The European Parliament of the European Union has recently adopted a new directive requiring that companies with over 500 employees disclose on the non-financial and diversity information. The scope of companies is approximately 6,000. Companies may use international, European or national guidelines which they consider appropriate (for instance, the UN Global Compact, ISO 26000, or the German Sustainability Code).

1. Will mandatory ESG reporting from these firms increase their competitiveness and earnings in the global economy?

2. If so, will this incentivize American firms to do the same?