Exxon Mobil (NYSE:XOM) called Thrusday for European leaders to repeal a new climate law that would fine corporations, with CEO Darren Woods saying the directive’s penalties of as much as 5% of a company’s global revenue would be “bone-crushing.”
The European Union’s Corporate Sustainability Due Diligence Directive, which requires companies to fix human rights and environmental issues within their supply chains or face large fines and was adopted last year, is “the worst piece of legislation I’ve seen since I’ve been in this job,” Woods told Bloomberg in an interview. “Given the perspective I have around the world, that says quite a bit.”
In response to criticism that the law risks harming the continent’s competitiveness, the European Commission proposed a set of changes earlier this year to loosen the requirements, but Woods said it would not be enough, calling for the law to be revoked entirely.
The directive could require all large businesses in Europe to develop legally binding plans to comply with the Paris Agreement climate treaty, and “opens up standing for any activist or NGO who wants to challenge those plans and take us to court,” the CEO said.
Woods said he has spoken about the regulation with President Trump and other members of the administration, which has raised concerns about the directive as part of trade negotiations with the block.
Exxon (NYSE:XOM) has been “slowly been pulling out of Europe,” Woods said, noting the company has shut down or exited 19 operations because of what he said was red tape that hurts business.