I recently wrote a column warning that the Biden administration is bringing Europe’s war on food to the United States. Now, the EU is bringing the war on the free market to American companies. The EU recently passed a bill requiring all companies that make over half a billion dollars in Europe to comply with its progressive environmental, social, and governance standards.
This is something that I have been warning my listeners and readers for over three years now, and it finally happened. It’s official: European social justice metrics will be imposed on America.
The only thing that will change this is if Congress and the president act. Do you think they will?
It’s one of the biggest threats to freedom in America, both in the short term and in the long term. This European law is going to force American companies to conform with the European rules, values, and environmental standards. This will indirectly impose Europe’s ESG standards on countless American companies, including many small businesses.
Here’s what will happen: The EU has established an extraordinarily complex ESG system with which all companies must comply. This includes both “covered companies” based in the United States as well as non-EU companies that operate in Europe. In other words, if you sell half a billion dollars’ worth of stuff in the United States, you must comply with the EU’s ESG standards. If you sell half a billion dollars’ worth of goods in Europe, you also must comply.
But that’s only the beginning. It’s not just your business that has to comply but also all the companies that you do business with. If you’re a small company and sell a product to a big company, like Amazon, which makes at least $500 million in Europe, you’re going to have to comply.
Franchise and licensing agreements as well as subsidiaries of larger companies will also fall under the EU’s sweeping ESG regime. This affects people like me who write books. Simon and Schuster, my publisher, sells books in Europe all the time, and it makes over $500 million in those markets. Am I now forced to comply? Thank God I have Mercury Inc. so that I don’t have to deal with Simon and Schuster. But am I required?
Most importantly, all covered companies will need to ensure that businesses disclose their supply and value chains. Do you know what a supply and value chain is? Those companies must adhere to the relevant ESG rules.
Companies will also have to create “climate change transition plans” and “prevention action plans.”
That means if you make a widget and sell it to someone who makes radios for Ford, you would have to comply with Europe’s ESG standards, even though you don’t have anything directly to do with Ford. You see how this is working? If you don’t comply in America, you cannot sell anything in Europe.
Each country in the EU will be responsible for enforcing its rules and issuing punishments. Civilian and activist groups also are covered in this bill. Activist groups can bring private cause of action against companies for failing to meet guidelines. This opens the floodgates for activist attorneys.
The EU will, of course, give a pass to China. Nobody, for some reason, thinks that China’s authoritarian state that puts its own people with social credit scores and exploits slave labor in camps should be held accountable. Do you think Europe is actually going to have Apple pay a fine or stop making its products in China because they’re made by slaves? No.
There is a book over in my museum. It’s very rare because the king had them all burned during the witch trials in Europe. It was burned for calling the witch trials hogwash. The king wanted to keep the witch trials so that he could get rid of his enemies, so he burned all books that went against his desired narrative. That’s exactly what’s going to happen here. Companies like Apple, Facebook, and Amazon will get a pass doing business in Europe because they are doing “the king’s” business — even though they’re working with the Chinese! But any company that decides to stand and say, “No, we’re not doing this,” you’re doomed. If you play ball with the government, one way or another, you’re all right. If you dare stand against it, you will be snuffed out.
The only thing that will change this is if Congress and the president act. Do you think they will? Do not dismiss this when you go to vote. Which candidate is most likely to stand up and say, “No! The United States is a huge market, and we’re not playing your game. Europe will not be able to stand on its own.” It’s vital that you consider this when going to the polls this November.
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