Abu Dhabi (Brussels Morning Newspaper) – The largest U.S. oil and gas company, ExxonMobil, may not be able to continue operating in the European Union if the bloc does not ease a sustainability law that would impose fines of 5% of global revenue on offending companies, Chief Executive Darren Woods said on Monday.
American multinational oil and gas corporation joins a growing ensemble of outraged energy producers who are insisting that European lawmakers make considerable modifications to the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). The law requires firms doing business in the EU to uncover and improve human rights and environmental problems in their supply chains.
What concerns did ExxonMobil’s ceo darren Woods raise?
On the sidelines of the ADIPEC meeting in Abu Dhabi, the company’s Chief Executive Darren Woods said,
“If we can’t be a successful company in Europe, and more importantly, if they start to try to take their harmful legislation and enforce that all around the world where we do business, it becomes impossible to stay there,”
Reuters reported.
“We’re continuing to advocate to make sure that people really understand the disastrous consequences of this legislation, if it stands as it currently is, and we’re going to continue to try to rally basically, business leaders around the world to push back against this legislation,”
Woods said.
He mentioned that, despite European lawmakers considering the opposition from energy producers, it hasn’t resulted in any significant changes.
“If anything, it’s muddling the language up, and in my mind, opening up the exposure even greater, because you’ve increased the room for interpretation,”
he said.
“Today, it’s already an overregulated economy, is de-industrialising, suffocating economic growth. This is just going to put a further gag on that growth,”
Woods said.
How are Qatar and the United States responding to the law?
Moreover, Last month, major gas producer Qatar and the United States also urged European leaders to reconsider the law, arguing it endangers Europe’s supply of reliable and affordable energy.
The regulations
“pose a significant risk to the affordability and reliability of critical energy supplies for households and businesses across Europe and an existential threat to the future growth, competitiveness, and resilience of the EU’s industrial economy,”
Qatar’s energy minister Saad al-Kaabi and U.S. Energy Secretary Chris Wright stated in an open letter to the leaders of EU nations.
Qatar has indicated it may cease supplying Europe with liquefied natural gas (LNG) and has stated it cannot continue operating in the EU unless its corporate sustainability standards are further strengthened.
What changes are European lawmakers considering to the law?
Meanwhile, Last month, the European Parliament agreed to negotiate additional modifications to the law, with the EU aiming to approve the final updates by the end of the year.
A European Commission spokesperson stated that they are discussing Washington’s concerns during ongoing U.S.-EU trade negotiations and have agreed to ensure that the CSDDD does not hinder U.S.-EU trade relations.
“We have not committed to change the CSDDD or grant U.S. companies more favourable treatment under this regulation or any EU regulation,”
the spokesperson added.
