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Turberry, Scotland – 27. July: US President Donald Trump shakes with the President of the European Commission Ursula von der Leene while the EU Trump Turnberry Golf Club is announced, 27. July 2025. years, Scotland. (PHOTO ANDREV HARNICA / GETTI IMAGES)
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In 2024. year, the European Union adopted legislation that requires companies to make high levels “due diligently” to ensure that companies in the value chain have met sustainability standards. The law opened the door for the action class for human rights violations, environmental damage and climate change costs. The companies referred to legal obligations and reporting requirements will be overly burdened. During recent trading negotiations, Trump pointed out the US business concerns, including as a condition for a trade agreement.
As part of Green arranges the EU, the EU has adopted a number of directives to force companies to deal with climate change and report gases with greenhouse gases. CSRD has created company requirements to report gas emissions with GHG and other environmental actions and management. CSDDD has created additional reporting requirements, as well as legal responsibility, for companies in relation to their supply chain. These requirements have alerted certain companies based in the United States that could also affect directly and indirectly.
The costs of these proposals on companies and possible influence on the EU economy have become a topic during the election of the European Parliament. The change in the EU policy has joined opponents into the European Directive of Green agreements. As a result, the Commission proposed a package of new directives to “reduce the burden” on companies. The package of simplification of Omnibus She officially adopted the Commission in February.
Once the legislation proposes the Commission, the Parliament and the Council adopt positions. The council has announced its position In June. Parliament is actively deals with the process to adopt their position.
Current CSDDD requires companies to execute duty diligently in ensuring that companies along the value chain are in line with environmental and human rights requirements. Parliament discusses change into the thresholds and obligations of non-EU companies. Once the parliament adopts their proposal in October, in negotiations and advice will come into negotiations and advice to reach the final draft.
For us companies, it is an opportunity to take out their worries. The choice of the only opinion gave them a strong ally. Trump’s early engagement in re-contract on trade agreements presented forum.
In April, Trump announced his intention to modify reciprocal tariff rates. It seemed to be a negotiating tactic, opening the door for reforms in trade agreements that some views as an adverse American Trump proposed 30% tariffs in the EU. Initially, the EU leaders pushed back, but they started talking about trade. At the end of July, Trump met with EU President Ursula von der Leien in Scotland. A month later, the initial trade agreement was achieved. The agreement was engaged in higher trade topics, including CSDDD.
In a joint statementPublished 21. August, the United States and the EU, announced the Framework on the Agreement on Reciprocity, Fair and Balanced Trade. Addressing CSDDD, listed:
“The European Union would undertake to ensure that the work diligence directive (CSDD) and the CSDDD reporting Directive, involve undertaking efforts in accordance with compliant costs. Citizenship regime for failure and climate obligations. The European Union undertakes to work on concerns about the imposition of CSDDD conditions on non-EU members with relevant regulations. “
The promise to “reducing administrative burden for companies” repeated the topic of the second mandate von der Leien and driving motivation for reforms pushed by the European People’s Party.
Sustainability proponents quickly accelerated the agreement as the EU by bending the will of Trump. However, the accompanying K & A, which provided the Commission returns promises, but opens the door to reforms.
“Issues and answers about the joint EU-USA statement on Transatlantic Trade and Investments“It was published on the EU Commission’s website 21. August, but went relatively unnoticed until he pointed out ESG Diving and Responsible investor.
Addressing the CSDDD resolution agreement, in question of K & A clarified Commission “agreed to exchange views with the United States on CSDDD issues. The leading principle of our
Discussions with the United States were to ensure that the Directive does not result in unnecessary administrative burden, especially for small and medium-sized companies. “
It further stated “This cooperation does not lead to any changes in the EU domestic rules, nor will we provide us with more favorable treatment under this regulation or any EU regulation or any EU regulation.”
Although this can provide hope for sustainability proponents, the language is carefully made. Although it excludes the idea that American companies will get favorable treatment, does not prohibit excluding all companies based on the EU from CSDDD requirements. In the fight against American business, Trump can end with victory for all international companies.
Canding absent from K & A was any reference to CSRD that, in its current form, would impose requests for reporting on sustainability on non-EU companies. However, CSRD is currently rewritten as part of the simplification process with a significant reduction in the company’s company headquarters. This can indicate that Trump goals for sustainability reporting requirements are aligned with the current proposal.
How Trumps of Concerns about the Work Marbirth Directive for the sustainability of companies affect the discussion is unclear. The simplest will be directly addressed in negotiations in parliament. The focus will remain in the help of EU companies. American concerns will probably be heard behind closed doors, during triloge negotiations, without any public comment or entry. Expect to see yourself reflecting the final version adopted in December.
