EU Faces Renewed US Ire After ESG Cutbacks Fail to Calm Tensions

The European Union’s ESG framework — a shadow of its former self after a year of deep cuts — is drawing renewed threats from the US.

At issue is the so-called extraterritoriality of the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. The EU just struck a deal to exempt more than 80% of companies once in scope. But it’s also agreed that the rules will continue to apply to large foreign firms doing business in the bloc.