Issue - December 16, 2025

Good morning. It’s Tuesday, December 16, and this week’s ESG Litigation Weekly covers a federal court vacating the wind energy permitting ban issued under President Trump’s memorandum, the European Commission’s “Environmental Omnibus” proposals to simplify environmental legislation, an OECD complaint targeting ArcelorMittal’s climate strategy and emissions reductions, and more.

A quick heads-up: ESG Litigation Weekly will be on a short break from December 22, 2025, through January 2, 2026. The next issue will be delivered on January 6, 2026. Wishing you a restful holiday season and a strong start to 2026.

Federal Court Vacates Wind Permitting Pause Issued Under Trump “Wind Memo”
On December 8, the U.S. District Court for the District of Massachusetts ruled that an agency-wide pause on wind energy authorizations was a final agency action that was arbitrary, capricious, and contrary to law. The case was brought by a coalition of 17 state attorneys general (AG), the District of Columbia, and Alliance for Clean Energy New York under the Administrative Procedure Act in May earlier this year. They challenged the order by several federal agencies to immediately pause issuance of all wind energy authorizations following President Trump’s January 20 executive memorandum on wind leasing and permitting. The court declared the Wind Order unlawful and vacated it in full.
🔗 Read more → Court Memorandum and Order (via Office of the NY State AG)

Court Orders FEMA to Reverse BRIC Program Shutdown
Washington and a multistate coalition secured a court victory requiring the Trump administration to reverse the Federal Emergency Management Agency’s (FEMA) termination of the Building Resilient Infrastructure and Communities (BRIC) program, which funds pre-disaster mitigation projects. The court found FEMA’s abrupt shutdown violated Congress’s funding decision and concluded the executive branch lacked lawful authority to withhold appropriated funds. The judge also found violations of the Separation of Powers, the Appropriations and Spending Clauses, and the Administrative Procedure Act. FEMA must reinstate the program and make funds available again.
🔗 Read more → Office of the Washington State AG (Press Release, Court Memorandum and Order)

Philippines Typhoon Survivors Sue Shell in UK Over Alleged Climate Harms
More than 100 Filipinos affected by Super Typhoon Odette, represented by Hausfeld, filed a claim on December 9 at the UK Royal Court of Justice seeking damages for personal and property losses from Shell. They argue that Shell’s actions contributed to climate change, making Odette significantly more likely and more severe. Odette struck on December 16, 2021, killing or severely injuring more than 1,500 people, destroying 1.4 million homes, and affecting around 8 million people. The filing is described as the first case linking deaths, injuries, and property loss in the Global South to a fossil fuel company in the Global North.
🔗 Read more → Hausfeld, The Odette Case

Lawsuit Challenges BLM Approval of ConocoPhillips Arctic Exploration Program
Conservation groups and an Iñupiat-led grassroots organization filed a lawsuit to overturn the Bureau of Land Management’s (BLM) approval of ConocoPhillips’ one-year winter seismic and exploration drilling program in the National Petroleum Reserve-Alaska. The BLM approved the program on November 26, including seismic surveys across hundreds of square miles and plans to drill four exploration wells near its Willow project. The lawsuit, filed in U.S. District Court in Anchorage, alleges the BLM failed to mitigate serious harm to tundra, the Teshekpuk Caribou Herd, and Alaska Native subsistence resources.
🔗 Read more → Earthjustice (Press Release, Complaint Filing)

OECD Complaint Targets ArcelorMittal’s Climate Strategy and Emissions Reduction
Opportunity Green filed a “specific instance” complaint to Luxembourg’s National Contact Point under the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, supported by SteelWatch, BankTrack, and Ecologistas en Acción. The complaint argues ArcelorMittal lacks a robust, science-based climate strategy aligned with the 1.5°C pathway and is not reducing emissions at the pace and scale expected under the Guidelines, including not meeting related human rights expectations. It highlights the company’s continued reliance on coal-based steelmaking, slow progress toward its 2030 targets, delays or cancellations of European green steel projects, and ongoing coal-linked expansion plans.
🔗 Read more → Opportunity Green (Press Release, Complaint Filing)

Montana Youth Ask State Supreme Court to Enforce Held Climate Ruling
Thirteen Montana youth filed Held v. State of Montana II, asking the Montana Supreme Court to enforce its 2024 Held v. State of Montana ruling on the constitutional right to a clean and healthful environment. They challenge the 2025 amendments to the Montana Clean Air Act (CAA) and Montana Environmental Policy Act (MEPA), arguing that these amendments limit greenhouse gas regulation to federal minimums, require agencies to ignore upstream and downstream emissions, and prevent fossil fuel permits from being denied or conditioned based on MEPA review. Petitioners argue that the Department of Environmental Quality is already relying on these amended laws. They seek declaratory relief, not damages.
🔗 Read more → Our Children’s Trust (Press Release, Petition for Original Jurisdiction)

European Commission Unveils “Environmental Omnibus” to Cut Red Tape
The European Commission presented an “Environmental Omnibus” package of six legislative proposals to simplify environmental rules covering industrial emissions, the circular economy, environmental assessments, and geospatial data. The measures aim to reduce administrative burdens while maintaining environmental and public health objectives, as well as speeding up project permitting, including through single points of contact and digitalization. The Commission estimates businesses could save about €1 billion per year with this proposal. Proposed changes include easing requirements under the Industrial Emissions Directive, repealing the Substances of Concern in Products (SCIP) database, suspending certain obligations under the Extended Producer Responsibility (EPR), and aligning INSPIRE geospatial rules. The proposals will now be submitted to Parliament and the Council.
🔗 Read more → European Commission (Press Release, Factsheet, Q&A, Proposals Package)

EU Council and Parliament Reached a Deal on CSRD and CSDDD Simplification
On December 10, the Council of the EU and the European Parliament reached a provisional agreement on the EU Omnibus Simplification Package, with approval by the European Parliament expected on December 16 following the scheduled plenary vote. Under the agreement, the Corporate Sustainability Reporting Directive (CSRD) would apply only to EU companies with over 1,000 employees and more than €450 million in net annual turnover, and to non-EU companies generating over €450 million in the EU. For the Corporate Sustainability Due Diligence Directive (CSDDD), the scope narrows to companies with over 5,000 employees and €1.5 billion turnover, removes climate transition plan obligations, caps fines at 3% of a company’s global turnover, and delays transposition to July 2028, with compliance by July 2029.
🔗 Read more → Council of the EU: Letter Sent to the European Parliament

White House Order Targets Proxy Advisors and ESG-Linked Voting Guidance
President Trump issued an executive order focused on two foreign-owned proxy advisors, Institutional Shareholder Services Inc. and Glass, Lewis & Co., LLC, citing their market influence and concerns about politicized recommendations tied to ESG and diversity, equity, and inclusion (DEI). The order directs the Securities and Exchange Commission (SEC) Chair to review and consider revising rules and guidance on proxy advisors and shareholder proposals, including Rule 14a-8, and to assess steps such as anti-fraud enforcement, adviser registration, and greater transparency on methodologies and conflicts of interest. It also directs the Federal Trade Commission (FTC) to review possible anticompetitive or deceptive practices, and asks the Secretary of Labor to revisit the Employee Retirement Income Security Act of 1974 (ERISA) fiduciary standards and disclosure around proxy voting advice.
🔗 Read more → Executive Order (via the White House)

CARB Publishes Draft Rules for SB 253 and SB 261, Sets February 2026 Hearing
Last week, the California Air Resources Board (CARB) released proposed regulatory text and related rulemaking materials for the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261), as amended by SB 219. The draft rules address the key requirements, including the applicability, definitions, fee calculations, and enforcement. CARB also sent the proposed text to the California Office of Administrative Law and expects a public comment period ending on February 9, 2026. A public hearing is scheduled for February 26, 2026.
🔗 Read more → CARB (Proposed Regulatory Text, Notice of Public Hearing, Staff Report: Initial Statement of Reasons)

New York Proposes Updates to Strengthen RGGI and Reduce Emissions Cap
The New York State Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) released proposed updates to the Regional Greenhouse Gas Initiative (RGGI) to reduce power sector emissions while supporting affordability and reliability. They said New York power sector carbon dioxide emissions have declined more than 50% from 2005 levels, and the CO₂ Allowance Auction Program has generated more than $3 billion. The proposal would lower the regional emissions cap to about 69.8 million tons of CO₂ in 2027 and decline it further through 2037, while expanding the Cost Containment Reserve (CCR) and adding a second CCR allowance tier. Public comments run through February 17, 2026, with virtual hearings on February 9.
🔗 Read more → Proposed Regulations (via DEC), NYSERDA’s Announcement

In partnership with you.com

Successful AI transformation starts with deeply understanding your organization’s most critical use cases. We recommend this practical guide from You.com that walks through a proven framework to identify, prioritize, and document high-value AI opportunities.

In this AI Use Case Discovery Guide, you’ll learn how to:

Get the Guide.

Court Allows Amendment in Florida Crystals’ “Save the Planet” Sugar Greenwashing Suit
In a putative class action, a California consumer alleges Florida Crystals deceptively marketed certain sugar products as eco-friendly, citing front-label statements such as “Farming to Help Save the Planet” and “our farms help fight climate change & build healthy soil”. On December 8, the court partially granted the company’s motion to dismiss because the amended complaint did not clearly explain how the challenged statements allegedly misled consumers, especially given inconsistencies between the pleading and the opposition briefing. Plaintiff may file a Second Amended Complaint by January 9, 2026, while other dismissal arguments were denied without prejudice.
🔗 Read more → Court Order (via JUSTIA)

DUH Sues Rothaus Over “Climate Positive 2030” Advertising Claim
Deutsche Umwelthilfe (DUH) filed a climate-related lawsuit against Badische Staatsbrauerei Rothaus AG in the Regional Court (Landgericht) Waldshut-Tiengen. DUH challenges a poster campaign that promotes the slogan “Klimapositiv 2030” (“climate positive 2030”), arguing that the claim is misleading because consumers are not given enough information on how the brewery plans to achieve the goal. DUH says the QR code printed on the poster led only to a brewery webpage that also provided insufficient details.
🔗 Read more → DUH (in German)

Practical Sustainability Signals Founders Can Share Without Greenwashing
Founders face a credibility bind on sustainability: saying too much can trigger greenwashing claims, but saying nothing can look out of touch. An expert opinion by Professor Benjamin Laker on Inc.com argues for narrower, more defensible communication that starts with concrete actions instead of broad labels like “eco-friendly” or “sustainable”. It recommends highlighting visible operational choices such as packaging and shipping changes, explaining supplier decisions with transparency, and avoiding claims about unmeasurable outcomes. A key distinction of credible sustainability signals is to describe controllable inputs and trade-offs instead of identity statements or sweeping impact promises, and to sometimes stay quiet when changes are minor.
🔗 Read more → Inc.com

Additional Notable Updates:

ISSB Introduces Specific Amendments to IFRS S2 to Aid Implementation
🔗 Read more → IFRS (Targeted Amendments to IFRS S2 - At a Glance, Amendments to IFRS S2: Amendments to Greenhouse Gas Emissions Disclosures, Amendments to SASB Standards: Consequential Amendments to Align with Amendments to Greenhouse Gas Emissions Disclosures)
GRI Releases Exposure Drafts Proposing Updates to Four Topic Standards Covering Workers’ Rights and Protections, with the Public Comment Period Open until March 9, 2026
🔗 Read more → GRI (Press Release, GRI Topic Standard Project for Labor’s Exposure Drafts: Labor Rights in Business Relationships, Freedom of Association and Collective Bargaining, Forced Labor, Child Labor)

Catch up on previous editions → ESGLitigation.com

Enjoyed this issue? Feel always free to share it with your colleagues!
Have feedback or collaboration ideas? Contact us at [email protected]