EU Looks to Limit Scope of Sustainability Reporting: Explained

The European Commission plans to meet this week to look for ways to water down ambitious sustainability reporting requirements kicking in this year after loud protests from France and Germany.

American businesses operating in the EU and US lawmakers have joined the chorus, saying the requirements in the Corporate Sustainability Reporting Directive will hinder economic growth. “I view it as a non-tariff barrier,” US House Financial Services Committee Chairman Rep. French Hill (R-Ark.) told a panel hosted by the American Council for Capital Formation, a think tank, adding “we’re not going to do it.”

Despite the growing criticism, the requirements ...