ExxonMobil CEO Darren Woods has called the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) “the worst piece of legislation I’ve seen since I’ve been in this job,” warning that its extraterritorial requirements and steep penalties could force global companies to reconsider doing business in Europe.
The proposed directive would obligate multinational firms to align supply chains with the Paris Agreement, enforce legally binding climate transition plans, and expose violators to penalties of at least 5% of global revenue. Woods described the potential fines as “bone-crushing,” stressing that the framework would not only hit European operators but also foreign suppliers selling into the EU market.
Speaking to outlets including Bloomberg, Reuters, Axios, the Financial Times, and Semafor, Woods warned that the legislation’s reach could complicate U.S.-EU trade, where the bloc has pledged $750 billion in American energy imports. He cautioned that major U.S. suppliers could fall under the scope of CSDDD, facing billions in potential liabilities.
ExxonMobil, which has operated in Europe for more than 135 years and employs thousands across the continent, sees the directive as emblematic of a broader regulatory overreach. Woods argued that “Europe is slowly suffocating itself,” adding that excessive compliance burdens risk accelerating deindustrialization and pushing companies like ExxonMobil to exit European markets.
The CSDDD debate underscores rising tensions between the EU’s push for climate accountability and industry concerns over cost competitiveness and trade frictions. With energy security still a top priority and transatlantic trade central to Europe’s supply strategy, how the directive is implemented—or whether it is reformed—will have major implications for global operators.
By Charles Kennedy for Oilprice.com
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