(Bloomberg) – ExxonMobil CEO Darren Woods has sharply criticized the European Union’s new Corporate Sustainability Due Diligence Directive, warning that the sweeping climate and human rights law could impose “bone-crushing” penalties on energy companies and stifle upstream investment. The legislation, which requires global corporations with significant European revenue to implement binding net-zero plans and monitor entire supply chains, could levy fines of up to 5% of worldwide turnover for noncompliance.
“It’s the worst piece of legislation I’ve seen since I’ve been in this job,” Woods said in an interview. “Given the perspective I have around the world, that says quite a bit.”
Woods argued that the directive disproportionately targets oil and gas, threatening manufacturing competitiveness and choking economic growth. He emphasized that while Exxon supports long-term decarbonization goals, there are “no viable, real solutions” to meet the EU’s mandated pace of emissions reductions without undermining energy supply. The company maintains its 2050 net-zero ambition but opposes regulations it sees as designed to restrict fossil fuel output rather than balance market demand with energy transition needs.
The directive, slated for full implementation by 2029, faces resistance from several EU member states, while U.S. officials have elevated it as a sticking point in trade talks. Exxon has already scaled back its refining and chemicals footprint in Europe, shifting capital to higher-return upstream projects in the Americas and elsewhere.
“Europe is trying to build this green economy that turns out frankly isn’t working,” Woods said. “Rather than fix what they’ve created, they’re trying to drag American companies that do business in Europe into their mess.”
