ExxonMobil Calls for Repeal of EU Sustainability Law, Warns of Business Exits

ExxonMobil is intensifying its opposition to a European Union law related to corporate sustainability, expressing its concerns directly to the U.S. President Donald Trump. The company warns that the regulation could lead to more businesses exiting Europe.

The EU's Corporate Sustainability Due Diligence Directive (CSDDD), passed last year, mandates that companies address human rights and environmental issues within their supply chains or face penalties of up to 5% of their global revenue. Previously, business leaders and officials from France and Germany criticized the law, arguing it would harm the EU's competitiveness. In response, the EU Commission proposed a series of amendments earlier this year to ease the requirements.

However, ExxonMobil's Chief Executive Officer has stated that these amendments are "far from sufficient" and has called for the complete repeal of the law. The CEO has communicated these concerns to Trump and U.S. officials responsible for trade and EU policy. The U.S. government has included its worries about the CSDDD in its trade negotiations with the EU, further escalating tensions between the two regions.

The CEO highlighted that bureaucratic hurdles have already led the company to sell, close, or exit nearly 19 of its European operations. The new law, the CEO argues, would exacerbate this trend, prompting more businesses to reduce their activities in Europe. The EU Commission has yet to respond to these concerns.

The CEO also noted that the law would require ExxonMobil to comply with environmental regulations across all its global operations, with penalties equivalent to 5% of its global sales being "devastating" for the company. As the largest oil producer in the U.S., ExxonMobil's sales reached 339 billion dollars last year.

U.S. lawmakers are also taking action to support ExxonMobil. In March, a federal senator from Tennessee introduced a bill aimed at protecting U.S. companies from the CSDDD's compliance requirements. EU member states and legislators plan to begin negotiations on the proposed amendments to ease the policy next month. However, environmental activists have expressed disappointment, stating that weakening the law would undermine corporate accountability.

Additionally, ExxonMobil announced on Thursday that it would suspend a 100 million euro (approximately 118 million dollars) investment in European plastic recycling projects due to another EU regulatory proposal. The CEO expressed hope that U.S. lawmakers would make progress on the CSDDD issue but noted disappointment with the EU regulators' response so far. "While there are some movements, we need to see the issue resolved quickly, not dragged out," the CEO stated.