What changed between the plenary report and the adopted text

Added:Article 4 – paragraph 1 – point 1 – introductory part

Directive (EU) 2024/1760

Change 50

Removed:Article 4 – paragraph 1 – point 1 a (new), Article 2 – paragraph 1 – point a: (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 ;’;

Added:Article 1 – paragraph 1 – point c

Added:Amendment: (1) in Article 1(1), point (c) is deleted;

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Removed:Article 4 – paragraph 1 – point 1 a (new) – point b (new), Article 2 – paragraph 2 – point a: (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;’;

Added:Article 4 – paragraph 1 – point 1 a (new), Article 2: (1a) Article 2 is amended as follows: / (a) in paragraph 1, point (a) is replaced by the following: / ‘(a) the company had more than 5 000 employees on average and had a net worldwide turnover of more than EUR 1,5 billion in the last financial year for which annual financial statements have been or should have been adopted’; / (b) in paragraph 2, point (a) is replaced by the following: / ‘(a) the company generated a net turnover of more than EUR 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 subsidiaries and does not engage in taking management, operational or financial decisions affecting the group or one or more of its subsidiaries, it may be exempted from carrying out the obligations under this Directive. That exemption is subject to the condition that one of the ultimate parent company’s subsidiaries established in the Union is designated to fulfil the obligations set out in Articles 6 to 16 on behalf of the ultimate parent company, including the obligations of the ultimate parent company with respect to the activities of its subsidiaries. In such a case, the designated s in an effective manner, in particular to ensure that the designated subsidiary obtains from the companies of the group the relevant information and documents to fulfil the obligations of the ult…

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Article 4 – paragraph 1 – point 2 – introductory part, Article 3 – paragraph 1: (2) Article 3(1) is amended as follows:

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Changed:Article 4 – paragraph 1 – point 2 – point ab (new), Article 3 – paragraph 1 – point n: (a) point (n) is replaced by the following: / ‘(n) ‘stakeholders’ means thew company’s(new): employees,(b) the employees of its subsidiaries and of its business partners, and their trade unions and workers’following representatives,point andis individualsadded: or/ communities‘(w) whose‘reasonably rightsavailable orinformation’ interestsmeans areinformation orwhich couldcan be directly affectedobtained by the adverse impacts on human rights and the environment that stemcompany from the products, services and operations of the company, its subsidiaries and itsown, businessor partnersfrom andexisting theor legitimatesecondary representativessources ofwithout thosecontacting individualsa orbusiness communities;’;partner.’;

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Removed:Directive (EU) 2024/1760

Removed:Article 4 – paragraph 1 – point 2 – point b (new), Article 3 – paragraph 1 – point w (new): (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.’;

7 unchanged paragraphs

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Article 4 – paragraph 1 – point 3 – introductory part, Article 4: (3) Article 4 is amended as follows:

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

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Article 4 – paragraph 1 – point 3 – point b (new), Article 4 – paragraph 2: (b) paragraph 2 is deleted; / (deleted)

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Changed:Article 4 – paragraph 1 – point 3 a (new), Article 6 – paragraph 4: 3(3a) 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 625 and to their civil liability in accordance with Article 29.’; / (b) paragraph 3 is deleted; / (c) the following paragraph 4 is added: / ‘4.‘3a. 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.’;policy.';

5 unchanged paragraphs

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Article 4 – paragraph 1 – point 4 – point a, Article 8 – paragraph 2: (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 activities, those of their business partners where adverse impacts are most likely to occur and to be most severe; / (b) based on the results of the scoping referred to in point (a), and where, on the basis of relevant and verifiable information, the company has grounds to believe that adverse impacts have arisen or may arise, carry out a further assessment only in the areas where adverse impacts were identified to be most likely to occur and to be most severe. Companies shall not be required to request any information from business partners, where no likely and severe risks were identified. Companies shall be able to prioritise assessing direct business partners, in line with severity and likelihood of the adverse impacts.’;

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Article 4 – paragraph 1 – point 4 – point b, Article 8 – paragraph 2 a: deleted / (deleted) / (deleted) / (deleted)

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Changed:Article 4 – paragraph 1 – point 4 – point b a (new), Article 8 – paragraph 3: (b a)(ba) 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.’;

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Changed:Article 4 – paragraph 1 – point 4 – point c, Article 8 – paragraph 4: ‘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)(b), can be obtained from different business partners, the company shall seek such information, where reasonable, directly from the business partner or partners where the adverse impacts are most likely to occur. Information may be sought individually or collaboratively.’;

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Article 4 – paragraph 1 – point 4 – point d, Article 8 – paragraph 5: ‘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 such information cannot be obtained. If, as a result, they could not take appropriate measures to prevent, mitigate, bring to an end or minimise the adverse impact, they shall not be penalised.’;

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Changed:Article 4 – paragraph 1 – point 4 a (new), Article 9: 4 a.4a. Article 9 is replaced by the following : / 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 with this Article, Member States shall ensure that companies are not penalised under Article 25 or 27 for any harm stemming from any less significant adverse impacts that have not yet been addressed.’;

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Added:Amendments 246 and 306

Added:Article 4 – paragraph 1 – point 5

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Added:Article 10 – paragraph 6 – subparagraph 1 – introductory part

Added: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:

Added:Directive (EU) 2024/1760

7 unchanged paragraphs

Article 4 – paragraph 1 – point 5, Article 10 – paragraph 6 – subparagraph 1 – point c: (c) use or increase its leverage, where possible, through the temporary suspension of the business relationship with respect to the activities concerned.

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Article 4 – paragraph 1 – point 5, Article 10 – paragraph 6 – subparagraph 2: 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.

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Article 4 – paragraph 1 – point 5, Article 10 – paragraph 6 – subparagraph 3: 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 the competent supervisory authority about the duly justified reasons for such decision.

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Article 4 – paragraph 1 – point 5, Article 10 – paragraph 6 – subparagraph 4: 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.

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Added:Amendments 247 and 307

Added:Article 4 – paragraph 1 – point 6

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Removed:Article 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 1 – introductory part: ‘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:

Added:Article 11 – paragraph 7 – subparagraph 1 – introductory part

Added: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:

7 unchanged paragraphs

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Article 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 1 – point b: (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

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Article 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 1 – point c: (c) use or increase its leverage, where possible, through the temporary suspension of the business relationship with respect to the activities concerned.

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Article 4 – paragraph 1 – point 6, Article 11 – paragraph 7 – subparagraph 2: 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.

Directive (EU) 2024/1760