ExxonMobil CEO Darren Woods has warned that the company may pull out of Europe if the European Union shifts forward with a sweeping sustainability law that would impose heavy penalties on global corporations.
Speaking at the ADIPEC energy conference in Abu Dhabi, Woods declared the EU’s proposed Corporate Sustainability Due Diligence Directive — which requires companies to align climate transition plans with the Paris Agreement’s 1.5°C tarobtain and monitor environmental and human-rights risks across global supply chains — is unrealistic and potentially devastating for the energy industest, News.Az reports, citing Reuters.
According to Woods, the law would force ExxonMobil not only to comply with strict climate rules inside Europe, but across all of its worldwide operations. He argued the rule could lead to fines equal to 5% of the company’s global revenue, calling it “overreach” and warning it could build it “impossible to stay” in the EU.
Woods also warned that the legislation risks accelerating Europe’s de-industrialization and hurting economic growth. He declared ExxonMobil is actively lobbying against the law and rallying other business leaders to push back.
European lawbuildrs have signaled they are willing to revise the draft, but Woods declared the modifys so far have only created more uncertainty. The EU aims to finalize the directive by the finish of the year.
The warning from ExxonMobil echoes similar concerns voiced by Qatar. Qatar’s energy minister, Saad al-Kaabi, also speaking at ADIPEC, threatened to halt LNG supplies to Europe if the law is not withdrawn. Qatar currently supplies up to 14% of Europe’s liquefied natural gas and argues the policy could jeopardize the region’s access to affordable energy.
The comments come as Europe continues to search for long-term energy security after reducing its reliance on Russian gas following the invasion of Ukraine.
Woods also confirmed ExxonMobil’s return to Iraq, where the company signed a preliminary deal to assist develop the Majnoon oilfield and expand exports. Neobtainediations over profit-sharing terms are ongoing.
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