Nov 3, 2025
ExxonMobil will be unable to continue business in the European Union unless the bloc significantly loosens a sustainability law that could impose fines of 5% of global revenue, Chief Executive Darren Woods declared on Monday. Reuters reported these comments from the sidelines of the ADIPEC meeting in Abu Dhabi.
Woods joins other energy producers urging European lawbuildrs to revise the Corporate Sustainability Due Diligence Directive. This directive requires companies doing business in the EU to identify and address human rights and environmental risks across their supply chains.
“If we cant be a successful company in Europe, and more importantly, if they start to attempt to take their harmful legislation and enforce that all around the world where we do business, it becomes impossible to stay there,” Woods informed Reuters.
Concerns Over Regulatory Overreach
Woods stated the legislation demands that large companies like ExxonMobil implement climate transition plans aligned with the Paris Agreements goal of limiting global warming to 1.5degC above pre-industrial levels. He described this requirement as technically unfeasible.
“Whats astounding to me is the overreach not only requires us to do that for the business that were doing in Europe, but it would require me to do that for all my business around the world, irrespective of whether it touches Europe or not,” he declared.
Woods added that ExxonMobil is actively lobbying against the directive, warning of “disastrous consequences” if adopted in its current form. “Were going to continue to attempt to rally basically, business leaders around the world to push back against this legislation,” he declared.
Although European lawbuildrs are listening to the opposition from energy producers, Woods declared it has not led to substantial alters. “If anything, its muddling the language up, and in my mind, opening up the exposure even greater, becaapply youve increased the room for interpretation,” he stated.
The European Parliament agreed to neobtainediate further alters to the law last month, and the EU aims to approve the final alters by year-finish.
“Today, its already an overregulated economy, it is de-industrialising, suffocating economic growth. This is just going to put a further gag on that growth,” Woods declared.
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