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Europe Moves Closer to Enforcing ESG Rules on Foreign Firms

  • U.S. firms had wanted subsidiaries exempt from disclosure rule
  • EU is racing to set the global benchmark for ESG rulemaking
Pascal Durand
Pascal DurandPhotographer: Charly Triballeau/AFP/Getty Images
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European lawmakers have agreed to force roughly 28,000 foreign subsidiaries to comply with the bloc’s ESG rules, marking a blow to representatives for U.S. corporations who had lobbied for the opposite outcome.

In a wide-reaching revamp of the EU’s reporting requirements for non-financial firms, the bloc’s parliament has dropped a planned exemption that had been backed by the American Chamber of Commerce to the European Union. The plan was announced on Wednesday as part of a larger package of corporate reporting proposals to be negotiated with member states and could still face opposition from individual members of parliament.