Issue - July 28, 2026

Good morning. It’s Tuesday, July 28, and this week’s ESG Litigation Weekly covers a multistate challenge to the U.S. EPA’s rollback of HFC transition requirements, an Australian Federal Court hearing over approval of Woodside’s North West Shelf extension through 2070, Greenpeace Netherlands’ bid to obtain JBS records as it assesses possible claims concerning sustainability and human rights statements, and more.

States Challenge EPA Rollback of HFC Transition Rules
California, Massachusetts, and Washington led a coalition of 19 attorneys general and New York City in petitioning the D.C. Circuit to review an Environmental Protection Agency (EPA) rule easing restrictions on hydrofluorocarbons (HFCs) used in refrigeration and cooling. The rule delays or relaxes limits for several commercial-equipment categories under the American Innovation and Manufacturing (AIM) Act. For new remote condensing systems used by supermarkets, bakeries, and convenience stores, it raises the maximum permitted global warming potential from 150 or 300 to 1,400 until 2032. The coalition alleges the rule is arbitrary and capricious, violates the AIM Act, and inadequately explains EPA’s policy reversal.
🔗 Read more → California Attorney General (Press Release, Petition for Review)

Federal Court Reserves Judgment in Challenges to Woodside North West Shelf Extension
Justice Catherine Button reserved judgment after a four-day hearing on challenges by the Australian Conservation Foundation (ACF) and Friends of Australian Rock Art (FARA) to Environment Minister Murray Watt’s approval of Woodside’s North West Shelf extension through 2070. The applicants challenged the minister’s treatment of climate impacts, heritage protections, and economic benefits. ACF also alleged apprehended bias, relying on nearly 200 communications between officials and Woodside. The minister and Woodside disputed the claims, pointing to 48 conditions and instances where the minister rejected Woodside’s position. UN Special Rapporteur Astrid Puentes Riaño made amicus curiae submissions addressing relevant international environmental and human rights law.
🔗 Read more → ABC News, Federal Court of Australia (Case File), ACF (Press Release)

Cushman & Wakefield 401(k) Climate-Risk Suit Transferred to Illinois
A federal judge in Seattle transferred a proposed class action alleging that Cushman & Wakefield and its investment committee breached fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA) to the Northern District of Illinois. The former employee alleges that plan fiduciaries imprudently retained the Westwood Quality SmallCap Fund despite alleged underperformance, high fees, limited market acceptance, and climate-related financial risk. The court found Illinois more closely connected because the plan is administered from Chicago, the challenged investment decisions were made there, and several current and former committee members reside in Illinois. The transfer does not resolve the merits.
🔗 Read more → Justia (Court Order), Climate Litigation Database (Underlying Complaint)

Lindt Child-Labor Marketing Suit Moves to Federal Court
A consumer protection lawsuit against Lindt & Sprüngli’s U.S. and North American subsidiaries was removed from D.C. Superior Court to the U.S. District Court for the District of Columbia on July 21. International Rights Advocates (IRA) filed the action on May 8 under the D.C. Consumer Protection Procedures Act. It alleges that Lindt markets human rights and responsible sourcing commitments while sourcing cocoa through supply chains allegedly involving child labor in Ghana and Côte d’Ivoire. Lindt denies the allegations and cites supplier protocols and investigations. The action seeks equitable relief, not damages. Removal does not resolve the claims.
🔗 Read more → Reuters, IRA (Case Page, Complaint)

EFRAG Consults on Sustainability Standards for Non-EU Companies
EFRAG opened a 100-day consultation on draft sustainability reporting standards for certain non-EU undertakings under Article 40a of the EU Accounting Directive. The proposed scope covers qualifying third-country undertakings not listed on EU regulated markets that exceed €450 million in EU turnover in each of the preceding two years and either operate a qualifying EU branch or are the ultimate parent of qualifying EU subsidiaries exceeding the applicable €200 million threshold. Reporting would focus on material impacts on people and the environment. Comments are due October 31, 2026. The first reports would cover financial year 2028 and be published in 2029.
🔗 Read more → EFRAG (Press Release, Exposure Draft, Public Survey)

Australia to End Climate Active Certification
The Australian Government plans to end voluntary climate-claim certification through Climate Active, with certification proposed to cease on June 30, 2027. The government is consulting on whether to close the program completely or retain selected voluntary standards and guidance without certification. The Climate Active brand, trademarks, consultant register, website, and existing Carbon Neutral standards would be discontinued. The review cites changes in corporate practices, mandatory climate reporting, international guidance, and public expectations concerning direct emissions reductions. Submissions are due September 18, 2026.
🔗 Read more → Australian Department of Climate Change, Energy, the Environment and Water (Press Release, Consultation Paper), Climate Active (Press Release)

ECB Extends Climate Factors to Corporate Credit Claims
The European Central Bank (ECB) will extend climate-related valuation adjustments in the Eurosystem collateral framework to certain eligible credit claims whose debtor is a non-financial corporation. The measure expands a climate factor already applied to marketable assets issued by non-financial corporations and aims to protect against transition shocks that could reduce collateral values. Adjustments will reflect sector stress, the debtor’s exposure to transition risk, and the claim’s remaining maturity. The maximum additional reduction in collateral value across affected bonds and credit claims will be 5%. Implementation is planned for the end of 2027 at the earliest, with annual updates.
🔗 Read more → ECB (Press Release)

CARB Previews SB 253 Reporting Rules
At a July 21 virtual workshop, the California Air Resources Board (CARB) presented preliminary concepts for implementing the Corporate Greenhouse Gas Reporting Program under SB 253, as amended by SB 219. For Scope 1 and Scope 2 reports from 2027 onward, staff proposed Greenhouse Gas Protocol alignment, a November 10 deadline, and limited assurance beginning in 2027. Staff proposed starting Scope 3 reporting with purchased goods and services, fuel- and energy-related activities, waste generated in operations, business travel, and employee commuting. Other categories would follow later. CARB separately withdrew its initial rulemaking to defer the 2026 deadline and make clarifying revisions.
🔗 Read more → CARB (Presentation Slides, Workshop Recording)

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Greenpeace Seeks JBS Records Over Sustainability Claims
Greenpeace Netherlands asked the Amsterdam District Court to order JBS N.V. to provide preliminary evidence for a possible lawsuit. Greenpeace is assessing potential claims concerning alleged breaches of Dutch duties of care and allegedly misleading sustainability and human rights statements. The requested materials include greenhouse gas inventories, land-use change calculations, expansion assessments, supply-chain monitoring information, board records, and documents concerning changes to JBS’s climate and deforestation policies. Greenpeace argues that it lacks sufficient information to assess JBS’s public statements and conduct. The court has not ordered disclosure, and no merits claim has been decided.
🔗 Read more → Greenpeace Netherlands (Press Release, Petition)

Düsseldorf Court Restricts Garnier Sustainability Advertising
According to Deutsche Umwelthilfe (DUH), the Düsseldorf Regional Court held that L’Oréal may not market a Garnier hair-coloring product with broad statements about its “sustainability commitment” without explaining the claimed environmental benefits. The packaging referred to increased use of recycled materials and renewable energy, greater efforts to address plastic pollution, and more environmentally friendly formulas. DUH reported that the court found consumers could not determine which measures had been implemented, which were planned, or how they related to the product. The reported ruling addresses the clarity and product-level relevance of the advertising.
🔗 Read more → DUH (Press Release)

Report Examines Early Government Climate Knowledge and Legal Responsibility
A Center for International Environmental Law (CIEL) report examines when emitting governments became aware of the causes and foreseeable consequences of fossil fuel-driven climate change and why that timing may matter for legal responsibility. Drawing on government archives, scientific reports, memoranda, and other records, CIEL says officials in several major historical emitters had credible warnings about climate risks from at least the 1960s, and in some cases earlier. CIEL argues that this evidence may help identify when duties to prevent foreseeable harm arose and inform litigation over later action or inaction. The report does not itself determine any State’s liability.
🔗 Read more → CIEL (Report “Early Warnings: Government Knowledge of Climate Change and Legal Responsibility for Climate Harm”)

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