Issue - February 24, 2026

Good morning. It’s Tuesday, February 24, and this week’s ESG Litigation Weekly covers a broad coalition suing the U.S. EPA over the repeal of the 2009 GHG endangerment finding and related GHG vehicle standards, an Australian Federal Court decision dismissing ACCR’s greenwashing case against Santos over climate and transition claims, the ECB’s penalty payments against Crédit Agricole for missing a supervisory deadline to assess the materiality of climate and environmental risks, and more.

Coalition Challenges EPA Repeal of Vehicle GHG Rules and 2009 Endangerment Finding
A coalition of public health and environmental groups filed a petition for review in the D.C. Circuit challenging the U.S. Environmental Protection Agency’s (EPA) rescission of the 2009 greenhouse gas (GHG) endangerment finding and related vehicle GHG standards. The groups argue EPA is legally required under the Clean Air Act to regulate pollutants that endanger public health or welfare and say the 2009 finding, issued after the Supreme Court’s decision in Massachusetts v. EPA, underpinned federal limits on climate pollution from cars and trucks. The petition also challenges the EPA’s elimination of vehicle GHG emissions standards, which the groups suggest would increase fuel costs and harm health.
🔗 Read more → Environmental Defense Fund (Press Release, Petition for Review)

Paris Court Hears Landmark Duty of Vigilance Climate Case Against TotalEnergies
The Paris Judicial Court held hearings in a climate case against TotalEnergies brought under France’s 2017 duty of vigilance law on February 19 and 20. The suit was initiated in 2020 by a coalition of local authorities and NGOs. Plaintiffs argue TotalEnergies’ vigilance plan must address climate risks and seek orders to halt new fossil fuel projects, align production and emissions with a 1.5°C pathway, and impose a daily penalty for noncompliance. TotalEnergies disputes liability and argues the law does not cover climate change. France’s public prosecutor’s office filed an opinion supporting the company, while a ruling is expected before summer.
🔗 Read more → Courthouse News Service, Notre Affaire à Tous et al’s International Media Brief

PacifiCorp to Pay $575M to Resolve U.S. Claims Tied to Six West Coast Wildfires
PacifiCorp agreed to pay $575 million to settle U.S. claims seeking damages for six wildfires in California and Oregon that burned federal lands between 2020 and 2022. The settlement covers the Slater Fire and McKinney Fire in California and the 242 Fire, Archie Creek Fire, Echo Mountain Complex Fire, and South Obenchain Fire in Oregon. The United States alleged that PacifiCorp’s power lines negligently started the fires. Settlement funds will reimburse federal firefighting costs and support restoration of some of the 290,000 acres of burned public land through the Forest Service and Bureau of Land Management. PacifiCorp denies liability, and the settlement includes no liability finding.
🔗 Read more → U.S. Department of Justice’s Press Release

Court Orders $120M in Penalties and Community Funding in Zug Island Clean Air Act Case
A federal court ruled that DTE entities and EES Coke Battery violated the Clean Air Act at a coke facility on Zug Island by operating without the required New Source Review permitting, which the court found allowed substantial sulfur dioxide emissions affecting nearby communities. The court ordered defendants to pay a $100,000,001 civil penalty, apply for and obtain the requisite permits, and create a Community Quality Action Committee funded with $20 million for local air-quality and health projects. The court declined to order the installation of specific desulfurization technology.
🔗 Read more → Earthjustice (Press Release, Court Order)

Coalition of States Sues Over Termination of California Hydrogen Hub and Clean Energy Grants
California and 12 other states filed suit in federal court in San Francisco, challenging the U.S. Department of Energy (DOE) and Office of Management and Budget (OMB) actions terminating or abandoning congressionally funded energy and infrastructure awards. California focuses on DOE’s termination of up to $1.2 billion for ARCHES (Alliance for Renewable Clean Hydrogen Energy Systems), the state’s planned renewable hydrogen hub, and a $4 million grant under the Resilient and Efficient Codes Implementation program. The complaint alleges the terminations violate the separation of powers and the Administrative Procedure Act because Congress appropriated the funds. California points out that the cancellations threaten jobs and public health benefits.
🔗 Read more → California Governor's Office (Press Release, Complaint Document)

ECB Fines Crédit Agricole for Missing Deadline to Assess Climate Risk Materiality
The European Central Bank (ECB) imposed periodic penalty payments totaling €7,551,050 on Crédit Agricole S.A. for failing to comply with an ECB supervisory decision requiring a materiality assessment of climate-related and environmental risks. The ECB said its February 8, 2024 decision required the bank to strengthen identification of material climate and environmental risks by May 31, 2024, with daily penalties accruing if the deadline was missed. Crédit Agricole did not meet the requirement by the deadline and remained noncompliant for 75 full days in 2024. The ECB noted the measure is part of its escalation process to enforce binding climate risk management requirements, and the bank can challenge the decision in the EU court. It issued its first climate penalty against ABANCA Corporación Bancaria, S.A in November 2025 for also insufficiently assessing and documenting the materiality of its climate and environmental risks before the deadline.
🔗 Read more → ECB’s Press Release

EU Financial Authorities Support ESRS Simplification but Warn on Permanent Reliefs
The ECB staff, European Securities and Markets Authority (ESMA), European Banking Authority (EBA), and European Insurance and Occupational Pensions Authority (EIOPA) issued opinions on EFRAG’s draft revised European Sustainability Reporting Standards (ESRS), broadly welcoming simplification and more materiality-focused reporting. They warned that several permanent reliefs, including expanded “undue cost or effort” waivers and extended phase-ins for anticipated financial effects, could reduce quantitative disclosures, weaken comparability and interoperability with IFRS sustainability standards, and shift data collection to users such as banks, insurers, and asset managers. The authorities urged making key reliefs temporary, generally recommending time limits through the financial year 2029, and called for stronger disclosures on transition plans, governance, and resourcing.
🔗 Read more → Opinion Document: ECB, ESMA, EBA, EIOPA

Australia Opens Consultation on Labels for Sustainable Financial Products
Australia’s Government opened a consultation on design options for a sustainable investment product labeling framework aimed at improving how retail investors understand sustainability claims. Treasury said the goal is to make product information easier to compare and trust, while giving issuers more certainty when marketing products as “sustainable.” The consultation paper builds on feedback from an earlier August 2025 consultation, which highlighted the need for consistency, transparency, flexibility, and integrity in any labeling regime. Product labeling is prioritized under the Sustainable Finance Roadmap to help mobilize capital toward net zero. Feedback submissions are open from February 13 to March 13.
🔗 Read more → Australian Government (Press Release, Consultation Hub: Consultation Paper and Feedback Submission)

Egypt Regulator Requires Large NBFIs to Report and Offset Part of GHG Emissions
Egypt’s Financial Regulatory Authority (FRA) issued Resolution No. 36 of 2026, requiring non-banking financial institutions (NBFIs) with issued capital or net equity above EGP 100 million to file an annual Carbon Footprint Report covering Scope 1 and Scope 2 emissions. Emissions data must be reviewed and verified by FRA-accredited validation and verification bodies. The first report is due by June 30, 2026, with annual filings thereafter at fiscal year-end. Covered entities must offset about 20% of reported emissions by buying FRA-registered carbon credits within 90 days. Compliance is required for operating license renewal.
🔗 Read more → FRA’s Press Release

EPA Rolls Back Updated Mercury and Air Toxics Standards for Coal Plants
The U.S. EPA finalized a rule repealing the 2024 amendments to the Mercury and Air Toxics Standards (MATS) for coal- and oil-fired power plants and reverting compliance requirements to the 2012 MATS standards. EPA announced the action at Louisville Gas and Electric’s Mill Creek Generating Station in Kentucky and said the repeal will save about $670 million in compliance costs over 2028 to 2037. EPA cited data showing mercury emissions from coal plants were about 90% lower than pre-MATS levels by 2021. Environmental groups criticized the rollback, while coal industry representatives supported it.
🔗 Read more → The Associated Press, EPA (Press Release, Final Rule)

In partnership with 1440 Media

You don't have to read everything — just the right thing. 1440's daily newsletter distills the day's biggest stories from 100+ sources into one quick, 5-minute read. It's the fastest way to stay sharp, sound informed, and actually understand what's happening in the world. Join 4.5 million readers who start their day the smart way.

Join for free today!

Australian Federal Court Dismisses ACCR Case Against Santos Over Climate Claims
An Australian Federal Court dismissed the Australasian Centre for Corporate Responsibility’s (ACCR) case alleging that Santos misled investors in its 2020 Annual Report, 2020 Investor Day materials, and 2021 Climate Change Report. ACCR had challenged statements describing natural gas as a “clean fuel,” promoting “zero emissions” hydrogen, and presenting a credible plan to reach net zero Scope 1 and 2 emissions by 2040. Justice Brigitte Markovic held that the alleged representations were not misleading or deceptive as claimed and dismissed the proceeding with costs. Santos welcomed the outcome and pointed to the development of an evolving Climate Transition Action Plan after the publication of its 2040 Net Zero Roadmap.
🔗 Read more → Federal Court of Australia’s Judgment, ACCR’s Press Release, Santos’ Statement

Court Ruled Fairlife Must Face Claim Over Alleged Misleading Logo
Consumers brought a proposed California class action alleging that Fairlife, a subsidiary of The Coca-Cola Company, markets its premium milk as animal-friendly and sustainable, even though investigations allegedly found abuse and neglect at supplier farms. They also challenged “Recycle Me” messaging on bottles. Judge Otis D. Wright II ruled the case can proceed on claims tied to the Fairlife name and cow logo, finding it could reasonably signal that cows in the supply chain live “fair” lives. The court dismissed most other alleged misrepresentations, dismissed Coca-Cola with leave to amend, and held that recyclability-based claims are barred until October 4, 2026.
🔗 Read more → Court Order via JUSTIA

Report Questions Evidence Behind “AI for Climate” Claims
A report by analyst Ketan Joshi, commissioned by a coalition of environmental groups, argues that most public claims about AI delivering net climate benefits lack solid evidence. It reviewed 154 statements from companies and institutions and found 74% were unproven, with 36% cited no evidence at all. Only 26% of the claims cited published academic papers. The report says it found no material, verifiable emissions reductions from consumer generative AI tools and warns that “AI sustainability” messaging often conflates high-impact generative AI with lower-energy traditional AI. It calls for better disclosure of data center energy use and emissions.
🔗 Read more → “The AI Climate Hoax: Behind the Curtain of How Big Tech Greenwashes Impacts” Report

Additional Notable Updates:
GRI Publishes New Practical Guide to Corporate Biodiversity Reporting
🔗 Read more → Decoding biodiversity impacts: A practical guide to corporate reporting with the GRI Standards
ISO Launches New Standard for Local Governments and Communities on Climate Change Adaptation
🔗 Read more → ISO 14092:2026

Catch up on previous editions → ESGLitigation.com

Enjoyed this issue? Please share it with your colleagues.
Have feedback or collaboration ideas? Contact us at [email protected]