Exxon CEO Demands EU Scrap Law, Halts Recycling Investment: Reuters

ExxonMobil CEO Darren Woods is urging the European Union to abandon its Corporate Sustainability Due Diligence Directive (CSDDD), cautioning that the law could drive businesses away from the region. The directive mandates that companies address human rights and environmental concerns within their supply chains, with non-compliance penalties reaching at least 5% of a company's global turnover. Despite proposed revisions by Brussels following industry objections, Woods contends that these adjustments are inadequate. He argues that the CSDDD would incentivize companies to diminish their European operations, citing ExxonMobil's existing strategic shift. The company, having divested from nearly 19 European operations, anticipates that the CSDDD would further accelerate this trend. The issue has gained international attention, becoming a point of discussion in ongoing US-EU trade negotiations after Woods raised concerns with U.S. officials. Concurrently, ExxonMobil is pausing a €100 million investment in European plastics recycling, attributing this decision to proposed EU regulations regarding recycled content calculation. The company alleges that these draft rules unfairly discriminate against its integrated petrochemical facilities.