Exxon CEO Warns EU Sustainability Law Threatens Global Operations

ExxonMobil CEO Darren Woods has strongly criticized the European Union's Corporate Sustainability Due Diligence Directive (CSDDD), warning it imposes "bone-crushing" fines of up to 5% of global revenue for noncompliance, which he says threaten the competitiveness of oil and gas companies and broader economic growth. Woods has communicated these concerns directly to President Donald Trump and other U.S. officials, who have raised the issue in trade talks with the EU, emphasizing that the directive's stringent sustainability and human rights requirements could hinder the ambitious $750 billion U.S.-EU energy trade deal. Despite proposed amendments to ease the law, Woods and Exxon argue that the changes are insufficient and call for the law's repeal, noting that the regulation has already contributed to Exxon scaling back or closing numerous operations in Europe and suspending investments such as a €100 million plastic recycling project. Woods critiques the EU's approach as unworkable and disproportionate, particularly targeting oil and gas sectors without viable alternatives for mandated emission reductions, and expresses disappointment over the EU's lack of urgency in addressing these concerns. U.S. officials, including Energy Secretary Chris Wright, share these worries, seeing the directive as a threat to U.S.-EU trade relations, while environmental advocates oppose weakening the law's accountability. Overall, ExxonMobil's stance highlights tensions between regulatory ambitions for sustainability and the economic and trade realities faced by multinational energy companies.