German Split Coalition Forces EU to Delay Toughest ESG Law (1)

Tensions within Germany’s ruling coalition are holding up a deal on the European Union’s toughest ESG rule to date, marking the latest disruption to the bloc’s ability to do business due to infighting in the government of its largest economy.

At the last minute, a decision to approve legislation requiring firms to screen value chains for environmental and human rights abuses was postponed. Germany’s decision to place hurdles in the way of any agreement led other countries to follow, according to people familiar with the matter who spoke on the condition of anonymity.

Belgium, which holds the EU’s rotating presidency, ...