- ESG Litigation Weekly
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- Issue - November 11, 2025
Issue - November 11, 2025
INEOS Project One faces a fifth suit, Z Energy settles greenwashing case, Nike wins “Sustainability” case, and much more
Good morning. It’s Tuesday, November 11, and this week’s ESG Litigation Weekly covers NGOs’ fifth legal challenge to INEOS’s Project One in Antwerp, Z Energy’s public-apology settlement in a greenwashing case, the U.S. Court of Appeals for the Eighth Circuit’s dismissal of a Nike “Sustainability Collection” misleading marketing suit, and more.
⚖️ ESG Casefile
NGOs Launch Fifth Legal Challenge to INEOS Project One Over Climate And Health Impacts
Fifteen NGOs led by ClientEarth filed a new lawsuit against the latest permit for INEOS’s €4 billion Project One ethane cracker in Antwerp. The filing argues that environmental and health impacts were underestimated and that full supply chain emissions were not assessed. Expert reports cited by the groups estimate that lifecycle emissions could reach approximately 3.8 million tCO2e per year, significantly exceeding the project’s direct estimate, and project hundreds of pollution-related deaths and new cases of childhood asthma. The case follows earlier injunctions and seeks to remove the legal basis for construction or operation.
🔗 Read more → ClientEarth
Appeal Revives Class Action Over Alleged Lead Poisoning in Zambia Against Anglo American
An appeal hearing opened at South Africa’s Supreme Court of Appeal on whether Anglo American South Africa can be held liable for decades of lead poisoning from a mine in Kabwe that affects about 140,000 people in Zambia. Women and children are seeking to overturn a 2023 Johannesburg lower court dismissal, which found insufficient initial evidence and deemed the case unmanageable because each claimant would need to prove that their own sickness is caused by lead poisoning. Rights groups cite studies showing extreme contamination and elevated blood lead levels in children. Anglo American denies liability, saying it neither owned nor operated the Kabwe mine and held only a minority stake.
🔗 Read more → The Associated Press
Congolese NGOs File U.S. Discovery Over Lake Kivu Methane Concessions
Two Congolese groups, Alerte Congolaise pour l’Environnement et les Droits de l’Homme (ACEDH) and Actions pour la Promotion et Protection des Peuples et Espèces Menacés (APEM), filed a discovery petition in the U.S. District Court for the Southern District of Texas to obtain evidence from Winds Exploration and Production LLC (“Winds) and its CEO for use in a lawsuit challenging the 2022 awards of methane gas block concessions on Lake Kivu in the Democratic Republic of Congo. The filing cites alleged irregularities in the auction, failures to conduct required environmental and social due diligence, and catastrophic safety risks if extraction is mismanaged. It also notes concerns about Winds’ track record and corporate status. More than two million people live near the volatile lake.
🔗 Read more → OCCRP, Court Order (PDF via JUSTIA)
🏛️ Regulatory Developments
Canada Proposes Rollback of Greenwashing Rules in Competition Act
Recently published Canada’s Budget 2025 proposes changes to the Competition Act’s recent greenwashing provisions. The plan would remove the requirement that environmental claims be substantiated using internationally recognized methodology standards and would eliminate the ability for third parties to bring cases directly to the Competition Tribunal for alleged greenwashing. These safeguards were added in November 2023 through Bill C-59 and took effect on June 20, 2024, with the private right of action scheduled for June 20, 2025. The proposal would narrow available enforcement routes for misleading environmental claims.
🔗 Read more → Canada’s Budget 2025 (PDF), Competition Act
EU Plans Major Rewrite of SFDR for Asset Managers
The European Commission plans a major overhaul of the Sustainable Finance Disclosure Regulation (SFDR) to curb greenwashing and simplify compliance. Based on a leaked draft, Bloomberg reports it would replace Articles 8 and 9 with three product categories based on objectives, cut required ESG data points, and drop some firm-wide obligations. Sustainability-labeled funds would need at least 70% of assets associated with an ESG strategy, with general-purpose sovereign bonds excluded. The Commission cites misuse of current labels and investor protection gaps. It estimates long-term compliance costs could fall by at least 25%, though WWF warns ambition and Paris alignment are weak. On another note, the European Supervisory Authorities published a consolidated Q&A document on the SFDR and the SFDR delegated regulation last week.
🔗 Read more → Bloomberg, Q&A on the SFDR and the SFDR Delegated Regulation (PDF via ESMA)
German Bundestag Passes CO2 Storage Law Enabling CCS Infrastructure
Germany’s Bundestag approved a law enabling underground carbon storage, designating CO2 storage sites and pipelines as of overriding public interest to speed planning and approvals. The measure targets hard-to-abate emissions to reach climate neutrality by 2045, permits carbon capture and storage (CCS) at gas-fired power plants, and bans it at coal-fired plants. Onshore storage remains generally prohibited unless individual states opt in through their own laws. Industry groups welcomed the move and urged public funding for CO2 transport infrastructure, while environmental groups warned it could weaken efforts to curb emissions at source. The Bundestag also scrapped the gas storage levy, with costs covered through 2025.
🔗 Read more → Reuters
EBA Publishes Environmental Scenario Analysis Guidelines for EU Banks
The European Banking Authority (EBA) issued final Guidelines on environmental scenario analysis to complement its ESG risk management guidance and set supervisory expectations for how banks assess environmental risks. The Guidelines rest on two pillars: integrating environmental risks into existing stress testing to gauge short-term financial impacts and capital and liquidity adequacy, and a resilience analysis that evaluates medium to long-term implications for business models, strategies, and risk profiles. They provide a common reference across the EU banking sector. The Guidelines will apply from January 1, 2027, with the legal basis in CRD6 and CRR3.
🔗 Read more → Guidelines on Environmental Scenario Analysis (PDF)
ICMA Issues Climate Transition Bond Guidelines with New CTB Label
The International Capital Market Association (ICMA) published the Climate Transition Bond Guidelines to provide issuance-level guidance that complements the Climate Transition Finance Handbook. The Guidelines introduce a standalone Climate Transition Bond (CTB) label to fund Paris-aligned transition projects, especially from high-emitting sectors. They define credible climate transition projects with safeguards and include a preliminary, non-exhaustive list of categories in the annex. The Guidelines also provide further annexes on official sector and market-based guidance, taxonomies, decarbonization pathways, and resources on avoiding carbon lock-in.
🔗 Read more → Climate Transition Bond Guidelines 2025
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🧼 Greenwashing Watch
Z Energy Settles Greenwashing Case With Public Apology
Consumer NZ, Lawyers for Climate Action NZ, and Environmental Law Initiative settled their High Court case over Z Energy’s “Moving with the Times” campaign. Z Energy issued a public apology published nationally. The settlement involved no payment, and Z Energy denies greenwashing and liability. The parties acknowledged that greenwashing is prevalent and that accurate communications are essential. Z Energy recognized that petrol and fossil fuels are major contributors to climate change and agreed that the government has a crucial role in the transition. The plaintiffs called the campaign highly misleading and said they will continue monitoring claims.
🔗 Read more → Consumer NZ, Z Energy’s Announcement
Eighth Circuit Upholds Dismissal of Nike “Sustainability Collection” Greenwashing Suit
The U.S. Court of Appeals for the Eighth Circuit affirmed dismissal with prejudice of a putative class action alleging Nike misled consumers by marketing a “Sustainability Collection” as environmentally friendly under Missouri’s Merchandising Practices Act. The panel agreed the complaint did not plausibly allege falsity or deception, noting the plaintiff offered no particularized facts showing thousands of products lacked recycled or organic fibers, and also fell short on the reasonable-consumer and ascertainable-loss elements. The court found no abuse of discretion by the district court in dismissing the complaint with prejudice.
🔗 Read more → Court Judgment (PDF via JUSTIA)
HESTA And Prime Super Pay ASIC Infringement Notices Over Misleading Statements
HESTA’s trustee paid A$37,560 to comply with two Australian Securities & Investments Commission (ASIC) infringement notices alleging misleading paid search ads. From April 15, 2021, to December 18, 2024, ads linked to HESTA’s “Why Join” page stated “HESTA is committed to remove all investment in carbon emissions by 2050…”. ASIC said this overstated HESTA’s plan, which is net zero portfolio emissions by 2050 that can include offsets, not eliminating all carbon-related investments. HESTA paid on November 3, 2025, where payment of an infringement notice is not an admission of liability.
Similarly, Prime Super Pty Ltd paid A$18,780 to comply with an ASIC infringement notice alleging misleading statements about the fund’s tobacco exclusions on October 31, 2025. From October 16, 2023, to June 11, 2025, Prime Super stated tobacco manufacturers were “excluded entirely” while the fund held indirect investments in companies such as Altria, British American Tobacco, Imperial Brands Finance, JT International Financial Services BV, Philip Morris International, and Reynolds American. ASIC’s Sarah Court said fund managers must accurately represent direct and indirect holdings to allow consumers to make an informed choice.
🔗 Read more → ASIC (HESTA, Prime Super)
New York AG Secures $1.1 Million from JBS USA over Net-Zero Claims
New York Attorney General (AG) Letitia James reached a $1.1 million settlement with JBS USA over alleged greenwashing of its “net zero by 2040” claims. The Office of the Attorney General’s (OAG) 2024 suit said JBS touted net-zero and other climate promises without a viable plan, while preparing to expand production. Under the agreement, JBS USA will fund climate-smart agriculture programs in New York, cease deceptive or unsubstantiated environmental claims, reform its marketing, and file annual compliance reports to OAG for three years. BBB National Programs’ National Advertising Division had previously recommended that JBS stop making net-zero claims, a decision affirmed by the National Advertising Review Board. The settlement occurred not long after Mighty Earth, an environmental advocacy organization, filed a lawsuit against JBS USA in Washington, D.C., in a related ongoing case accusing JBS of making false and misleading claims about achieving net zero by 2040.
🔗 Read more → Office of the New York State Attorney General
💡 Insight of the Week
Filling the Federal Vacuum: The Rise of State and Local Climate Lawsuits
With federal climate policy regressing under the Trump administration, state and local governments are filling the gap through legislation, litigation, and community planning. States are enacting climate laws and renewable energy mandates, while cities deploy resilience strategies and sue fossil fuel companies for damages and deception. Despite federal attempts to suppress these initiatives, subnational actors continue to drive climate accountability and adaptation. Their actions signal a resilient and growing movement that advances climate goals, protects communities, and maintains momentum even as national leadership recedes.
🔗 Read more → American Bar Association
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