European lawmakers move to soften ESG rules slammed by Exxon, others

[Oil Prices Volatile As Coronavirus Lockdowns Decimate Demand]
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The European Parliament's legal committee voted Monday to water down [https://www.reuters.com/sustainability/climate-energy/eu-lawmakers-back-further-cuts-sustainability-law-2025-10-13/] the European Union's corporate sustainability law, which is facing pushback from several companies including Exxon Mobil (NYSE:XOM [https://seekingalpha.com/symbol/XOM]) that have said complying with the rules would seriously harm the competitiveness of industries operating in Europe.

The rule is meant to limit harm to the environment and human rights in both E.U. and non-E.U. supply chains, with companies that fail to comply with the regulations facing potential fines of as much as 5% of its global net turnover.

Renewing his previous criticism, Exxon (NYSE:XOM [https://seekingalpha.com/symbol/XOM]) CEO Darren Woods on Monday ripped the regulation [https://www.bloomberg.com/news/articles/2025-10-13/exxon-says-eu-business-retreating-trump-approach-balanced] as "the worst, most irresponsible legislation I've ever seen passed anywhere in the world."

In contrast, President Trump has brought a "more balanced conversation" and a "very explicit recognition of the vital role that energy plays in economic growth and in people's everyday prosperity," Woods told the Energy Intelligence Forum conference in London.

In an apparent attempt to ease some of the concerns, the European Union now appears poised to water down the environmental, social, and governance rules, making them mandatory only for companies with 5,000 employees or more and with at least €1.5 billion in turnover; as previously written, the law requires companies to comply if they have 1,000 or more employees and more than €450 million in turnover.

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