US companies are adding their voice to the list of critics targeting ESG regulations in Europe.
The American Chamber of Commerce to the European Union, whose members include Ford Motor, Exxon Mobil. and Amazon.com, is calling on the EU to delay and even halt major planks of its environmental, social and governance rules, according to a statement on Monday. It also says companies should be free to ignore ESG regulations until a legislative review has been completed and legislation amended.
The demands add to pressure from Germany and France, the EU’s two biggest economies, to simplify ESG rules in the face of flagging competitiveness and economic decline. EU officials are due to propose changes to key regulations — the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive and the Taxonomy Regulation — at the end of this month, as part of a so-called omnibus process.
“Amid significant political uncertainty while simplification is underway, businesses shouldn’t be made to comply with legislation that could materially change,” the Chamber, also known as AmCham, said.