Europe Agrees to Drastic ESG Cuts After US Pressure Intensifies

The European Union reached a tentative deal to slash ESG requirements, as the bloc faces intensifying pressure from the US to rein in such rules amid ever-present trade tensions.

In late-night talks, representatives of member states and the EU parliament agreed to wind back the Corporate Sustainability Reporting Directive so that over 80% of the companies originally intended to be in scope will no longer need to comply. A preliminary agreement was also reached on other EU requirements around environmental, social and governance standards, broadly in line with cuts set by lawmakers last month.

The agreement reached, which also scales ...