Europe’s Climate Pivot: Lessons from Sarbanes-Oxley and the Role of Integrated Risk Management

The European Union (EU) is reassessing its ambitious corporate sustainability regulations, triggering concerns about retreating from climate accountability. But history tells us this isn’t a retreat—it’s an adjustment. Suppose businesses want a playbook for how to respond. In that case, they should look at what happened with Sarbanes-Oxley (SOX) in the U.S. Two decades ago, companies resisted new financial reporting laws, citing high costs and operational complexity. Over time, SOX was refined—but it never disappeared.