American Council for Capital Formation Initiative to Highlight Significant Risks of EU’s Extraterritorial Sustainability Law, Threats to American Growth and Competitiveness
Industry leaders representing multiple sectors sound the alarm on EU Corporate Sustainability Due Diligence Directive and potential harm to U.S. manufacturers, franchisees, and small businesses
Washington, D.C. — The American Council for Capital Formation (ACCF) Center for Policy Research said today that it has launched an educational initiative designed to inform U.S. and European policymakers about the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) and its far-reaching implications for U.S. businesses and their global supply chains.
A new video series, featured at StopEUOverreach.com, brings together a compelling series of industry and congressional perspectives that explain the scope of CSDDD and underscore the serious concerns with its extraterritorial reach. Featured segments include commentary from:
- U.S. Chamber of Commerce – on the broad regulatory burdens facing global businesses,
- National Association of Manufacturers – addressing operational and supply chain risks,
- International Franchise Association – highlighting impacts on franchisors and franchisees,
- Small Business and Entrepreneurship Council – emphasizing disproportionate challenges for small and medium-sized enterprises, and
- U.S. Representative Scott Fitzgerald (WI-05) – offering congressional perspective on how U.S. policymakers are responding.
“CSDDD represents one of the most significant regulatory threats to American competitiveness in recent history,” said ACCF President & CEO Mark Bloomfield. “American industries with European ties and policymakers must fully understand the consequences for the economy and businesses of all sizes.”
The CSDDD requires large companies to identify, prevent, and mitigate environmental and human rights impacts in their operations and global value chains. The EU’s law, enacted in 2024, mandates that companies implement due diligence, potentially contend with civil liability for damages in European Courts, and face extreme financial penalties if they fail to comply from the perspective of European regulators. The CSDDD’s extraterritorial reach and its strict provisions raise profound concerns for American businesses with ties to the EU. Its compliance obligations extend well beyond European borders, impacting global supply chains and company operations outside of the EU. Ultimately, it will have an adverse impact on the investment decisions and sovereignty of U.S.-based companies, which in turn, will also carry implications for European commerce and economic growth.
In addition to the video series, ACCF’s StopEUOverreach.com website will feature additional analysis and commentary as new developments break.
About the ACCF Center for Policy Research
The American Council for Capital Formation Center for Policy Research is a nonprofit 501 (c)(3) organization focused on research and education on pro-growth tax, energy, environmental, regulatory, trade and economic policies that encourage saving and investment. Since 1977, the ACCF Center for Policy Research has welcomed leading economists as members of its board of scholars, including several Nobel Prize winners, members of the Presidential Council of Economic Advisers, Congressional Budget Office, U.S. Treasury consultants, and Federal Reserve board members.
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