Issue - September 23, 2025

Good morning. It’s Tuesday, September 23, and this week’s ESG Litigation Weekly covers youth activists’ federal court challenge to Trump’s fossil fuel executive orders, an $80 billion dam-collapse case filed by Zambian farmers against Chinese-linked miners, new greenwashing lawsuits against Nestlé Poland and several German companies, and more.

⚖️ ESG Casefile

Advocates Challenge EPA Decision on Slaughterhouse Water Pollution Rules
A coalition of ten advocacy groups filed a lawsuit in the U.S. Court of Appeals for the Ninth Circuit against the Trump Administration’s decision to withdraw proposed Environmental Protection Agency (EPA) rules on slaughterhouse and meat processing plant discharges. The Biden-era proposal would have set limits on phosphorus, nitrogen, fecal bacteria, and other pollutants, cutting millions of pounds of pollutants annually from at least 126 meat industry plants. Advocates argue that abandoning the rule violates the Clean Water Act and prioritizes industry profits over public health and clean waterways.
🔗 Read more → Environmental Integrity Project, Petition for Review (PDF)

Youth Activists Challenge Trump’s Fossil Fuel Orders in Federal Court
Young climate activists who won a landmark case against the state of Montana are now seeking to block President Trump’s executive orders promoting fossil fuel development. The plaintiffs, represented by Our Children’s Trust, argue that Trump’s actions to expand drilling and mining while discouraging renewables threaten their constitutional rights to life and liberty. The U.S. Department of Justice and 19 states are asking the court to dismiss the case. Legal experts noted the plaintiffs face longer odds in federal court since the U.S. Constitution lacks explicit environmental protections.
🔗 Read more → AP News

Zambian Farmers Sue Chinese-Linked Mining Firms Over Dam Collapse
A group of farmers in Zambia has filed an $80 billion lawsuit against Sino Metals Leach Zambia and NFC Africa Mining, subsidiaries of Chinese state-owned firms, after a dam storing copper mining waste collapsed in February 2025. The incident released millions of liters of acidic material into waterways, causing widespread fish deaths, crop destruction, and health risks for an estimated 300,000 households in the Copperbelt region. The plaintiffs demand compensation, environmental reparations, and an emergency $20 million relief fund. The companies have not yet commented on the lawsuit.
🔗 Read more → BBC

Nonprofits, Tribes, and Local Governments Appeal EPA Program Termination
A coalition of nonprofits, Tribes, and local governments has appealed a federal district court’s dismissal of their challenge to the EPA’s termination of the Environmental and Climate Justice Program (ECJP). Created under the Inflation Reduction Act, the $3 billion program was designed to support disadvantaged communities with climate resilience and pollution reduction initiatives. Plaintiffs argue the EPA unlawfully eliminated the program and seek to keep funds available during the appeal, emphasizing the loss of critical projects addressing air quality, stormwater damage, and extreme weather impacts.
🔗 Read more → Earthjustice, Notice of Appeal (PDF)

Charleston Declines to Appeal its Climate Lawsuit Dismissal Against Oil Companies
A South Carolina state court judge dismissed the City of Charleston’s climate lawsuit against nearly two dozen oil and gas companies. The suit, filed in 2020, alleged the companies contributed to climate change and misled the public about fossil fuel risks. The judge ruled that Charleston’s claims were preempted by federal law, barred by the statute of limitations, and raised political questions outside state authority. Charleston declined to appeal, and the companies withdrew a related federal appeal.
🔗 Read more → JD Supra

Wells Fargo Executives Settle Shareholder Lawsuit Over Diversity Hiring Practices
Wells Fargo has reached a settlement in principle with investors in a shareholder derivative lawsuit accusing executives, including CEO Charlie Scharf, of breaching fiduciary duties by misleading shareholders about the bank’s “diverse slate” hiring policy. The 2022 lawsuit followed reports that sham interviews were held with women and minority candidates for positions already filled, leading to federal and SEC investigations. While regulators closed their probes without action, Wells Fargo revised its hiring policy. A motion for preliminary settlement approval is expected by October 13.
🔗 Read more → ESG Dive, Court Filing (PDF via ESG Dive)

🏛️ Regulatory Developments

EU Misses UN Deadline on Climate Targets Amid Internal Divisions
European Union climate ministers confirmed the bloc will miss the UN deadline to present new emissions reduction targets, citing disagreements among member states. The EU had aimed to set 2040 and 2035 climate goals this month, but countries, including Germany, France, and Poland, pushed to delay talks until an October summit. As an interim step, ministers will send a “statement of intent” to the UN, indicating a potential reduction in emissions between 66.25% and 72.5% by 2035, with a final target decision expected before COP30 in November.
🔗 Read more → Reuters

Australia Sets 2035 Climate Target and Net Zero Plan
The Australian Government announced a national target to cut emissions 62-70% below 2005 levels by 2035, as part of its Net Zero Plan toward 2050. Backed by advice from the Climate Change Authority, the plan identifies five priorities: clean electricity, electrification and efficiency, expanding clean fuel use, accelerating new technologies, and scaling up net carbon removals. Supporting sectoral plans cover electricity and energy, agriculture and land, built environment, industry, resources, and transport. Treasury modeling found the transition would support economic growth, jobs, and exports while reducing long-term energy costs.
🔗 Read more → Australian Government DCCEEW

DOJ Seeks to Strike Down Vermont’s Climate Superfund Law
The U.S. Department of Justice (DOJ) has filed a motion for summary judgment in federal court to invalidate Vermont’s Climate Superfund Act. The DOJ argues the law violates the Constitution by attempting to impose liability on fossil fuel companies for global greenhouse gas emissions, which it says is preempted by the Clean Air Act and intrudes on federal authority over interstate and international pollution. The motion contends that allowing Vermont to enforce the statute would create conflicts with federal regulatory frameworks and undermine national energy policy.
🔗 Read more → Court Document (PDF)

California Enacts Bipartisan Climate and Energy Reform Package
Following the previous voting by California lawmakers, Governor Gavin Newsom signed a package of bipartisan bills aimed at reducing energy costs, stabilizing fuel supply, and cutting air pollution. The reforms extend California’s Cap and Invest program through 2045, provide a boost to the state’s Climate Credit to lower utility bills, and authorize measures to stabilize the gasoline market. The legislation also enables funding for high-speed rail, wildfire prevention, and clean water projects, while requiring utilities to modernize and harden the grid.
🔗 Read more → Governor of California

🧼 Greenwashing Watch

Nestlé Poland Sued for Greenwashing Over Bottled Water Claims
ClientEarth has filed a lawsuit against Nestlé Poland in the Regional Court in Warsaw, challenging recycling claims on its Nałęczowianka bottled water brand. Labels state “I am 100% made of recycled PET plastic,” “I am made from another bottle,” and “I am recyclable,” which ClientEarth argues mislead consumers into believing single-use plastic is environmentally neutral. The group contends such claims violate consumer protection law. Negotiations between ClientEarth and Nestlé failed before the lawsuit was filed on September 17, 2025.
🔗 Read more → ClientEarth

German Environmental Group Files New Greenwashing Lawsuits Against Companies
Deutsche Umwelthilfe (DUH) has filed six new lawsuits in regional courts against Condor, Continental, Cookware Company, WMF, Hoffmann, and Vorwerk for allegedly misleading environmental claims in their advertising. The cases challenge claims such as Condor’s “sustainable technology” and carbon offsets in air travel, and Continental’s “100% climate neutrality by 2050”. DUH has also warned 28 additional companies over greenwashing to stop their misleading advertising, as well as calling on the German government to advocate for mandatory pre-screening of environmental claims at the European level.
🔗 Read more → DUH, Updated List of DUH’s Lawsuits Against Companies for Greenwashing (PDF)

Protective Industrial Products Sued Over BioSoft Earplug Advertising
Moldex-Metric, Inc. has filed a lawsuit in the U.S. District Court for the Central District of California against Protective Industrial Products, Inc., alleging misleading environmental claims in advertising of its BioSoft earplugs. The complaint states that the company marketed the earplugs as “82% bio-based,” while independent testing found only 5-40% bio-based content. Despite acknowledging in July 2025 that its environmental claims lacked substantiation, the company allegedly continued using the claims in marketing materials.
🔗 Read more → Law.com Radar

💡 Insight of the Week

Greenhushing: Why Businesses Downplay Sustainability Efforts
Researchers have identified “greenhushing” as a growing trend where companies underreport or hide their environmental actions. A study of 300 UK hotels found 62% of websites omitted sustainability information, and only 2% of social media posts mentioned it. Interviews with managers revealed three main reasons: fear of being accused of greenwashing, lack of confidence in the effectiveness of practices, and reliance on third-party certifications to do the communication for them. The study warns that silence undermines transparency, weakens public dialogue, and risks slowing broader progress on sustainability.
🔗 Read more → The Conversation

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