Issue - February 10, 2026

Good morning. It’s Tuesday, February 10, and this week’s ESG Litigation Weekly covers Brazilian prosecutors’ and Minas Gerais authorities’ efforts to seek precautionary asset freezes and operating restrictions on Vale after January mine overflows, the EEOC’s move to ask a federal court to enforce a subpoena in its probe of Nike’s DEI-related practices, a UK advertising watchdog decision upholding P&G’s challenges to “sustainable” and “biodegradable” claims for Kit & Kin and The Cheeky Panda baby products, and more.

Brazil Authorities Seek Asset Freezes Against Vale After Mine Overflows
Brazilian prosecutors and Minas Gerais authorities filed legal actions seeking precautionary asset freezes and operational restrictions on Vale after January 2026 overflows at its Fábrica (Ouro Preto) and Viga (Congonhas) units. Vale said three proceedings request preliminary relief, including freezes of R$846 million and R$1 billion linked to Fábrica, and R$200 million linked to Viga. A state civil action against Fábrica alleges that a January 25 failure at Pit Area 18 released about 262,000 m³ of water and sediment and seeks a preventive halt pending proof of stability. Vale said the incidents are not related to its dams.
🔗 Read more → Ministério Público Federal’s Press Releases (Viga, Fábrica), Ministério Público de Minas Gerais (Petition, Court Decision), Vale’s Press Release

EEOC Seeks Court Order to Enforce Subpoena in Nike DEI Probe
The U.S. Equal Employment Opportunity Commission (EEOC) filed a subpoena enforcement action in the Eastern District of Missouri seeking a court order requiring NIKE, Inc. to produce information tied to allegations of systemic race discrimination against white workers. The EEOC says it is investigating whether Nike engaged in a pattern or practice affecting hiring, promotion, demotion, separation, and layoffs, as well as internships and mentoring or leadership programs. Some requests date back to 2018 and include layoff selection criteria, race and ethnicity tracking, and information on 16 Diversity, Equity, and Inclusion (DEI) related programs. The enforcement action followed the company’s failure to provide all subpoenaed materials.
🔗 Read more → EEOC’s Press Release, Court Filing via Courthouse News Service

Missouri DEI Suit Against Starbucks Dismissed for Lack of Standing
A federal judge in St. Louis dismissed Missouri’s lawsuit accusing Starbucks of using DEI initiatives to discriminate by race, sex, and sexual orientation. Judge John Ross held the State lacked standing, finding the complaint did not identify even one Missouri resident who was denied a job, passed over, disciplined, or otherwise harmed by Starbucks’ alleged practices. Missouri had claimed that Starbucks tied executive incentives to diversity goals and provided certain groups with additional mentorship and advancement opportunities. Reuters reported the Missouri AG’s office said it will continue pursuing similar cases.
🔗 Read more → Reuters, Court Order via JUSTIA

Sunrise Wind Injunction Means All Five Suspended Offshore Wind Projects Can Proceed Pending Litigation
The U.S. District Court for the District of Columbia granted Sunrise Wind LLC a preliminary injunction against a December 22, 2025, suspension order issued by the Bureau of Ocean Energy Management (BOEM). The ruling allows Sunrise Wind, a wholly owned Ørsted subsidiary, to restart impacted activities immediately while its lawsuit challenging the BOEM order continues. With this decision, each of the five projects paused under the BOEM suspension orders has now obtained court relief allowing work to continue during litigation (Revolution Wind, Empire Wind, Coastal Virginia Offshore Wind, Vineyard Wind, and Sunrise Wind).
🔗 Read more → Ørsted’s Press Release

Youth Climate Challenges Move Forward in Ontario and Sweden
Two youth-led climate cases advanced in Ontario and Sweden. Seven young Ontarians in Mathur et al. v. Ontario will return to the Ontario Court of Appeal, which will hear a motion to reconsider whether the Ford government’s climate target and plan violate Charter rights after the province repealed parts of its climate accountability framework, delaying a scheduled rehearing. Briefing is due April 20, 2026. In Sweden, youth group Aurora filed a new lawsuit alleging Sweden’s targets are not a fair share for limiting warming to 1.5°C, and that net zero by 2045 is too late.
🔗 Read more → Ecojustice’s Press Release, Aurora’s Press Release

Developer Sues Exxon Over Alleged CO₂ Pipeline Constraints on the Gulf Coast
Clean Hydrogen Works (CHW), a low-carbon ammonia developer, filed a second amended petition in the Texas Business Court alleging ExxonMobil and Denbury Carbon Solutions engaged in anticompetitive conduct tied to Denbury’s Gulf Coast CO₂ transport infrastructure. CHW alleges that after Exxon acquired Denbury in late 2023, Denbury later moved to terminate CO₂ services commitments for CHW’s planned blue ammonia project in Ascension Parish, Louisiana. CHW says the reversal disrupted financing and schedules and that alternative CO₂ transport and storage options could cost more than $1 billion and cause significant delays.
🔗 Read more → Carbon Herald, Court Petition via ALM.com

EU Adopts Voluntary Certification Methods for Permanent Carbon Removals
The European Commission adopted a delegated regulation establishing the first certification methodologies under the Carbon Removals and Carbon Farming (CRCF) Regulation for permanent carbon removals. The voluntary rules cover direct air capture with carbon storage (DACCS), biogenic emissions capture with carbon storage (BioCCS), and biochar carbon removal. The methodologies set requirements for quantification, monitoring, permanence, sustainability, and liability for reversals, including how key risks such as leakage are addressed. The act will go to the European Parliament and Council for scrutiny, with publication expected in early April in the absence of objections.
🔗 Read more → European Commission (Press Release, Delegated Act)

Federal Court Blocks Texas SB 13 Restrictions Targeting “Energy Boycotts”
A federal judge in the Western District of Texas granted partial summary judgment to the American Sustainable Business Council and declared Texas Senate Bill 13 (SB 13) unconstitutional in a February 3, 2026, order. The 2021 law required certain state funds to divest from and restrict contracts with financial firms deemed to “boycott” energy companies. Judge Alan D. Albright held that SB 13 was facially overbroad under the First Amendment and unconstitutionally vague under the Fourteenth Amendment, finding its “boycott” definition could reach protected expression and lacked objective standards, inviting arbitrary or discriminatory enforcement.
🔗 Read more → Court Order via JUSTIA, SB 13 Text

Canada Unveils New Auto Strategy With Tougher Emissions Standards and EV Incentives
Canada announced a new automotive strategy aimed at strengthening domestic production and reducing reliance on a single trade partner. The government said it will introduce more stringent light-duty vehicle greenhouse gas standards that put Canada on a path to 75% EV sales by 2035 and 90% by 2040, and that they will enable repeal of the Electric Vehicle Availability Standard (a.k.a. EV sales mandate) and allow manufacturers flexibility in compliance technologies. Canada also launched a five-year C$2.3 billion EV affordability program with purchase or lease incentives and committed C$1.5 billion to expand charging infrastructure.
🔗 Read more → Prime Minister of Canada’s News Release

U.S. Treasury and IRS Propose Rules for Clean Fuel Tax Credit After OBBBA Changes
U.S. Treasury and the IRS issued proposed regulations for the clean fuel production credit, commonly called the section 45Z credit, as amended by the One Big Beautiful Bill Act (OBBBA). The credit applies to clean transportation fuel produced in the U.S. after December 31, 2024, and sold by December 31, 2029, and requires IRS registration via Form 637 at the time of production. The proposal addresses how to calculate the credit, determine emissions rates, and meet certification and registration requirements. It also reflects statutory changes, including feedstock sourcing limits, restrictions tied to prohibited foreign entities, anti-abuse rules, and limits on negative emissions rates. Public comments are due by April 6, with a public hearing scheduled on May 28.
🔗 Read more → IRS’s News Release, Proposed Rule “Section 45Z Clean Fuel Production Credit” via Federal Register

SBTi Opens Second Consultation on Updated Automotive Net-Zero Standard Draft
The Science Based Targets initiative (SBTi) launched a second public consultation on an updated draft Automotive Sector Net-Zero Standard for automakers and auto parts suppliers pursuing science-based net-zero targets by 2050. The draft aims to better align with the developing Corporate Net-Zero Standard V2 and clarify treatment of scope 3 “use of sold products” emissions, which SBTi says typically represent 70% to 80% of an automaker’s footprint. Key updates include redefining low-emission vehicles as zero-emission vehicles, offering target-setting options based on use-phase emissions or ZEV sales share, and extending the target convergence date to reflect regional differences.
🔗 Read more → SBTi (News Release, 2^nd Public Consultation Draft)

GHG Protocol Releases New Corporate Standard for Land-Sector Emissions and Removals
GHG Protocol released its Land Sector and Removals (LSR) Standard, a global framework for companies to account for greenhouse gas emissions and CO₂ removals from agricultural land use and emerging removal technologies. The LSR Standard takes effect on January 1, 2027, and allows companies to include nature- and technology-based removals in Scope 1 and Scope 3 inventories if robust safeguards are met. GHG Protocol said the five-year process included 96 pilot companies, over 300 external reviewers, and 4,000 public comments. Forest carbon accounting is deferred, with a Request for Information to be issued to gather stakeholder input on how it can best be incorporated in a future update of the LSR Standard.
🔗 Read more → GHG Protocol’s LSR Standard (Full Version, Executive Summary, FAQ)

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UK Ad Watchdog Upholds P&G Challenges to “Sustainable” and “Biodegradable” Claims for Baby Products
The UK Advertising Standards Authority (ASA) upheld Procter and Gamble UK’s challenges to environmental claims used for Kit & Kin’s “eco” nappies and wipes and The Cheeky Panda’s bamboo nappies and wipes. The ASA found the ads conveyed a broad environmental benefit that was not clearly explained or supported. It said unqualified “sustainable,” “sustainable bamboo,” and “100% sustainable bamboo” claims were absolute and required substantiation based on the full product life cycle. The ASA also upheld challenges to “biodegradable” claims, finding evidence did not show the wipes as a whole would biodegrade as consumers would expect in real-world disposal conditions.
🔗 Read more → ASA Rulings (Kit & Kin Ltd, The Cheeky Panda Ltd)

Igloo Labeling Suit Proceeds on “Biodegradable,” Recycled Content, and “Made in USA” Claims
A federal judge in Brooklyn allowed consumer claims to proceed challenging Igloo coolers marketed as “biodegradable,” made with post-consumer recycled plastic, and “Made in USA.” The court held the plaintiffs plausibly alleged the unqualified labels could mislead reasonable consumers about how the products degrade in customary disposal, whether recycled-content claims implied fully recycled materials, and whether “Made in USA” suggested domestic sourcing of key components. The court dismissed the claims for breach of express warranty and unjust enrichment and left class-standing issues for later stages.
🔗 Read more → Court Order via JUSTIA

Report Flags Steep Decline in U.S. Federal Environmental Enforcement in 2025
A new Environmental Integrity Project (EIP) report shows federal environmental enforcement dropped sharply in the first year of President Trump’s second term. The report found the Justice Department filed 16 civil judicial complaints referred by EPA, and judicial case settlements fell to 40, with most settled matters initiated under prior administrations. It also reported EPA assessed about $41 million in administrative penalties through September 30, 2025. The report links the trend to policy and process changes, including added internal approvals for some cases, and cites EPA data showing limited enforcement for many high-priority air and water violators.
🔗 Read more → EIP Report

Catch up on previous editions → ESGLitigation.com

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