But Muh US Tarrifs are bad
The European Union, however, adopted a directive last year that will require companies doing business in Europe to adopt ESG policies. And it will fine them billions if they fail to comply.
The CSDDD also requires individual member nations to set up a civil liability regime for companies that fail to comply with the directive’s mandates. McPherrin explained that this allows anyone, including individuals and NGOs, to sue companies that have violated the CSDDD.
“This enforcement aspect is what truly makes this law so dangerous,” McPherrin said.
When the law comes into force, it will apply to any company that generates more than $492 million USD turnover in a year, and that amount includes all companies’ subsidiaries. Amazon, Apple, Cargill, Google, Ford, McDonald’s, Meta, Microsoft and Sysco Foods are examples of companies that will be directly affected by the CSDDD.
However, large conglomerates are not the only businesses that will be impacted. The mandates of the directives apply to the company’s “chain of activities,” regardless of how small they are or how much turnover they generate in the EU. The CSDDD “can apply to literally every company in the world, once you take in that indirect scope aspect,” McPherrin said.
The Heartland report provides an example of how this directive could play out. An environmental NGO based in Berlin could submit a “substantiated concern” about greenhouse gas emissions coming from a farm in Idaho that supplies potatoes to McDonald’s. This matter would be adjudicated in European courts, and if the ruling comes down against McDonald’s, the company could be on the hook for billions of dollars.
To avoid such risks, McDonald’s would have to require all the farms — even small family farms — that supply the company food products to calculate their emissions and have plans for how to reduce their use of fossil fuels in line with the net-zero emissions by 2050 goals of the Paris Agreement, even though the U.S. is no longer signed onto it.
“It’s not only an assault on free markets, which is incredibly important, it’s also an assault on the entire notion of sovereignty,” McPherrin said.
The European Union, however, adopted a directive last year that will require companies doing business in Europe to adopt ESG policies. And it will fine them billions if they fail to comply.
The CSDDD also requires individual member nations to set up a civil liability regime for companies that fail to comply with the directive’s mandates. McPherrin explained that this allows anyone, including individuals and NGOs, to sue companies that have violated the CSDDD.
“This enforcement aspect is what truly makes this law so dangerous,” McPherrin said.
When the law comes into force, it will apply to any company that generates more than $492 million USD turnover in a year, and that amount includes all companies’ subsidiaries. Amazon, Apple, Cargill, Google, Ford, McDonald’s, Meta, Microsoft and Sysco Foods are examples of companies that will be directly affected by the CSDDD.
However, large conglomerates are not the only businesses that will be impacted. The mandates of the directives apply to the company’s “chain of activities,” regardless of how small they are or how much turnover they generate in the EU. The CSDDD “can apply to literally every company in the world, once you take in that indirect scope aspect,” McPherrin said.
The Heartland report provides an example of how this directive could play out. An environmental NGO based in Berlin could submit a “substantiated concern” about greenhouse gas emissions coming from a farm in Idaho that supplies potatoes to McDonald’s. This matter would be adjudicated in European courts, and if the ruling comes down against McDonald’s, the company could be on the hook for billions of dollars.
To avoid such risks, McDonald’s would have to require all the farms — even small family farms — that supply the company food products to calculate their emissions and have plans for how to reduce their use of fossil fuels in line with the net-zero emissions by 2050 goals of the Paris Agreement, even though the U.S. is no longer signed onto it.
“It’s not only an assault on free markets, which is incredibly important, it’s also an assault on the entire notion of sovereignty,” McPherrin said.
European Union directive will require American companies to adhere to ESG policy goals: report
ESG, the "woke" investing philosophy, has been severely rolled back in the U.S., but the E.U. is still clinging to it, and may enforce it against U.S. companies. “It’s one of the most dangerous things that I’ve seen, and I’ve seen some dangerous things in the past few years,” Jack McPherrin...
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