A coalition of 16 Republican state attorneys general sent letters in October 2025 to corporate leaders at Microsoft, Google, and Meta alleging that compliance with the European Union’s sustainability directives could violate U.S. law. The officials cited the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), saying the measures would effectively impose environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) mandates restricted under several state statutes. The letters stated that such compliance could expose companies to lawsuits and enforcement.

The warning continues state-level resistance to global ESG-related regulations. State attorneys general argue the EU’s climate and human rights reporting rules conflict with U.S. laws that limit consideration of non-financial or social factors in business and investment decisions. The move underscores growing tension between international sustainability mandates and various states’ efforts to restrict ESG-driven corporate policies.

In August 2025, the EU and Trump administration reached a framework agreement to reduce those rules' burdens on U.S. firms, though U.S. officials later warned of trade consequences if the CSDDD were not amended. Republican-led states have previously sent similar ESG-related warning letters to asset managers and ratings agencies. 

The letters cite how these companies made DEI commitments in 2020–21, including pledges to spend heavily with Black-owned businesses and suppliers and to increase representation of underrepresented groups across their workforces and leadership. They also point to investments supporting Black businesses, creators, and community organizations.

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