Issue - March 24, 2026

Good morning. It’s Tuesday, March 24, and this week’s ESG Litigation Weekly covers a coalition of states, cities, and counties challenging EPA’s repeal of the 2009 GHG Endangerment Finding, a Belgian court ruling allowing a farmer’s climate damages case against TotalEnergies to move forward, ACCR’s appeal of the dismissal of its greenwashing case against Santos, and more.

States and Cities Challenge EPA’s Repeal of 2009 Endangerment Finding and Vehicle GHG Standards
Massachusetts Attorney General (AG) Andrea Joy Campbell, joined by a coalition of states, cities, and counties, filed a petition for review in the D.C. Circuit challenging the U.S. Environmental Protection Agency’s (EPA) rescission of the 2009 Endangerment Finding and related motor vehicle greenhouse gas (GHG) emission standards. The finding, issued after Massachusetts v. EPA, concluded GHG emissions from motor vehicles endanger public health and welfare and became the legal basis for federal vehicle climate rules. The petition argues EPA’s repeal unlawfully rejects settled Supreme Court precedent and decades of scientific evidence on climate harm. The coalition says removing the finding and related vehicle standards would increase climate, public health, and infrastructure risks already affecting communities nationwide.
🔗 Read more → Massachusetts AG Office (Press Release, Court Review Petition)

Court Lets Belgian Farmer’s Climate Case Against TotalEnergies Proceed in Belgium
The Tournai Commercial Court ruled that Belgian farmer Hugues Falys’ climate case against TotalEnergies is admissible and can proceed in Belgium, marking the country’s first corporate climate-damages case. Falys, supported by three NGOs, alleges droughts and heatwaves linked to climate change harmed his farming operations and seeks to hold TotalEnergies partly responsible. The court recognized that victims of climate harm may sue a major polluter in their home country even if the company is headquartered elsewhere. It paused the merits phase, however, pending the first-instance ruling in a related climate case against TotalEnergies in Paris, expected on June 25, 2026.
🔗 Read more → The Farmer Case (Press Release, Court Judgment in French)

BHP Wins Appeal Ending UK Contempt Proceedings in Mariana Litigation Dispute
The Court of Appeal allowed BHP’s appeal and struck out contempt proceedings over allegations that it procured and funded Brazilian litigation aimed at stopping certain municipalities from pursuing claims in London arising from the 2015 Mariana dam collapse. The municipalities argued that BHP’s support for a claim brought by the Brazilian mining association IBRAM interfered with the administration of justice in England. The court held that seeking foreign anti-suit relief could amount to criminal contempt only in exceptional circumstances, and that the alleged conduct did not meet that threshold. The ruling is separate from the underlying Mariana damages litigation, where BHP is seeking permission to appeal a liability ruling.
🔗 Read more → Reuters, Judgment Approved by the Court for Handing Down

EU Court Rejects Challenge to Taxonomy Criteria for Forest Biomass and Bioenergy
The EU General Court dismissed an action by environmental NGOs challenging the European Commission’s refusal to internally review EU taxonomy criteria covering forest management and certain bioenergy activities from forest biomass. The applicants argued the rules should be revisited because they treated those activities as environmentally sustainable even though, in their view, they might not contribute enough to climate goals and could still cause significant environmental harm. The court rejected the action and upheld the Commission’s 2022 decision refusing internal review, leaving the current taxonomy criteria in place.
🔗 Read more → Court Judgment via EU InfoCuria

Industry Coalition Sues California Over SB 343 Recyclability Labeling Rules
A coalition of food, packaging, restaurant, and agricultural groups filed suit in the U.S. District Court for the Southern District of California, challenging California’s Senate Bill 343 (SB 343) recyclability labeling regime. The complaint seeks declaratory and injunctive relief, arguing that SB 343’s limits on the chasing arrows symbol, resin identification code symbol, and other recyclability statements violate the First and Fourteenth Amendments to the U.S. Constitution. SB 343 applies to products and packaging manufactured after October 4, 2026. Plaintiffs also say the law is already forcing companies to change labels ahead of enforcement.
🔗 Read more → Plaintiffs’ Press Release via Flexible Packaging Association, Court Docket via PacerMonitor, SB 343

European Commission Opens Feedback Process on Simplifying EU Taxonomy Criteria
The European Commission launched a public feedback process on draft revisions to the EU Taxonomy’s technical screening criteria, aiming to make the sustainable finance framework simpler and easier to use. The proposed changes would streamline criteria, clarify how compliance can be demonstrated, and align the taxonomy with updated EU legislation and technological developments. They cover most activities under the Climate and Environmental Delegated Acts, including energy, transport, manufacturing, construction, forestry, and environmental protection, as well as the generic “do no significant harm” appendices. Feedback is open until April 14, 2026, with adoption targeted by summer 2026.
🔗 Read more → European Commission (Press Release, Draft Delegated Regulation (EU) 2021/2139, Draft Delegated Regulation (EU) 2023/2486)

Boursa Kuwait Updates ESG Reporting Guide Ahead of Premier Market Sustainability Reporting
Boursa Kuwait published the 2026 edition of its ESG Reporting Guide for listed companies, updating its reference framework for sustainability disclosures in line with recent local and international developments. The guide was prepared under the Capital Markets Authority (CMA) listing rules and reflects the recent CMA requirement for Boursa Kuwait’s Premier Market companies to publish sustainability reports in 2026 covering the 2025 financial year. Boursa Kuwait says the guide itself remains advisory, but encourages issuers to use it to improve disclosure quality, align with global practices including ISSB standards, and support Kuwait Vision 2035 and the country’s 2060 carbon-neutrality commitment.
🔗 Read more → Boursa Kuwait’s ESG Reporting Guide for Listed Companies 2026 Edition

SBTi Updates FLAG Guidance for Target Setting and No-Deforestation Commitments
The Science Based Targets initiative (SBTi) published Version 1.2 of its Forest, Land and Agriculture (FLAG) Guidance with immediate effect on March 19, 2026. The update applies to companies required to set FLAG targets that submit targets in 2026 or later, including submissions made before the new version was published. Key changes include revised timing for companies with existing science-based targets to set FLAG targets, a no-deforestation target date within two years of first FLAG target submission and no later than December 31, 2030, updated commodity coverage, and a requirement to publish documentation showing how no-deforestation commitments will be delivered.
🔗 Read more → SBTi (Press Release, FLAG Science-based Target-setting Guidance Version 1.2)

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ACCR Appeals Dismissal in Santos Greenwashing Case
Australasian Centre for Corporate Responsibility (ACCR) said it has appealed the Federal Court’s February 17, 2026 dismissal of its case against Santos over climate-related statements in the company’s 2020 Annual Report, 2020 Investor Day briefing, and 2021 Climate Change Report. The original case challenged statements describing natural gas as a “clean” fuel, promoting “zero emissions hydrogen,” and presenting a credible pathway to net zero by 2040. Justice Markovic dismissed the claims and ordered ACCR to pay Santos’ costs. ACCR said the appeal seeks clarification of the legal standards governing corporate climate disclosures in Australia.
🔗 Read more → ACCR’s Press Release, Court Order

UK NCP Advances Parts of British Airways Greenwashing Complaint First Filed in 2023
The UK National Contact Point (NCP) issued an initial assessment on a complaint raised on November 23, 2023, by Possible: the 10:10 Foundation against British Airways under the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. The complaint challenges the airline’s sustainability statements in four areas, including emissions reductions, aircraft efficiency, carbon credits such as “fly carbon neutral,” and sustainable aviation fuel. The NCP did not decide the merits but found elements of the complaint warranted further consideration under the OECD provisions on the environment and consumer interests, and said it will now offer mediation to the parties.
🔗 Read more → Complaint’s Initial Assessment via GOV.UK

Parliament Briefing Says SFDR Revision Could Cut Burden While Improving Comparability
A European Parliament research briefing says the Commission’s impact assessment makes a sufficient case for revising, rather than repealing, the Sustainable Finance Disclosure Regulation (SFDR). It identifies two main problems: complex, costly, and uncertain compliance for financial firms, and confusing, hard-to-compare ESG product disclosures for investors. The briefing notes that the Commission’s preferred package, simpler product-level disclosures with fewer data points in addition to the three product categories for ESG claims, could reduce administrative burden, improve comparability, strengthen investor protection, and reduce greenwashing risks. However, some cost analysis remains qualitative due to data limitations and uncertainty over category-related costs.
🔗 Read more → European Parliament Briefing “Sustainability-related disclosures in the financial services sector”

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