ExxonMobil, an energy company, has raised concerns that European Union environmental mandates may disrupt the U.S.-EU energy trade commitments. Chief Executive Officer Darren Woods has said that the Corporate Sustainability Due Diligence Directive, which applies to firms above certain revenue thresholds, risks undermining the EU’s pledge to buy $750 billion worth of U.S. energy products over three years.
“The challenge is going to be that the companies who supply that energy will clearly exceed the threshold, and so will be subject to this law,” Woods said. He added that complying with the directive is “not technically possible,” warning that companies could face “bone-crushing potential penalties.” Woods described the law as “disastrous, the worst I’ve seen in my tenure in this job,” and said it could hinder Europe’s industrial competitiveness.
Woods noted that Exxon has a significant presence in Europe and is working with U.S. officials to push back on the directive. EU and U.S. leaders pledged in August to ensure sustainability rules “do not pose undue restrictions on transatlantic trade,” but Woods criticized Europe’s response, saying it has created “more confusion than they solved.” He also commented on Exxon's potential low-carbon hydrogen and ammonia project in Baytown, Texas, stating, “We’re not interested in having a successful project. We’re interested in having a successful project as part of a growing new industry.”
