In a recent statement made at the ADIPEC meeting in Abu Dhabi, ExxonMobil’s CEO, Darren Woods, expressed grave concerns regarding a new European Union (EU) sustainability law, specifically the Corporate Sustainability Due Diligence Directive. Woods stated that if the law remains unchanged, it could compel ExxonMobil to cease operations in Europe, as compliance could lead to fines amounting to 5% of global revenue. The directive mandates that companies address human rights and environmental risks throughout their supply chains, even for operations outside Europe.
Woods highlighted that the law’s requirements, particularly aligning climate transition plans with the Paris Agreement, are technically unfeasible for large companies like ExxonMobil. He criticized the perceived regulatory overreach, noting that it extends beyond European operations to all global business activities. Despite lobbying efforts against the directive, Woods indicated that the EU’s response has not led to significant amendments, which he fears may increase legal ambiguities.
Additionally, Qatar’s energy minister echoed similar objections, warning that the law could jeopardize Europe’s liquefied natural gas (LNG) supply, emphasizing the need for mutual cooperation. As the EU moves towards finalizing changes to the directive by year-end, the implications of this legislation on energy production and economic growth in Europe remain a critical point of contention among industry leaders.