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.

The US has made its displeasure clear. President Donald Trump’s top trade negotiator, Jamieson Greer, characterizes the ...