Statement from Mark Bloomfield, President & CEO
American Council for Capital Formation (ACCF)
EU Corporate Sustainability Due Diligence Directive Omnibus Vote
Earlier this week, the ACCF launched StopEUOverreach.com to raise awareness about the troublesome implications of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). While the upcoming Omnibus vote anticipated on October 13 may offer minor adjustments, it falls far short of addressing the core problem with CSDDD’s sweeping extraterritorial reach. As we note: CSDDD is bad for American businesses.
This directive would impose EU rules and liability on U.S. companies with EU operations and their worldwide suppliers. Responsible business practices are essential but cannot be enforced through unilateral mandates that override national sovereignty and burden global supply chains with costly, complex, and unnecessary monitoring and administration.
EU policymakers must go further. This is a chance for meaningful reform. Without that reform CSDDD remains a threat to international commerce and cooperation. And as noted in the EU’s own Draghi Report, Europe’s regulatory environment has become excessively complex, fragmented, and slow, which creates barriers to scale, deterring both foreign investment and innovation. CSDDD is bad for EU businesses, as well.
