WSJ News Exclusive | At Least 10,000 Foreign Companies to Be Hit by EU Sustainability Rules

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At least 10,000 companies based outside the EU will have to follow the bloc’s sustainability reporting rules, and about a third of those are in the U.S., an analysis found

A weekly look at environmental, social and governance issues and strategies for corporate decision makers.• Companies that have listed securities, such as stocks or bonds, on a regulated market in the European Union

The estimates exclude foreign companies that are subject to the reporting requirements due to other conditions, such as having an EU bond listing. Additional non-EU companies will likely be bound by the rules, said Refinitiv’s director of sustainable finance, Elena Philipova. Foreign companies with EU listings will need to start reporting these disclosures in 2025 if they have more than 500 employees in the EU. The rules go into effect in 2026 for other large non-EU companies with EU listings and in 2027 for small and midsize enterprises with EU listings. Foreign companies not listed in the EU but subject under other criteria have until 2029 to make disclosures.

Country-level regulators will enforce the rules and penalties can vary, but listed companies that don’t comply may be fined a percentage of their annual revenue in the bloc. The ISSB, under the umbrella of the influential International Financial Reporting Standards Foundation, is also finalizing its guidelines on what climate information companies should report to investors. Like with IFRS financial reporting standards, countries are free to choose to adopt the ISSB’s standards or not. The U.S., for example, hasn’t adopted IFRS, using generally accepted accounting principles instead.

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So terrible for business and the economy. Prices on the products these companies produce will go up and tens of thousands of people will lose their jobs. So dumb

“Sustainability”

The peasants are demanding a future Orwell wrote about, a digital dystopia, tyranny on another level, and they are doing it religiously.

Why are they so complicated? 😂

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