The law’s framework would require ExxonMobil to apply the same climate mandates to its global operations, not only those within Europe.
U.S. energy giant ExxonMobil may be forced to reconsider its operations in Europe if the European Union’s proposed sustainability law is adopted in its current form, Chief Executive Darren Woods said on Nov. 3, warning that the measure could have “disastrous consequences” for global business.
Speaking to Reuters on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Woods said the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) would impose unworkable obligations on multinational companies.
“If we can’t be a successful company in Europe, and more importantly, if they start to try to take their harmful legislation and enforce that all around the world where we do business, it becomes impossible to stay there,” Woods said.
The CSDDD requires companies to address human rights and environmental issues in their supply chains, or face fines equivalent to 5 percent of their global turnover. Currently, it covers companies with 1,000 or more employees and more than 450 million euros ($518 million) in turnover.
The framework would require ExxonMobil to apply the same climate mandates to its global operations, not only those within Europe, according to Woods.
“What’s astounding to me is the overreach,” he said.
“It would require me to do that for all my business around the world, irrespective of whether it touches Europe or not.”
In May, the leaders of France and Germany urged the EU to scrap the proposed law. French President Emmanuel Macron said on May 19 that the directive should be “taken off the table,” while German Chancellor Friedrich Merz made a similar appeal during his first visit to Brussels, saying the law would further burden Europe’s struggling industrial sector.
Last month, the European Parliament voted to reopen debate on the CSDDD amid growing opposition from industry and governments, including the United States and Qatar, who warn the directive could threaten Europe’s energy security and undermine the region’s industrial competitiveness.
Woods said ExxonMobil is lobbying against the directive, urging other corporate leaders to oppose it as well.
“We’re going to continue to try to rally basically business leaders around the world to push back against this legislation,” he said.
