Trump-Era Pressure Threatens to Undermine Europe’s ESG Agenda

Europe’s vision of a towering ESG framework that would become a gold standard for other jurisdictions across the globe has just come crashing down to earth.

Against a backdrop of trade warnings from the US and sluggish competitiveness at home, the European Union has opted to dramatically scale back a rulebook intended to ensure companies adhere to environmental, social and governance standards. More than 80% of companies originally in scope of ESG reporting rules will no longer need to comply, while requirements to mitigate climate change have been dropped altogether.