Issue - March 31, 2026

Good morning. It’s Tuesday, March 31, and this week’s ESG Litigation Weekly covers Germany’s top civil court rejecting climate suits against BMW and Mercedes-Benz, a Maryland high court ruling that shuts down local climate damages claims against oil companies, a new ISSB consultation to update the last three priority SASB standards, and more.

German Top Court Rejects Climate Suits Seeking Earlier Combustion-Engine Phaseout
Germany’s Federal Court of Justice rejected two climate cases against BMW and Mercedes-Benz brought by leaders of Deutsche Umwelthilfe. The plaintiffs sought preventive injunctions to stop the companies from placing new internal-combustion engine vehicles on the market after October 31, 2030, arguing that continued sales would consume an impermissible share of the remaining carbon budget. The court upheld the dismissals, holding that individual companies are not subject to legally binding emissions budgets of their own and that balancing climate protection with competing interests is primarily a matter for the legislature, not civil courts.
🔗 Read more → Bundesgerichtshof (Press Release, VI ZR 334/23, VI ZR 365/23)

Maryland Supreme Court Dismisses Climate Tort Suits Against Oil Majors
The Supreme Court of Maryland upheld dismissal of climate damages suits brought by Baltimore, Annapolis, and Anne Arundel County against 26 oil and gas companies, including claims for public nuisance, private nuisance, trespass, and failure to warn. The court held that the local governments’ Maryland common law claims are displaced and preempted by federal law because, in substance, they seek to regulate interstate and global greenhouse gas emissions. The court also said that aside from preemption, the complaints failed to state legally cognizable claims under Maryland law.
🔗 Read more → Court Opinion, Case Docket via Maryland Judiciary Case Search & Record Portal

New Mexico Jury Finds Meta Liable in Child Safety and Consumer Protection Case
A New Mexico jury found Meta liable on both claims the state brought under the Unfair Practices Act, in what the New Mexico Department of Justice described as the first state trial win against a major tech company over harms to young users. The jury awarded the statutory maximum of $5,000 per violation, totaling $375 million in civil penalties. The state said the case centered on allegations that Meta misled consumers about platform safety and endangered children. A separate bench trial beginning May 4 will address New Mexico’s public nuisance claim and requested injunctive relief, including potential platform changes.
🔗 Read more → New Mexico Department of Justice’s Press Release

Thai Court Orders Compensation in Chatree Gold Mine Toxic Contamination Case
A Bangkok civil court ruled that Akara Resources, operator of Thailand’s Chatree Gold Mine, is liable for environmental damage and health impacts linked to toxic contamination affecting nearby villagers in Phichit province. The case began in 2016 and is reported as Thailand’s first environmental class action following a 2015 legal change allowing such suits. More than 300 villagers alleged runoff from the mine caused elevated levels of heavy metals, including arsenic, cyanide, and manganese. The court ordered compensation for affected residents, along with payments for medical care and emotional distress.
🔗 Read more → The Associated Press

Investor Groups Sue U.S. SEC Over Shift in Shareholder Proposal No-Action Process
The Interfaith Center on Corporate Responsibility (ICCR) and As You Sow sued the U.S. Securities and Exchange Commission (SEC) in federal court in Washington, challenging a recent staff policy they say makes it easier for companies to exclude shareholder proposals from proxy materials. The complaint argues the SEC’s Division of Corporation Finance has replaced its traditional review under Rule 14a-8 with a de facto “rubber-stamp” process that issues no-objection letters based on formulaic company assertions and without meaningful analysis. The suit alleges the change unlawfully restricts shareholder rights and was adopted without notice-and-comment rulemaking.
🔗 Read more → Democracy Forward’s Press Release, Court Filing

ISSB Seeks Feedback on Proposed Amendments to Remaining Priority SASB Standards
The International Sustainability Standards Board (ISSB) published an Exposure Draft proposing amendments to three SASB Standards: (1) Agricultural Products, (2) Meat, Poultry & Dairy, and (3) Electric Utilities & Power Generators, along with related updates to the industry-based guidance supporting IFRS S2 climate disclosures. The proposals are the last of 12 priority SASB Standards the ISSB identified for initial enhancement. They are intended to align SASB language with ISSB Standards, improve international usability, support interoperability with other frameworks, and preserve consistency between SASB climate metrics and IFRS S2 guidance. Comments are due by July 24, 2026.
🔗 Read more → IFRS (Press Release, Exposure Draft - Proposed Amendments, Exposure Draft - Basis for Conclusions, Survey Link)

Utah Enacts Law Limiting Climate Liability Claims Based on Greenhouse Gas Emissions
Utah enacted H.B. 222, amending state law to provide that a person is not subject to civil or criminal liability, or other judicial remedies in law or equity, for damage or injury from any actual or potential effect on climate caused wholly or partly by greenhouse gas emissions, unless a court finds by clear and convincing evidence that the person violated an enforceable statutory emissions limit or permit term. The law also requires a plaintiff to identify the greenhouse gas at issue and prove that unavoidable, identifiable damage resulted or will result as a direct cause of that violation. The enrolled bill notes it takes effect on May 6, 2026.
🔗 Read more → H.B. 222 Limitation of Actions Amendments

CARB Weighs Options for Phasing In Scope 3 Reporting Under California’s SB 253
At a March 23 public workshop, the California Air Resources Board (CARB) staff outlined concepts for the next SB 253 rulemaking, including how to structure Scope 3 reporting beginning in 2027 and what assurance standards to recognize for Scope 1 and 2 emissions. Staff presented three main Scope 3 options: broad reporting across all categories with de minimis flexibility, a sector-based phase-in, or a category-based phase-in starting with the most commonly reported categories. CARB also reiterated that the first-year Scope 1 and 2 reporting deadline adopted in February is August 10, 2026, and said public comments on the workshop concepts are due April 13.
🔗 Read more → CARB SB 253 Public Workshop (Slides, Video Recording)

UK Unveils Voluntary BSI Nature Investment Standards for Nature Markets
The British Standards Institution (BSI), funded by the Department for Environment, Food and Rural Affairs (Defra) and supported by the devolved governments, launched the voluntary Nature Investment Standards on March 24 as a framework for the supply, storage, and trade of nature credits across the UK. The standards are intended to improve integrity in nature markets, guard against greenwashing, and provide a more consistent basis for assessing biodiversity, nutrient, and nature-based carbon credits. The framework includes five standards, though the nature-based carbon and community engagement components are still in development. The UK government said assurance will begin with a self-assessment transition period of at least two years from March 2026, before accredited conformity assessment bodies are expected to become the primary assurance providers.
🔗 Read more → GOV.UK, The Nature Investment Standards via BSI

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Judge Sends Mighty Earth’s JBS Net-Zero Case Back to D.C. Superior Court
A federal judge sent Mighty Earth’s greenwashing case against JBS USA back to D.C. Superior Court, allowing the dispute to continue there rather than ending it in federal court. Mighty Earth filed the case in October 2025 under the D.C. Consumer Protection Procedures Act, alleging JBS USA’s “net zero by 2040” messaging misled consumers about the company’s climate impact and plans. Judge John D. Bates held that Mighty Earth did not allege the kind of injury needed for federal Article III standing, but that D.C. law allows public-interest suits on behalf of consumers, so remand was required.
🔗 Read more → Mighty Earth’s Press Release, Court Order

Report Warns Australian Built Environment Faces Greenwashing-Greenhushing Dilemma
A new industry report suggests Australia’s built environment sector is under growing pressure to communicate sustainability credibly as scrutiny from regulators, investors, and other stakeholders increases. Drawing on a December 2025 roundtable, it highlights that firms are caught between the risk of overstating environmental progress and the risk of saying too little, a tension described as the pull between greenwashing and greenhushing. The report discusses particular challenges for the sector because sustainability claims often rely on complex supply chains, lifecycle analysis, projected performance, and certifications that may not fully reflect operational outcomes. It recommends stronger internal governance, including evidence libraries, claim inventories, regular claim audits, and cross-functional training involving sustainability, legal, and communications teams.
🔗 Read more → Australian Built Environment Communications Report “Navigating Sustainability Claims in an Era of Scrutiny” via the Anti-Greenwash Charter

New Glossary Aims to Bridge Climate Science and Legal Practice
A newly published glossary from the Union of Concerned Scientists, NYU Climate Law Accelerator, and the Grantham Research Institute is designed to help lawyers navigate scientific concepts that frequently arise in climate litigation. The resource explains how key terms such as causation, attribution science, uncertainty, risk, greenwashing, and best available science are used in scientific contexts and why they may be understood differently in court. Organized across seven thematic sections, it is intended as a practical tool to help legal practitioners assess expert evidence more accurately and avoid misreading climate science in litigation.
🔗 Read more → Climate Science in Legal Contexts: A Glossary of Key Terms for Lawyers

Additional Notable Updates:
EFRAG invites expressions of interest regarding voluntary sustainability reporting from non-SME companies that fall outside the CSRD’s scope.
🔗 Read more → European Financial Reporting Advisory Group (EFRAG)
ASFI publishes pioneering guidance to help facilitate debt issuance under the Australian Sustainable Finance Taxonomy.
🔗 Read more → Australian Sustainable Finance Institute (Press Release, Australian Taxonomy-aligned Debt Guidance)

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