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Trump, Donald

ExxonMobil Urges Trump Administration to Fight EU Climate and Human Rights Regulations

Strategic Insights

— 2 min read

The Trump administration should use trade talks with Brussels to resist the EU's Corporate Sustainability Due Diligence Directive, which poses a threat to US companies with "bone-crushing penalties," according to ExxonMobil chief executive Darren Woods. The EU's regulation, set to be phased in from 2027, requires companies to ensure their supply chains do not harm the environment or human rights, with potential fines of up to 5% of global turnover. Woods says this directive contradicts President Trump's deregulation agenda and will entangle US companies in bureaucracy, eroding their global competitiveness.

Key Takeaways:

  • ExxonMobil is lobbying against the EU's Corporate Sustainability Due Diligence Directive, citing concerns it will entangle US companies in bureaucracy and erode their global competitiveness.
  • The regulation, set to be phased in from 2027, requires companies to ensure their supply chains do not harm the environment or human rights, with potential fines of up to 5% of global turnover.
  • The Trump administration's trade talks with Brussels should focus on fighting this regulation, according to ExxonMobil chief executive Darren Woods.
  • US business groups say the EU directive is unfair because it has extraterritorial reach, affecting non-EU companies that meet specific turnover or other criteria in the EU's market.
  • Environmental campaigners have said the effort to untie some of the EU's ambitious green regulations has been a victory for the oil and gas industry.
  • More than 180 investors, financial institutions, and companies, including Ikea, EDF, and Nokia, have signed a statement calling for Brussels to preserve the rules.

Statistics:

  • The EU's Corporate Sustainability Due Diligence Directive will require companies to ensure their supply chains do not harm the environment or human rights.
  • Potential fines for non-compliance range up to 5% of global turnover.
  • 180+ investors, financial institutions, and companies have signed a statement calling for Brussels to preserve the EU's green regulations.

Sources:

  • "ExxonMobil says the Trump administration should use trade talks with Brussels to fight tough new EU climate and human rights regulations that threaten US companies with 'bone-crushing penalties'."

-- Bloomberg News

  • "The EU's Corporate Sustainability Due Diligence Directive, due to be phased in from 2027, requires companies to ensure their supply chains do not harm the environment or human rights, with potential fines of up to 5% of global turnover."

-- European Commission

  • "More than 180 investors, financial institutions, and companies, including Ikea, EDF, and Nokia, have signed a statement calling for Brussels to preserve the EU's green regulations."

-- Reuters

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