Insights on EU sustainability rules for US companies
Outlining key EU sustainability regulations impacting US businesses
US companies are being prompted to align with these EU sustainability standards, aimed at driving transparency and accountability:
- CSRD: Requires businesses with EU ties to report on their environmental and social impacts.
- SFDR: Mandates ESG disclosures for financial products to help investors understand their sustainability.
- EU Taxonomy: Defines what qualifies as sustainable activities, supporting environmental goals.
- CSDDD: Requires companies to manage human rights and environmental risks across supply chains.
Key takeaways from Climate Week:
With the EU’s regulations expanding their reach across global supply chains, US-based companies are increasingly affected, prompting many to consider early compliance strategies.
At Climate Week NYC, Position Green covered essential regulatory requirements, challenges, and actionable steps for US companies, sparking an engaging discussion on how to transform compliance obligations into opportunities for meaningful impact.
Here are three key takeaways from the session:
- US Companies are beginning their CSRD journey
Many US companies are increasingly affected by the EU’s Corporate Sustainability Reporting Directive (CSRD) and are required to report in line with the European Sustainability Reporting Standards (ESRS).
These regulations mandate transparency on environmental, social, and governance (ESG) topics and are challenging US businesses with EU operations to adapt quickly. The EU’s double materiality framework – requiring companies to assess both internal impacts and outward societal effects – sets a high bar.
While navigating these complexities, US companies are urged to stay proactive, as early compliance can help build operational resilience and competitive advantage. - Proactive approaches to compliance
US companies not yet mandated to comply with EU standards can benefit from proactive compliance planning. By mapping out a roadmap for potential compliance with standards such as the CSRD, these businesses are better equipped for any future EU engagements.
By creating a roadmap for compliance, companies can be ready to meet EU requirements, manage potential regulatory risks and support sustainable growth. - Sustainability as a strategic priority
Encouragingly, many US companies are moving beyond compliance to integrate sustainability into their core strategies. This shift shows that businesses are not only preparing to meet regulatory standards but are genuinely committing to sustainable impact.
As they develop robust ESG strategies, companies can strengthen relationships with investors, customers, and partners who value transparency and long-term environmental accountability.
What can US companies do to prepare for upcoming sustainability reporting requirements?
Born in the Nordics, Position Green brings a unique, globally-minded approach to guiding US companies through the EU regulatory landscape.
Our platform simplifies ESG data management and ensures compliance with global regulations. From tailored compliance roadmaps to ongoing advisory support, we turn complex regulations into clear, strategic advantages – helping you take the lead on sustainability.
Find out more about how Position Green can help your company.
Hear from our team
