U.S. to “Take any actions necessary” to protect companies from “unreasonable” EU sustainability reporting regulations

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on ESG Today or enjoy below:

🗞️ Driving the news: The U.S. government has warned it could take “any actions necessary” unless the EU further limits the impact of its sustainability reporting and due diligence rules on American companies, arguing that recent simplifications to the CSRD and CSDDD did not go far enough

🔭 The context: The EU has already significantly scaled back both directives through its Omnibus simplification package, reducing compliance requirements and narrowing the number of companies in scope
• The CSDDD threshold was raised to companies with more than 5,000 employees and €1.5bn in revenue, while mandatory climate transition plans were removed
• The number of non-EU companies expected to fall under the CSRD was cut from around 10,000 to approximately 1,200

🌍 Why it matters: The dispute highlights growing transatlantic tensions over the extraterritorial reach of ESG regulation, particularly the EU’s double-materiality approach and supply-chain due diligence requirements
• Washington argues that U.S. companies with limited European operations could still face disproportionate compliance costs and penalties, potentially turning sustainability regulation into a broader trade issue

⏭️ What’s next: The U.S. is asking Brussels to further restrict the rules for American companies, limit enforcement and penalties linked to non-EU revenues, recognise the U.S. as a low-risk jurisdiction and avoid restoring mandatory net-zero transition plans

📈 One stat: The EU’s Omnibus reforms reduced the estimated number of non-EU companies covered by the CSRD from around 10,000 to 1,200

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