How EU Sustainability Regulations May Impact U.S. Jansan Businesses
As U.S. companies expand into international markets, understanding European environmental and sustainability regulations is crucial.
Many leading jansan businesses and U.S. manufacturers have already established a presence in the European market, leveraging its steady growth and rising demand for American exports. However, those companies as well as new companies entering the European Market must now navigate evolving EU sustainability compliance requirements. Understanding these regulations ensures legal adherence and enhances your global competitiveness.
Key EU Sustainability Regulations Affecting U.S. Businesses
At the core of the EU's sustainability framework is the Corporate Sustainability Reporting Directive (CSRD), which governs both European and international companies operating in the region. Implemented in January 2023, CSRD mandates businesses to disclose critical sustainability practices, including:
- Carbon emissions reduction strategies
- Energy efficiency and waste management
- Sustainable production methods and circular economy principles i.e. reuse, reduce, recycle
- Compliance with strict reporting mandates on environmental impacts
- Corporate investment in renewable energy
Notably, EU climate disclosure laws apply to all businesses marketing goods within the European Union—not just publicly traded corporations, as in the United States.
This shift reflects Europe's focus on corporate transparency and accountability, encouraging businesses to integrate sustainable practices into their operations. Further, the European Union enforces stricter compliance penalties for non-adherence, which US manufacturers should be aware of.
These include:
- Legally binding sustainability regulations with financial repercussions
- Mandatory carbon neutrality goals set for 2050
- Stricter sustainability reporting deadlines compared to U.S. standards
Global Shift Toward Unified Sustainability Standards
As some U.S. states expand regulatory efforts at the state level—often mirroring European policies—EU sustainability laws are increasingly becoming the global benchmark. Rather than developing separate product lines for U.S. and European markets, which would likely not be cost effective, U.S. manufacturers may need to align with EU regulations to remain competitive worldwide.
Further, with growing investor interest in sustainable business practices, compliance with EU environmental regulations is not just about market entry—it’s becoming essential for long-term success in international markets.
The Ashkin Group is the leading advocate for Green Cleaning and Sustainability in the professional cleaning industry as well as related B2B industries. Please feel free to contact us here.