US challenges EU sustainability disclosure rules as 'onerous

The US Government has formally asked the EU to ease requirements under both the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), calling them costly and onerous for American businesses exporting to Europe.

This is a direct challenge to two of Europe's most significant regulatory moves on corporate accountability. The CSRD mandates detailed sustainability disclosures aligned with European Sustainability Reporting Standards; the CSDDD requires due diligence on human rights and environmental risks across supply chains. Both apply to companies operating in or trading with EU markets, regardless of headquarters.

The US position reflects a real tension: American firms face dual compliance – meeting these EU standards while navigating separate domestic frameworks like the SEC's emerging climate disclosure rules and state-level requirements. For large multinationals, this means separate reporting systems, audits, and governance structures.

But the language matters. Calling mandatory transparency "onerous" suggests the US sees disclosure itself as a burden rather than a business necessity. This echoes earlier US resistance to CSRD implementation and positions compliance cost over stakeholder rights to know material risks.

The question isn't whether these rules are complex – they are. It's whether the US is advocating for genuine harmonisation or exemption from accountability mechanisms that increasingly define market access in developed economies. EU negotiators will face pressure to weaken standards; how they respond will signal whether CSRD and CSDDD function as genuine tools for risk mitigation or become subject to dilution the moment enforcement touches powerful economies.

US Government wants business exemptions from ‘onerous’ EU CSRD and CSDDD

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