The EESC:

• acknowledges that small and medium-sized enterprises (SMEs) face particular challenges in implementing sustainability and transparency processes. SMEs and auditors need more assistance in order to become compliant, which is essential because protecting European values and social models is of paramount importance;
• underlines the importance of corporate due diligence in ensuring responsible business conduct and promoting sustainable value chains and calls for clear, proportionate rules and penalties, which are crucial for enabling companies to effectively comply with their obligations;
• acknowledges the Commission’s intention to narrow certain due diligence obligations to companies’ own operations, subsidiaries and direct business partners, but asks that a derogation be considered for companies with fewer than 500 employees operating in high-risk sectors, while pointing out that all companies have an obligation to respect human rights.