US Treasury Secretary Janet Yellen expressed concern about the potential “negative, unintended consequences” of the European Union’s push for corporate supply chain audits related to environmental and social risks.
As Yellen informed lawmakers during a House Financial Services Committee hearing on Tuesday, the EU’s corporate sustainability directive is being closely monitored, and there are worries about its impact on American companies. She stated that consultations are underway with the EU, emphasizing concerns regarding the directive’s extraterritorial reach.
The corporate sustainability directive has passed through the European Parliament and awaits adoption by EU member states. Various interest groups are actively lobbying for its amendment and adoption. Hence, if implemented in its current form, the directive would require companies to identify and address human rights violations and environmental protection concerns.
Yellen emphasized that while the US supports the directive’s lofty objectives, there are apprehensions about its extraterritorial implications and potential unintended negative consequences for American companies. The EU is discussing these concerns. Lawmakers who played a key role in the directive’s adoption have indicated that efforts to impose legal responsibility on companies may face resistance.
Yellen: Complete separation of US and Chinese economies would be detrimental to both nations
US Treasury Secretary Janet Yellen warned that severing economic ties between the United States and China would have “catastrophic” consequences.
Moreover, Yellen argued that China’s economy has increasingly adopted a state-led approach in recent years, undermining neighboring countries and nations globally.
She emphasized that the US economic approach toward China has three objectives. Those are safeguarding US national security interests, fostering a healthy economic relationship that promotes growth and innovation in both countries, and establishing global cooperation to address shared challenges.
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