US and Europe clash over EU’s sweeping sustainability disclosure rules
The EU's ambitious plans to enforce stricter environmental and social impact disclosures across supply chains have sparked a transatlantic row. US business associations and state attorneys have pushed back against the EU's Sustainable Corporate Governance Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD), with the latest clash set to reach a head on November 12.
Major US business associations have urged the Trump administration to block the EU's ESG disclosure rules from applying to US firms. This comes after a coalition of 16 US State Attorneys General warned major US companies not to comply with the EU's new sustainability regulations. The coalition accused European officials of overstepping their mandate and urged US corporations to prioritize US laws over EU rules.
The US Department of Energy and Qatari officials have previously warned Brussels that the CSDDD could threaten future LNG exports to Europe. Meanwhile, a study from climate think-tank E3G suggests that current efforts to simplify EU 'green' rules may increase uncertainty for companies. European lawmakers failed to agree on a united response to US pressure in October and are set to vote again on November 12.
The EU, led by European lawmaker Pascal Canfin, has condemned the US pressure campaign and vowed not to accept US policies. Despite the pushback, the EU remains committed to enforcing its sustainability regulations, with the CSRD and CSDDD set to come into force in 2024 and 2025 respectively. The upcoming vote on November 12 is expected to provide further clarity on the EU's stance in this ongoing transatlantic dispute.
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