ExxonMobil CEO Warns EU Sustainability Law Could Force Exit From Europe

The law’s framework would require ExxonMobil to apply the same climate mandates to its global operations, not only those within Europe.

A flare burns off excess natural gas produced by oil wells in Williston, N.D., on Dec. 21, 2023.Madalina Vasiliu/The Epoch Times

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, CEO 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.

Energy Allies Push Back

The European Parliament vote leaves the door open to further amendments before a final text is approved, expected by the end of 2025.

According to Woods, the revisions under discussion so far “muddle the language” and risk widening regulatory uncertainty.

“Today, it’s already an overregulated economy, it is de-industrialising, suffocating economic growth,” he said.

“This is just going to put a further gag on that growth.”

Last month, U.S. Energy Secretary Chris Wright and Qatar’s energy minister, Saad al-Kaabi, warned that parts of the CSDDD could hinder global energy cooperation with the EU.

“This comes at a critical moment when our countries and companies are striving not only to sustain but to significantly increase the reliable supply of LNG to the EU in line with European strategic aspirations,” they wrote in an open letter to EU leaders in October.

“There is little debate that natural gas and LNG will remain a critical energy source and a key part of the EU’s energy mix for many decades to come.”

The United States is Europe’s top liquefied natural gas (LNG) supplier, accounting for 57.7 percent of EU imports in the second quarter of 2025. It is followed by Russia, Algeria, and Qatar, according to Eurostat data.

Speaking at ADIPEC on Nov. 3, al-Kaabi, who is also the CEO of QatarEnergy, warned that Qatar will halt LNG sales to Europe if the CSDDD goes ahead unchanged.

Separately at ADIPEC, Woods confirmed that ExxonMobil had signed a preliminary agreement to help Iraq develop its giant Majnoon oilfield, marking the company’s return to the country after a two-year absence.

“We’ve got a long way to go to negotiate the final parameters associated with that development,” Woods said, adding that ExxonMobil expects to finalize a profit-sharing arrangement consistent with industry practice.

Reuters contributed to this report.