Issue - July 22, 2025

Good morning. It’s Tuesday, July 22, and this week’s ESG Litigation Weekly looks at Australia’s Torres Strait duty-of-care defeat, the U.S. Justice Department backing oil companies in Maryland, Brazil’s move to loosen environmental permits ahead of COP30, the launch of the EcoBeautyScore label, and more.

⚖️ ESG Casefile

Australian Court Rejects Torres Strait Climate Duty-of-Care Claim
A Federal Court judge accepted that rising seas threaten the Torres Strait Islands but ruled Australia owes no negligence duty to shield residents from climate harm, calling such matters “core government policy” for parliament, not courts. Advocates say the judgment exposes gaps in common law and strengthens the case for legislation that makes climate protection enforceable. They plan possible appeals and predict further lawsuits will keep pressing until higher tribunals or lawmakers redefine the government’s legal responsibilities.
🔗 Read more → The Guardian

DOJ Backs Oil Firms in Maryland Climate Case
The U.S. Justice Department has asked the Maryland Supreme Court to uphold lower-court rulings that tossed climate-damage suits brought by Baltimore, Annapolis, and Anne Arundel County against major oil companies. Its brief, echoed by 24 state attorneys general, says the claims interfere with federal authority over interstate emissions and would leave businesses navigating a patchwork of state rules. Industry defendants add that plaintiffs are trying to use nuisance law to set national climate policy. A decision against the cities could push the dispute toward the U.S. Supreme Court, which has so far declined to resolve similar cases.
🔗 Read more → Forbes

Court Orders VBL to Open Its €60 B Pension Portfolio
The Administrative Court in Karlsruhe has ruled that Germany’s public-sector pension fund VBL must disclose where and how it invests the savings of five million employees. Judges said the fund carries federal information duties and must release portfolio details such as asset class, issuer, country, and market value. Transparency groups FragDenStaat and Finanzwende brought the case after VBL refused to reveal holdings amid criticism that money flowed into fossil fuels and high-risk assets. The judgment is not yet final, but campaigners say it paves the way for closer scrutiny of whether VBL aligns investments with national climate goals.
🔗 Read more → Finanzwende (in German)

Groups Sue U.S. Export-Import Bank Over Mozambique LNG Loan
Friends of the Earth U.S. and a Mozambican NGO want a Washington federal court to void EXIM’s nearly US$5 billion financing for TotalEnergies’ long-delayed LNG project. They allege the board, appointed without Senate confirmation, rushed approval in March without the environmental, economic, or public-interest reviews required by law. The complaint cites mass displacement, human-rights abuses, and an ongoing insurgency near the site, and argues taxpayers should not subsidize new fossil-fuel infrastructure. Plaintiffs seek an injunction blocking disbursements until EXIM completes full assessments.
🔗 Read more → Friends of the Earth

Citizens Challenge Korea LNG Permits
Greenpeace East Asia, the GyeongGi Korea Federation for Environmental Movements, and 450 residents have sued the Ministry of Trade, Industry and Energy to overturn its April approval of six LNG power stations in the new Yongin semiconductor complex near Seoul. They say the government issued the permits without the climate and environmental studies required by the Environmental Impact Assessment Act and the Carbon Neutrality Act, allowing projects that could emit nearly ten million tonnes of greenhouse gases each year. The plaintiffs argue that the permit-first system sidelines public participation and locks in decades of fossil fuel dependence, and they ask the court to restore compliance with national climate obligations.
🔗 Read more → Greenpeace

States Sue to Restore FEMA’s US$4.5 B Disaster-Prevention Grants
A coalition of twenty states has asked a federal court to reinstate the Federal Emergency Management Agency’s (FEMA) Building Resilient Infrastructure and Communities program after the Trump administration cancelled the US$4.5 billion fund in April and called it wasteful. The lawsuit says only Congress can withdraw the money and argues that ending the program jeopardises two thousand approved projects that protect communities from floods, fires, and heatwaves. The states also claim the officials who ordered the shutdown were installed without Senate confirmation, making the decision unlawful.
🔗 Read more → Courthouse News

🏛️ Regulatory Developments

UK Drops Plan for Stand-Alone Green Taxonomy
After reviewing consultation feedback, the government has decided that a dedicated UK Green Taxonomy would add little value and will not feature in the country’s sustainable-finance framework. Respondents said other policies would do more to curb greenwashing and spur investment toward net zero. The government will now focus on those higher-impact measures while remaining committed to its Clean Energy and Growth Missions and environmental targets.
🔗 Read more → UK Government

EU Ombudsman Challenges Brussels on Fast-Tracked Omnibus Rollback
Ombudsman Teresa Anjinho has demanded that the European Commission explain why it skipped an impact assessment, public consultation, and climate-consistency check before unveiling its February “Omnibus I” plan to shrink CSRD, CSDDD, Taxonomy, and CBAM obligations. Her letter to President von der Leyen notes that only two industry-heavy meetings preceded the proposal and that officials were given just twenty-four hours for internal review. The Ombudsman wants full justification by 15 September, warning that future Omnibus packages must follow the Better Regulation Guidelines.
🔗 Read more → ESG Today

Brazil Eases Environmental Licensing Ahead of COP30
Brazil’s Congress has approved a bill that weakens environmental permitting, letting small and mid-impact projects such as dams and sanitation works proceed without licenses and granting the federal government power to fast-track “strategic” developments. The measure passed 267 to 116 under pressure from the agribusiness bloc, drawing criticism from Environment Minister Marina Silva and European lawmakers who say it dismantles safeguards and misaligns Brazil with international norms. President Lula can still veto the bill, but Congress could override, and the Supreme Court may be asked to review its constitutionality as Brazil gears up to host the COP30 climate summit.
🔗 Read more → Reuters

Trump Suspends Clean Air Rules for 100 Polluting Facilities
President Trump has signed four proclamations that let more than 100 chemical plants, coal power stations, sterilizers, and taconite mills in at least 30 states ignore federal limits on cancer-causing emissions. The blanket waivers allow operators to switch off pollution controls for substances such as ethylene oxide, benzene, and formaldehyde and to delay compliance with strengthened standards that protect about seven million people. Earthjustice says the move will worsen cancer, asthma, and birth-defect risks and plans to challenge the orders in court.
🔗 Read more → Earthjustice

🧼 Greenwashing Watch

EcoBeautyScore Launches Europe-Wide Environmental Label
EcoBeautyScore, a nonprofit scheme developed with more than 70 cosmetics companies, is now live in Europe and the UK. The system grades shampoos, body washes, conditioners, and face care from A to E based on sixteen life-cycle impacts, and early adopters such as Eucerin, Garnier, L’Oréal Paris, Neutrogena, Nivea, and Schauma have begun publishing scores on product pages.
🔗 Read more → EcoBeautyScore

Report Warns ‘Sustainable Aviation Fuel’ Claims Invite Greenwashing Lawsuits
Opportunity Green says the catch-all label “sustainable aviation fuel” masks wide variations in climate impact and could break consumer-protection and financial-market rules. Airlines, fuel makers, and lenders are advised to drop the term, disclose full life-cycle data, and avoid selling alternative-fuel credits as offsets or face rising legal and reputational risks.
🔗 Read more → Opportunity Green’s Publication

💡 Insight of the Week

ESG Legal Teams Shift From Compliance to Risk Strategy
European in-house and private-practice lawyers say the fast-changing ESG rulebook now demands holistic risk management, not just box-ticking. With the CSRD, CSDDD, and a possible Omnibus rollback in flux, counsel are steering boards toward materiality assessments, cross-department governance structures, and litigation-ready policies that work across jurisdictions. Early movers report a competitive edge, but advisers warn that conflicts between global regulations and activist pressure will keep disputes rising, making clear, position-neutral guidance essential.
🔗 Read more → Legal Business

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