In short, the EU is implementing ESG (Environmental, Social, Governess) policies for EU companies by 2027. How does this affect the USA? In short the EU company will not be allowed to deal with any company world wide if they do not adopt similar ESG policies.
On May 24, the Council of the European Union gave final approval to the Corporate Sustainability Due Diligence Directive, ending a four-month political drama that nearly resulted in the failure of the directive. The CSDDD creates a legal liability for companies relating to environmental and human rights violations within their supply chain. To reach an agreement, the final CSDDD was significantly watered-down from the initial proposal. - Forbes
