The European Union just gave its final approval for a new ESG requirements that will affect companies around the world. Glenn has been warning about this law for years and now, he says there’s only one way to stop it. But why should Americans be worried about EU regulations? Well, Glenn explains how ALL companies will either have to comply or abandon doing business with not just the EU, but any big company that does business in the EU. Plus, he breaks down how it could “destroy the petroleum industry” and even lead to YOU getting a social credit score.
Transcript
Below is a rush transcript that may contain errors
GLENN: We have -- I have some good news and I have some bad news. Which do you want first?
STU: I'm a glutton for punishment. We'll take the bad news first.
GLENN: Okay. Hmm. You sure?
Okay. Here we go.
This is -- this is extraordinarily bad news from the European Union.
This is something that I have been warning listeners and readers with for over three years now.
It was included in both The Great Reset, and the Dark Future books.
We really went into it, at Dark Future, talking about, this -- this can't happen.
If this happens. Don't, no. Really.
Well, it's just happened. We've talked about it on the air several times. But I don't -- now it's official. And it's in writing. And so I'm going to explain it. And tell you what it is, and what it's going to do.
It looked like this bill was going to tie several times over the past few months. In fact, Justin Haskins and I had a big argument. Should have made a 3,000-dollar bet with him.
And then I could have paid you off for the Michelle Obama thing. But he said it would fail. And it did not. Now it's one of the biggest threats to freedom in America, both in the short and in the long-term, because this law, because of this law in Europe, our society, through corporate decision making and business partnerships, are going to be forced to conform with the European rules, values, and environmental standards. European social justice metrics are now officially, they have to be imposed on America, through this law.
The only thing that will change this, is if Congress acts, and the president acts.
This president and this at least Senate, will never stop this.
Here's what's going to happen: The EU has established an extraordinarily complex, very large ESG system, that covers all companies, and when I say all companies. All companies, will need to comply with.
This includes both covered companies. Based in the US. As well as non-EU companies, such as those in America and in Canada, that operate in the EU.
So, in other words, you sell, I think it's half a billion dollars' worth of stuff. And you have to comply. You sell a half a billion dollars in Europe. Just under that. Then you have to comply.
But so do all of the companies that you do business with.
So if you're a small company and you're making winkling it's, and you sell them to a company that is making big money. And I wonder if this applies to Amazon.
You sell something on Amazon, that's a company that's making at least half a billion dollars in Europe. You're going to have to comply.
The -- the covered companies, will be required to submit reports to the European government authorities, if they are EU-based customers. Or companies with more than a thousand employees. And a world wild turnover of more than $489 million.
Turnover is another word for revenue. Or income.
But why wouldn't you say that? This word bothers me. I just think it's one of those words like stakeholders. And nobody knows what it means. And then you hear stakeholders, and you know what it means. You're like, oh, crap, that's everybody.
Non-EU-based companies, such as U.S. companies now, fall under the requirements if they have a net turnover of more than $489 million with the European Union.
Franchise and licensing agreements as well as subsidiaries of larger companies.
Will also fall under the EU's ESG regime.
I don't know exactly the lawyers have not even really explained this yet.
But we have been covering this for so long.
We think we know what this means. But licensing agreements. I write books. Some of them sell in Europe.
Simon & Schuster sells books like crazy over in Europe.
They're making over 489 million I'm sure, in Europe.
Am I now forced to comply?
Thank God I have Mercury, Inc. now, and I don't have to do Simon & Schuster. But am I required?
Most importantly, all covered companies will need to ensure that the businesses in their supply and value chains. I don't know what that means. Do you know what supply and value chain is?
Stu, you're the head of Ford. Have you checked your value change?
What is exactly the numbers on your value change? What the hell does that mean?
STU: Value chain or value chains?
GLENN: Value chains.
STU: I mean, I'm very in touch with my value chains on a daily basis.
GLENN: Yeah, okay. Also, those companies, anybody who makes a widget for these companies has to adhere to the relevant ESG you rules. Remember, ESG is environmental, social, and governance.
So could you have enough, you know, gay -- gay, black, hermaphrodites, that only have one leg.
Do you have them on your board?
Well, why not?
That's your governance part. Social is all of the social justice crap, that we have been fighting. And E, of course, is environment.
This bill, by the way, will destroy the petroleum industry. And don't worry, petroleum, it's not used at anything. Nothing can make petroleum.
This will indirectly impose Europe's ESG standards on countless American companies, including many small businesses.
All covered companies will need to create climate change transition plans. Prevention action plans. Establish contractural assurances, from a direct business partner. That it will ensure compliance with the business' prevention action plan.
So you make a widget, but you don't sell it to Ford. You sell it to somebody that is making radios for Ford.
You don't have anything to do with Ford. But if you want to sell a widget to another company, that does business with Ford, or sell it to another company that that company sells to another company, to sell to Ford.
You see how this is working?
And if you don't comply in America, you cannot sell anything, in Europe.
You also, established contractural assurances. Business prevention.
Can and make necessary financial or nonfinancial investments or upgrades.
What the hell does that mean? Individual countries will write their own laws in accordance with this new EU. ESG law.
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.
Well, open up the floodgates for attorneys, right there. The EU requirements are going to be faced in, beginning in 2027.
Now, let me get into the actual requirements, that we can -- this is a very complex, and very big bill.
Over the weekend. Thank God for Justin Haskins and his team. He went through all of it. So let me tell you what these rules are.
Again, we're talking about something that just passed on Friday in the EU that affects us. And it's -- it's the economy. It's the environment. It's free speech. It's all of it. So there's not a single long list of rules that companies need to comply with. There are some specific rules that are included.
However, this new law includes hundreds of vague statements and references to existing international agreements and EU regulations.
Many of those are also long agreements, featuring many more are rules, such as, the Paris climate agreement.
And the international covenant on economic, social, and cultural rights. You know that. You're complying I'm sure.
Oh, you're not?
I guess we should read up on it. As a result of the complexity and the expansiveness of the rule. The total number of social credit scoring metrics. Let me say that again. The total number of social credit scoring metrics, included in this law, is currently unknown.
But it is likely in the hundreds, if not more than a thousand.
It's hard to tell, currently. You get social credit scores. Now, let me ask you something: Is the EU going to actually stop buying everything that comes from China.
Because there's no way that China will comply with this.
Do you know what that will do for the prices in the European Union.
If they stop buying stuff from China?
If we don't stop this. If we stop buying things from China.
Prices -- you will go broke, quickly, businesses will go out of business, quickly.
Now, here's just one example of the law, where it's not economic.
It's actually on climate change. And free speech.
The directive is an important legislative tool to ensure corporate transition to a sustainable economy. What they're saying there is: No longer a capitalist system. Including to reduce the existential harms and costs of climate change. To ensure alignment with the global net zero by 2050. And to avoid any misleading claims, regarding such alignment, and stop green washing disinformation, and fossil fuel expansion, worldwide, in order to achieve international and European climate objectives
So notice they throw in misinformation. One law -- one law firm notes, companies are required to effectively engage with stakeholders. Let me say that again.
Companies are required to effectively engage with stakeholders.
Do you remember who the stakeholders are? Because they're not you!
The take holder are the governments. The social activists. And I think that's it. And the companies, themselves.
Those three get together. Because, you know, the Sierra Club, is a stakeholder in making sure that our trees are okay. And our environment is clean.
The government is just a representative of you. Yeah. Yeah. I stopped believing that a long time ago.
So you don't have a voice. Your voice is the Senate, the House, and the president.
That's the stakeholder that they have to deal with. Companies have to sit down, when they're making these rules, with those guys.
This includes carrying out consultations at various stages, of the due diligence process. That's going to be cheap. During which, companies must provide comprehensive information.
Now, according to the European parliament. Member states will be required to provide companies with detailed online information. On their -- of their due diligence obligations. Via practical portals, containing the commission's guidance.
They will also create or design, and designate a supervisor authority, to investigate, and impose penalties, on any noncompliant firms.
These will include naming and shame.
That's a quote.
This will include, in quotes, naming and shaming. And fines of up to 5 percent of the company's net worldwide turnover.
Again, worldwide turnover.
Why not use revenue?
Additionally, a breach of certain CSDDDD obligations. That's the catchy acronym for it.
May result in civil liability for damages. However, a company cannot be held liable for any damage caused by its business partners. In its chain of activities.
That's the bad news. I can guarantee you, we are at least a year, maybe two years ahead of everyone else. They are not paying attention to this.
Do not dismiss this, when you go into vote.
Which candidate is -- and I mean every candidate, is most likely to stand up and say, no! Review if the United States, a huge market, decides to say, we're not playing your game. Europe will not be able to stand on its own.
China, they'll just give a pass to. Because everybody, for some reason, thinks that that authoritarian state that puts their own people with social credit scores, and puts them in camps, is okay.
Let me ask you this: 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.
This is a way to -- look, there is a book over in our museum.
Very rare. Because the king had them all burned.
It was during the witch trials over in Europe.
And it was one book, that says, this is hogwash!
This is just the king wanting these rules, so he can get rid of his enemies.
King had them all burned. We can find all kinds of stuff, that say, witches are real.
That book, is extraordinarily rare. Why?
The king needed them to go away, because he could have -- anybody who displeased him, he's a witch.
She's a witch.
Burn them at the stake. That's exactly what's going to happen here. Companies like Apple will be fine. Facebook, fine.
Doing business. Over in Europe. Even though, they're working with the Chinese!
You, but any company that decides to stand and say, no. We don't believe in this.
We're not doing this. You're doomed. You're doomed.
If you play ball with the government, one way or another, you're all right.
