Issue - January 20, 2026

Good morning. It’s Tuesday, January 20, and this week’s ESG Litigation Weekly covers the U.S. Supreme Court’s decision to hear Bayer’s appeal that could reshape thousands of Roundup cancer-warning suits, federal courts’ preliminary injunctions allowing offshore wind construction to resume while litigation over the U.S. Department of the Interior’s suspension orders continues, Bangladesh Bank’s updated sustainable finance reporting requirements aimed to improve disclosure quality and reduce greenwashing risk, and more.

Supreme Court to Hear Bayer Appeal Seeking to Limit Roundup Cancer Lawsuits
The U.S. Supreme Court agreed to hear Bayer’s appeal aimed at blocking thousands of state lawsuits alleging Roundup lacked adequate cancer warnings (Monsanto Co. v. Durnell). The justices will consider whether the Environmental Protection Agency’s approval of Roundup labels without a cancer warning preempts state failure-to-warn claims. The Trump administration backed Bayer, reversing the prior administration’s position. The case arises from Missouri, where a jury awarded $1.25 million to a man with non-Hodgkin’s lymphoma. Bayer has faced about 181,000 Roundup claims and set aside $16 billion for settlements.
🔗 Read more → The Associated Press, Supreme Court (Docket), Bayer’s News Release

Federal Courts Grant Preliminary Injunctions Allowing Offshore Wind Construction to Resume
Last week, U.S. federal courts granted three preliminary injunctions that allow offshore wind developers to restart impacted work while lawsuits challenging the Department of the Interior’s December 22, 2025 suspension orders continue. In Virginia, the U.S. District Court for the Eastern District of Virginia granted Dominion Energy’s request to resume construction on the Coastal Virginia Offshore Wind project. In Washington, D.C., the U.S. District Court for the District of Columbia granted preliminary injunctions for Empire Wind and Revolution Wind, allowing construction activities to move forward while the challenges proceed. Developers said they will prioritize safety while restarting work and will continue engaging with the U.S. government as litigation advances.
🔗 Read more → Press Releases (Dominion Energy, Equinor, Ørsted)

Supreme Court Weighs Bid to Move Louisiana Coastal Damage Suits to Federal Court
U.S. Supreme Court justices heard arguments on whether more than 40 Louisiana lawsuits seeking billions from oil and gas companies for coastal restoration should proceed in state court or be removed to federal court. Chevron and other defendants invoked the federal officer removal statute, arguing the claims relate to World War II-era federal refinery contracts and a 2011 amendment expanding the statute’s “relating to” language. Louisiana urged the court to uphold a 2024 Fifth Circuit ruling that found the companies’ drilling activities were unrelated to the wartime refining contracts. A decision is expected by June.
🔗 Read more → Reuters, Supreme Court (Docket, Transcript of the January 12 Oral Argument)

Paris Court Orders Credit Suisse to Pay €910,000 for Pregnancy-Related Discrimination
France’s Paris Court of Appeal ordered Credit Suisse to pay €910,000 to a former trader in a pregnancy discrimination case (€900,000 for economic loss and €10,000 for moral harm). Hired in 2009, she sought promotion to director in 2012 and said her promotion and pay progression stalled after she announced her pregnancy in September 2014. The court found the facts supported her claims, including evidence of structural sex discrimination. After several maternity leaves, the parties signed a mutual termination agreement in June 2016. The ruling is not final, and Credit Suisse may appeal to the Court of Cassation.
🔗 Read more → Le Monde with AFP (in French)

D.C. Court Finds DOE Clean Energy Grant Cancellations Based on State Politics Violated Constitution
The U.S. District Court for the District of Columbia ruled that the Department of Energy (DOE) violated the Fifth Amendment’s equal protection requirements when it canceled certain federal clean-energy grants based on the states where grantees were located. According to the court order, defendants admitted the terminations were primarily based on whether the awardees were in states that did not support President Trump in the 2024 election, and the court found no rational link to a stated government interest in aligning funding with agency priorities. The City of St. Paul and several nonprofits brought the lawsuit.
🔗 Read more → Environmental Defense Fund (EDF), Court Order via EDF

Bangladesh Bank Updates Sustainable Finance Reporting Requirements to Reduce Greenwashing Risk
On January 13, Bangladesh Bank’s Sustainable Finance Department issued a circular to refine quarterly reporting under the Sustainable Finance Policy 2023 (“Policy”) and its Green and Sustainable Finance Taxonomy. The circular aims to improve transparency, ensure reliable disclosures, and reduce greenwashing risk. It withdraws Policy Clause 2.3.2.1 and updates the reporting requirements for several taxonomy items, including the relocation of certain health, blue economy, and ICT items from “Green Finance” to “Other Sustainable Linked Finance”, and the classification of some items as “Socially Responsible Finance”. It also clarifies the treatment of certain digital loans in climate- and disaster-prone areas. The order takes effect immediately.
🔗 Read more → Bangladesh Bank’s Circular Letter

House Passes ERISA Bill to Limit Use of ESG Factors in Retirement Investing
The U.S. House of Representatives passed H.R. 2988, the Protecting Prudent Investment of Retirement Savings Act, by a 213-205 vote. The bill would modify the Employee Retirement Income Security Act’s (ERISA) fiduciary duties by requiring retirement plan investment decisions to be based solely on “pecuniary factors” expected to have a material effect on risk or return. Supporters say it would prevent fiduciaries from prioritizing political or social impacts through the use of ESG factors that may be considered risky. The bill permits limited consideration of nonpecuniary factors in certain situations, addresses proxy voting guardrails, and requires specified notices for participant-directed plans.
🔗 Read more → H.R. 2988 (CONGRESS.GOV), Representative Rick W. Allen’s Press Release

Oklahoma and Utah Lawmakers Propose Bills to Limit Climate Liability Suits Against Oil Companies
Lawmakers in Oklahoma and Utah introduced proposals that would restrict most civil lawsuits against fossil fuel companies tied to the climate crisis. Oklahoma’s SB 1439 would largely bar climate-related lawsuits unless plaintiffs allege violations of specific environmental or labor laws, and it would block claims such as fraud, misrepresentation, failure to warn, or deceptive marketing. Utah’s HB 222 is narrower and would limit lawsuits over greenhouse gas emissions unless a court finds a statutory or permit violation. The Guardian’s article links the bills to broader efforts by industry allies to curb climate accountability litigation, and notes legal experts expect challenges if enacted.
🔗 Read more → The Guardian, Oklahoma’s SB 1439, Utah’s HB 222

EPA Proposes Rule to Narrow Clean Water Act Section 401 and Speed Certifications
The U.S. Environmental Protection Agency (EPA) announced a proposed rule to revise Clean Water Act Section 401 water quality certifications, saying it would return the process to statutory limits, improve permitting efficiency, and reduce delays for infrastructure projects. EPA said the proposal supports cooperative federalism by reinforcing the roles of states and authorized tribes while preventing what it calls regulatory overreach. The proposed changes mirror key concepts from the Trump EPA’s earlier Section 401 that was replaced by a 2023 Biden‑era rule. The agency criticized it as expanding Section 401’s scope and enabling delay tactics and protracted timelines for projects. Critics argue the proposal could make it harder for states and tribes to reject projects based on water resource and quality-related concerns.
🔗 Read more → Proposed Rule via Federal Register, EPA’s Press Release

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MSC Defends Alaska Flatfish Certification as Critics Call It “Greenwashing”
The Marine Stewardship Council (MSC) published a statement on its recertification of the Bering Sea and Aleutian Islands and Gulf of Alaska flatfish fishery, including the Amendment 80 bottom trawl fleet, in response to SalmonState and other critics calling it greenwashing. Critics argued the process was poorly communicated and difficult for communities to participate in, citing highly technical reports, short comment windows, and a “pay-to-play” dynamic because assessments are paid for by the applicant fishery. MSC said the certification program is open to public input and run by independent third-party auditors, with annual audits and five-year reassessments. It’s also pointed out that MSC does not make certification decisions or receive funding from fishery assessments.
🔗 Read more → MSC’s Response Statement, SalmonState’s Press Release

ESMA Urges Clearer Marketing Claims Around ESG Integration and Exclusions
The European Securities and Markets Authority (ESMA) has published a second thematic note on sustainability-related claims, addressing greenwashing risks in support of sustainable investments. This note focuses on how firms describe their ESG strategies in communications to retail investors. ESMA highlighted that terms such as ESG integration and ESG exclusions can have different meanings across the market, and that vague or inconsistent use creates a risk of greenwashing. The note does not define the strategies, but calls on market participants to clearly explain what they mean and how the ESG strategy operates. It also provides practical dos and don’ts, illustrated with examples of good and poor market practices.
🔗 Read more → ESMA’s Thematic Notes on Clear, Fair & Not Misleading Sustainability-Related Claims

ESG Dispute Risk Shifts From Disclosure Pressure to Politics and Greenwashing Claims
Norton Rose Fulbright’s 2026 Annual Litigation Trends Survey suggests ESG dispute exposure eased in 2025 following the reduced pressure around ESG disclosure requirements under the current administration. Only 24% of respondents said ESG dispute exposure increased in 2025, down from 30% the prior year, and 10% ranked ESG litigation among their top concerns for 2026. Still, 24% expect ESG dispute exposure to rise in 2026, with political pressures cited by 45% of those respondents. The survey also notes increased policing of ESG-related claims, including greenwashing, and a rise in reported ESG-related class actions. Respondents are affiliated with U.S.-based organizations spanning a wide range of industries.
🔗 Read more → Norton Rose Fulbright’s 2026 Annual Litigation Trends Survey

Catch up on previous editions → ESGLitigation.com

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