Our topic: Is the EU jeopardizing its green leadership position?
FIRM CEO Gerold Grasshoff analyzed the status quo of ESG regulation together with ESG specialist Nicholas Martin and legal scholar Prof. Dr. Michael Nietsch.
➡️ EU vs. USA: To kick things off, Martin presented the FIRM position paper, which compares the different regulatory approaches of the EU and the USA. While the EU relies on strict regulation and disclosure requirements, the USA pursues innovation-driven subsidies. Which strategy is more effective in the long term?
➡️ Challenges for the EU: High fragmentation in financing and strict ESG requirements could impair competitiveness. At the same time, the EU is confronted with geopolitical risks and new transatlantic dynamics.
➡️ Opportunities for the USA: New legislation such as the Inflation Reduction Act is showing initial success and strengthening the attractiveness of the USA as an investment location in the field of sustainable technologies.
The key question that Michael Nietsch addressed: What will change when Donald Trump comes?
➡️ Driving forces of ESG legislation: In order to classify the many statements and expectations currently being discussed, it is worth taking a look at the driving forces behind legislative processes in the USA, the case law of the Supreme Court and the future of the SEC rules and the role of the states.
➡️ Spillover effects: The scope for mandatory anti-ESG rules in the US is limited, especially for internationally operating companies that are subject to the scope of the CSRD.
Image: Copyright: dfv Euro Finance Group, Mathew Cleveland