Issue - October 7, 2025

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Good morning. It’s Tuesday, October 7, and this week’s ESG Litigation Weekly covers a judge’s ruling allowing Maine’s climate deception case against major oil companies to proceed in state court, Kerala’s new ESG policy as India’s first state-level ESG investment policy, the Australian Securities and Investments Commission’s legal action against a Fiducian Group subsidiary over ESG fund greenwashing and governance failures, and more.

⚖️ ESG Casefile

Judge Allows Maine Climate Deception Case to Proceed in State Court
U.S. Judge Nancy Torresen ruled that Maine’s climate deception lawsuit against Exxon, Chevron, Shell, BP, Sunoco, and the American Petroleum Institute can proceed in state court. She ordered defendants to pay the state’s costs for an improper removal to federal court, calling their arguments slightly and cleverly revised versions that courts nationwide have unanimously rejected. Filed in 2024, the suit alleges failure to warn and concealment of fossil-fuel harms and seeks damages, injunctive relief, and disgorgement. The ruling comes amid industry efforts to secure liability shields as similar climate cases advance.
🔗 Read more → The Center for Climate Integrity (Press release, Court Order)

Court Finds Loyalty Breach in American Airlines ERISA Case, Issues Permanent Injunction
A federal court entered final judgment after a bench trial in the Employee Retirement Income Security Act (ERISA) case against American Airlines and its Employee Benefits Committee. The court found a breach of the duty of loyalty for allowing BlackRock and ESG-focused stewardship to influence retirement plan management, but no breach of prudence because practices aligned with industry norms. The court denied monetary relief for lack of proven loss and imposed equitable remedies. The injunction restricts non-pecuniary stewardship, requires at least two independent committee members, mandates annual participant disclosures and certifications, requires public disclosure of ESG-related memberships, and sets conflict-management limits on using BlackRock or similar managers.
🔗 Read more → Court Order (PDF via CourtListener)

Judge Dismisses Coca-Cola’s Simply “All Natural” PFAS Suit for Lack of Standing
U.S. District Judge Nelson S. Román dismissed with prejudice a putative class action alleging Coca-Cola’s Simply-branded juices were falsely marketed as all-natural despite per- and polyfluoroalkyl substances (PFAS) contamination, holding the plaintiff lacked Article III standing. The court found he did not plausibly allege a price premium or benefit of the bargain injury, failed to show the products he purchased contained PFAS, and did not meaningfully tie third-party testing to his own purchases. The court also noted that purchases after suit filing cannot create standing and did not reach the merits of the New York consumer protection and related claims.
🔗 Read more → Court Order (PDF via ClassAction.org)

D.C. Court Dismisses Suit to Compel EPA PFAS Biosolids Rules
A U.S. district judge granted EPA’s motion to dismiss a case brought by farmers, Texas’ Johnson County, Potomac Riverkeeper, and the Maine Organic Farmers and Gardeners Association that sought to force the Environmental Protection Agency (EPA) to identify and regulate PFAS in sewage sludge. The court held that the Clean Water Act requires the EPA to review biosolids regulations every two years, but sets no date certain to identify or regulate pollutants. It also found EPA’s Biennial Report is informational and not final agency action under the Administrative Procedure Act (APA). The court dismissed the non-discretionary duty claims without prejudice and the APA challenge with prejudice, noting petitioning EPA for rulemaking remains available.
🔗 Read more → Court Order (PDF via JUSTIA)

🏛️ Regulatory Developments

EU Council Adopts CBAM Simplification to Ease Compliance
The Council adopted a regulation to simplify and strengthen the EU Carbon Border Adjustment Mechanism (CBAM) under the Omnibus I package. It creates a new de minimis mass threshold so imports up to 50 metric tons per importer per year fall outside CBAM scope, primarily benefiting small and medium-sized enterprises and individuals. Climate ambition remains unchanged, with about 99% of embedded emissions still covered. The measure allows imports in early 2026 while CBAM registration is pending, and streamlines authorization, data collection, emissions calculation, verification, financial liability, as well as penalties and rules for indirect customs representatives. The regulation takes effect three days after publication of the legislative act in the EU’s Official Journal.
🔗 Read more → Council of the EU

Kerala Launches State ESG Policy with Tax Credits and Low-Interest Loans
Kerala approved its first state-cleared ESG policy to attract new and existing investments aligned with environmental, social, and governance goals. Reported incentives include tax credits equal to 100% of capital investment for five years, potential capital-gains deferrals for ESG-focused mutual funds, a 20% purchase preference in public procurement for compliant local value-adding firms, a 10% subsidy up to ₹50 lakh for fixed capital, and the Kerala State Industries Development Corporation (KSIDC) low-interest loans for machinery and technology. The state targets 100% renewable energy by 2040 and carbon neutrality by 2050, and promotes workforce diversity, human rights, transparency, and ESG disclosures.
🔗 Read more → The Economic Times

New Zealand Announces Energy Package Focused on Security, Competition, and Faster Renewables
New Zealand unveiled a two-track energy package to secure a firm supply, strengthen market oversight, and accelerate the build-out of renewables. It begins procurement for a liquefied natural gas import terminal, with a registration of interest opening on October 6, 2025, and follow-up decisions expected in December 2025. The government will remove perceived capital constraints on the majority of Crown-owned (government-owned) generators and target a doubling of renewable energy by 2050 through fast-track approvals and offshore wind legislation. It will also expand the Electricity Authority’s powers and penalties, improve electricity and gas market transparency, and introduce a reliability framework to manage dry-year risk.
🔗 Read more → MBIE: At a Glance: New Zealand’s Energy Package (PDF)

EPA Proposes Revisions to AIM Act Technology Transitions Rules for HFC Uses
EPA proposed revisions to rules under the American Innovation and Manufacturing (AIM) Act of 2020’s Technology Transitions provisions. The proposal responds to petitions from companies and trade groups across sectors and subsectors, such as refrigerated transport, industrial process refrigeration for semiconductor manufacturing, retail food refrigeration, cold-storage warehouses, refrigerated lab equipment, and residential and light commercial HVAC condensing units. EPA would allow previously manufactured and imported residential and light commercial air conditioners and heat pumps to continue being installed. The agency also seeks advance comment on measures to address a refrigerant blend supply chain issue. Comments are due November 17, 2025, with a virtual public hearing possible on October 20.
🔗 Read more → Federal Register

EU Restricts PFAS in Firefighting Foams Under REACH
The European Commission adopted measures restricting PFAS in firefighting foams under the REACH Regulation to reduce exposure risks. Firefighting foams are a major PFAS source. Without action, about 470 metric tons would be emitted annually. PFAS-free foams are available, and sector-specific transition periods will support a switch to alternatives. The restriction is based on the European Chemicals Agency’s scientific assessment and cleared Parliament and Council scrutiny. The restriction will take effect 20 days after publication in the EU Official Journal, with transition periods of 12 months to 10 years, depending on use.
🔗 Read more → European Commission

ICVCM Approves Six Engineered Carbon Dioxide Removal Methodologies for CCP Labeling
The Integrity Council for the Voluntary Carbon Market (ICVCM) approved six engineered carbon dioxide removal (CDR) methodologies to issue Core Carbon Principles (CCP)-labeled credits. Engineered CDR uses purpose-built technologies to pull CO₂ from the atmosphere. It accounts for less than 1% of issued volume in the voluntary carbon market today, yet it drives a considerable share of forward sales, and its market share is expected to grow significantly. The UK and EU are considering integrating CDR credits into their emissions trading schemes within five years. CDR could also channel more finance to the Global South, with data indicating that three of the five largest durable CDR supplier projects are based there.
🔗 Read more → Integrity Council

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🧼 Greenwashing Watch

ASIC Sues a Fiducian Group Subsidiary Over ESG Fund Greenwashing and Governance Failures
Australian Securities and Investments Commission (ASIC) filed civil penalty proceedings against Fiducian Investment Management Services Limited, alleging misleading conduct and governance failures as the responsible entity for the Diversified Social Aspirations Fund. ASIC says the Fund’s Product Disclosure Statement (PDS) overstated ESG screening and monitoring of underlying funds, and did not match how the Fund actually invested. Alleged lapses include failing to review holdings against the PDS, omitting ESG risk controls, not following its risk framework for PDS reviews, and not engaging an ESG expert for the Fund monitoring. ASIC seeks declarations, penalties, and adverse publicity orders. This is ASIC’s fourth greenwashing civil penalty action.
🔗 Read more → ASIC (Media Release, Statement of Claim)

UK ASA Finds Shell Energy LinkedIn Ad Not Misleading
A paid LinkedIn ad by Shell Energy seen on April 22, 2025, highlighting work with Baker Hughes to decarbonize operations, used solar imagery and statements “help meet their energy needs” and “reduce their emissions.” A complainant alleged that it misled about Shell’s overall environmental impact. The UK Advertising Standards Authority (ASA) assessed the ad as B2B communication despite mixed audience reach, and viewed it as a client case study rather than a statement about Shell’s broader activities. It concluded that the basis of the environmental claims was clear and not misleading under CAP Code rules 3.1 and 11.1. No further action was required.
🔗 Read more → ASA and CAP

💡 Insight of the Week

Climate Litigation Reaches 3,099 Cases, Broadens in Scope and Geography
The UN Environment Programme (UNEP) and the Sabin Center for Climate Change Law’s latest publication, “Climate Change in the Courtroom: Trends, Impacts, and Emerging Lessons”, reports 3,099 cumulative climate cases as of June 30, 2025. They span 55 jurisdictions and 24 international or regional bodies, with 1,986 cases filed in the United States. The field has matured across most areas of climate governance, with courts increasingly receptive to attribution science. A recent advisory opinion by the International Court of Justice clarifies states’ climate obligations and is shaping arguments worldwide. Cases from the Global South remain under 10% but are growing. The report also flags a rise in anti-climate litigation that seeks deregulation, deprioritizes ESG in investment decisions, or targets public opposition to high-emitting projects, raising concerns about civic space.
🔗 Read more → Full Report, Report’s Key Messages

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