ESG MARKET & CASES

ESG Management: The U.S. Retreats, Europe Simplifies, and South Korea Finally Reaches the Starting Line

In 2026, global ESG entered a diverging phase where the U.S., EU, and South Korea are pursuing entirely different regulatory directions for the same concept. The U.S. has effectively withdrawn federal climate disclosure rules, fragmenting ESG around state-level regulations and investor demands. The EU has reduced the scope of CSRD and CSDDD and eased disclosure burdens while maintaining core principles such as double materiality and third-party assurance. South Korea has begun transitioning from voluntary disclosure to a statutory disclosure system through the finalization of KSSB standards and a phased mandatory roadmap starting in 2028. Korean companies must simultaneously manage EU supply chain requirements, KSSB compliance, and investor demand from the U.S. market, viewing ESG not merely as regulatory compliance but as infrastructure for global competitiveness.