Issue - September 30, 2025

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Good morning. It’s Tuesday, September 30, and this week’s ESG Litigation Weekly covers a court order allowing Revolution Wind to resume construction, CARB’s preliminary list of companies likely covered by California’s SB 253 and SB 261 climate reporting rules, the European Commission’s plan to delay the EU anti-deforestation regulation by one year, and more.

⚖️ ESG Casefile

Court Allows Revolution Wind to Resume Construction After Federal Halt
A federal judge granted a preliminary injunction lifting the Trump administration’s stop-work order on the Revolution Wind offshore project, allowing construction to resume while the government continues its review. Judge Royce Lamberth found Revolution Wind is likely to suffer irreparable harm if work does not proceed, citing the project’s roughly 80% completion and the impending unavailability of a specialized installation vessel. He said the Bureau of Ocean Energy Management’s halt reflected a clear change in position without factual findings and was arbitrary and capricious. Connecticut and Rhode Island have also sued to overturn the order. The project has PPAs totaling 704 megawatts, enough to serve more than 350,000 homes.
🔗 Read more → POLITICO

Youth Petition IACHR Alleging U.S. Human Rights Violations Over Fossil Fuel Support
Fifteen youth petitioners from the Juliana v. United States case filed a complaint with the Inter-American Commission on Human Rights (IACHR) alleging the United States violates international law by funding and supporting a fossil fuel-based energy system. They claim breaches of rights to life, liberty, health, cultural benefits, and special protections for children, and say U.S. courts denied them access to justice. The petition seeks precautionary measures, a hearing, and a declaration of wrongful acts. It cites recent advisory opinions on states’ climate obligations, while noting that IACHR recommendations are not legally binding.
🔗 Read more → The Guardian

Xcel Energy to Pay $640 Million to Settle Marshall Fire Claims
Xcel Energy said it will pay about $640 million to resolve lawsuits over Colorado’s 2021 Marshall Fire, which killed two people and destroyed nearly 1,000 homes. Jury selection was set to begin when court documents confirmed a settlement, and the trial was canceled. Xcel denies fault and states that approximately $350 million will be covered by insurance, with no cost burden to customers. Investigators cited both a sparking Xcel power line and embers from a nearby smoldering fire as causes. Related claims involve Qwest Corp. and Teleport Communications America LLC, which also reached agreements in principle on the claims settlement.
🔗 Read more → AP News, Xcel Energy’s Statements

Duke Energy Seeks Dismissal of Carrboro Climate Deception Suit
Duke Energy urged a North Carolina court to dismiss Carrboro’s lawsuit alleging the utility worsened climate change and misled the public about fossil fuel risks. Carrboro, a town in North Carolina, claims Duke delayed the transition by keeping coal online, expanding natural gas, and downplaying emissions, which the town says will drive costly infrastructure and cooling needs. Duke argues Carrboro cannot show injury or trace causation, and that utility mix decisions for a regulated utility like Duke Energy rest with regulators and lawmakers. Plaintiffs frame their claims as common law deception, not emissions control. Judge Mark Davis requested further briefing and set no deadline for ruling.
🔗 Read more → Courthouse News

Indonesia Supreme Court Reinstates Cases Against Palm Oil Firms Over Export Permits
Indonesia’s Supreme Court overturned earlier acquittals of Wilmar Group, Musim Mas Group, and Permata Hijau Group tied to alleged misconduct in obtaining palm oil export permits in 2022. Prosecutors appealed after judges who delivered the favorable rulings were arrested on suspicion of bribery. An employee of Wilmar was also detained, according to the Attorney General’s Office. Wilmar paid 11.8 trillion rupiah (about $705 million) as a “security deposit,” which the Court said will be treated as part of a fine payable to the state. Wilmar said it respects the decision and maintains regulatory compliance.
🔗 Read more → Reuters

Grimmway Farms Found Liable for Pattern of Disability Discrimination
A federal court in the Eastern District of California ruled that Grimmway Farms engaged in a pattern or practice of disability discrimination against farmworkers, allowing the California Civil Rights Department’s (CRD) 2021 lawsuit to proceed to a trial on damages and other relief. The court found Grimmway routinely placed injured or ill workers on unpaid leave instead of providing reasonable accommodations, and confirmed CRD can seek group-wide relief. The decision states that forcing injured workers into unpaid leave constitutes disability discrimination. A trial date has not yet been set.
🔗 Read more → CRD, Court Ruling (PDF via CRD)

🏛️ Regulatory Developments

CARB Publishes a Preliminary List of Covered Entities Under Its Climate Reporting Programs
The California Air Resources Board (CARB) has released a draft list of companies that could fall under the reporting obligations of SB 253 (greenhouse gas emissions) and SB 261 (climate-related financial risks). The preliminary list is meant to assist in shaping the related fee regulation. To verify the accuracy of the information in the list, CARB is inviting stakeholder input through a voluntary survey. Companies that think they may be covered by these rules, or believe they qualify for an exemption, are encouraged by CARB to fill out a survey. Importantly, all potentially regulated companies remain responsible for meeting the statutory requirements, whether or not they appear on CARB’s preliminary list.
🔗 Read more → CARB (Preliminary List of Reporting/Covered Entities, Survey Link)

India Issues Draft CAFE 2027 Standards for Passenger Cars
India released an updated draft Corporate Average Fuel Efficiency (CAFE) standards for 2027 to 2032 covering passenger vehicles for further stakeholders’ feedback. The proposal sets an Annual Average Fuel Consumption formula tied to fleet mass, with small cars eligible to claim additional carbon saving benefits. It also requires manufacturers to report CO₂ performance on MIDC and WLTP starting April 1, 2026, defines fuel-to-petrol-equivalent conversion factors, introduces Carbon Neutrality Factors for ethanol blends, compressed natural gas (CNG), and hybrids, and grants super credits for battery electric vehicles and hybrids. Pooling of up to three manufacturers is allowed for compliance, and small-volume makers are exempt.
🔗 Read more → Draft CAFE 2027 (PDF via BEE Government of India)

China Announces 2035 NDC: Emissions Cut, 30% Non-fossil Energy, 3,600 GW Wind and Solar
Chinese President Xi Jinping announced China’s 2035 nationally determined contributions (NDCs) to the UN Climate Summit. He urged confidence in a green transition, called for fairness under common but differentiated responsibilities with developed countries providing support, and highlighted the importance of cooperation in green technologies. China’s targets include cutting economy-wide net greenhouse gas emissions 7-10% from peak levels, raising the share of non-fossil in total energy consumption above 30%, expanding wind and solar to over 6 times 2020 levels to about 3,600 GW, increasing forest stock above 24 billion cubic meters, making new-energy vehicles mainstream, expanding the National Carbon Emissions Trading Market, and building a climate-adaptive society.
🔗 Read more → The State Council of the People's Republic of China

EU Poised to Delay Anti-Deforestation Rules by One Year
The European Commission plans to postpone the EU’s anti-deforestation regulation (EUDR) by one year, pushing the entry into application currently set for December 30, 2025, due to concerns about the compliance IT platform and potential operational difficulties. Environment Commissioner Jessika Roswall will consult Parliament and Council before confirming the delay and is open to simplifying the rules. The EUDR requires importers of palm oil, coffee, cocoa, cattle, timber, and rubber to prove products are not linked to deforestation. Christine Schneider, a Member of the Parliament, welcomed the move and will again propose a “zero-risk” category.
🔗 Read more → Euractiv

Thailand SEC Seeks Comment on ISSB-Aligned Sustainability Disclosure Rules
Thailand’s Securities and Exchange Commission (SEC) opened a public consultation on proposed amendments to sustainability disclosure requirements for listed companies to align with International Sustainability Standards Board (ISSB) standards. The proposal follows an earlier hearing on the ISSB Roadmap and reflects stakeholder input. Approved by the Capital Market Supervisory Board, the draft aims to align with a global baseline, reduce burdens, and promote consistency for companies already reporting under multiple frameworks. Key elements address scope, effective timeline, greenhouse gas emissions disclosure with limited assurance, and transition reliefs. Comments are due by October 22, 2025.
🔗 Read more → SEC Thailand (SEC News, Public Consultation Documents)

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🧼 Greenwashing Watch

Philadelphia Sues Bimbo Bakeries and S.C. Johnson Over “Recyclable” Plastic Film Claims
The City of Philadelphia filed a lawsuit against Bimbo Bakeries and S.C. Johnson, alleging deceptive marketing practices that label single-use plastic film bags and packaging as recyclable. The complaint states that the companies’ use of the “chasing arrows” symbol and references to store drop-off programs mislead consumers, as plastic film is not recyclable through the city’s recycling system and typically becomes waste even when dropped off at stores. Philadelphia claims the labeling contaminates its recycling stream, reducing efficiency and damaging equipment, which increases costs. The city seeks an injunction to change marketing, civil penalties consistent with its Consumer Protection Ordinance, and compensatory damages.
🔗 Read more → City of Philadelphia (Press Release, Complaint Document)

Montana Leads 16-State Probe into Big Tech Renewable Energy Claims
Montana Attorney General (AG) Austin Knudsen, joined by attorneys general from 15 states, launched an investigation into Microsoft, Meta, Google, and Amazon over allegedly misleading claims that they are powered solely by renewable energy. The letter cites reliance on unbundled renewable energy certificates and warns that such claims may violate Montana’s Unfair Trade Practices and Consumer Protection Act. AG Knudsen says the representations could pressure utilities to move away from fossil-fuel baseload power, posing grid reliability risks. The companies have been asked to answer detailed questions about their energy use by October 27, 2025.
🔗 Read more → Montana Department of Justice (Press Release, AG Letter to Big Tech)

💡 Insight of the Week

Sierra Club’s Latest “Dirty Truth” Report Highlights the Issue of Utility Greenwashing
Over the past five years, the Sierra Club has assessed and rated utilities in the U.S. based on their plans to shift to clean energy, focusing on their commitments to retire coal plants, develop clean energy sources, and avoid constructing new gas facilities. Its latest “Dirty Truth” report covering 50 parent companies across 75 operating companies owning most fossil fuel generation suggests U.S. utilities face dual pressures this year, including a shift in federal support away from clean energy due to the effective elimination of much of the Inflation Reduction Act and a surge in electricity demand. The 2025 overall score is 15 out of 100, three points lower than 2021 when the Sierra Club published the first assessment. The report also highlights the issue of utility greenwashing.
🔗 Read more → Sierra Club: The Dirty Truth Report 2025 (PDF)

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