Issue - January 13, 2026

Good morning. It’s Tuesday, January 13, and this week’s ESG Litigation Weekly covers California prosecutors’ $7.7 million hazardous materials settlement with Verizon Wireless, the Trump administration’s directive to withdraw the United States from dozens of international bodies including the UNFCCC, new climate disclosure developments in Asia, with China issuing a trial IFRS S2-aligned climate reporting standard and the Philippine SEC adopting PFRS S1 and S2 under a phased sustainability reporting roadmap, and more.

California Prosecutors Settle Hazardous Materials Case With Verizon Wireless for $7.7 Million
Orange County District Attorney Todd Spitzer and eight other California district attorneys announced a $7.7 million civil settlement with Cellco Partnership, doing business as Verizon Wireless. The settlement resolves allegations that Verizon violated California environmental laws governing hazardous materials reporting and permits, aboveground petroleum storage tanks, and access for inspections at cell sites that use backup generators. Prosecutors alleged Verizon failed to properly report hazardous materials, provide training, allow on-site inspections, and pay required permit fees at multiple locations dating back to 2019. The stipulated judgment includes civil penalties, Supplemental Environmental Compliance Projects, and investigative costs.
🔗 Read more → Orange County District Attorney's Office

DOJ Sues Morgan Hill and Petaluma Over Natural Gas Bans
The U.S. Department of Justice (DOJ) filed suit in the Northern District of California against the cities of Morgan Hill and Petaluma, challenging ordinances that ban natural gas infrastructure in new buildings and thereby restrict the use of gas appliances. The complaint alleges these bans increase energy costs for consumers and conflict with federal law regulating gas appliances such as stoves, furnaces, and water heaters. DOJ asks the court to declare the bans federally preempted and to issue a permanent injunction blocking enforcement.
🔗 Read more → DOJ (Press Release, Complaint Filing)

NY Attorney General Challenges DOI Stop-Work Orders for Sunrise Wind and Empire Wind
New York State Attorney General (AG) Letitia James filed two lawsuits in the U.S. District Court for the District of Columbia challenging the Department of the Interior’s (DOI) stop-work orders that paused construction on the Sunrise Wind and Empire Wind offshore wind projects. The orders directed an immediate halt to construction for at least 90 days based on national security concerns. James argues that the suspensions are arbitrary and capricious under the Administrative Procedure Act because they provide no project-specific findings or explanation for the policy shift, despite years of project review before construction. She seeks court orders declaring the suspensions unlawful and blocking enforcement.
🔗 Read more → New York State AG (Press Release, Complaint Filing: Sunrise Wind, Empire Wind)

Honolulu Wins Ruling Allowing Discovery to Continue in Climate Damages Suit Against Oil Companies
Hawaiʻi state trial court declined to grant summary judgment in the City and County of Honolulu’s 2020 climate damages lawsuit against ExxonMobil, Shell, Chevron, and other oil and gas companies, allowing the case to proceed with additional discovery. The court denied four defense motions seeking to end the case at this stage, including arguments that the claims are time-barred. The court stated it could not conclude that further discovery would be futile. In a separate ruling, the court said the Hawaiʻi Supreme Court did not limit Honolulu’s claims to conduct occurring within Hawaiʻi.
🔗 Read more → Center for Climate Integrity (CCI), Court Orders via CCI (Dkt. 2273 ORDD, Dkt. 2275 ORDD, Dkt. 2277 ORDD, Dkt. 2279 ORDD)

Trump Administration Orders Withdrawal From Dozens of International Organizations, Including UNFCCC
The Trump administration signed a Presidential Memorandum directing U.S. agencies to withdraw from 66 international bodies (35 non-UN organizations and 31 UN entities) following a review of U.S. participation and funding. This includes the United Nations Population Fund (UNFPA) and the United Nations Framework Convention on Climate Change (UNFCCC), which underpins international climate negotiations. Secretary of State Marco Rubio described the targeted institutions as redundant or mismanaged. The move follows earlier suspensions of support for bodies such as the World Health Organization (WHO), the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), and the United Nations Educational, Scientific and Cultural Organization (UNESCO).
🔗 Read more → Presidential Memorandum, The Associated Press

China Issues Trial Climate Disclosure Standard Aligned With IFRS S2
China’s Ministry of Finance (MOF), together with eight other ministries and departments, has issued Sustainability Disclosure Standard for Business Enterprises No. 1 - Climate (Trial), a climate disclosure standard informed by the International Sustainability Standards Board’s (ISSB) IFRS S2 and intended to produce functionally equivalent results while reflecting national requirements. It follows a May 2025 public consultation and is developed under the Sustainability Disclosure Standard for Business Enterprises - Basic Standard (Trial). The standard calls for disclosure of climate-related risks and opportunities, governance, strategy, risk management, and metrics and targets. The ministry has not yet specified which entities must apply it or the implementation timeline. Until then, companies may apply it voluntarily.
🔗 Read more → MOF (in Chinese), Standards Summary by PwC (in English)

Philippine SEC Adopts PFRS S1 and S2 With Tiered Sustainability Reporting Roadmap
The Philippine Securities and Exchange Commission (SEC) has adopted the Philippine Financial Reporting Standards S1 and S2 (PFRS S1 and PFRS S2), and issued Sustainability Reporting Guidelines with a tiered roadmap for publicly listed companies and large non-listed entities. Covered companies must submit a board-approved Sustainability Report together with their annual report or audited financial statements. Mandatory adoption begins in FY 2026, with a phased rollout through FY 2028 based on market capitalization and revenue thresholds. The circular provides transition reliefs, requires limited assurance for Scope 1 and 2 emissions two years after each tier’s implementation date, and sets penalties for non-attachment.
🔗 Read more → Philippine SEC Memorandum Circular No.16

EPA Fully Disapproves Colorado’s Revised Regional Haze Plan
The U.S. Environmental Protection Agency (EPA) finalized a full disapproval of Colorado’s revised 2022 Regional Haze State Implementation Plan. EPA said the plan did not comply with the Clean Air Act because it included coal plant closure deadlines without consent from all affected facilities and lacked required legal assurances, including an analysis of whether the nonconsensual shutdown of Colorado Springs Utilities’ Nixon Unit 1 could constitute an uncompensated taking of private property. The EPA also cited concerns about grid reliability, noting that Colorado later withdrew a separate closure deadline for Comanche Unit 1 and referencing a December 30, 2025, Department of Energy’s emergency order for Craig Station Unit 1 to remain operating. Colorado must submit a revised plan, or the EPA will issue a federal plan within two years.
🔗 Read more → EPA

EU Supervisory Authorities Issue Joint Guidelines on ESG Stress Testing
The European Supervisory Authorities (ESAs), comprising the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA), published their Joint Guidelines on ESG Stress Testing to help competent authorities (i.e., national insurance and banking supervisors) integrate ESG risks into supervisory stress tests. The guidelines set common EU standards for integrating ESG risk, including how to design ESG-inclusive scenarios and the governance and organizational arrangements required to implement these exercises. The ESAs said the guidelines aim to support a consistent, long-term approach while remaining flexible as methods and data improve. They also stated that the guidelines do not introduce new requirements for competent authorities to conduct ESG supervisory stress tests.
🔗 Read more → Joint Guidelines on ESG Stress Testing via ESMA

In partnership with beehiiv

Most people treat this stretch of the year as dead time. But builders like you know it’s actually prime time. And with beehiiv powering your content, world domination is truly in sight.

On beehiiv, you can launch your website in minutes with the AI Web Builder, publish a professional newsletter with ease, and even tap into huge earnings with the beehiiv Ad Network. It’s everything you need to create, grow, and monetize in one place.

In fact, we’re so hyped about what you’ll create, we’re giving you 30% off your first three months with code BIG30. So forget about taking a break. It’s time for a break-through.

Start building for 30% off today.

No major greenwashing enforcement actions or new claims surfaced in our monitoring during the past week. If you see something we should update the community, please hit reply and let us know.

Sustainability Becomes a 2026 CEO Risk-and-Return Priority
A Forbes article suggests that sustainability is increasingly a near-term business issue for CEOs, affecting energy costs, asset resilience, regulatory exposure, and access to capital. It points to record global clean energy investment of about $2.2 trillion in 2025 and describes climate risk as financially material across physical, transition, liability, and systemic dimensions. The piece also highlights artificial intelligence and data center growth as a driver of power demand and scrutiny over energy, water, and emissions. It notes ESG rules are narrowing in scope but increasing expectations for data credibility and execution.
🔗 Read more → Forbes

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]