Over 20 Republican state attorneys general sent a letter to President Donald Trump on Tuesday urging him to fight European Union (EU) regulations that “demand” that diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG) standards be “incorporated into companies.”
The attorneys general, led by Florida AG James Uthmeier and West Virginia AG John McCuskey, first thanked Trump for the work he has done “to bring jobs back to the United States, protect our borders, clean up our streets, hold narcoterrorists accountable, remove the scourge of Diversity, Equity, and Inclusion (DEI) policies from our universities, and push back against the Environmental, Social, and Governance (ESG) regime that puts the woke green agenda ahead of hard-working Americans.”
“Your Administration had made great progress combatting ESG and DEI initiatives,” the letter stated, before bringing the bad news. “We write, however, because the European Union is poised to implement its corporate sustainability directive, which will impose sweeping ESG and DEI requirements on American companies. These requirements are directly opposed to your administration’s priorities and to our country’s law.”
The EU’s corporate sustainability directive’s disclosure requirements are part of its “radical green agenda,” with the attorneys general saying its purpose is to “disincentivize fossil fuels, investment, and economic growth, and to put bureaucrats in Brussels in charge of policies directing American operations.”
“This cannot stand,” the letter continued to tell Trump. “You have successfully fought similar European Union regulations in the past, and American companies need you to champion them again.”
The attorneys general went on to outline the two main EU corporate sustainability directive regulations that need the president’s attention:
The first is the Corporate Sustainability Reporting Directive (CSRD), which includes “comprehensive and granular disclosures covering the entire spectrum of sustainability topics.” Make no mistake, the purpose of these requirements is far beyond reporting; it “is aimed at driving change in the business behavior of companies that operate in the EU.” These disclosure demands are sprawling and “would extend to direct and indirect business relationships across the value chain.” It’s no surprise then that “[t]hese disclosures are expected to be some of the most challenging areas of reporting, given the scope and the reliance on information from parties not controlled by the company.”
The problems with the CSRD are clear. These disclosures require not only an inordinate amount of time and expense for compliance but also place conflicting pressure on the many American companies who have—in response to your electoral landslide—changed their ESG policies. Not only that, but CSRD’s disclosure requirements put U.S. companies at risk of lawsuits here at home for making unverifiable mandatory disclosures. It is easy to imagine how the attorneys general in states like New York and California could use companies’ CSRD disclosures as ammunition for green-washing lawsuits here at home. American companies should not be forced into that impossible position.
The second main regulation within the corporate sustainability directive is the Corporate Sustainability Due Diligence Directive (CSDDD). “The aim of [the CSDDD] is to foster sustainable and responsible corporate behavior in companies’ operations and across their global value chains.” While couched in terms of sustainability, it really is a demand that ESG and DEI be incorporated into companies. Worse still, the CSDDD includes aggressive enforcement mechanisms; it allows for aggressive government enforcement—including through serious penalties—and also creates a private right of action against companies that do not fully implement these unconstitutional and immoral requirements.
“As your Administration continues in trade negotiations around the world and in Europe, we ask that your Administration keep in mind the harmful impacts of European Union’s corporate sustainability directive,” the attorneys general stated in their conclusion. “Not only does it cost U.S. companies financially, it threatens American jobs by creating disincentives for American companies that invest in or utilize fossil fuels. And worse, it creates potential liability for companies who do not wish to partake in this climate radicalism.”
Under co-leaders Uthmeier and McCuskey, the letter was signed by the attorneys general from Alabama, Alaska, Arkansas, Georgia, Iowa, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah, and Wyoming.
In a statement to Breitbart News, Uthmeier said “President Trump has shown tremendous leadership protecting American jobs and pushing back against foreign overreach. These EU requirements are nothing more than a backdoor attempt to force the radical green agenda on American companies.”
“Without intervention, this will divert resources away from investment, job creation, and wage growth, while putting bureaucrats in Brussels in charge of U.S. business decisions,” he added.
Jason Isaac, CEO of the American Energy Institute, provided an exclusive statement to Breitbart News against the EU’s regulations:
The European Union is attempting to impose its environmental ideology on American companies through a package of extraterritorial regulations. These mandates force U.S. firms to answer to foreign regulators, penalize the use of affordable energy, and entrench ESG compliance as a cost of doing business. This is not about transparency; it is about using trade leverage to enforce the climate agenda of Brussels. President Trump and the U.S. Trade Representative are right to oppose these measures. American policy should be made in Washington, not dictated by Europe’s climate elite.
Will Hild, executive director of Consumers’ Research, also provided an exclusive statement calling the EU’s policies “woke”:
This is a blatant attempt by the EU to force a woke agenda onto American consumers and push policies in direct opposition to President Trump’s agenda. By dictating radical climate rules on U.S. businesses, these bureaucrats in Brussels will raise costs for American households and undermine our economy. The United States cannot stand by while European regulators export their failed green agenda across the Atlantic. American companies should be focused on innovation, creating jobs, and providing quality goods and services to consumers, not bending the knee to Europe’s climate cartels.
“Consumers’ Research applauds the Attorneys General for supporting President Trump’s agenda and pushing back on radical climate activists,” Hild added.
