Issue - September 1, 2026

Good morning. It’s Tuesday, September 1, and this week’s ESG Litigation Weekly covers a court-approved multistate settlement requiring Meta to make multibillion-dollar payments and adopt youth safeguards, a $21.5 million settlement resolving federal contracting-related discrimination allegations against Deloitte, EFRAG’s release of a draft datapoint list for the revised ESRS, and more.

Court Approves Multistate Meta Settlement Over Youth Social Media Claims
A California federal court entered a consent judgment approving a multistate settlement resolving claims alleging that Meta designed Facebook and Instagram features that encouraged excessive use by children and teens and misrepresented associated risks. Under the agreement, Meta will make multibillion-dollar payments to participating jurisdictions, with attorneys general valuing the settlement at up to $17.1 billion, subject in part to contingent payment conditions. Meta must also implement youth protections including age-assurance measures, default daily time limits, nighttime access restrictions, limits on notifications, enhanced parental controls, and an option for non-personalized feeds. An independent auditor will oversee compliance. Meta did not admit liability or wrongdoing.
🔗 Read more → California AG (Press Release), New York AG (Press Release), Texas AG (Press Release), Meta (Statement), CourtListener (Court Order, Settlement Agreement)

Deloitte Agrees to $21.5 Million Settlement Over Federal Contracting-Related Discrimination Allegations
Five Deloitte entities agreed to pay $21.5 million to resolve allegations by the U.S. Department of Justice (DOJ) that the firm violated the False Claims Act by falsely certifying compliance with federal anti-discrimination requirements while using race- and sex-based considerations in certain employment practices. The government alleged that Deloitte used demographic goals in hiring, promotion, staffing, and some employee development programs, including staffing on federal contracts. The settlement resolves civil claims concerning conduct alleged from 2017 through the agreement’s effective date. Deloitte denied engaging in the alleged conduct and did not admit liability. The settlement also preserves certain government rights, including pending or future U.S. Equal Employment Opportunity Commission (EEOC) matters.
🔗 Read more → U.S. DOJ (Press Release, Settlement Agreement)

Norwegian Government Seeks Dismissal of Supreme Court Climate Case After New Resolution
Norway’s government asked the Supreme Court to dismiss a climate case concerning approvals for North Sea petroleum projects, arguing that a May 2026 resolution has remedied defects identified by the lower courts and eliminated the environmental groups’ legal interest in challenging the earlier decisions. Greenpeace Nordic and Young Friends of the Earth Norway declined to expand the pending case to challenge the 2026 resolution, arguing that it cannot retroactively cure the earlier approvals and that reviewing it would require the Supreme Court to consider new issues at first instance. An 11-judge grand chamber heard the case and has not yet ruled on the dismissal request.
🔗 Read more → Rett24, Supreme Court of Norway (Case Page)

D.C. Circuit Upholds FERC Approval of CP2 LNG Project
The D.C. Circuit denied challenges to the Federal Energy Regulatory Commission’s (FERC) authorization of Venture Global’s CP2 LNG export terminal and an associated 85-mile natural gas pipeline in Louisiana and Texas. Environmental and community groups argued that FERC violated the Natural Gas Act and National Environmental Policy Act in assessing the project’s public-interest implications and environmental effects. The court rejected those claims, holding that FERC reasonably applied the statutory standards governing the terminal and pipeline, and adequately evaluated issues including greenhouse gas emissions, cumulative air-quality impacts, and effects on commercial fishing. The court also upheld FERC’s conclusion that the pipeline was required by public convenience and necessity.
🔗 Read more → U.S. Court of Appeals for the D.C. Circuit (Court Opinion), Earthjustice (Press Release)

Federal Court Upholds Oregon Extended Producer Responsibility Law
A federal court upheld Oregon’s Plastic Pollution and Recycling Modernization Act after a five-day trial, rejecting constitutional challenges brought by the National Association of Wholesaler-Distributors (NAW). The law requires covered producers of packaging, paper, and food serviceware to participate in a producer responsibility organization and contribute toward recycling-system costs. The court held that the framework does not violate the dormant Commerce Clause because it does not unlawfully discriminate against interstate commerce or impose a burden clearly excessive relative to its local benefits. It also rejected due process claims concerning delegation of fee-setting responsibilities and procedures for challenging fees, finding that the Oregon Department of Environmental Quality (DEQ) retains sufficient oversight and that available enforcement procedures provide adequate safeguards.
🔗 Read more → Oregon DEQ (Press Release, Plastic Pollution and Recycling Modernization Act), Court Decision via Justia, NAW (Press Release)

Nevada Challenges Federal Colorado River Operating Plan
Nevada, the Colorado River Commission of Nevada, and the Southern Nevada Water Authority sued the Department of the Interior and Bureau of Reclamation over an August 21 Record of Decision adopting a framework for operations of Lake Powell and Lake Mead. The plaintiffs allege that the decision framework violates federal environmental and administrative law and the “Law of the River” by, among other things, improperly allocating shortage burdens, failing to consider reasonable alternatives, and inadequately evaluating environmental and socioeconomic effects. The plaintiffs seek to vacate the Record of Decision, Final Environmental Impact Statement, and 2027–2028 operating guidelines and block their implementation.
🔗 Read more → Nevada Governor (Press Release), Court Filing via Courthouse News Service, U.S. Bureau of Reclamation (Decision Documents)

EFRAG Releases Draft Datapoint List for Revised ESRS
EFRAG released a draft list of datapoints supporting implementation of the revised European Sustainability Reporting Standards (ESRS) adopted by the European Commission in July 2026. The non-authoritative resource identifies individual ESRS disclosure datapoints and incorporates changes intended to improve usability, including defined data types, information on conditionality and disaggregation, links to EFRAG’s ESRS Knowledge Hub, and mapping to the 2024 datapoint list. EFRAG emphasized that the list is not an implementation checklist and remains subject to materiality assessments under the ESRS. A corresponding draft XBRL taxonomy has been prepared and will be published separately for consultation. Stakeholders can report fatal flaws in the datapoint methodology through October 23, with the final resource expected by year-end.
🔗 Read more → EFRAG (Press Release, Draft List of Datapoints, Explanatory Note)

Australia Consults on Streamlining Climate-Related Financial Disclosure Requirements
Australia’s Treasury opened a consultation on potential reforms to improve the efficiency of the country’s mandatory climate-related financial disclosure framework while maintaining disclosure quality and alignment with IFRS S2. The paper considers changes to assurance requirements, including retaining limited assurance, delaying reasonable assurance until 2035, or applying reasonable assurance only to more mature metrics. It also seeks views on additional guidance for concepts such as “undue cost or effort,” clearer boundaries for value-chain data requests, and greater use of domestic emissions factors to reduce Scope 3 reporting burdens. The proposals have not been approved by the government and would not affect reporting for the 2026–27 financial year. Submissions close October 2, 2026.
🔗 Read more → Australian Government (Consultation Page, Consultation Paper)

Brazil’s CVM Clarifies Voluntary ISSB-Aligned Sustainability Reporting Regime
Brazil’s Securities and Exchange Commission (CVM) issued guidance clarifying how Resolution CVM 244 affects sustainability-related financial reporting under Resolution CVM 193. The guidance confirms that reports presented as aligned with, based on, or inspired by the Comitê Brasileiro de Pronunciamentos de Sustentabilidade (CBPS)/ISSB standards must comply fully with applicable requirements and include an explicit, unreserved statement of compliance. Companies that adopted the framework under the previous regime may stop without being subject to the new continuation requirements. Companies reporting under the revised regime for financial years beginning on or after January 1, 2026 must continue for at least three consecutive financial years. From January 1, 2027, listed companies choosing not to file a sustainability-related financial report must publicly explain that decision.
🔗 Read more → gov.br (News Release, CVM Circular Letter)

Usage-based and hybrid pricing models are changing how B2B companies generate revenue — and creating new headaches for the finance teams behind them.

Tabs co-founder Rebecca Schwartz and PwC Partner Amit Dhir sat down to unpack exactly what that means in practice: how pricing model decisions ripple into revenue recognition, forecasting, and financial ops — and what it takes to scale without piling on manual work.

Watch the on-demand recording to get practical frameworks, real-world examples, and a clear path to operationalizing usage-based revenue — including a forward-looking take on how AI will reshape financial workflows. If your team is navigating pricing complexity heading into the back half of the year, this is worth an hour.

Watch the recording now

Appeal in Santos Clean Energy Claims Case Discontinued by Consent
The Australasian Centre for Corporate Responsibility (ACCR) and Santos agreed to discontinue by consent ACCR’s appeal in litigation concerning Santos’s clean energy claims. ACCR said the decision was pragmatic and noted that the disclosure landscape, net zero commitments, and characterization of climate action plans have evolved since the case began in 2021. The organization said the litigation had sought greater clarity for investors regarding clean energy claims.
🔗 Read more → ACCR (Press Release)

Continental Agrees to Restrict Certain Environmental Claims Following DUH Lawsuit
According to Deutsche Umwelthilfe (DUH), Continental agreed in a court settlement not to use certain environmental ambitions without adequately explaining how they would be achieved. The challenged statements concerned goals of “100% climate neutrality,” “100% emission-free mobility and industry,” and “100% responsible value chains” by 2050. DUH had alleged that the claims lacked sufficiently substantiated implementation plans and could mislead consumers about the basis for Continental’s environmental ambitions. The settlement ended the proceeding before the Regional Court of Hanover without a judicial determination that Continental’s statements violated the law.
🔗 Read more → DUH (Press Release)

Report Examines Anti-ESG Spillover Risks for Canadian Institutional Investors
A report from the Institute for Sustainable Finance and Canada Climate Law Initiative examines how the U.S. anti-ESG movement could affect climate governance by Canadian institutional investors. It identifies three main transmission channels: U.S. asset managers applying revised voting practices to Canadian securities, Canadian investors facing political risks when exercising climate-related stewardship over U.S. holdings, and governance gaps when Canadian asset owners delegate management to U.S. firms whose practices diverge from their own fiduciary frameworks. The report concludes that Canadian institutions remain comparatively resilient due to their governance structures, fiduciary framework, and financial-materiality approach to climate risk, while cross-border pressures and paused climate-disclosure reforms create continuing vulnerabilities.
🔗 Read more → Queen’s University Institute for Sustainable Finance (Full Report)

Catch up on previous editions → ESGLitigation.com

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