Exxon Mobil has ramped up its opposition to the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD), which was adopted in 2024. The directive mandates that companies address environmental and human rights concerns within their supply chains, or face potential fines of up to 5% of global turnover. Exxon Mobil’s CEO, Darren Woods, has voiced strong criticism of the directive, arguing that it poses a significant threat to business operations in Europe. In response to the law, Woods confirmed that Exxon has been in discussions with U.S. President Donald Trump and his administration, urging them to address the issue during trade talks with the European Union.
Despite proposals from the European Commission to amend the law in an attempt to alleviate its impact on businesses, Exxon is calling for the full repeal of the directive. The company has already taken significant steps to scale back its operations in Europe, citing the regulatory burden imposed by the CSDDD. In a notable move, Exxon suspended a €100 million plastic recycling investment in the region, which it attributed to the legal and financial uncertainties introduced by the directive.
The CSDDD has sparked significant debate on both sides of the Atlantic. While Exxon and other American companies have lobbied for exemptions or changes to the law, environmental activists are strongly opposed to any softening of the directive. Activists argue that easing the law would undermine corporate accountability and hinder progress on addressing environmental and human rights abuses in global supply chains. They believe that the directive is an essential tool for ensuring that companies operate in a more responsible and transparent manner, particularly when it comes to the social and environmental impacts of their operations.
U.S. lawmakers, including Senator Bill Hagerty, have expressed support for legislation aimed at protecting American companies, such as Exxon, from the legal requirements of the CSDDD. This stance has led to further discussions about how the U.S. should respond to EU regulations that may potentially conflict with the interests of American businesses.
As the European Union prepares to revisit the law, discussions on possible revisions are expected to begin soon. The outcome of these discussions could have a profound impact on multinational corporations operating in Europe, as well as on the future of corporate sustainability regulations in the region. For now, Exxon’s push for U.S. intervention continues to highlight the growing tension between environmental regulation and business interests in the global marketplace.
