. Amendment 188The LeftProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     (c) use or increase its leverage through the suspension of the business relationship with respect to the activities concerned.

     Amendment

     deleted

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172. Amendment 189The LeftProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     As long as there is a reasonable expectation that the enhanced prevention action plan will succeed, the mere fact of continuing to engage with the business partner shall not trigger the company’s liability.

     Amendment

     deleted

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173. Amendment 190The LeftProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     Prior to suspending a business relationship, the company shall assess whether the adverse impacts from doing so can be reasonably expected to be manifestly more severe than the adverse impact that could not be prevented or adequately mitigated. Should that be the case, the company shall not be required to suspend the business relationship and shall be in a position to report to the competent supervisory authority about the duly justified reasons for such decision.

     Amendment

     deleted

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174. Amendment 191The LeftProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     Member States shall provide for an option to suspend the business relationship in contracts governed by their laws in accordance with the first subparagraph, except for contracts where the parties are obliged by law to enter into them.

     Amendment

     deleted

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175. Amendment 192The LeftProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     Where the company decides to suspend the business relationship, it shall take steps to prevent, mitigate or bring to an end the impacts of the suspension, shall provide reasonable notice to the business partner concerned and shall keep that decision under review.

     Amendment

     deleted

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176. Amendment 193The LeftProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     Where the company decides not to suspend the business relationship pursuant to this Article, it shall monitor the potential adverse impact and periodically assess its decision and whether further appropriate measures are available.;

     Amendment

     deleted

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177. Amendment 194The LeftProposal for a directive · Article 4 – paragraph 1 – point 7 – point a
     Current text

     (a) the introductory wording is replaced by the following: ‘Consultation of relevant stakeholders shall take place at the following stages of the due diligence process:;’

     Amendment

     deleted

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178. Amendment 196The LeftProposal for a directive · Article 4 – paragraph 1 – point 7 – point b
     Current text

     (b) points (c) and (e) are deleted;

     Amendment

     deleted

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179. Amendment 199The LeftProposal for a directive · Article 4 – paragraph 1 – point 8
     Current text

     (8) in Article 15, the second sentence is replaced by the following: ‘Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out without undue delay after a significant change occurs, but at least every 5 years and whenever there are reasonable grounds to believe that the measures are no longer adequate or effective or that new risks of the occurrence of those adverse impacts may arise.;’

     Amendment

     deleted

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180. Amendment 201The LeftProposal for a directive · Article 4 – paragraph 1 – point 9
     Current text

     (9) in Article 19, paragraph 3 is replaced by the following: ‘3. The guidelines referred to in paragraph 2, point (a), shall be made available by 26 July 2026, those referred to in paragraph 2, points (d) and (e), by 26 January 2027, and those referred to in paragraph 2, points (b), (f) and (g), by 26 July 2027.;’

     Amendment

     deleted

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181. Amendment 203The LeftProposal for a directive · Article 4 – paragraph 1 – point 10
     Current text

     (10) in Article 22(1), the first subparagraph is replaced by the following: ‘Member States shall ensure that companies referred to in Article 2(1), points (a), (b) and (c), and Article 2(2), points (a), (b) and (c), adopt a transition plan for climate change mitigation, including implementing actions, which aim to ensure, through best efforts, that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5°C in line with the Paris Agreement and the objective of achieving climate neutrality as established in Regulation (EU) 2021/1119, including its intermediate and 2050 climate neutrality targets, a…

     Amendment

     deleted

     Excerpt — full text in the official PDF.
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182. Amendment 205The LeftProposal for a directive · Article 4 – paragraph 1 – point 11
     Current text

     (11) in Article 27, paragraph 4 is replaced by the following: ‘4. The Commission, in collaboration with Member States, shall issue guidance to assist supervisory authorities in determining the level of penalties in accordance with this Article. Member States shall not set a maximum limit of pecuniary penalties in their national law transposing this Directive that would prevent supervisory authorities from imposing penalties in accordance with the principles and factors set out in paragraphs 1 and 2.;’

     Amendment

     deleted

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183. Amendment 207The LeftProposal for a directive · Article 4 – paragraph 1 – point 12
     Current text

     (12) Article 29 is amended as follows: (a) paragraph 1 is deleted; (b) paragraph 2 is replaced by the following: ‘2. Where a company is held liable pursuant to national law for damage caused to a natural or legal person by a failure to comply with the due diligence requirements under this Directive, Member States shall ensure that those persons have a right to full compensation. Full compensation shall not lead to overcompensation, whether by means of punitive, multiple or other types of damages.;’ (d) paragraph 4 is replaced by the following: ‘4. Companies that have participated in industry or multi-stakeholder initiatives, or used independent third-party verification or contractual clauses…

     Amendment

     deleted

     Excerpt — full text in the official PDF.
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184. Amendment 208The LeftProposal for a directive · Article 4 – paragraph 1 – point 12 – point a
     Current text

     (a) paragraph 1 is deleted;

     Amendment

     deleted

     official amendment document ↗
185. Amendment 210The LeftProposal for a directive · Article 4 – paragraph 1 – point 12 – point b
     Current text

     (b) paragraph 2 is replaced by the following: ‘2. Where a company is held liable pursuant to national law for damage caused to a natural or legal person by a failure to comply with the due diligence requirements under this Directive, Member States shall ensure that those persons have a right to full compensation. Full compensation shall not lead to overcompensation, whether by means of punitive, multiple or other types of damages.;’

     Amendment

     deleted

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186. Amendment 212The LeftProposal for a directive · Article 4 – paragraph 1 – point 12 – point c
     Current text

     (c) in paragraph 3, point (d) is deleted;

     Amendment

     deleted

     official amendment document ↗
187. Amendment 215The LeftProposal for a directive · Article 4 – paragraph 1 – point 12 – point e
     Current text

     (e) in paragraph 5, the first subparagraph is replaced by the following: ‘The civil liability of a company for damages as referred to in this Article shall be without prejudice to the civil liability of its subsidiaries or of any direct and indirect business partners in the chain of activities of the company.;’

     Amendment

     deleted

     official amendment document ↗
188. Amendment 217The LeftProposal for a directive · Article 4 – paragraph 1 – point 12 – point f
     Current text

     (f) paragraph 7 is deleted;

     Amendment

     deleted

     official amendment document ↗
189. Amendment 219The LeftProposal for a directive · Article 4 – paragraph 1 – point 13
     Current text

     (13) in Article 36, paragraph 1 is deleted.

     Amendment

     deleted

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190. Amendment 221PPEProposal for a directive · Recital 5
     Current text

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

     Amendment

     (5) Article 19a(1) of Directive 2013/34/EU requires large undertakings and small and medium-sized undertakings with securities admitted to trading on an EU regulated market, excluding micro-undertakings, to prepare and publish a sustainability statement at individual level. To reduce the reporting burden on undertakings, the obligation to prepare and publish a sustainability statement at individual level should be reduced to undertakings with an average of more than 1 750 employees and a net turnover of EUR 450 000 000 during the financial year. It should be possible to exempt ultimate parent undertakings which are financial holding undertakings not involved in management activities from com…

     Excerpt — full text in the official PDF.
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191. Amendment 222PPEProposal for a directive · Recital 7
     Current text

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

     Amendment

     (7) Article 1(3) of Directive 2013/34/EU specifies that credit institutions and insurance undertakings that are large undertakings or small and medium-size undertakings – excluding micro-undertakings – with securities admitted to trading on an EU regulated market are subject to the sustainability reporting requirements set out in that Directive, regardless of their legal form. Considering that the scope of individual sustainability reporting should be reduced to undertakings with an average of more than 1 750 employees and a net turnover of EUR 450 000 000 during the financial year, that reduction in scope should also apply to credit institutions and insurance undertakings.

     official amendment document ↗
192. Amendment 223PPEProposal for a directive · Recital 9
     Current text

     (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings established in or outside of the Union in its value chain that have up to 1000 employees on average during the f…

     Amendment

     (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to provide clarity and reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings with an average of more than 1 750 employees and a net turnover of EUR 450 000 000 during th…

     Excerpt — full text in the official PDF.
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193. Amendment 224PPEProposal for a directive · Recital 12
     Current text

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

     Amendment

     (12) Article 29a(1) of Directive 2013/34/EU requires parent undertakings of large groups to prepare and publish a sustainability statement at consolidated level. To reduce the reporting burden on those parent undertakings, the scope of that obligation should be reduced to parent undertakings of groups with an average of more than 1 750 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year.

     official amendment document ↗
194. Amendment 225PPEProposal for a directive · Recital 14
     Current text

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

     Amendment

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

     Excerpt — full text in the official PDF.
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195. Amendment 226PPEProposal for a directive · Recital 18
     Current text

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

     Amendment

     (18) Article 5(2), first subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2013/34/EU, with different dates depending on the size of the undertaking concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only undertakings with more than 1 750 employees and a net turnover of EUR 450 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and th…

     Excerpt — full text in the official PDF.
     official amendment document ↗
196. Amendment 227PPEProposal for a directive · Recital 19
     Current text

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

     Amendment

     (19) Article 5(2), third subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2004/109/EC, with different dates depending on the size of the issuer concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only undertakings with more than 1 750 employees and a net turnover of EUR 450 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the re…

     Excerpt — full text in the official PDF.
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197. Amendment 228PPEProposal for a directive · Recital 26
     Current text

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

     Amendment

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

     official amendment document ↗
198. Amendment 229PPEProposal for a directive · Recital 27
     Current text

     (27) Article 27(1) of Directive EU 2024/1760 requires Member States to lay down penalties that are to be “effective, proportionate and dissuasive”. Article 27(2) of that Directive requires Member States, when deciding whether to impose penalties and, if so, when determining their nature and appropriate level, to take due account of a series of factors that determine the gravity of the infringement and attenuating or aggravating circumstances. Article 27(4) of that Directive requires Member States to base any imposed pecuniary penalties on the net worldwide turnover of the company concerned. However, given the fact that Member States already have to take into account the series of factors lai…

     Amendment

     (27) Article 27(1) of Directive EU 2024/1760 requires Member States to lay down penalties that are to be “effective, proportionate and dissuasive”. Article 27(2) of that Directive requires Member States, when deciding whether to impose penalties and, if so, when determining their nature and appropriate level, to take due account of a series of factors that determine the gravity of the infringement and attenuating or aggravating circumstances. Article 27(4) of that Directive requires Member States to base any imposed pecuniary penalties on the net worldwide turnover of the company concerned. However, given the fact that Member States already have to take into account the series of factors lai…

     Excerpt — full text in the official PDF.
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199. Amendment 230PPEProposal for a directive · Article 2 – paragraph 1 – point 1 – point a
     Current text

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

     Amendment

     ‘The coordination measures prescribed by Articles 19a, 19b, 29a, 29aa, 29d, 30 and 33, Article 34(1), second subparagraph, point (aa), Article 34(2) and (3), and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings exceed, on their balance sheet dates, the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year:’;

     official amendment document ↗
200. Amendment 231PPEProposal for a directive · Article 2 – paragraph 1 – point 1 a (new)
     Amendment

     (1 a) in Article 19(1), the fourth subparagraph is replaced by the following: ‘Undertakings which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year shall report information on the key intangible resources and explain how the business model of the undertaking fundamentally depends on such resources and how such resources are a source of value creation for the undertaking.’ ;

     official amendment document ↗
201. Amendment 232PPEProposal for a directive · Article 2 – paragraph 1 – point 2 – point a
     Current text

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

     Amendment

     Undertakings which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.

     official amendment document ↗
202. Amendment 233PPEProposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainabilit…

     Amendment

     ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 2…

     Excerpt — full text in the official PDF.
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203. Amendment 234PPEProposal for a directive · Article 2 – paragraph 1 – point 4 – point a
     Current text

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

     Amendment

     ‘Parent undertakings of a group which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.’;

     official amendment document ↗
204. Amendment 235PPEProposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability info…

     Amendment

     ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, e…

     Excerpt — full text in the official PDF.
     official amendment document ↗
205. Amendment 236PPEProposal for a directive · Article 2 – paragraph 1 – point 6 – point b
     Current text

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

     Amendment

     ‘Sustainability reporting standards shall take account of the difficulties, including legal limitations stemming from this Directive, that undertakings might encounter in gathering information from actors throughout their value chain, especially from those which are not subject to the sustainability reporting requirements laid down in Article 19a or 29a and from suppliers in emerging markets and economies. Sustainability reporting standards shall specify disclosures on value chains that are proportionate and relevant to the capacities and characteristics of undertakings in the value chains, and to the scale and complexity of their activities, especially those of undertakings that are not sub…

     Excerpt — full text in the official PDF.
     official amendment document ↗
206. Amendment 237PPEProposal for a directive · Article 2 – paragraph 1 – point 11 – point b
     Current text

     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.;

     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 1750 employees and a net turnover of EUR 450 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned.’;

     official amendment document ↗
207. Amendment 238PPEProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point i
     Current text

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

     Amendment

     (i) to undertakings which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year;’;

     official amendment document ↗
208. Amendment 239PPEProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point ii
     Current text

     (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;;

     Amendment

     (ii) to parent undertakings of a group which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year;’;

     official amendment document ↗
209. Amendment 240PPEProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point i
     Current text

     (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;;

     Amendment

     (i) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are undertakings which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year;’;

     official amendment document ↗
210. Amendment 241PPEProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point ii
     Current text

     (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;;

     Amendment

     (ii) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are parent undertakings of a group which, on its balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year;’;

     official amendment document ↗
211. Amendment 243PPEProposal for a directive · Article 4 – paragraph 1 – point 1 a (new)
     Amendment

     (1 a) in Article 2, paragraph 3, the first subparagraph is replaced by the following: ‘3. Where the ultimate parent company has as its main activity the holding of shares in operational subsidiaries and does not engage in taking management, operational or financial decisions affecting the group or one or more of its subsidiaries, it may be exempted from carrying out the obligations under this Directive. That exemption is subject to the condition that one of the ultimate parent company’s subsidiaries established in the Union is designated to fulfil the obligations set out in Articles 6 to 16 on behalf of the ultimate parent company, including the obligations of the ultimate parent company wit…

     Excerpt — full text in the official PDF.
     official amendment document ↗
212. Amendment 244PPEProposal for a directive · Article 4 – paragraph 1 – point 3 a (new)
     Amendment

     (3 a) in Article 6, paragraph 1 is amended as follows: ‘1. Member States shall ensure that parent companies falling under the scope of this Directive are allowed to fulfil the obligations set out in Articles 7 to 11 on behalf of companies which are subsidiaries of those parent companies and fall under the scope of this Directive, if this ensures effective compliance. This is without prejudice to such subsidiaries being subject to the exercise of the supervisory authority’s powers in accordance with Article 25 and to their civil liability in accordance with Article 29.’

     official amendment document ↗
213. Amendment 245PPEProposal for a directive · Article 4 – paragraph 1 – point 3 b (new)
     Amendment

     (3 b) in Article 6, paragraph 3 is deleted;

     official amendment document ↗
214. Amendment 246PPEProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     As regards potential adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 2, 4 and 5, the company shall, as a last resort:

     Amendment

     ‘6. As regards potential adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 2, 4 and 5, the company can, as a last resort:

     official amendment document ↗
215. Amendment 247PPEProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     As regards actual adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 3, 5 and 6, the company shall, as a last resort:

     Amendment

     ‘7. As regards actual adverse impacts as referred to in paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures set out in paragraphs 3, 5 and 6, the company can, as a last resort:

     official amendment document ↗
216. Amendment 248PPEProposal for a directive · Article 4 – paragraph 1 – point 8 a (new)
     Amendment

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

     official amendment document ↗
217. Amendment 251PPEProposal for a directive · Article 4 – paragraph 1 – point 10 a (new)
     Amendment

     (10 a) in Article 24, paragraph 1 is replaced by the following: ‘1. Each Member State shall designate one or more supervisory authorities to supervise compliance with the obligations laid down in the provisions of national law adopted pursuant to Articles 7 to 16.’;

     official amendment document ↗
218. Amendment 252PPEProposal for a directive · Article 4 – paragraph 1 – point 10 b (new)
     Amendment

     (10 b) in Article 25, paragraph 1 is replaced by the following: ‘1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to require companies to provide information and carry out investigations related to compliance with the obligations set out in Articles 7 to 16.’;

     official amendment document ↗
219. Amendment 253PPEProposal for a directive · Article 4 – paragraph 1 – point 11
     Current text

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

     Amendment

     4. The Commission, in collaboration with Member States, shall issue guidance on the appropriate level of penalties, taking into account the turnover of companies, to assist supervisory authorities in determining the level of penalties in accordance with this Article.’ ;

     official amendment document ↗
220. Amendment 254PPEProposal for a directive · Article 4 – paragraph 1 – point 13 a (new)
     Amendment

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

     official amendment document ↗
221. Amendment 255RenewProposal for a directive · Recital 14 a (new)
     Amendment

     (14 a) Article 29b(4) of Directive 2013/34/EU requires sustainability reporting standards to take into account the difficulties undertakings may encounter in gathering information from actors throughout their value chain. In view of recent attempts from third countries to block the sharing of data from non-EU countries to EU companies, Member States should, in exceptional cases where an undertaking in a third country could be sanctioned due to third-country legislation simply by transmitting sustainability data, allow information required by this Directive but not provided by the undertaking of the third country to be replaced by default values. Those default values, which are calculated or…

     Excerpt — full text in the official PDF.
     official amendment document ↗
222. Amendment 256RenewProposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i a (new)
     Amendment

     (i a) the second subparagraph is replaced by the following: ‘In the event that not all the necessary information regarding its value chain is available, the undertaking shall explain the efforts made to obtain the necessary information about its value chain, the reasons why not all of the necessary information could be obtained, and, its plans to obtain the necessary information in the future. If information regarding its value chain cannot be obtained because the legal framework of a third country prevents a business partner from doing so, the undertaking shall inform the supervisory authority which, in turn, shall inform the Commission. Where possible, the undertaking shall replace the inf…

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223. Amendment 257RenewProposal for a directive · Article 2 – paragraph 1 – point 12 – introductory part
     Current text

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

     Amendment

     (12) in Article 40a, paragraph 1 is amended as follows: (a) the second subparagraph is replaced by the following: ‘In order to ensure a level playing field, 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: ‘In order to ensure a level playing field, 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 D…

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224. Amendment 258RenewProposal for a directive · Article 4 – paragraph 1 – point 12 – introductory part
     Current text

     (12) Article 29 is amended as follows:

     Amendment

     (12) Article 29 is amended as follows: Article 29 EU-wide civil liability of companies 1. Member States shall ensure that a company can be held liable for damage caused to a natural or legal person, provided that: (a) the company intentionally or negligently failed to comply with the obligations laid down in Articles 10 and 11, when the right, prohibition or obligation listed in the Annex to this Directive is aimed at protecting the natural or legal person; and (b) as a result of the failure referred to in point (a), damage to the natural or legal person’s legal interests that are protected under national law was caused. A company cannot be held liable if the damage was caused only by its bu…

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225. Amendment 259ESNProposal for a directive · Recital 18
     Current text

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

     Amendment

     (18) Article 5(2), first subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2013/34/EU, with different dates depending on the size of the undertaking concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only large undertakings with more than 5000 employees and a net turnover of EUR 1 000 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted,…

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226. Amendment 260ESNProposal for a directive · Recital 19
     Current text

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

     Amendment

     (19) Article 5(2), third subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2004/109/EC, with different dates depending on the size of the issuer concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only large undertakings with more than 5000 employees and a net turnover of EUR 1 000 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and…

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227. Amendment 261ESNProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point i
     Current text

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

     Amendment

     (i) to large undertakings which, on their balance sheet dates, exceed the average number of 5000 employees and a net turnover of EUR 1 000 000 000 during the financial year;

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228. Amendment 262ESNProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point ii
     Current text

     (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;;

     Amendment

     (ii) to parent undertakings of a large group which, on their balance sheet dates, exceed the average number of 5000 employees, and a net turnover of EUR 1 000 000 000, on a consolidated basis, during the financial year;

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229. Amendment 263ESNProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point i
     Current text

     (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;;

     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 5000 employees and a net turnover of EUR 1 000 000 000 during the financial year;;

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230. Amendment 264ESNProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point ii
     Current text

     (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;;

     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 5000 employees, and a net turnover of EUR 1 000 000 000, on a consolidated basis, during the financial year;

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231. Amendment 265S&D, Verts/ALEProposal for a directive · Recital 28
     Current text

     (28) To limit possible litigation risks linked to the harmonised civil liability regime of Directive (EU) 2024/1760, the specific, Union-wide liability regime currently provided for in Article 29(1) of that Directive should be removed. At the same time, as a matter of both international and Union law, Member States should be required to ensure that victims of adverse impacts have effective access to justice and to guarantee their right to an effective remedy, as enshrined in Article 2(3) of the International Covenant on Civil and Political Rights, Article 8 of the Universal Declaration of Human Rights, Article 9(3) of the Convention on Access to Information, Public Participation in Decision-…

     Amendment

     (28) Respect for the provisions set out in Directive 2024/1760 is crucial for safeguarding the Union's political, social and economic interests, as well as the attainment of its sustainability objectives. Accordingly, rules governing the civil liability arising from infringements of those provisions are necessary. As a matter of both international and Union law, Member States should be required to ensure that victims of adverse impacts have effective access to justice and to guarantee their right to an effective remedy, as enshrined in Article 2(3) of the International Covenant on Civil and Political Rights, Article 8 of the Universal Declaration of Human Rights, Article 9(3) of the Conventi…

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232. Amendment 266S&D, Verts/ALEProposal for a directive · Article 4 – paragraph 1 – point 12
     Current text

     (12) Article 29 is amended as follows: (a) paragraph 1 is deleted; (b) paragraph 2 is replaced by the following: ‘2. Where a company is held liable pursuant to national law for damage caused to a natural or legal person by a failure to comply with the due diligence requirements under this Directive, Member States shall ensure that those persons have a right to full compensation. Full compensation shall not lead to overcompensation, whether by means of punitive, multiple or other types of damages.;’ (d) paragraph 4 is replaced by the following: ‘4. Companies that have participated in industry or multi-stakeholder initiatives, or used independent third-party verification or contractual clauses…

     Amendment

     deleted

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233. Amendment 267S&DProposal for a directive · Article 4 – paragraph 1 – point 1
     Current text

     (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.;

     Amendment

     (c) the obligation for companies to adopt a transition plan for climate change mitigation, and to make all reasonable efforts and put into effect proportional implementing actions which aim to ensure, compatibility of the business model and of the strategy of the company with the transition to a sustainable economy and with the limiting of global warming in line with the Paris Agreement.;

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234. Amendment 268S&DProposal for a directive · Article 4 – paragraph 1 – point 1 a (new)
     Current text

     (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;

     Amendment

     (1 a) in Article 2(1), point (a) is replaced by the following: "(a) the company had more than 3 000 employees on average and had a net worldwide turnover of more than EUR 750 000 000 in the last financial year for which annual financial statements have been or should have been adopted;"

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235. Amendment 269S&DProposal for a directive · Article 4 – paragraph 1 – point 1 b (new)
     Current text

     (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;

     Amendment

     (1 b) in Article 2(2), point (a) is replaced by the following: "(a) the company generated a net turnover of more than EUR 750 000 000 in the Union in the financial year preceding the last financial year;"

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236. Amendment 270S&DProposal for a directive · Article 4 – paragraph 1 – point 2
     Current text

     (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;;

     Amendment

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

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237. Amendment 271S&DProposal for a directive · Article 4 – paragraph 1 – point 3
     Current text

     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.

     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 diverging from those laid down in Articles 6 to 12 and 16.

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238. Amendment 272S&DProposal for a directive · Article 4 – paragraph 1 – point 3
     Current text

     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.;

     Amendment

     deleted

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239. Amendment 273S&DProposal for a directive · Article 4 – paragraph 1 – point 7 – point a
     Current text

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

     Amendment

     deleted

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240. Amendment 274S&DProposal for a directive · Article 4 – paragraph 1 – point 7 – point b
     Current text

     (b) points (c) and (e) are deleted;

     Amendment

     (b) point (c) is deleted;

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241. Amendment 275S&DProposal for a directive · Article 4 – paragraph 1 – point 10
     Current text

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

     Amendment

     Member States shall ensure that companies referred to in Article 2(1), points (a), (b) and (c), and Article 2(2), points (a), (b) and (c), adopt a transition plan for climate change mitigation, and shall make all reasonable efforts and put into effect proportional implementing actions, to ensure, that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming in line with the Paris Agreement and the objective of achieving climate neutrality as established in Regulation (EU) 2021/1119, and where relevant, the exposure of the company to coal-, oil- and gas-related activities.;

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242. Amendment 276S&DProposal for a directive · Article 4 – paragraph 1 – point 10
     Amendment

     In Article 22(1), the following subparagraph is inserted: "All reasonable efforts in the context of this Article shall be understood as taking proportional and reasonable implementing actions to ensure compatibility with the transition to a sustainable economy in line with the Paris Agreement, without having to exhaust all possible means at their disposal. Member States shall ensure that the obligation laid down in this Article is an obligation of means, not an obligation of results.";

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243. Amendment 277S&DProposal for a directive · Article 4 – paragraph 1 – point 10 a (new)
     Current text

     The design of the transition plan for climate change mitigation referred to in the first subparagraph shall contain: (a) time-bound targets related to climate change for 2030 and in five-year steps up to 2050 based on conclusive scientific evidence and, where appropriate, absolute emission reduction targets for greenhouse gas for scope 1, scope 2 and scope 3 greenhouse gas emissions for each significant category; (b) a description of decarbonisation levers identified and key actions planned to reach the targets referred to in point (a), including, where appropriate, changes in the product and service portfolio of the company and the adoption of new technologies; (c) an explanation and quanti…

     Amendment

     (10 a) in Article 22(1), the second subparagraph is replaced by the following: "The design of the transition plan for climate change mitigation referred to in the first subparagraph shall contain: (a) objectives related to climate change for 2030 and in five-year steps up to climate neutrality in 2050 based on conclusive scientific evidence and, where appropriate, absolute emission reduction targets for greenhouse gas for scope 1, scope 2 and scope 3 greenhouse gas emissions for each significant category; (b) a description of key decarbonisation levers identified and outlining implementation actions towards the objectives and targets referred to in point (a); (c) a brief description of the i…

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244. Amendment 278S&DProposal for a directive · Article 4 – paragraph 1 – point 10 b (new)
     Current text

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

     Amendment

     (10 b) in Article 22, paragraph 3 is replaced by the following: "3. Member States shall ensure that the transition plan for climate change mitigation referred to in paragraph 1 is updated every 12 months, including a brief progress description."

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245. Amendment 279ECRProposal for a directive · Recital 5
     Current text

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

     Amendment

     (5) Article 19a(1) of Directive 2013/34/EU requires large undertakings and small and medium-sized undertakings with securities admitted to trading on an EU regulated market, excluding micro-undertakings, to prepare and publish a sustainability statement at individual level. To reduce the reporting burden on undertakings, the obligation to prepare and publish a sustainability statement at individual level should be reduced to undertakings with an average of more than 1 750 employees and a net turnover of EUR 450 000 000 during the financial year. It should be possible to exempt ultimate parent undertakings which are financial holding undertakings not involved in management activities from com…

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246. Amendment 280ECRProposal for a directive · Recital 7
     Current text

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

     Amendment

     (7) Article 1(3) of Directive 2013/34/EU specifies that credit institutions and insurance undertakings that are large undertakings or small and medium-size undertakings – excluding micro-undertakings – with securities admitted to trading on an EU regulated market are subject to the sustainability reporting requirements set out in that Directive, regardless of their legal form. Considering that the scope of individual sustainability reporting should be reduced to undertakings with an average of more than 1 750 employees and a net turnover of EUR 450 000 000 during the financial year, that reduction in scope should also apply to credit institutions and insurance undertakings.

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247. Amendment 281ECRProposal for a directive · Recital 9
     Current text

     (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings established in or outside of the Union in its value chain that have up to 1000 employees on average during the f…

     Amendment

     (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to provide clarity and reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings with an average of more than 1 750 employees and a net turnover of EUR 450 000 000 on averag…

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248. Amendment 282ECRProposal for a directive · Recital 12
     Current text

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

     Amendment

     (12) Article 29a(1) of Directive 2013/34/EU requires parent undertakings of large groups to prepare and publish a sustainability statement at consolidated level. To reduce the reporting burden on those parent undertakings, the scope of that obligation should be reduced to parent undertakings of groups with an average of more than 1 750 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year.

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249. Amendment 283ECRProposal for a directive · Recital 14
     Current text

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

     Amendment

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

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250. Amendment 284ECRProposal for a directive · Recital 18
     Current text

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

     Amendment

     (18) Article 5(2), first subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2013/34/EU, with different dates depending on the size of the undertaking concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only undertakings with more than 1 750 employees and a net turnover of EUR 450 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and th…

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251. Amendment 285ECRProposal for a directive · Recital 19
     Current text

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

     Amendment

     (19) Article 5(2), third subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2004/109/EC, with different dates depending on the size of the issuer concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only undertakings with more than 1 750 employees and a net turnover of EUR 450 000 000 on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the re…

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252. Amendment 286ECRProposal for a directive · Recital 24
     Current text

     (24) To reduce burdens on companies and make stakeholder engagement more proportionate, companies should only have to engage with workers, their representatives including trade unions, and individuals and 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 that have a link to the specific stage of the due diligence process being carried out. That includes individuals or communities in the neighbourhood of plants operated by business partners where those individuals or communities are directly affected by pollution, or indigenous people whose right to lands or resources…

     Amendment

     (24) To reduce burdens on companies and make stakeholder engagement more proportionate, companies should only have to engage with their employees, the employees of their subsidiaries and of their business partners, the representatives of those employees including trade unions, and individuals and communities whose rights or interests are or could be directly affected by the adverse impacts on human rights and the environment that stem from the products, services and operations of the company, its subsidiaries and its business partners. That includes individuals or communities in the neighbourhood of plants operated by business partners where those individuals or communities are directly affe…

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253. Amendment 287ECRProposal for a directive · Recital 26
     Current text

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

     Amendment

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

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254. Amendment 288ECRProposal for a directive · Recital 27
     Current text

     (27) Article 27(1) of Directive EU 2024/1760 requires Member States to lay down penalties that are to be “effective, proportionate and dissuasive”. Article 27(2) of that Directive requires Member States, when deciding whether to impose penalties and, if so, when determining their nature and appropriate level, to take due account of a series of factors that determine the gravity of the infringement and attenuating or aggravating circumstances. Article 27(4) of that Directive requires Member States to base any imposed pecuniary penalties on the net worldwide turnover of the company concerned. However, given the fact that Member States already have to take into account the series of factors lai…

     Amendment

     (27) Article 27(1) of Directive EU 2024/1760 requires Member States to lay down penalties that are to be “effective, proportionate and dissuasive”. Article 27(2) of that Directive requires Member States, when deciding whether to impose penalties and, if so, when determining their nature and appropriate level, to take due account of a series of factors that determine the gravity of the infringement and attenuating or aggravating circumstances. Article 27(4) of that Directive requires Member States to base any imposed pecuniary penalties on the net worldwide turnover of the company concerned. However, given the fact that Member States already have to take into account the series of factors lai…

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255. Amendment 289ECRProposal for a directive · Article 2 – paragraph 1 – point 1 – point a
     Current text

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

     Amendment

     The coordination measures prescribed by Articles 19a, 19b, 29a, 29aa, 29d, 30 and 33, Article 34(1), second subparagraph, point (aa), Article 34(2) and (3), and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings exceed, on their balance sheet dates, the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year:;

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256. Amendment 290ECRProposal for a directive · Article 2 – paragraph 1 – point 1 a (new)
     Amendment

     (1 a) (1a) in Article 19(1), the fourth subparagraph is replaced by the following: ‘Undertakings which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year shall report information on the key intangible resources and explain how the business model of the undertaking fundamentally depends on such resources and how such resources are a source of value creation for the undertaking.’ ;

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257. Amendment 291ECRProposal for a directive · Article 2 – paragraph 1 – point 2 – point a
     Current text

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

     Amendment

     Undertakings which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.;

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258. Amendment 292ECRProposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainabilit…

     Amendment

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29…

     Excerpt — full text in the official PDF.
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259. Amendment 293ECRProposal for a directive · Article 2 – paragraph 1 – point 4 – point a
     Current text

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

     Amendment

     Parent undertakings of a large group which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 , on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.;

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260. Amendment 294ECRProposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability info…

     Amendment

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, ex…

     Excerpt — full text in the official PDF.
     official amendment document ↗
261. Amendment 295ECRProposal for a directive · Article 2 – paragraph 1 – point 6 – point b – introductory part
     Current text

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

     Amendment

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

     official amendment document ↗
262. Amendment 296ECRProposal for a directive · Article 2 – paragraph 1 – point 6 – point b
     Current text

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

     Amendment

     Sustainability reporting standards shall take account of the difficulties, including legal limitations stemming from this Directive, that undertakings might encounter in gathering information from actors throughout their value chain, especially from those which are not subject to the sustainability reporting requirements laid down in Article 19a or 29a and from suppliers in emerging markets and economies. Sustainability reporting standards shall specify disclosures on value chains that are proportionate and relevant to the capacities and characteristics of undertakings in the value chains, and to the scale and complexity of their activities, especially those of undertakings that are not subj…

     Excerpt — full text in the official PDF.
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263. Amendment 297ECRProposal for a directive · Article 2 – paragraph 1 – point 11 – point b
     Current text

     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.;

     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 1 750 employees and a net turnover of EUR 450 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability information that is commonly shared between undertakings in the sector concerned.;

     official amendment document ↗
264. Amendment 298ECRProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point i
     Current text

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

     Amendment

     (i) to large undertakings which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year;

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265. Amendment 299ECRProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point ii
     Current text

     (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;;

     Amendment

     (ii) to parent undertakings of a group which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year;

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266. Amendment 300ECRProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point i
     Current text

     (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;;

     Amendment

     (i) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are undertakings which, on their balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000 during the financial year;

     official amendment document ↗
267. Amendment 301ECRProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point ii
     Current text

     (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;;

     Amendment

     (ii) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are parent undertakings of a group which, on its balance sheet dates, exceed the average number of 1 750 employees and a net turnover of EUR 450 000 000, on a consolidated basis, during the financial year;’;

     official amendment document ↗
268. Amendment 302ECRProposal for a directive · Article 4 – paragraph 1 – point 1 – introductory part
     Current text

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

     Amendment

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

     official amendment document ↗
269. Amendment 304ECRProposal for a directive · Article 4 – paragraph 1 – point 1 a (new)
     Amendment

     (1 a) 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 1,5 billion in the Union in the financial year preceding the last financial year;’ (c) in paragraph 3, the first subparagraph is replaced by the following: ‘3. Where the ultimate parent company has as its main activity the holding of shares in operational s…

     Excerpt — full text in the official PDF.
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270. Amendment 305ECRProposal for a directive · Article 4 – paragraph 1 – point 3 a (new)
     Amendment

     (3 a) Article 6 is amended as follows: (a) paragraph 1 is amended as follows: ‘1. Member States shall ensure that parent companies falling under the scope of this Directive are allowed to fulfil the obligations set out in Articles 7 to 11 on behalf of companies which are subsidiaries of those parent companies and fall under the scope of this Directive, if this ensures effective compliance. This is without prejudice to such subsidiaries being subject to the exercise of the supervisory authority’s powers in accordance with Article 25 and to their civil liability in accordance with Article 29.’; (b) paragraph 3 is deleted; (c) the following paragraph is added: ‘3a. When a company covered by thi…

     Excerpt — full text in the official PDF.
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271. Amendment 306ECRProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     As regards potential adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 2, 4 and 5, the company shall, as a last resort:

     Amendment

     As regards potential adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 2, 4 and 5, the company can, as a last resort:

     official amendment document ↗
272. Amendment 307ECRProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     As regards actual adverse impacts as referred to in paragraph 1 that could not be prevented or adequately mitigated by the measures set out in paragraphs 3, 5 and 6, the company shall, as a last resort:

     Amendment

     As regards actual adverse impacts as referred to in paragraph 1 that could not be brought to an end or the extent of which could not be minimised by the measures set out in paragraphs 3, 5 and 6, the company can, as a last resort:

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273. Amendment 308ECRProposal for a directive · Article 4 – paragraph 1 – point 9 – introductory part
     Current text

     (9) in Article 19, paragraph 3 is replaced by the following:

     Amendment

     (9) Article 19 is amended as follows:

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274. Amendment 309ECRProposal for a directive · Article 4 – paragraph 1 – point 9
     Current text

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

     Amendment

     3. (b) paragraph 3 is replaced by the following: ’ The guidelines referred to in paragraph 2, point (a), (b) and (d) to (g), shall be made available by 26 July 2026.’;

     official amendment document ↗
275. Amendment 310ECRProposal for a directive · Article 4 – paragraph 1 – point 9 – point a
     Amendment

     a) paragraph 2, point (b) is deleted;

     official amendment document ↗
276. Amendment 311ECRProposal for a directive · Article 4 – paragraph 1 – point 10 – introductory part
     Current text

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

     Amendment

     (10) Article 22 is deleted;

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277. Amendment 313ECRProposal for a directive · Article 4 – paragraph 1 – point 10 a (new)
     Amendment

     (10 a) in Article 24, paragraph 1 is replaced by the following: ‘1. Each Member State shall designate one or more supervisory authorities to supervise compliance with the obligations laid down in the provisions of national law adopted pursuant to Articles 7 to 16.’;

     official amendment document ↗
278. Amendment 314ECRProposal for a directive · Article 4 – paragraph 1 – point 10 b (new)
     Amendment

     (10 b) in Article 25, paragraph 1 is replaced by the following: ‘1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to require companies to provide information and carry out investigations related to compliance with the obligations set out in Articles 7 to 16.’;

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279. Amendment 315ECRProposal for a directive · Article 4 – paragraph 1 – point 11
     Current text

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

     Amendment

     4. The Commission, in collaboration with Member States, shall issue guidance on the appropriate level of penalties, taking into account the turnover of companies, to assist supervisory authorities in determining the level of penalties in accordance with this Article.

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280. Amendment 316ECRProposal for a directive · Article 4 – paragraph 1 – point 13
     Current text

     (13) in Article 36, paragraph 1 is deleted.

     Amendment

     (13) Article 36 is amended as follows: (a) paragraph 1 is deleted; (b) in paragraph 2, point (e) is deleted.

     official amendment document ↗
281. Amendment 317Verts/ALEProposal for a directive · Recital 5
     Current text

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

     Amendment

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

     Excerpt — full text in the official PDF.
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282. Amendment 318Verts/ALEProposal for a directive · Recital 7
     Current text

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

     Amendment

     (7) Article 1(3) of Directive 2013/34/EU specifies that credit institutions and insurance undertakings that are large undertakings or small and medium-size undertakings – excluding micro-undertakings – with securities admitted to trading on an EU regulated market are subject to the sustainability reporting requirements set out in that Directive, regardless of their legal form. Considering that the scope of individual sustainability reporting should be reduced to large undertakings with an average of more than 500 employees during the financial year, that reduction in scope should also apply to credit institutions and insurance undertakings.

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283. Amendment 319Verts/ALEProposal for a directive · Recital 9
     Current text

     (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings established in or outside of the Union in its value chain that have up to 1000 employees on average during the f…

     Amendment

     (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to provide clarity and reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings with an average of more than 500 employees on average during the financial year any informat…

     Excerpt — full text in the official PDF.
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284. Amendment 320Verts/ALEProposal for a directive · Recital 12
     Current text

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

     Amendment

     (12) Article 29a(1) of Directive 2013/34/EU requires parent undertakings of large groups to prepare and publish a sustainability statement at consolidated level. To reduce the reporting burden on those parent undertakings, the scope of that obligation should be reduced to parent undertakings of large groups with an average of more than 500 employees, on a consolidated basis, during the financial year.

     official amendment document ↗
285. Amendment 321Verts/ALEProposal for a directive · Recital 14
     Current text

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

     Amendment

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

     Excerpt — full text in the official PDF.
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286. Amendment 322Verts/ALEProposal for a directive · Recital 17
     Current text

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

     Amendment

     deleted

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287. Amendment 323Verts/ALEProposal for a directive · Recital 18
     Current text

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

     Amendment

     (18) Article 5(2), first subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2013/34/EU, with different dates depending on the size of the undertaking concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only large undertakings with more than 500 employees on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the reference to small and medium-si…

     Excerpt — full text in the official PDF.
     official amendment document ↗
288. Amendment 324Verts/ALEProposal for a directive · Recital 19
     Current text

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

     Amendment

     (19) Article 5(2), third subparagraph, of Directive (EU) 2022/2464 specifies the dates by which the Member States are to apply the sustainability reporting requirements set out in Directive 2004/109/EC, with different dates depending on the size of the issuer concerned. Considering that the scope of the individual sustainability reporting requirements should be reduced to include only large undertakings with more than 500 employees on average during the financial year, and that the scope of the consolidated sustainability reporting requirements should be reduced accordingly, the criteria for determining the dates of application should be adjusted, and the reference to small and medium-sized…

     Excerpt — full text in the official PDF.
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289. Amendment 325Verts/ALEProposal for a directive · Recital 22
     Current text

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

     Amendment

     (22) To limit the trickle-down effect on other companies, including small and medium-sized undertakings and small midcap companies, when it comes to the scoping of the chain of activities to identify adverse impacts, companies within the scope should not seek to obtain information from their business partners but rely only on information that is already reasonably available, such as publicly known information, information from searches and information gained through earlier cooperation. Entity-level information and communication with business partners is not relevant at this stage. It should only be possible to seek such information for further assessments under certain conditions. In such a…

     Excerpt — full text in the official PDF.
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290. Amendment 326Verts/ALEProposal for a directive · Recital 23
     Current text

     (23) Companies may find themselves in situations where their production heavily relies on inputs from one or several specific suppliers. At the same time, where the business operations of such a supplier are linked to severe adverse impacts, including child labour or significant environmental harm, and the company has unsuccessfully exhausted all due diligence measures to address those impacts, the company, as a last resort should suspend the business relationship while continuing to work with the supplier towards a solution, where possible using any increased leverage resulting from the suspension.

     Amendment

     (23) Companies may find themselves in situations where their production heavily relies on inputs from one or several specific suppliers. At the same time, where the business operations of such a supplier are linked to severe adverse impacts, including child labour or significant environmental harm, and the company has unsuccessfully exhausted all due diligence measures to address those impacts, the company, as a last resort should temporarily suspend the business relationship while continuing to work with the supplier towards a solution, where possible using any increased leverage resulting from the suspension. In order not to undermine the aims of this Directive, the decision not to suspend…

     Excerpt — full text in the official PDF.
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291. Amendment 327Verts/ALEProposal for a directive · Recital 24
     Current text

     (24) To reduce burdens on companies and make stakeholder engagement more proportionate, companies should only have to engage with workers, their representatives including trade unions, and individuals and 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 that have a link to the specific stage of the due diligence process being carried out. That includes individuals or communities in the neighbourhood of plants operated by business partners where those individuals or communities are directly affected by pollution, or indigenous people whose right to lands or resources…

     Amendment

     (24) To reduce burdens on companies and make stakeholder engagement more proportionate, companies should only have to engage with their employees, the employees of their subsidiaries and of their business partners, the representatives of employees including trade unions, and individuals and communities whose rights or interests are or could be directly affected by the adverse impacts on human rights and the environment that stem from the products, services and operations of the company, its subsidiaries and its business partners. In line with the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, this includes the legitimate representatives of those individuals or…

     Excerpt — full text in the official PDF.
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292. Amendment 328Verts/ALEProposal for a directive · Article 2 – paragraph 1 – point 1 – point a
     Current text

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

     Amendment

     The coordination measures prescribed by Articles 19a, 19b, 29a, 29aa, 29d, 30 and 33, Article 34(1), second subparagraph, point (aa), Article 34(2) and (3), and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings are large undertakings which, on their balance sheet dates, exceed the average number of 500 employees during the financial year:;

     official amendment document ↗
293. Amendment 329Verts/ALEProposal for a directive · Article 2 – paragraph 1 – point 1 a (new)
     Amendment

     (1 a) in Article 19(1), the fourth subparagraph is replaced by the following: Large undertakings which, on their balance sheet dates, exceed the average number of 500 employees during the financial year shall report information on the key intangible resources and explain how the business model of the undertaking fundamentally depends on such resources and how such resources are a source of value creation for the undertaking.

     official amendment document ↗
294. Amendment 330Verts/ALEProposal for a directive · Article 2 – paragraph 1 – point 2 – point a
     Current text

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

     Amendment

     Large undertakings which, on their balance sheet dates, exceed the average number of 500 employees during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.;

     official amendment document ↗
295. Amendment 331Verts/ALEProposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainabilit…

     Amendment

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 500 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…

     Excerpt — full text in the official PDF.
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296. Amendment 332Verts/ALEProposal for a directive · Article 2 – paragraph 1 – point 4 – point a
     Current text

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

     Amendment

     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, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.;

     official amendment document ↗
297. Amendment 333Verts/ALEProposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability info…

     Amendment

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 500 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 infor…

     Excerpt — full text in the official PDF.
     official amendment document ↗
298. Amendment 334Verts/ALEProposal for a directive · Article 2 – paragraph 1 – point 6 – point b
     Current text

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

     Amendment

     Sustainability reporting standards shall take account of the difficulties, including legal limitations, stemming from this Directive, that undertakings might encounter in gathering information from actors throughout their value chain, especially from those which are not subject to the sustainability reporting requirements laid down in Article 19a or Article 29a and from suppliers in emerging markets and economies. Sustainability reporting standards shall specify disclosures on value chains that are proportionate and relevant to the capacities and characteristics of undertakings in the value chains, and to the scale and complexity of their activities, especially those of undertakings that are…

     Excerpt — full text in the official PDF.
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299. Amendment 335Verts/ALEProposal for a directive · Article 2 – paragraph 1 – point 11 – point b
     Current text

     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.;

     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 500 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.;

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300. Amendment 336Verts/ALEProposal for a directive · Article 2 – paragraph 1 – point 12 – point b
     Current text

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

     Amendment

     deleted

     official amendment document ↗
301. Amendment 337Verts/ALEProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point i
     Current text

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

     Amendment

     (i) to large undertakings which, on their balance sheet dates, exceed the average number of 500 employees during the financial year;;

     official amendment document ↗
302. Amendment 338Verts/ALEProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point ii
     Current text

     (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;;

     Amendment

     (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;;

     official amendment document ↗
303. Amendment 339Verts/ALEProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point i
     Current text

     (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;;

     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 500 employees during the financial year;;

     official amendment document ↗
304. Amendment 340Verts/ALEProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point ii
     Current text

     (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;;

     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;;

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305. Amendment 341Verts/ALEProposal for a directive · Article 4 – paragraph 1 – point 1
     Current text

     (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.;

     Amendment

     (c) the obligation for companies to adopt and put into effect 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.;

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306. Amendment 342Verts/ALEProposal for a directive · Article 4 – paragraph 1 – point 2
     Current text

     (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;;

     Amendment

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

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307. Amendment 343Verts/ALEProposal for a directive · Article 4 – paragraph 1 – point 3
     Current text

     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.

     Amendment

     deleted

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308. Amendment 344Verts/ALEProposal for a directive · Article 4 – paragraph 1 – point 3
     Current text

     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.;

     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 the provisions referred to in paragraph 1 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.

     official amendment document ↗
309. Amendment 345Verts/ALEProposal for a directive · Article 4 – paragraph 1 – point 4 – point c
     Current text

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

     Amendment

     4. Member States shall ensure that, for the purposes of the further assessment provided for in paragraph 2, point (b), of this Article companies do not seek to obtain information from business partners, unless this is necessary. Where the business partner has fewer than 1000 employees, companies may seek such information only as a last resort, and if it cannot reasonably be obtained by other means, in particular from existing or secondary sources. In any event, any request shall be targeted, reasonable and proportionate. Where information necessary for the further assessment provided for in paragraph 2, point (b) can be obtained from different business partners, the company shall seek such i…

     Excerpt — full text in the official PDF.
     official amendment document ↗
310. Amendment 346Verts/ALEProposal for a directive · Article 4 – paragraph 1 – point 7
     Current text

     (7) in Article 13, paragraph 3 is amended as follows: (a) the introductory wording is replaced by the following: ‘Consultation of relevant stakeholders shall take place at the following stages of the due diligence process:;’

     Amendment

     deleted

     official amendment document ↗
311. Amendment 347Verts/ALEProposal for a directive · Article 4 – paragraph 1 – point 10
     Current text

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

     Amendment

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

     Excerpt — full text in the official PDF.
     official amendment document ↗
312. Amendment 348Verts/ALEProposal for a directive · Article 4 – paragraph 1 – point 12
     Current text

     (12) Article 29 is amended as follows: (a) paragraph 1 is deleted; (b) paragraph 2 is replaced by the following: ‘2. Where a company is held liable pursuant to national law for damage caused to a natural or legal person by a failure to comply with the due diligence requirements under this Directive, Member States shall ensure that those persons have a right to full compensation. Full compensation shall not lead to overcompensation, whether by means of punitive, multiple or other types of damages.;’ (d) paragraph 4 is replaced by the following: ‘4. Companies that have participated in industry or multi-stakeholder initiatives, or used independent third-party verification or contractual clauses…

     Amendment

     deleted

     Excerpt — full text in the official PDF.
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313. Amendment 349PfEProposal for a directive · Recital 5
     Current text

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

     Amendment

     (5) Article 19a(1) of Directive 2013/34/EU requires large undertakings and small and medium-sized undertakings with securities admitted to trading on an EU regulated market, excluding micro-undertakings, to prepare and publish a sustainability statement at individual level. To reduce the reporting burden on undertakings, the obligation to prepare and publish a sustainability statement at individual level should be reduced to undertakings with an average of more than 3000 employees and a net turnover of EUR 900 000 000 during the financial year. It should be possible to exempt ultimate parent undertakings which are financial holding undertakings not involved in management activities from comp…

     Excerpt — full text in the official PDF.
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314. Amendment 350PfEProposal for a directive · Recital 7
     Current text

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

     Amendment

     (7) Article 1(3) of Directive 2013/34/EU specifies that credit institutions and insurance undertakings that are large undertakings or small and medium-size undertakings – excluding micro-undertakings – with securities admitted to trading on an EU regulated market are subject to the sustainability reporting requirements set out in that Directive, regardless of their legal form. Considering that the scope of individual sustainability reporting should be reduced to undertakings with an average of more than 3000 employees and a net turnover of EUR 900 000 000 during the financial year, that reduction in scope should also apply to credit institutions and insurance undertakings.

     official amendment document ↗
315. Amendment 351PfEProposal for a directive · Recital 9
     Current text

     (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings established in or outside of the Union in its value chain that have up to 1000 employees on average during the f…

     Amendment

     (9) Article 19a(3) of Directive 2013/34/EU requires undertakings to report information about the undertaking’s own operations and about its value chain. It is necessary to reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability. The reporting undertaking, for the purposes of reporting sustainability information at individual or at consolidated level, as required by Directive 2013/34/EU, and without prejudice to Union requirements to conduct a due diligence process, should therefore not seek to obtain from undertakings with an average of more than 3000 employees and a net turnover of EUR 900 000 000 during the financial year any…

     Excerpt — full text in the official PDF.
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316. Amendment 352PfEProposal for a directive · Recital 14
     Current text

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

     Amendment

     (14) Article 29b(4) of Directive 2013/34/EU requires sustainability reporting standards to not specify disclosures requiring undertakings to obtain from small and medium-sized undertakings in their value chain any information at all. Considering that small and medium-sized undertakings with securities admitted to trading on an EU regulated market should be excluded from sustainability reporting, and in order to reduce the reporting burden for undertakings in the value chain that are not required to report on their sustainability, the sustainability reporting standards should not specify disclosures requiring undertakings to obtain from undertakings in their value chain that have up to 3000 e…

     Excerpt — full text in the official PDF.
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317. Amendment 353PfEProposal for a directive · Article 2 – paragraph 1 – point 1 – point a
     Current text

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

     Amendment

     ‘The coordination measures prescribed by Articles 19a, 19b, 29a, 29aa, 29d, 30 and 33, Article 34(1), second subparagraph, point (aa), Article 34(2) and (3), and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings exceed, on their balance sheet dates, the average number of 3000 employees and a net turnover of EUR 900 000 000 during the financial year:’;

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318. Amendment 354PfEProposal for a directive · Article 2 – paragraph 1 – point 1 a (new)
     Amendment

     (1 a) in Article 19(1), the fourth subparagraph is replaced by the following: ‘Undertakings which, on their balance sheet dates, exceed the average number of 3000 employees and a net turnover of EUR 900 000 000 during the financial year, shall report information on the key intangible resources and explain how the business model of the undertaking fundamentally depends on such resources and how such resources are a source of value creation for the undertaking.’ ;

     official amendment document ↗
319. Amendment 355PfEProposal for a directive · Article 2 – paragraph 1 – point 2 – point a
     Current text

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

     Amendment

     ‘Undertakings which, on their balance sheet dates, exceed the average number of 3000 employees and a net turnover of EUR 900 000 000 during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.’;

     official amendment document ↗
320. Amendment 356PfEProposal for a directive · Article 2 – paragraph 1 – point 2 – point a a (new)
     Amendment

     (a a) in paragraph 2, point (a)(iii) is deleted;

     official amendment document ↗
321. Amendment 357PfEProposal for a directive · Article 2 – paragraph 1 – point 2 – point a b (new)
     Amendment

     (a b) in paragraph 2, point (f) (ii) is replaced by the following: ‘(ii) the principal actual or potential adverse impacts connected with the undertaking’s own operations;’;

     official amendment document ↗
322. Amendment 358PfEProposal for a directive · Article 2 – paragraph 1 – point 2 – point b
     Current text

     (b) paragraph 3 is amended as follows: (i) the first subparagraph is replaced by the following: ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in…

     Amendment

     deleted

     Excerpt — full text in the official PDF.
     official amendment document ↗
323. Amendment 359PfEProposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainabilit…

     Amendment

     ‘ Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 3000 employees and a net turnover of EUR 900 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 2…

     Excerpt — full text in the official PDF.
     official amendment document ↗
324. Amendment 360PfEProposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i a (new)
     Amendment

     (i a) the second subparagraph is replaced by the following: ‘In the event that not all the necessary information regarding its value chain is available, the undertaking is therefore exempted from its reporting obligations’;

     official amendment document ↗
325. Amendment 361PfEProposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point ii
     Current text

     (ii) the following subparagraph is added: ‘The first subparagraph is without prejudice to Union requirements on undertakings to conduct a due diligence process.;’

     Amendment

     deleted

     official amendment document ↗
326. Amendment 362PfEProposal for a directive · Article 2 – paragraph 1 – point 4 – point a
     Current text

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

     Amendment

     ‘Parent undertakings of a group which, on their balance sheet dates, exceed the average number of 3000 employees and a net turnover of EUR 900 000 000, on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.’;

     official amendment document ↗
327. Amendment 363PfEProposal for a directive · Article 2 – paragraph 1 – point 4 – point a a (new)
     Amendment

     (a a) in paragraph 2, point (a) (iii) is deleted;

     official amendment document ↗
328. Amendment 364PfEProposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point i
     Current text

     Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainability info…

     Amendment

     ‘ Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the group’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 3000 employees and a net turnover of EUR 900 000 000 during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, e…

     Excerpt — full text in the official PDF.
     official amendment document ↗
329. Amendment 365PfEProposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point ii
     Current text

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

     Amendment

     deleted

     official amendment document ↗
330. Amendment 366PfEProposal for a directive · Article 2 – paragraph 1 – point 4 – point b – point ii a (new)
     Amendment

     (ii a) the second subparagraph is replaced by the following: ‘In the event that not all the necessary information regarding its value chain is available, the undertaking is therefore exempted from its reporting obligations.’;

     official amendment document ↗
331. Amendment 367PfEProposal for a directive · Article 2 – paragraph 1 – point 4 – point b a (new)
     Amendment

     (b a) in paragraph 8, the first subparagraph is replaced by the following: ‘Provided that the conditions set out in the second subparagraph of this paragraph are met, a parent undertaking which is a subsidiary undertaking shall be exempted from the obligations set out in paragraphs 1 to 5 of this Article (the “exempted parent undertaking”) if such parent undertaking and its subsidiary undertakings are included in the consolidated management report of another undertaking, drawn up in accordance with Article 29 and this Article. A parent undertaking which is a subsidiary undertaking of a parent undertaking that is established in a third country shall also be exempted from the obligations set o…

     Excerpt — full text in the official PDF.
     official amendment document ↗
332. Amendment 368PfEProposal for a directive · Article 2 – paragraph 1 – point 6 – point b – introductory part
     Current text

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

     Amendment

     (b) in paragraph 4, the first subparagraph is replaced by the following: ‘Sustainability reporting standards shall take account of the difficulties, including legal limitations stemming from this Directive, that undertakings might encounter in gathering information from actors throughout their value chain, especially from those which are not subject to the sustainability reporting requirements laid down in Article 19a or 29a and from suppliers in emerging markets and economies. Sustainability reporting standards shall specify disclosures on value chains that are proportionate and relevant to the capacities and characteristics of undertakings in the value chains, and to the scale and complexi…

     Excerpt — full text in the official PDF.
     official amendment document ↗
333. Amendment 369PfEProposal for a directive · Article 2 – paragraph 1 – point 11 – point b
     Current text

     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.;

     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 3000 employees and a net turnover of EUR 900 000 000 during the financial year any information at all.’;

     official amendment document ↗
334. Amendment 370PfEProposal for a directive · Article 2 – paragraph 1 – point 12 – point a
     Current text

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

     Amendment

     The first subparagraph shall only apply to subsidiary undertakings which, on their balance sheet dates, exceed the average number of 3000 in the Union and a net turnover of EUR 450 000 000 in the preceding financial year;

     official amendment document ↗
335. Amendment 371PfEProposal for a directive · Article 2 – paragraph 1 – point 12 – point b
     Current text

     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.

     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 in the Union a net turnover exceeding EUR 450 000 000 in the preceding financial year.

     official amendment document ↗
336. Amendment 372PfEProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point i
     Current text

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

     Amendment

     (i) to undertakings which, on their balance sheet dates, exceed the average number of 3000 employees and a net turnover of EUR 900 000 000 during the financial year;’;

     official amendment document ↗
337. Amendment 373PfEProposal for a directive · Article 3 – paragraph 1 – point 1 – point b – point ii
     Current text

     (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;;

     Amendment

     (ii) to parent undertakings of a group which, on their balance sheet dates, exceed the average number of 3000 employees and a net turnover of EUR 900 000 000, on a consolidated basis, during the financial year;’;

     official amendment document ↗
338. Amendment 374PfEProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point i
     Current text

     (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;;

     Amendment

     (i) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are undertakings which, on their balance sheet dates, exceed the average number of 3000 employees and a net turnover of EUR 900 000 000 during the financial year;;

     official amendment document ↗
339. Amendment 375PfEProposal for a directive · Article 3 – paragraph 1 – point 2 – point b – point ii
     Current text

     (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;;

     Amendment

     (ii) to issuers as defined in Article 2(1), point (d) of Directive 2004/109/EC which are parent undertakings of a group which, on its balance sheet dates, exceed the average number of 3000 employees and a net turnover of EUR 900 000 000, on a consolidated basis, during the financial year;;

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340. Amendment 376PfEProposal for a directive · Article 4 – paragraph 1 – point 2
     Current text

     (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;;

     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;;

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341. Amendment 377PfEProposal for a directive · Article 4 – paragraph 1 – point 2 a (new)
     Amendment

     (2 a) in Article 3(1), point (f) is replaced by the following: ‘(f) ‘business partner’ means an entity 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);;

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342. Amendment 378PfEProposal for a directive · Article 4 – paragraph 1 – point 2 b (new)
     Amendment

     (2 b) in Article 3(1), point (g) is replaced by the following: ‘(g) ‘chain of activites’ 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;’;

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343. Amendment 379PfEProposal for a directive · Article 4 – paragraph 1 – point 4 – point a – introductory part
     Current text

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

     Amendment

     (a) paragraph 2 is replaced by the following: ‘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, such as the level of law enforcement; sectoral, product or service risk factors, as well as business operation or direct business partners risk factors, such as whether the business partner is not a company covered by this Directive, 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 chains…

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344. Amendment 380PfEProposal for a directive · Article 4 – paragraph 1 – point 4 – point c
     Current text

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

     Amendment

     4. Member States shall ensure that, for the purposes of the further assessment provided for in paragraph 2, point (b), of this Article companies do not seek to obtain information from business partners, unless this is necessary. Where the business partner has fewer than 5000 employees, companies shall not seek any information at all.

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345. Amendment 381PfEProposal for a directive · Article 4 – paragraph 1 – point 4 – point d
     Current text

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

     Amendment

     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.

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346. Amendment 382PfEProposal for a directive · Article 4 – paragraph 1 – point 4 – point d
     Current text

     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.;

     Amendment

     Companies that reasonably explained why they could not obtain reasonable information to prevent, bring to an end or minimise the adverse impact shall not be penalised.;

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347. Amendment 383PfEProposal for a directive · Article 4 – paragraph 1 – point 4 a (new)
     Amendment

     (4 a) in Article 10(2), point (b) is deleted;

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348. Amendment 384PfEProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     (a) refrain from entering into new, or extending existing, relations with a business partner in connection with which, or in the chain of activities of which, the impact has arisen,

     Amendment

     deleted

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349. Amendment 385PfEProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     (c) use or increase its leverage through the suspension of the business relationship with respect to the activities concerned.

     Amendment

     deleted

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350. Amendment 386PfEProposal for a directive · Article 4 – paragraph 1 – point 5
     Current text

     Member States shall provide for an option to suspend the business relationship in contracts governed by their laws in accordance with the first subparagraph, except for contracts where the parties are obliged by law to enter into them.

     Amendment

     Member States can provide for an option to suspend the business relationship in contracts governed by their laws except for contracts where the parties are obliged by law to enter into them.

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351. Amendment 387PfEProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     (a) refrain from entering into new, or extending existing, relations with a business partner in connection with which, or in the chain of activities of which, the impact has arisen,

     Amendment

     deleted

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352. Amendment 388PfEProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     (c) use or increase its leverage through the suspension of the business relationship with respect to the activities concerned.

     Amendment

     deleted

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353. Amendment 389PfEProposal for a directive · Article 4 – paragraph 1 – point 6
     Current text

     Member States shall provide for an option to suspend the business relationship in contracts governed by their laws in accordance with the first subparagraph, except for contracts where the parties are obliged by law to enter into them.

     Amendment

     Member States can provide for an option to suspend the business relationship in contracts governed by their laws except for contracts where the parties are obliged by law to enter into them.

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354. Amendment 390PfEProposal for a directive · Article 4 – paragraph 1 – point 8
     Current text

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

     Amendment

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

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355. Amendment 391PfEProposal for a directive · Article 4 – paragraph 1 – point 10 a (new)
     Amendment

     (10 a) in Article 25, paragraph 1 is replaced by the following: ‘1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive, including the power to require companies to provide information and carry out investigations related to compliance with the obligations set out in Articles 7 to 12.

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356. Amendment 392PfEProposal for a directive · Title 1
     Current text

     Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464 and (EU) 2024/1760 as regards certain corporate sustainability reporting and due diligence requirements (Text with EEA relevance)

     Amendment

     Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directives 2006/43/EC, 2013/34/EU and (EU) 2022/2464, and repealing Directive (EU) 2024/1760 as regards certain corporate sustainability reporting and due diligence requirements (Text with EEA relevance)

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357. Amendment 393PfEProposal for a directive · Recital 2
     Current text

     (2) In the context of the Commission’s commitment to reduce reporting burdens and enhance competitiveness, it is necessary to amend Directives 2006/43/EC3 , 2013/34/EU4 , (EU) 2022/24645 and (EU) 2024/1760 of the European Parliament and of the Council6 , whilst maintaining the policy objectives of the European Green Deal7 , and the Sustainable Finance Action Plan8 . _________________ 3 Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87, ELI: http://data.europa.eu/eli/dir/200…

     Amendment

     (2) In the context of the Commission’s commitment to reduce reporting burdens and enhance competitiveness, it is necessary to amend Directives 2006/43/EC3 , 2013/34/EU4 and (EU) 2022/24645, and to repeal Directive (EU) 2024/1760 of the European Parliament and of the Council6 , in order to remedy the disastrous effects of the European Green Deal7 on the European economy and our companies. _________________ 3 Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87, ELI: http://data…

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358. Amendment 394PfEProposal for a directive · Recital 2 a (new)
     Amendment

     (2 a) Directives (EU) 2022/2464 and (EU) 2024/1760 have already had an extremely harmful effect on all European businesses, particularly our small and medium-sized enterprises. Such an administrative burden goes against what is needed to save the European economy. It is therefore essential that such legislation be urgently repealed.

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359. Amendment 395PfEProposal for a directive · Article 4 – title
     Current text

     Amendments to Directive (EU) 2024/1760

     Amendment

     Repeal of Directive (EU) 2024/1760

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360. Amendment 396PfEProposal for a directive · Article 4 – paragraph 1 – introductory part
     Current text

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

     Amendment

     Directive (EU) 2024/1760 is repealed.

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361. Amendment 397PPEProposal for a directive · Article 4 – paragraph 1 – point 1 – introductory part
     Current text

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

     Amendment

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

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362. Amendment 398PPEProposal for a directive · Article 4 – paragraph 1 – point 10 – introductory part
     Current text

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

     Amendment

     (10) Article 22 is deleted;

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363. Amendment 399The LeftProposal for a directive · Article 4 – paragraph 1 – point 12 – point d
     Current text

     4. Companies that have participated in industry or multi-stakeholder initiatives, or used independent third-party verification or contractual clauses to support the implementation of due diligence obligations may nevertheless be held liable in accordance with national law.;

     Amendment

     deleted

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364. Amendment 400The LeftProposal for a directive · Article 2 – paragraph 1 – point 9
     Current text

     (9) Article 29d is replaced by the following: ‘Article 29d Single electronic reporting format 1. Undertakings subject to the requirements of Article 19a of this Directive shall prepare their management report in the electronic reporting format specified in Article 3 of Commission Delegated Regulation (EU) 2019/815* and shall mark up their sustainability reporting, including the disclosures provided for in Article 8 of Regulation (EU) 2020/852, in accordance with the electronic reporting format to be specified in that Delegated Regulation. Until such rules on the marking up are adopted by way of that Delegated Regulation, undertakings shall not be required to markup their sustainability repor…

     Amendment

     deleted

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365. Amendment 401JURIProposal for a directive

     Replaces or inserts a longer passage — full text in the official document.

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366. Amendment 402The LeftProposal for a directive

     Replaces or inserts a longer passage — full text in the official document.

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367. Amendment 403The LeftProposal for a directive · Article 1 – paragraph 1 – point 1
     Current text

     (1) in Article 26a, paragraph 3 is replaced by the following: ‘3. The Commission shall be empowered to adopt delegated acts in accordance with Article 48a in order to supplement this Directive in order to provide for limited assurance standards setting out the procedures that the auditor(s) and the audit firm(s) shall perform in order to draw his, her or its conclusions on the assurance of sustainability reporting, including engagement planning, risk consideration and response to risks and type of conclusions to be included in the assurance report on sustainability reporting, or, where relevant, in the audit report. The Commission may adopt the assurance standards referred to in the first su…

     Amendment

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368. Amendment 404The LeftProposal for a directive · Article 1 – paragraph 1 – point 2
     Current text

     (2) in Article 48a(2), the second subparagraph is replaced by the following: ‘The power to adopt delegated acts referred to in Article 26a(3) shall be conferred on the Commission for an indeterminate period of time..’

     Amendment

     deleted

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369. Amendment 405The LeftProposal for a directive · Article 2 – paragraph 1 – point 1 – point a
     Current text

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

     Amendment

     deleted

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370. Amendment 406The LeftProposal for a directive · Article 2 – paragraph 1 – point 1 – point b
     Current text

     (b) paragraph 4 is replaced by the following: ‘4. The coordination measures prescribed by Articles 19a, 29a and 29d shall not apply to the European Financial Stability Facility (EFSF) established by the EFSF Framework Agreement nor to financial products listed in Article 2, point (12), (b) and (f) of Regulation (EU) 2019/2088 of the European Parliament and of the Council*. _____________________________________________ * Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1, ELI: http://data.europa.eu/eli/reg/2019/2088/oj).;’

     Amendment

     deleted

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371. Amendment 407The LeftProposal for a directive · Article 2 – paragraph 1 – point 2
     Current text

     (2) Article 19a is amended as follows: (a) in paragraph 1, the first subparagraph is replaced by the following: ‘Large undertakings which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.;’ (b) paragraph 3 is amended as follows: (i) the first subparagraph is replaced by the following: ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about t…

     Amendment

     deleted

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372. Amendment 408The LeftProposal for a directive · Article 2 – paragraph 1 – point 2 – point b – point i
     Current text

     ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain. Member States shall ensure that, for the reporting of sustainability information as required by this Directive, undertakings do not seek to obtain from undertakings in their value chain which, on their balance sheet dates, do not exceed the average number of 1000 employees during the financial year any information that exceeds the information specified in the standards for voluntary use referred to in Article 29ca, except for additional sustainabili…

     Amendment

     ‘Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain.’;

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373. Amendment 409The LeftProposal for a directive · Article 2 – paragraph 1 – point 3
     Current text

     (3) [...]

     Amendment

     deleted

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374. Amendment 410The LeftProposal for a directive · Article 2 – paragraph 1 – point 4
     Current text

     (4) Article 29a is amended as follows: (a) in paragraph 1, the first subparagraph is replaced by the following: ‘Parent undertakings of a large group which, on their balance sheet dates, exceed the average number of 1000 employees, on a consolidated basis, during the financial year, shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.’; (b) paragraph 3 is amended as follows: (i) the first subparagraph is replaced by the following: ‘Where applicable, the information referred to in paragrap…

     Amendment

     deleted

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375. Amendment 411The LeftProposal for a directive · Article 2 – paragraph 1 – point 7
     Current text

     (7) Article 29c is deleted;

     Amendment

     deleted

     official amendment document ↗
376. Amendment 412The LeftProposal for a directive · Article 2 – paragraph 1 – point 8
     Current text

     (8) the following Article 29ca is inserted: ‘Article 29ca Sustainability reporting standards for voluntary use 1. To facilitate voluntary reporting of sustainability information by undertakings other than those referred to in Articles 19a(1) and 29a(1), the Commission shall adopt a delegated act by [4 months after entry into force of this Directive] in accordance with Article 49 supplementing this Directive to provide for sustainability reporting standards for voluntary use by such undertakings. 2. The sustainability reporting standards referred to in paragraph 1 shall be proportionate to and relevant for the capacities and the characteristics of the undertakings for which they are designed…

     Amendment

     deleted

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377. Amendment 413The LeftProposal for a directive · Article 2 – paragraph 1 – point 10
     Current text

     (10) in Article 33, paragraph 1 is replaced by the following: ‘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…

     Amendment

     deleted

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378. Amendment 414The LeftProposal for a directive · Article 2 – paragraph 1 – point 11
     Current text

     (11) Article 34 is amended as follows: (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 comp…

     Amendment

     deleted

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379. Amendment 415The LeftProposal for a directive · Article 2 – paragraph 1 - point 12
     Current text

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

     Amendment

     deleted

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380. Amendment 416The LeftProposal for a directive · Article 2 – paragraph 1 – point 12 - point b
     Current text

     (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 exceedin…

     Amendment

     deleted

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381. Amendment 417The LeftProposal for a directive · Article 3
     Current text

     Article 3 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;’; (c) point (c) is deleted; (2) the third subparagraph is amended…

     Amendment

     deleted

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382. Amendment 418The LeftProposal for a directive · Article 4 – paragraph 1 – point 3
     Current text

     (3) Article 4 is replaced by the following: ‘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…

     Amendment

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383. Amendment 419The LeftProposal for a directive · Article 4 – paragraph 1 – point 10
     Current text

     (10) in Article 22(1), the first subparagraph is replaced by the following: ‘Member States shall ensure that companies referred to in Article 2(1), points (a), (b) and (c), and Article 2(2), points (a), (b) and (c), adopt a transition plan for climate change mitigation, including implementing actions, which aim to ensure, through best efforts, that the business model and strategy of the company are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5°C in line with the Paris Agreement and the objective of achieving climate neutrality as established in Regulation (EU) 2021/1119, including its intermediate and 2050 climate neutrality targets, a…

     Amendment

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384. Amendment 420The LeftProposal for a directive · Article 4 – paragraph 1 – point 11
     Current text

     (11) in Article 27, paragraph 4 is replaced by the following: ‘4. The Commission, in collaboration with Member States, shall issue guidance to assist supervisory authorities in determining the level of penalties in accordance with this Article. Member States shall not set a maximum limit of pecuniary penalties in their national law transposing this Directive that would prevent supervisory authorities from imposing penalties in accordance with the principles and factors set out in paragraphs 1 and 2.’;

     Amendment

     deleted

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385. Amendment 421The LeftProposal for a directive · Article 4 – paragraph 1 – point 12
     Current text

     (12) Article 29 is amended as follows: (a) paragraph 1 is deleted; (b) paragraph 2 is replaced by the following: ‘2. Where a company is held liable pursuant to national law for damage caused to a natural or legal person by a failure to comply with the due diligence requirements under this Directive, Member States shall ensure that those persons have a right to full compensation. Full compensation shall not lead to overcompensation, whether by means of punitive, multiple or other types of damages.’; (c) in paragraph 3, point (d) is deleted; (d) paragraph 4 is replaced by the following: ‘4. Companies that have participated in industry or multi-stakeholder initiatives, or used independent third…

     Amendment

     deleted

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386. Amendment 422S&DProposal for a directive · Article 4 – paragraph 1 – point 10
     Current text

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

     Amendment

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

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387. Amendment 423S&DProposal for a directive · Article 4 – paragraph 1 – point 12
     Current text

     (12) Article 29 is amended as follows: (a) paragraph 1 is deleted; (b) paragraph 2 is replaced by the following: ‘2. Where a company is held liable pursuant to national law for damage caused to a natural or legal person by a failure to comply with the due diligence requirements under this Directive, Member States shall ensure that those persons have a right to full compensation. Full compensation shall not lead to overcompensation, whether by means of punitive, multiple or other types of damages.;’ (d) paragraph 4 is replaced by the following: ‘4. Companies that have participated in industry or multi-stakeholder initiatives, or used independent third-party verification or contractual clauses…

     Amendment

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