Issue - October 13, 2026

Good morning. It’s Tuesday, October 13, and this week’s ESG Litigation Weekly covers U.S. Supreme Court arguments in Boulder’s climate case, Australia’s High Court decision upholding the invalidation of the Mount Pleasant coal mine expansion approval, a New York appeals court ruling upholding dismissal of the City’s greenwashing case against ExxonMobil, Shell, and BP, and more.

U.S. Supreme Court Hears Arguments in Boulder Climate Case Against Fossil Fuel Companies
The U.S. Supreme Court heard arguments on October 5 in Suncor Energy (U.S.A.) Inc. v. County Commissioners of Boulder County, considering whether federal law precludes state-law claims seeking compensation for climate-related harms. Suncor and ExxonMobil argued that interstate pollution is an inherently federal matter and that Colorado cannot impose state-law liability for worldwide fossil fuel activity. Counsel for the City and County of Boulder argued that the case concerns deception and other tort claims against fossil fuel producers, and that states traditionally provide remedies for local injuries caused by conduct elsewhere. The justices also examined whether the Court has jurisdiction to hear the dispute at this stage. The Court has not yet issued a decision.
🔗 Read more → U.S. Supreme Court (Oral Argument Transcript, Case Docket)

Australia’s High Court Upholds Invalidation of Mount Pleasant Coal Mine Expansion Approval
Australia’s High Court dismissed MACH Energy’s appeal concerning its Mount Pleasant coal mine expansion in New South Wales. The project would extend mining through 2048 and increase production, with Scope 3 emissions accounting for about 98% of projected greenhouse gas emissions. A majority found that the Independent Planning Commission failed to consider whether conditions should be imposed to minimize Scope 3 emissions to the greatest extent practicable, rendering the approval invalid. The ruling does not require particular conditions. The Court rejected a separate argument that the Commission had failed to consider climate-change impacts in New South Wales and the Hunter Valley. The NSW Government said a separate approval allowing mining until 2032 remains unaffected and the expansion proposal may be reconsidered.
🔗 Read more → High Court of Australia (Court Judgment), NSW Government (Press Release)

Brazilian Prosecutors and NGO Sue Shell Over 2024 Rio Grande do Sul Floods
Brazil’s Federal Public Prosecutor’s Office and Instituto Preservar filed a public civil action against Shell Brasil Petróleo seeking compensation for damage from the April and May 2024 floods in Rio Grande do Sul. According to the prosecutors’ announcement, the plaintiffs seek R$270.5 million in collective environmental and climate nonpecuniary damages, as well as an equal amount in material damages if liability is established. They rely on climate attribution research and Carbon Majors data attributing 2.02% of historical global fossil fuel and cement CO₂ emissions to the Shell group. The plaintiffs argue that Shell Brasil should bear a proportional share of the damage. The allegations have not been adjudicated.
🔗 Read more → Ministério Público Federal (Press Release)

Dieselgate Claimants Plan Court of Appeal Application After High Court Refuses Permission
Lawyers representing about 1.6 million motorists in England and Wales announced that they will apply directly to the Court of Appeal after the High Court refused permission to appeal its July Dieselgate judgment. That judgment found prohibited defeat devices in three of 20 sample vehicles. Devices in the remaining vehicles were not found to be prohibited under the court’s interpretation. The claimants argue that the judgment interprets the rules too narrowly and departs from Court of Justice of the European Union case law. Lady Justice Cockerill said written reasons for refusing permission would follow.
🔗 Read more → Leigh Day (Press Release), Reuters

EPA Signs Rule to Extend 2025 GHG Reporting Deadline to March 2027
The U.S. Environmental Protection Agency (EPA) signed an interim final rule extending the Greenhouse Gas Reporting Program deadline for reporting year 2025 from October 30, 2026, to March 10, 2027. The rule becomes effective upon publication in the Federal Register. It changes only the deadline and makes no other amendments to the program. EPA said the extension will provide time to consider comments and potentially finalize its separate proposal to reconsider the program, including proposed changes to 2025 reporting obligations. The extension covers facilities, suppliers, and CO₂ injection sites subject to annual reporting.
🔗 Read more → EPA (Interim Final Rule, Rulemaking Notices for GHG Reporting)

SEC Addresses Beneficial Ownership Reporting in Coordinated Shareholder Engagement
The U.S. Securities and Exchange Commission (SEC) issued a Section 21(a) investigation report concerning Climate Action 100+ and investor activity around ExxonMobil’s 2021 director election. The SEC declined to pursue enforcement based on the conduct known to it and made no findings of violations. It said coordinated conduct through intermediaries may provide evidence that investors formed a shareholder group, potentially triggering reporting obligations where combined beneficial ownership exceeds 5% of a covered share class. Disclaimers of group status are not decisive. However, mere membership ordinarily does not establish a group, and independently determined parallel voting or a passive exchange of views is insufficient without additional coordinated conduct. Separately, activities having the purpose or effect of changing or influencing control of an issuer may affect eligibility to use Schedule 13G.
🔗 Read more → SEC (Report of Investigation)

Danish Supervisor Orders P+ to Improve Sustainability Disclosures and Investment Controls
Denmark’s Financial Supervisory Authority ordered pension fund P+ to address deficiencies identified in an inspection focused on P+ Bæredygtig Høj, an Article 8 product under the Sustainable Finance Disclosure Regulation that commits to at least 38% sustainable investments. The regulator found insufficient disclosure of how sustainability risks inform investment decisions and their likely effect on returns. It also criticized reliance on companies’ emissions-reduction targets without establishing actual reductions, gaps in assessments of significant harm, and unclear good-governance criteria. P+ must improve its methods and documented processes at investment and on an ongoing basis. The good-governance requirement covers both sustainable and other investments in the product.
🔗 Read more → Danish Financial Supervisory Authority (Inspection Statement)

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New York Appeals Court Upholds Dismissal of Greenwashing Case Against ExxonMobil, Shell, and BP
New York’s Appellate Division, First Department, affirmed dismissal of New York City’s consumer protection lawsuit alleging product and corporate greenwashing by ExxonMobil, Shell, and BP. The court held that the challenged gasoline advertisements made comparative claims and were not misleading, relying in part on the City’s own allegations of widespread awareness that fossil fuel use contributes to climate change. The court rejected the corporate greenwashing claims because the challenged statements about alternative-energy activities lacked the required connection to the sale or offering of consumer goods or services under the City’s Consumer Protection Law.
🔗 Read more → New York State Courts (Court Decision)

RepRisk Reports Growing Greenwashing Scrutiny in Energy Transition Sectors
RepRisk’s fifth annual Greenwashing Report records a 112% increase in greenwashing risk incidents across the five annual periods examined, ending June 2026. Alternative energy, mining, industrial metals, utilities, and software and computer services accounted for a growing share of environmental-issue linkages recorded on greenwashing risk incidents. RepRisk also reports increased attention to ecosystems and biodiversity alongside climate-related claims. The company cautions that comparisons are affected by the introduction of a dedicated greenwashing classification in 2025. Absolute incident counts also reflect expanded monitoring of sources, languages, and companies.
🔗 Read more → RepRisk (Press Release, Report)

ERM Survey Finds Investors Favor In-House Research Over ESG Ratings
ERM’s Rate the Raters 2026 report draws on a survey of 53 investment professionals whose organizations collectively represent about $23.5 trillion in assets under management. Corporate ESG ratings fell from joint first place in 2023 to sixth place in 2026 among sources of corporate ESG information respondents considered most useful for investment decisions. In-house research, direct company engagement, and corporate sustainability reports ranked highest. Average trust in ESG ratings declined from 3.31 to 3.05 out of five. Respondents’ priorities for improving ratings included greater focus on material issues, stronger links to financial performance, better methodology disclosure, and closer alignment with mandatory reporting standards.
🔗 Read more → ERM Sustainability Institute (Report)

Catch up on previous editions → ESGLitigation.com

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