Issue - September 16, 2025

Good morning. It’s Tuesday, September 16, and this week’s ESG Litigation Weekly covers the dismissal of Puerto Rican municipalities’ climate lawsuit against oil majors, the EPA’s proposal to eliminate its Greenhouse Gas Reporting Program, the Application for Enforcement Proceeding by the Ontario Securities Commission over alleged ESG misrepresentations at Purpose Investments, and more.

⚖️ ESG Casefile

Puerto Rican Climate Lawsuit Against Oil Majors Dismissed
A federal judge in Puerto Rico dismissed climate-related claims brought by 37 municipalities against Exxon, Shell, Chevron, BP, and others, ruling that the lawsuit was filed outside the four-year antitrust statute of limitations. The municipalities alleged that the companies conspired to suppress clean energy alternatives and misled the public about climate change, seeking damages tied to Hurricanes Irma and Maria in 2017. Claims against several companies were dismissed with prejudice, though plaintiffs may amend their case against some other defendants and plan to appeal.
🔗 Read more → Reuters, Ruling (PDF via Thomson Reuters)

Boulder Climate Lawsuit Heads to U.S. Supreme Court
The U.S. government filed an amicus brief urging the Supreme Court to review a Colorado climate lawsuit brought by Boulder County and the City of Boulder against Suncor Energy and other fossil fuel companies. The case seeks damages under Colorado common law for harms allegedly caused by global greenhouse gas (GHG) emissions. The Justice Department argued the Constitution prevents Colorado from applying its laws to the companies’ worldwide conduct, and that the Clean Air Act preempts state-law claims that would require a single state to set or apply standards to out-of-state GHG emissions. The brief emphasized that allowing such suits could lead to conflicting rules nationwide.
🔗 Read more → U.S. Supreme Court Filing (PDF)

Earth Island Institute Settles with Danone in Plastic Pollution Lawsuit
Earth Island Institute announced a settlement with Danone North America in its plastic pollution lawsuit filed in California state court. The case, which targets major consumer goods companies for their role in global plastic waste, is set for trial in May 2026. Under the agreement, Danone will support plastic reduction initiatives in California and post an educational statement on its website about the limits of plastic recycling, citing U.S. EPA data. The litigation continues against other defendants, including large producers of plastic packaging.
🔗 Read more → Earth Island Institute

CQDE Challenges Federal Government Over Bill C-5 in Québec Court
The Centre québécois du droit de l’environnement (CQDE) has filed an application with the Québec Superior Court to challenge Bill C-5, passed in June 2025. The law allows the federal government to declare projects of “national interest” and override federal and provincial environmental regulations. CQDE argues this grants excessive powers to politicians, undermines constitutional checks and balances, and circumvents environmental protections. The group is asking the court to invalidate the law, citing risks to democracy, citizens’ rights, and environmental standards.
🔗 Read more → CQDE

Justice Department Sues Uber for Disability Discrimination
The U.S. Department of Justice has filed a lawsuit against Uber Technologies Inc., alleging the company violated Title III of the Americans with Disabilities Act by discriminating against passengers with service animals and mobility devices. The complaint says Uber drivers routinely denied rides, imposed improper fees, and failed to accommodate necessary modifications. The Department seeks $125 million in damages for affected individuals, as well as court orders requiring Uber to change its policies, train drivers, and end discriminatory practices.
🔗 Read more → U.S. Department of Justice

Greenpeace Anti-SLAPP Case Against Energy Transfer Moves Forward in the Netherlands
Greenpeace International’s lawsuit against Energy Transfer will proceed in the Netherlands after a North Dakota judge rejected the pipeline company’s request for an anti-suit injunction. The case marks the first test of the European Union’s anti-SLAPP directive and seeks to hold Energy Transfer accountable for lawsuits aimed at silencing Greenpeace. The Amsterdam court is now considering Energy Transfer’s motion challenging jurisdiction. Greenpeace says the case is vital to protecting free speech and corporate accountability under EU law.
🔗 Read more → Greenpeace International

🏛️ Regulatory Developments

EPA Proposes to End Greenhouse Gas Reporting Program
The U.S. Environmental Protection Agency (EPA) has proposed eliminating the Greenhouse Gas Reporting Program, which currently requires over 8,000 facilities and suppliers across 47 categories to report annual emissions. Administrator Lee Zeldin said the program imposes billions in costs without improving air quality, and that removing it could save businesses up to $2.4 billion. Reporting requirements would remain only for those in petroleum and natural gas systems subject to the Waste Emissions Charge beginning in 2034. A public comment period will follow before final action.
🔗 Read more → EPA Press Release, Fact Sheet (PDF), Proposed Preamble and Rule (PDF)

Court Orders SEC to Decide Fate of Climate Disclosure Rules
The U.S. Court of Appeals for the Eighth Circuit told the Securities and Exchange Commission (SEC) that it must decide whether to rescind, modify, or defend its climate disclosure rules in court. The case concerns Biden-era regulations requiring companies to report GHG emissions and other climate disclosures. The SEC stopped defending the rules in March and said in July it would not review them, but asked the court to rule anyway. The court rejected that request and said litigation may resume if the agency reconsiders.
🔗 Read more → Bloomberg Law, Court Order (PDF via Bloomberg Law)

EU Court Dismisses Austria’s Challenge to Nuclear and Gas in Green Taxonomy
The General Court of the European Union has dismissed Austria’s action seeking to annul the Commission’s 2022 delegated regulation that included certain nuclear energy and fossil gas activities in the EU sustainable investment taxonomy. The Court held that the Commission acted within its powers in concluding that, under specific conditions, these activities can contribute to climate change mitigation and adaptation. The ruling upholds that nuclear and gas projects may be treated as transitional activities supporting emissions reduction while ensuring energy security.
🔗 Read more → Court of Justice of the European Union (PDF)

EU Parliament Adopts New Circular Economy Rules on Waste and Vehicles
The European Parliament has adopted new circular economy measures targeting food, textiles, and vehicles. By 2030, member states must cut food waste by 10% in processing and manufacturing and 30% per capita in retail, food services, and households. Textile producers, including e-commerce sellers, will be required to cover the costs of collecting, sorting, and recycling products through extended producer responsibility schemes. New vehicle rules mandate designs that enable easier removal and reuse of parts, set minimum recycled plastic content targets, and require manufacturers to assume responsibility for end-of-life vehicles within three years.
🔗 Read more → European Parliament (Food and Textiles), European Parliament (Vehicles)

California Extends Cap-and-Trade Program Through 2045
California lawmakers approved a bill to reauthorize the state’s cap-and-trade program through 2045, sending it to Governor Gavin Newsom for signature. The measure, renamed “cap and invest,” tightens the declining emissions cap to align with state climate goals and earmarks revenue for projects such as high-speed rail, affordable housing, and community air protection. Supporters argue that the extension provides certainty for businesses after revenue shortfalls linked to program uncertainty, while critics state that it lacks strong air quality protections and could increase costs for Californians.
🔗 Read more → AP News

HKMA Opens Consultation on Hong Kong Taxonomy Phase 2A
The Hong Kong Monetary Authority (HKMA) has launched a public consultation on the Phase 2A prototype of the Hong Kong Taxonomy for Sustainable Finance. The prototype expands coverage to six sectors by adding manufacturing and information and communications technology, and increases the number of economic activities from 12 to 25. It also introduces transition elements such as interim decarbonization targets and sunset dates, and adds a new environmental objective on climate change adaptation. The consultation is open until October 8, 2025.
🔗 Read more → HKMA Press Release, Prototype of Hong Kong Taxonomy for Sustainable Finance Phase 2A (PDF)

🧼 Greenwashing Watch

OSC Alleges Purpose Investments Misled Investors on ESG Claims
The Ontario Securities Commission (OSC) has commenced enforcement proceedings against Purpose Investments Inc. and its CEO, Som Seif, for allegedly making false or misleading statements about the integration of ESG factors in its investment processes. Between 2019 and 2023, Purpose published at least 19 statements indicating that ESG considerations were applied across its funds, while in reality, such practices were limited to a subset of products, and no formal ESG policy was implemented. The OSC alleges these misrepresentations conflicted with fund prospectuses and violated securities disclosure rules.
🔗 Read more → Application for Enforcement Proceeding (PDF)

NGOs Accuse German Carmakers of Greenwashing at IAA Mobility
German carmakers VW, BMW, and Mercedes unveiled new electric models at the IAA mobility show in Munich amid falling profits and shrinking market share. Environmental groups accused the companies of “greenwashing” for continuing to rely on combustion engine sales and lobbying against EU climate rules. NGOs, including Deutsche Umwelthilfe (DUH) and Bund für Umwelt und Naturschutz Deutschland (BUND), said the firms presented themselves as innovative while working in Brussels to weaken emissions standards. They urged manufacturers to provide affordable electric cars rather than luxury models.
🔗 Read more → Clean Energy Wire

💡 Insight of the Week

New Study Links Fossil Fuel Producers to Specific Heatwaves
A Nature study has traced responsibility for 213 heatwaves recorded between 2000 and 2023 back to emissions from 180 "carbon majors”, including major energy corporations and state-owned entities. Researchers found that about one-quarter of these heatwaves can be directly tied to emissions from individual companies. In some cases, emissions increased the likelihood of heatwaves by more than 10,000 times. Scientists say the findings provide a causal link between fossil fuel producers and extreme heat, offering new evidence for ongoing and future climate litigation.
🔗 Read more → Nature

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