Yellen Says US Is Concerned About EU’s ESG Supply Chain Rules

Treasury Secretary Janet Yellen said the US is concerned about the potential “negative, unintended consequences” of European Union efforts to force corporations to screen their supply chains for environmental and social risks.

“We’re looking very carefully at the EU’s corporate sustainability directive and we’re concerned about the impact it could have on US firms,” Yellen told lawmakers Tuesday at a hearing of the House Financial Services Committee. “We’re consulting with the EU and making clear that we’re concerned about the directive’s extra-territorial scope.”

Janet Yellen

Photographer: Al Drago/Bloomberg

The Corporate Sustainability Due Diligence Directive has already made its way through the European Parliament and ...