Waukesha Times

Wisconsin State Representative Scott Fitzgerald has expressed concerns over the European Union's Corporate Sustainability Due Diligence Directive (CSDDD), describing it as imposing "extraterritorial regulations" on U.S. businesses. Fitzgerald introduced the PROTECT USA Act of 2025 to shield certain American companies from complying with this directive, which he believes aligns with the EU's "ESG agenda."

"The EU's Corporate Sustainability Due Diligence Directive is a direct threat to U.S. companies and their workers," said U.S. Rep. Scott Fitzgerald (R-Wi). "These extraterritorial regulations burden American businesses with foreign mandates they didn't vote for and can't challenge. My bill protects U.S. companies from becoming collateral damage in the EU's ESG agenda."

According to a press release, Congressman Fitzgerald's bill responds to the CSDDD, a regulation adopted in May 2024 that enforces binding environmental and social standards on foreign firms. The directive targets sectors such as textiles, agriculture, fuels, and chemicals with EU revenues exceeding €450 million.

Rep. Scott Fitzgerald | House.gov

The directive mandates companies to identify and address environmental and social risks, achieve "net zero" carbon goals, and develop climate transition plans. These requirements could lead U.S. firms to pressure domestic suppliers into reducing emissions. Additionally, the directive includes financial penalties and may indirectly impact smaller businesses. A companion bill was introduced in the Senate by Senator Bill Hagerty.

Amanda Eversole, Executive Vice President and Chief Advocacy Officer of the American Petroleum Institute (API), commented on the situation: "The European Union is effectively trying to export its failed energy policies by imposing the CSDDD on American businesses, including oil and natural gas producers." She further expressed gratitude towards Fitzgerald for his legislative efforts aimed at protecting American interests from these regulations.

Fitzgerald represents Wisconsin’s Fifth Congressional District in the U.S. House of Representatives. His political career includes serving in the Wisconsin State Senate from 1995 to 2021 in roles such as Majority Leader and Minority Leader. He holds a Bachelor of Science degree from the University of Wisconsin-Oshkosh and served in the U.S. Army Reserve for 27 years before retiring as a Lieutenant Colonel.