Issue - June 23, 2026

Good morning. It’s Tuesday, June 23, and this week’s ESG Litigation Weekly covers the U.S. Justice Department’s move to intervene and seek dismissal of the NAACP’s Clean Air Act suit against xAI, a challenge by Canadian youth and advocacy groups to Canada’s 2030 climate plan, the ACCC’s lawsuit alleging Grill’d overstated when burger purchases would trigger tree-planting donations, and more.

DOJ Seeks to Intervene and Dismiss NAACP Clean Air Act Suit Against xAI
The U.S. Justice Department (DOJ) moved to intervene and seek dismissal of a Clean Air Act citizen suit brought by the NAACP and the Mississippi State Conference of the NAACP against xAI and MZX Tech. The suit alleges that temporary gas-fired turbines at xAI’s Southaven, Mississippi, data-center site operate without required permits and pollution controls. The DOJ argues that Mississippi regulators determined that the state implementation plan did not require permits for the turbines. It also contends that the federal government’s statutory intervention right includes dismissal authority, citing executive enforcement discretion and national security interests.
🔗 Read more → U.S. Department of Justice (Press Release, Court Filing)

Canadian Youth and Groups Challenge Canada’s 2030 Climate Plan
Three young Canadians, Environmental Defence Canada, and the Canadian Association of Physicians for the Environment sought judicial review of Canada’s 2030 Emissions Reduction Plan. They allege that the plan no longer complies with the Canadian Net-Zero Emissions Accountability Act because policies on which it relied have been repealed, weakened, or altered without an amendment. The applicants seek an order requiring the environment minister to begin an amendment process, or declarations that the plan and the failure to update it are unlawful. They say existing measures fall short of Canada’s 2030 target of 40% to 45% below 2005 emissions.
🔗 Read more → Ecojustice (Press Release, Notice of Application)

Congaree Riverkeeper Sues Alpek and Eastman Over Alleged Plant Pollution
Congaree Riverkeeper filed a federal citizen suit against Alpek Polyester USA and Eastman Chemical Company over alleged pollution from their jointly operated plant on the Congaree River. The complaint alleges unauthorized discharges of plastic pellets and 1,4-dioxane, repeated exceedances of biochemical oxygen demand limits, and Resource Conservation and Recovery Act (RCRA) violations involving open dumping and imminent and substantial endangerment. It also notes sampling found pellets along at least 26 miles of river downstream, including along Congaree National Park. The suit seeks declaratory and injunctive relief, remediation, civil penalties, and litigation costs.
🔗 Read more → Southern Environmental Law Center (Press Release, Court Filing)

California Court of Appeal Upholds Injunction in Sable Pipeline Dispute
The California Court of Appeal affirmed a preliminary injunction enforcing a California Coastal Commission cease-and-desist order against Sable Offshore and Pacific Pipeline Company over repair work on the Las Flores Pipelines. The majority held that the Commission had authority because Santa Barbara County declined enforcement, even though the county concluded existing permits covered the work. It rejected the company’s argument that the county’s communications constituted action barring Commission intervention. The dissent stated that completed repairs and federal intervention had made the injunction inoperative and would have vacated the cease-and-desist order, injunction, and civil penalties.
🔗 Read more → California Courts (Court Opinion, Case Docket)

Japanese Financial Institutions Face OECD Complaint Over Mozambique LNG
Solutions for Our Climate (SFOC) filed an OECD Guidelines complaint with Japan’s National Contact Point against Sumitomo Mitsui Banking Corporation (SMBC), Mitsubishi UFJ Financial Group (MUFG), Mizuho Bank, the Japan Bank for International Cooperation (JBIC), and Nippon Export and Investment Insurance (NEXI) over their financing or insurance of the Mozambique LNG project. It alleges inadequate human rights due diligence and insufficient action to prevent or mitigate alleged violence, abuse, and unresolved displacement harms. The complaint follows a June 5 filing against Mitsui E&P Mozambique Area 1 Ltd. (MEPMOZ), a joint venture between Mitsui & Co. and the Japan Organization for Metals and Energy Security (JOGMEC) that holds a 20% stake in the project.
🔗 Read more → SFOC (Press Release)

NGOs Seek Internal Review of EU Permanent Carbon Removal Rules
Nine environmental organizations requested an internal review of the European Commission’s delegated regulation establishing certification methodologies for permanent carbon removals under the EU Carbon Removals and Carbon Farming Regulation (CRCF). The groups allege that the methodologies for biogenic carbon capture and storage (BioCCS) and biochar unlawfully or inadequately address biogenic-carbon accounting, emissions associated with biomass used for capture, methane, indirect land-use change, biochar monitoring, and biomass sustainability. They contend that biogenic carbon may be credited as atmospheric removal without sufficient accounting for forest and land carbon losses. The request asks the Commission to review the regulation on six legal and technical grounds.
🔗 Read more → Carbon Market Watch (Press Release, Request for Internal Review), Commission Delegated Regulation (EU) 2026/285

EU Leaders Note Planned Mid-July ETS Review Proposal
The European Council called for faster work on energy prices, decarbonization, and industrial competitiveness. It noted the Commission’s intention to present a concrete proposal by mid-July 2026 on the review of the EU Emissions Trading System (ETS), including free allowances. It also noted a planned separate proposal addressing industry concerns about ETS benchmarks. The European Council said the proposals should preserve the ETS’s essential role in Europe’s climate and energy transition.
🔗 Read more → European Council (Conclusions)

ISO Opens Consultation on Net Zero Aligned Organizations Standard
The International Organization for Standardization (ISO) opened a 12-week public consultation on draft ISO 14060, an independently verifiable standard for organizations developing net-zero transition plans. The proposed framework is intended to help organizations establish credible emissions pathways, incorporate transition planning into business strategy, and strengthen resilience to supply-chain, market, investor, and regulatory pressures. The draft is available through ISO’s national members in more than 170 countries, which will develop national consensus positions by early September. It builds on ISO’s 2022 Net Zero Guidelines and remains subject to consultation.
🔗 Read more → ISO (Press Release, ISO/DIS 14060)

EBA Plans Climate Risk Module for 2027 EU Bank Stress Test
The European Banking Authority (EBA) published draft methodology and templates for its 2027 EU-wide stress test, opening an early industry consultation. The exercise would cover 63 banks representing 75% of the EU banking sector. The proposed methodology would reduce required data points by 55%, mainly through greater reliance on supervisory reporting. For the first time, the exercise would assess transition and physical climate risks through a dedicated module alongside macro-financial shocks. The climate module would be assessed separately and would not affect the core stress-test results at this stage.
🔗 Read more → EBA (Press Release, Draft Methodological Note, Draft Template Guidance)

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German Court Enters Judgment Over McDonald’s Climate-Neutral Claim
The Munich Regional Court I entered judgment after McDonald’s Germany accepted a prohibition sought by Deutsche Umwelthilfe (DUH) over a website statement that the company aimed to become climate neutral worldwide, including its supply chain, by 2050. DUH alleged that the statement lacked sufficiently concrete information about how the target would be achieved. McDonald’s said it accepted the prohibition to avoid further litigation, noted that it had already revised the wording, and denied deliberately misleading consumers. The judgment bars the company from using the disputed formulation.
🔗 Read more → Federal Office of Justice (Register Entry), DUH (Press Release), McDonald’s Germany (Statement)

ACCC Sues Grill’d Over Tree-Planting Promotion Claims
The Australian Competition and Consumer Commission (ACCC) commenced Federal Court proceedings against Grill’d over its Tree Day Tuesday promotion, alleging the burger chain overstated when purchases would generate donations for tree planting. The ACCC reports more than five million burgers were purchased on Tuesdays during the campaign, but only about 4% qualified because of conditions involving loyalty membership, dine-in ordering, barcode scanning, and other offers. It says disclosure varied across 26 advertisements but alleges each overstated when donations would be made, resulting in misleading conduct and false or misleading representations under the Australian Consumer Law.
🔗 Read more → ACCC (Press Release, Concise Statement)

Consumer Groups Submit EU Alert Over Energy Companies’ Green Claims
BEUC and 12 consumer organizations from 11 countries submitted an external alert to the European Commission and the Consumer Protection Cooperation Network concerning ENGIE, Eni Plenitude, Shell, and TotalEnergies. The groups allege misleading environmental claims involving fossil gas, renewable-energy investments, net-zero targets, carbon offsets, and comparisons with other fossil fuels. They argue that the marketing may violate EU consumer law and permit premiums for products presented as greener. The alert seeks coordinated enforcement, cessation of claims the groups consider misleading, fines where appropriate, and compensation for affected consumers.
🔗 Read more → BEUC (Press Release, External Alert Letter, Report “Switching Off Greenwashing”)

Anti-ESG Proposals Remain Common but Attract Limited Support
A Mayer Brown analysis published on the Harvard Law School Forum on Corporate Governance finds that anti-ESG shareholder proposals remain prevalent in 2026 but receive limited investor support. Using the authors’ classifications, about 50 anti-ESG proposals had reached a vote as of May 31, averaging approximately 1.7% support, compared with 13.3% for proposals supporting ESG-related action or disclosure. Themes included climate commitments, DEI programs, charitable giving, health care, and technology risks. The analysis also discusses how the SEC staff’s decision not to issue substantive no-action guidance on most Rule 14a-8 exclusions affected company and proponent strategies.
🔗 Read more → Harvard Law School Forum on Corporate Governance: ESG and Anti-ESG Shareholder Proposals in 2026

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