Issue - May 5, 2026

Good morning. It’s Tuesday, May 5, and this week’s ESG Litigation Weekly covers Brazilian labor prosecutors’ lawsuit against JBS over alleged slavery-like labor conditions in its cattle supply chain, Deutsche Umwelthilfe’s lawsuit challenging McDonald’s Germany’s previous claim about reaching climate neutrality by 2050, ESMA’s consultation on endorsement rules for non-EU ESG ratings, and more.

Brazilian Labor Prosecutors Sue JBS Over Alleged Slavery-Like Labor Conditions in Cattle Supply Chain
Brazil’s Ministério Público do Trabalho (MPT) filed a public civil action against JBS S.A. in the Labor Court of Xinguara, Pará, alleging that workers were found in conditions analogous to slavery on cattle ranches directly linked to the company’s supply chain. The MPT mentions 53 workers were rescued on supplier properties in Pará between 2014 and 2025, and that JBS continued commercial transactions with suppliers included on Brazil’s labor “Dirty List.” Prosecutors seek at least R$118.9 million in collective moral damages and supply-chain obligations.
🔗 Read more → MPT’s News Release

Greenpeace Netherlands Moves Toward Legal Action Against JBS Over Expansion Plans
Greenpeace Netherlands sent a legal letter to JBS N.V., the Dutch parent company of meat producer JBS, demanding information on the company’s climate, nature, and human rights impacts. The group says it is assessing potential Dutch court action over JBS’s business policies, including a planned US$6 billion global expansion, with US$2.5 billion tied to Nigeria. Greenpeace alleges that JBS’s expansion could worsen emissions, biodiversity impacts, and risks to affected communities. The letter asks JBS to disclose impact assessments and related documents within three weeks.
🔗 Read more → Greenpeace International (Press Release, Legal Letter)

U.S. Supreme Court Hears Arguments Over Preemption of State Failure-to-Warn Claims
On April 27, the U.S. Supreme Court heard arguments over whether thousands of state-law lawsuits alleging that Roundup’s maker failed to warn users about cancer risks are preempted by federal pesticide labeling law. The case follows a Missouri jury award to John Durnell, who alleged he developed non-Hodgkin’s lymphoma after years of Roundup use. Bayer-owned Monsanto argues that state warning claims requiring labels “in addition to or different from” EPA-approved labels are preempted and would create a patchwork of state requirements. Plaintiffs say that federal law does not bar additional state-law warnings. A decision is expected by the end of June.
🔗 Read more → The Associated Press, Bayer U.S.’s Post Durnell Argument Statements, U.S. Supreme Court (Case Docket)

First Hearing Held in River Wye, Lugg, and Usk Pollution Claim
Avara Foods, its subsidiary Freemans of Newent, and Welsh Water appeared at a first High Court hearing in a group claim over alleged pollution in the UK rivers Wye, Lugg, and Usk. The claim, filed in autumn 2025, alleges that runoff from poultry manure spread on farmland and sewage discharges contributed to nutrient and bacterial pollution. The claim is being brought on behalf of affected individuals and businesses seeking compensation for alleged impacts linked to the river pollution. All three defendants deny the allegations. Avara and Freemans argue that the case lacks a proper scientific basis.
🔗 Read more → The Guardian, Leigh Day’s Press Release

ESMA Consults on Endorsement Rules for Non-EU ESG Ratings
The European Securities and Markets Authority (ESMA) launched a public consultation on draft guidelines for endorsing ESG ratings issued outside the EU. The guidance supports implementation of the EU ESG Ratings Regulation, which applies from July 2, 2026, and explains what information providers should submit when seeking authorization to endorse third-country ratings. ESMA’s draft covers documentation, EU presence, oversight, information-sharing arrangements, and ongoing reviews to confirm non-EU ratings remain subject to equivalent standards. Comments are due by May 29, 2026.
🔗 Read more → ESMA (Press Release, Consultation Paper)

FCA Opens Voluntary Reporting Pilot for ESG Rating Providers
The UK Financial Conduct Authority (FCA) invited ESG rating providers expected to fall within the future UK regime to join a voluntary reporting pilot. The pilot will test whether proposed reporting metrics are clear, feasible, proportionate across business models, and useful for supervision. The FCA says participant feedback may shape the eventual reporting framework and regulatory reporting requirements. The pilot follows CP25/34, the FCA’s consultation on proposed ESG ratings rules, which aim to improve transparency, governance, controls, and conflict management in the ESG ratings market. Providers are asked to register their interest by May 13, 2026.
🔗 Read more → UK FCA (Press Release, CP25/34 “ESG ratings: Proposed approach to regulation”)

EFRAG Seeks Input on ISSB’s Proposed SASB Standard Updates
EFRAG opened a consultation on its draft comment letter responding to the International Sustainability Standards Board (ISSB) proposals to amend three SASB Standards and related IFRS S2 industry-based guidance. The ISSB proposals cover Electric Utilities & Power Generators, Agricultural Products, and Meat, Poultry & Dairy. EFRAG notes SASB remains relevant for European reporting, particularly for interoperability and entity-specific disclosures under the European Sustainability Reporting Standards (ESRS). Its draft response welcomes the update but raises concerns about complexity, ambiguity, overlaps with IFRS S1 and IFRS S2, and consistency across revised standards. Stakeholder comments to EFRAG are due June 28, 2026.
🔗 Read more → EFRAG (Press Release, Draft Comment Letter, Appendix 1, Appendix 2)

GRI and CDP Update Mapping for 2026 Climate Disclosures
The Global Reporting Initiative (GRI) and CDP released updated mapping between CDP’s 2026 corporate questionnaire and the GRI 102: Climate Change and GRI 103: Energy Standards. The mapping identifies areas of full and partial correspondence between the two disclosure systems, helping companies reuse underlying data and reduce duplicate reporting. GRI highlights that the revised mapping expands coverage of climate-related disclosures, including actions and land-related emissions and removals. The update continues GRI and CDP’s collaboration under their 2023 memorandum of understanding and supports more aligned, decision-useful climate reporting.
🔗 Read more → GRI (Press Release, Updated GRI-CDP Mapping)

EPA Clarifies Temporary Flaring After Routine-Flaring Phaseout for New Oil Wells
The U.S. Environmental Protection Agency (EPA) issued guidance clarifying when oil and natural gas producers may temporarily flare associated gas after the May 7, 2026 phaseout deadline for routine flaring under the 2024 OOOOb rules. EPA says the rules allow temporary flaring during qualifying interruptions in downstream gathering or pipeline service outside an operator’s control. The memo states that operators may flare for the duration of the temporary interruption, up to 30 days per incident, subject to recordkeeping and annual compliance reporting requirements.
🔗 Read more → EPA (Press Release, Memorandum)

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DUH Files Lawsuit Against McDonald’s Germany Over 2050 Climate Neutrality Claim
Deutsche Umwelthilfe (DUH) filed a lawsuit against McDonald’s Deutschland LLC at the Munich I Regional Court, alleging that an earlier website statement about becoming “climate neutral” globally by 2050, including the supply chain, was insufficiently substantiated. DUH states the claim lacked concrete, verifiable emissions-reduction measures, interim targets, and a robust implementation plan. McDonald’s Germany denies that the communication was misleading, saying it referred to a global ambition validated by SBTi, appeared only in background website content, and was revised in late 2025.
🔗 Read more → DUH’s Press Release, McDonald’s Germany’s Statement

DeSmog Report Links WPP Agencies to U.S. Oil Advertising Spend
A DeSmog analysis reports that WPP agencies were linked to an estimated US$1 billion in U.S. advertising spending by ExxonMobil, Chevron, Shell, and BP since the 2015 Paris Agreement. It indicates WPP was the leading advertising group serving the four oil majors during the period. The article also notes that WPP adopted a 2022 policy not to take on client work designed to frustrate the Paris Agreement’s objectives.
🔗 Read more → DeSmog (News Release, Report “Deceptive and Misleading”: Which ad agencies have contributed to Big Oil’s ad spend in the U.S. since the Paris Agreement?)

Greenwashing Rules Are Converging, but Evidence Gaps Remain
A new International Institute for Sustainable Development (IISD) report maps 23 greenwashing-related regulatory instruments across 12 jurisdictions, including Australia, Canada, the EU, India, the United Kingdom, and the United States. The report finds that many frameworks now converge around core principles such as truthfulness, clarity, substantiation, and transparency. However, IISD points out that few rules clearly define what constitutes adequate evidence, creating uncertainty about acceptable data, methodologies, and verification. The report also highlights implementation challenges for SMEs and complex supply chains, and calls for clearer recognition criteria for voluntary sustainability standards used to support environmental claims.
🔗 Read more → IISD Report "Reliability of Claims: Addressing greenwashing through regulations”

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