Michael Kirwan Assesses EU Corporate Sustainability Reporting Impact on US Companies

Foley & Lardner LLP partner Michael Kirwan commented in the AEF Info article, “‘Horrifiées par l’ampleur de la CSRD’, les entreprises américaines se mettent néanmoins au travail,” offering insight on the impact of the European Union’s Corporate Sustainability Reporting Directive on U.S. companies operating in the region.

“A lot of companies do business within the EU and are therefore subject to EU Regulations,” Kirwan explained. “They were taken a bit by surprise, and complained, but they took the lead to comply. On the other hand, groups that are concerned about extraterritoriality do not see the urgency because 2029 seems far away and some think that a lot could happen between now and then.”

Kirwan noted in addition to CSRD requirements, U.S. companies are also preparing at home for the U.S. Securities and Exchange Commission’s climate reporting requirements, which he said “public companies are preparing for, even as they await the outcome of legal actions.”