Issue - August 5, 2025

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Good morning. It’s Tuesday, August 5, and this week’s ESG Litigation Weekly covers updates on Texas’s antitrust suit targeting BlackRock and its peers, the EPA’s proposal to rescind its landmark greenhouse gas endangerment finding, Honolulu’s high-stakes climate lawsuit against major oil companies, and more.

⚖️ ESG Casefile

Judge Lets Texas Antitrust Case Against Asset Managers Proceed
A federal judge has ruled that Texas and other Republican-led states can move forward with antitrust claims accusing BlackRock, Vanguard, and State Street of colluding to restrict coal production through their coordinated climate engagement. The court found enough circumstantial evidence to support allegations that the firms used their influence as major shareholders to pressure coal companies and reduce market output. While the judge dismissed some state law claims, the core federal antitrust challenge remains intact. The asset managers deny wrongdoing and say the case misrepresents their investment practices and threatens market stability.
🔗 Read more → Bloomberg

Lawsuit Targets EPA Delay of Methane Rules
Environmental and public health groups have filed suit in the D.C. Circuit challenging the Trump Environmental Protection Agency’s (EPA) decision to delay enforcement of the 2024 methane standards for up to 18 months without public input. The plaintiffs argue that the delay is unlawful and will lead to millions of tons of methane, smog-forming volatile organic compounds (VOCs), and toxic pollutants entering the atmosphere. EPA’s own data confirms the rollback will increase pollution and energy waste, despite industry and state-level support for the existing standards. The groups are seeking swift reinstatement to protect public health and prevent further climate harm.
🔗 Read more → Environmental Defense Fund

Court Upholds EPA’s Phaseout of Climate-Warming Refrigerants
The D.C. Circuit Court has rejected industry efforts to block an EPA rule phasing down hydrofluorocarbons (HFCs), a potent greenhouse gas found in refrigeration and air conditioning systems. The ruling affirmed EPA’s authority under the American Innovation and Manufacturing Act to implement a market-based allocation system designed to cut HFC usage by 85 percent by 2036. Judges found that the agency had sufficient congressional guidance and acted reasonably in excluding pandemic-affected 2020 data from its calculations.
🔗 Read more → Reuters

Honolulu’s Climate Lawsuit Against Oil Majors Moves Ahead
Honolulu's climate lawsuit against major oil companies, including Exxon Mobil, Shell, and Chevron, has reached a critical stage. The city seeks damages, arguing the firms knowingly profited from fossil fuels while misleading the public about their climate impacts, directly contributing to sea level rise, coral reef destruction, and severe weather around Oahu. The oil companies requested dismissal based on Hawaii’s statute of limitations, but Judge Lisa Cataldo issued no immediate ruling. This case is closely watched, as it could set a significant precedent for dozens of similar lawsuits nationwide.
🔗 Read more → The Associated Press

Poland’s UOKiK Accuses Allegro, DHL, DPD, and InPost of Greenwashing
Poland’s Office of Competition and Consumer Protection (UOKiK) has formally charged Allegro, DHL, DPD, and InPost with misleading consumers through false or exaggerated environmental claims. Allegro faces scrutiny for its unclear conditions on a tree-planting campaign, while DHL, DPD, and InPost are accused of overstating the eco-friendliness of their delivery services, despite relying primarily on high-emission vehicles. If UOKiK confirms these charges, each company could face fines up to 10% of its annual turnover per violation.
🔗 Read more → UOKiK

Indonesian Fishers Counter Bumble Bee’s Attempt to Dismiss Forced Labour Suit
Indonesian fishers suing Bumble Bee for alleged forced labour and abuse have responded strongly to the company’s motion to dismiss their lawsuit. Filed under the US Trafficking Victims Protection Reauthorization Act, the fishers’ suit claims Bumble Bee knowingly sourced tuna from vessels engaged in severe labour violations, including debt bondage, physical abuse, and extended isolation at sea. Greenpeace and other advocacy groups highlight the case as critical for holding the seafood industry accountable for human rights abuses within global supply chains.
🔗 Read more → Greenpeace

🏛️ Regulatory Developments

EPA Proposes Repeal of 2009 GHG Endangerment Finding
The EPA has officially proposed to rescind its 2009 Greenhouse Gas Endangerment Finding, a key determination necessary for regulating vehicle emissions under the Clean Air Act. Without this finding, the agency would lose authority to set greenhouse gas standards for cars and trucks, effectively eliminating current and future vehicle emissions obligations for manufacturers. A public comment period is open until September 15, 2025, with virtual public hearings scheduled for August 19 and 20.
🔗 Read more → EPA

EFRAG Launches Consultation on Simplified European Sustainability Reporting Standards
EFRAG has released revised Exposure Drafts of the European Sustainability Reporting Standards (ESRS) for public consultation, responding to the European Commission’s directive to simplify mandatory reporting under the Corporate Sustainability Reporting Directive (CSRD). Key changes include a 57% reduction in mandatory datapoints, clearer language, streamlined double materiality assessments, and exemptions to alleviate undue reporting burdens. Stakeholders have until 29 September 2025 to submit feedback, which will inform EFRAG’s final advice to the European Commission by 30 November 2025.
🔗 Read more → EFRAG

EU Introduces Voluntary Sustainability Reporting for SMEs
The European Commission has adopted a voluntary sustainability reporting standard specifically tailored to small and medium-sized enterprises (SMEs). Designed by EFRAG, the new framework aims to reduce the reporting burden on SMEs responding to sustainability information requests from larger companies subject to mandatory CSRD reporting. Adoption of the voluntary standard could enhance SMEs’ access to sustainable finance and improve their overall competitiveness.
🔗 Read more → European Commission

ECB Introduces Climate Factor to Manage Collateral Risk
The European Central Bank (ECB) has announced plans to adjust its collateral framework by integrating a "climate factor" to address financial risks from climate transition. Starting in the second half of 2026, the ECB will reduce collateral valuations for certain marketable assets issued by non-financial corporations based on their exposure to climate-related uncertainties. This approach will leverage scenario analyses and issuer-specific climate scores to strengthen the Eurosystem’s monetary policy implementation and enhance financial resilience.
🔗 Read more → European Central Bank

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🧼 Greenwashing Watch

BC Greens Accuse Government of Greenwashing LNG Subsidies
The BC Greens (Green Party of British Columbia) have criticized the New Democratic Party (NDP) government's $200 million investment in the Cedar liquefied natural gas (LNG) project, accusing officials of greenwashing by promoting LNG as clean energy without evidence. The Greens argue this subsidy undermines BC’s climate targets and call for investment in sustainable economic alternatives.
🔗 Read more → BC Greens

BlackRock Faces Renewed Scrutiny Over Fossil Fuel Investments in “Green” Funds
Despite public pledges to sustainability, BlackRock continues to funnel billions into fossil fuel companies through funds labeled as "sustainable" or "ESG". Critics argue this practice misleads investors, as several BlackRock funds promoted under sustainable branding hold substantial assets related to fossil fuels. Regulatory authorities and NGOs, including Client Earth, have challenged these practices, accusing BlackRock of greenwashing and violating EU sustainability disclosure rules.
🔗 Read more → voxeurop

💡 Insight of the Week

Navigating the Complex Greenwashing Landscape
As greenwashing litigation rapidly expands worldwide, companies face heightened complexity and risk due to fragmented global regulations and increasingly active NGO and consumer-driven lawsuits. Multinationals are particularly vulnerable, with litigation targeting misleading environmental claims across sectors including oil and gas, transportation, and consumer goods. Proactive legal consultation, multidisciplinary review, and tailored training for marketing teams are critical strategies for businesses seeking to mitigate legal exposure in this evolving landscape.
🔗 Read more → Thomson Reuters

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