Issue - December 9, 2025

Good morning. It’s Tuesday, December 9, and this week’s ESG Litigation Weekly covers UK rulings that Nike, Lacoste, and Superdry’s ads were likely to mislead consumers with “sustainable” fashion claims, major PCB contamination settlements with Monsanto in Illinois and West Virginia, updated Bank of England’s PRA expectations on climate risk management for UK banks and insurers, and more.

Illinois and West Virginia Reach PCB Contamination Settlements With Monsanto
Illinois and West Virginia have reached separate settlements with Monsanto, Solutia, and Pharmacia over long-running polychlorinated biphenyls (PCB) contamination of natural resources and communities. Illinois will receive $80 million by March 2026, plus at least $40 million up to a maximum of $200 million, to address PCB pollution in the state and nine municipalities. West Virginia is guaranteed $24.5 million, with a potential total of $60.5 million, for PCB-impaired rivers, lakes, and streams. Monsanto denies wrongdoing, and additional payments depend on the outcome of its indemnity litigation against former PCB customers.
🔗 Read more → Illinois AG’s Announcement, West Virginia AG’s Announcement, Bayer’s Statement

ClientEarth Challenges German Gas Power Plant Subsidies Under EU State Aid Rules
ClientEarth has filed a complaint with the European Commission over Germany’s “power plant strategy”, which would channel billions of euros in public subsidies into new gas power capacity. The group argues that the planned scheme breaches EU State aid rules because it is neither necessary, proportionate, nor appropriate for decarbonization and energy security, and distorts competition with cleaner technologies. ClientEarth also criticizes “hydrogen-ready” gas projects rather than prioritizing cleaner alternatives because they could create long-term fossil fuel dependency, and these subsidy costs will be passed on to consumers in the end.
🔗 Read more → ClientEarth

Utah Youth Sue State Over Fossil Fuel Permits Endangering Their Health
Ten young Utah residents have filed a lawsuit against the state oil and gas regulators, arguing that permits issuance for coal, oil, and gas projects violate their constitutional rights to life, health, and safety (case: Roberts v. Board of Oil, Gas, and Mining). The case builds on the earlier Natalie R. v. State of Utah litigation, but targets the harms caused by specific fossil fuel permit decisions instead of the broader energy policy. The youth ask the court to declare the permits unconstitutional, review or revoke existing permits, and require future permits to take into account emissions, public health risks, and safer energy alternatives.
🔗 Read more → Our Children’s Trust (Press Release, Complaint Filing)

PRA Finalizes Updated Climate Risk Expectations for Banks and Insurers
The Bank of England’s Prudential Regulation Authority (PRA) has issued Policy Statement 25/25 (PS25/25) and a new Supervisory Statement 4/25 (SS4/25), replacing SS3/19 and updating expectations for how UK banks and insurers manage climate-related financial risks. The revised statement moves from awareness raising toward embedding climate risk into governance, risk management, scenario analysis, data, and disclosures on a proportionate basis. Firms have six months until June 3, 2026, to assess their alignment, identify gaps, and agree on credible plans to address them before supervisors begin asking for evidence. The PRA also clarifies how firms should apply proportionality, particularly around scenario analysis and data use.
🔗 Read more → Bank of England (PS25/25, SS4/25)

UK Regulator Proposes New Oversight Regime for ESG Rating Providers
The UK Financial Conduct Authority (FCA) has published proposals to bring ESG rating providers into its regulatory remit following strong support in a government consultation. The planned regime aims to make ESG ratings more transparent, reliable, and comparable, focusing on disclosure, governance and controls, conflict management, and stakeholder engagement and complaints handling. The FCA expects the rules to deliver around £500 million in net benefits over the next ten years. Final rules are planned for Q4 2026, with application from June 2028. The public consultation runs until March 31, 2026.
🔗 Read more → FCA (Press Release, CP25/34 Consultation Paper, CP25/34 Response Form)

Trump Administration Unveils Plan to Reset US Fuel Economy Standards
The Trump administration has launched its "Freedom Means Affordable Cars" proposal, issuing the National Highway Traffic Safety Administration’s (NHTSA) Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule III for model years 2022-2031. The proposed rule would slow the pace of corporate average fuel economy standards (CAFE) increases for passenger cars and light trucks through model year 2031, target an average of 34.5 miles per gallon, and phase out CAFE credit trading from model year 2028. The administration says the changes will lower vehicle prices and boost U.S. auto manufacturing, and is seeking public comment until January 20, 2026.
🔗 Read more → U.S. Department of Transportation, The White House’s Fact Sheet, Federal Register “The SAFE Vehicles Rule III for Model Years 2022 to 2031 Passenger Cars and Light Trucks”

EFRAG Delivers Draft Simplified ESRS Advice to European Commission and Launches the ESRS Knowledge Hub
EFRAG has submitted technical advice to the European Commission on draft simplified European Sustainability Reporting Standards (ESRS) as part of the 2025 Omnibus initiative to reduce reporting burdens. Drawing on experience from 2024 reporters and over 700 consultation responses, the proposal introduces more flexibility, reliefs, and phasing in, and cuts mandatory data points by 61%. Key changes include a simplified materiality assessment, more flexible value chain data requirements, and shorter, more principles-based standards that aim to preserve useful information while easing compliance costs. Following the submission, EFRAG has launched the ESRS Knowledge Hub, an interactive online platform that brings together all key materials related to the ESRS.
🔗 Read more → EFRAG (Press Release, Draft Simplified ESRS, ESRS Knowledge Hub)

EU Opens Public Consultation on Future Climate Resilience Framework
The European Commission has launched a public consultation on the future EU framework for climate resilience and risk management, inviting citizens, businesses, and public authorities to help shape how Europe prepares for and responds to climate change. The framework, due for adoption in late 2026, will follow up on the Commission’s Communication on Managing Climate Risks (COM/2024/91 final) and aims to protect health, anticipate high-impact risks, strengthen preparedness, and promote climate-resilient solutions. Stakeholders can submit feedback via the Have Your Say portal until 23 February 2026.
🔗 Read more → European Commission (Public Consultation Invitation, Survey Link, COM/2024/91 Final)

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ASA Rules Nike, Lacoste, and Superdry Ads Likely to Mislead Consumers With “Sustainable” Fashion Claims
The UK Advertising Standards Authority (ASA) issued three related rulings against Nike, Lacoste, and Superdry over paid Google ads that made broad claims such as “sustainable materials”, “sustainable clothing”, and “Sustainable Style. Unlock a wardrobe that combines style and sustainability” without a clear explanation. The cases were flagged by the ASA’s AI-based Active Ad Monitoring as part of a wider review of environmental claims in fashion.
Nike highlighted tennis polo shirts made with at least 75% recycled polyester, supported by Higg MSI data. Lacoste said that around 78% of its Lacoste Kids range uses certified fabrics and relies on life cycle analysis to show footprint reductions versus a 2022 baseline. Superdry reported that 64% of its garments, footwear, and accessories contained “sustainably sourced” materials based on Textile Exchange standards.
In each case, the ASA found that unqualified use of the word “sustainable” would be understood as an absolute claim that products or collections have no overall detrimental environmental impact across their life cycle. None of the companies provided evidence at that level. Relying on the Committee of Advertising Practice (CAP) Code rules and the Competition and Markets Authority (CMA) guidance, the ASA concluded that all three ads were likely to mislead and ordered that they not appear again in the same form, reminding fashion brands that general “sustainable” claims require clear scope, prominent qualification, and robust substantiation at the life cycle level.
🔗 Read more → ASA Rulings on: Nike Retail BV t/a Nike, Lacoste E-commerce t/a Lacoste, and Supergroup Internet Ltd t/a Superdry

German Suit Halts Coty's “Ocean-Friendly” Sunscreen Claim
The German environmental group Deutsche Umwelthilfe (DUH) has secured a court settlement preventing Coty from promoting Lancaster sunscreen as “ozeanfreundlich” (“ocean friendly”). DUH argued that Coty’s “ocean-friendly” claim relied on tests that examined only certain UV filters and a limited number of marine species, ignoring other ingredients and potential impacts. Coty has agreed to stop using the claim and to run down existing “ocean-friendly” packaging.
🔗 Read more → DUH (in German)

Class Action Targets CleanChoice Over “100% Clean Energy” Claims
A new consumer class action filed in the U.S. District Court of Massachusetts accuses CleanChoice Energy of deceptive pricing and marketing of its electricity services. The complaint, brought by Finkelstein Blankinship Frei-Pearson & Garber and Wittels McInturff Palikovic on behalf of thousands of Massachusetts customers, alleges that CleanChoice misrepresented its variable electricity rates and promoted “100% clean, pollution-free energy” while actually delivering standard grid power paired with separate renewable energy credits. Plaintiffs say customers paid up to 500% above market rates between 2021 and 2025.
🔗 Read more → Radar (Law.com)

A Decade of Climate Cases and a New Legal Architecture
The Climate Litigation Network’s new report reviews ten years of “framework” climate cases that challenge governments’ and companies’ overall mitigation ambition. Out of nearly 3,000 climate cases filed since 2015, 151 are framework cases, including 128 against governments and 23 against corporations. The report concludes that courts are building a global legal architecture for climate protection, defining minimum duties to reduce emissions, scrutinizing government support for fossil fuels, and advancing loss and damage claims. It also highlights how landmark rulings are driving policy change and reshaping climate risk for high-emitting companies.
🔗 Read more → Climate Litigation Network’s Publication “Laying the Foundations for Our Shared Future”

Catch up on previous editions → ESGLitigation.com

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