Issue - September 8, 2026

Good morning. It’s Tuesday, September 8, and this week’s ESG Litigation Weekly covers a federal court ruling that blocks New York’s Climate Change Superfund Act, an EU General Court decision upholding the Commission’s refusal to review Member State emissions allocations for 2023–2030, CARB’s guidance for the first SB 253 corporate emissions reporting cycle, and more.

Federal Court Holds New York Climate Superfund Law Preempted
A New York federal court granted summary judgment to states and industry groups challenging the Climate Change Superfund Act, which would have required certain fossil fuel producers to contribute $75 billion over 25 years for climate adaptation. The court held that the Act’s strict-liability scheme, based on greenhouse gas emissions attributable to fossil fuel extraction and refining worldwide, is preempted by the Clean Air Act. It also held that cost-recovery demands against foreign producers are barred by the federal foreign affairs doctrine. The court stated that the Act cannot be enforced and directed the parties to report by September 14 on next steps.
🔗 Read more → U.S. Department of Justice (Press Release), West Virginia AG (Press Release, Court Order), NY State Senate (Article 76)

EU General Court Upholds Refusal to Review 2023–2030 Emissions Allocations
Global Legal Action Network and Climate Action Network Europe (CAN-Europe) challenged the European Commission’s refusal to review Member States’ annual emissions allocations for 2023–2030. They argued that the allocations relied on EU targets inadequate under EU and international law. The General Court held that their arguments challenged legislative climate targets the Commission could not alter through its implementing powers. Although it identified errors in the Commission’s reasons for treating certain arguments as inadmissible, the Court found that at least one separate lawful ground supported the refusal. It dismissed the action without determining whether the EU’s 2030 climate targets are substantively adequate.
🔗 Read more → Court of Justice of the European Union (Press Release, Case Page and Judgment), CAN-Europe (Press Release)

Los Angeles County Sues State Farm Over Wildfire Claims Handling
Los Angeles County sued State Farm over claims arising from the January 2025 Eaton and Palisades fires. The complaint alleges public nuisance and violations of California’s unfair competition and false advertising laws based on unreasonable delays, underpayments, repeated adjuster reassignments, inadequate additional living expense payments, and improper smoke-damage claim handling. It seeks restitution, injunctive relief, and civil penalties. A California Department of Insurance examination reported 398 violations in 114 of 220 sampled claims. State Farm disputes the County’s characterization, says it has paid more than $6.2 billion on fire-related claims, and will respond through the legal process.
🔗 Read more → Los Angeles County (Press Release, Fact Sheet, Court Filing), State Farm (Statement)

IBLA Stays Nevada Data Center Approval Pending NEPA Challenge
The Interior Board of Land Appeals (IBLA) stayed the Bureau of Land Management’s (BLM) approval of a data center on land near Boulder City, Nevada, while appeals proceed. The Board found appellants likely to succeed on a National Environmental Policy Act (NEPA) claim because BLM relied on a 2023 solar-project environmental assessment without preparing a new or revised assessment for the data center. It preliminarily concluded that the projects were not “substantially the same,” citing a longer construction period and operational noise not analyzed earlier. The Board found that the environmental groups showed likely permanent and irreparable harm to their members’ aesthetic and recreational interests, and expedited the appeals.
🔗 Read more → Boulder City (Statement, IBLA Order), Sierra Club (Press Release)

Ford Agrees to $2.3 Million EEOC Conciliation Over Harassment Allegations
Ford Motor Company agreed to pay $2.3 million to resolve a 2021 U.S. Equal Employment Opportunity Commission (EEOC) charge alleging race and national origin harassment at its Buffalo, New York stamping plant. The EEOC found reasonable cause to believe employees experienced harassment and discrimination, including graffiti targeting Black employees and employees of various national origins, including Native American and Hispanic workers. The pre-litigation conciliation agreement provides monetary relief to claimants and requires Ford to post information explaining its anti-graffiti protocol, conduct regular training, and report discrimination complaints and graffiti to the EEOC for three years. Ford said it had spent over $3.5 million on preventive measures.
🔗 Read more → EEOC (Press Release)

Brazilian Court Suspends Sigma Lithium Mine Licenses Over Quilombola Consultation
In an interim order, a Brazilian federal judge directed the suspension of environmental licenses and mining activities at Sigma Mineração S.A.’s Grota do Cirilo mine in Minas Gerais. The court preliminarily found that the nearby Baú Quilombola territory falls within the project’s area of influence, which the judge said triggered procedures including free, prior, and informed consultation. Citing nearby blasting and earthmoving, the judge ordered an independent georeferencing review to determine the precise distance. Sigma argued that the project lies outside the relevant impact zone. The order also bars Minas Gerais authorities from issuing new licenses.
🔗 Read more → Reuters, Brasil de Fato

CARB Issues Guidance for First SB 253 Reporting Cycle
The California Air Resources Board (CARB) issued guidance for the first Scope 1 and Scope 2 reporting cycle under SB 253. Under its proposed initial regulation, covered entities would report by November 10, 2026, but CARB will exercise first-year enforcement discretion. Companies may submit emissions information they already had or were collecting as of December 5, 2024, whether or not the data were subject to limited assurance. Entities that were not collecting or planning to collect the data at that time are not expected to submit Scope 1 and Scope 2 emissions data in the 2026 reporting cycle and are recommended to submit a non-reporting statement. CARB also launched a voluntary intake platform, while requirements for 2027 onward remain under separate rulemaking.
🔗 Read more → CARB (Guidance Document, Corporate GHG Reporting Resources)

China Issues Overseas Competition and Compliance Guidance for Automakers
China’s Ministry of Commerce, Ministry of Industry and Information Technology, and State Administration for Market Regulation issued non-binding guidance for Chinese automotive companies operating internationally. It calls on companies to comply with Chinese and host-country laws, compete fairly, and avoid pricing practices that could disrupt overseas markets or harm consumers. It also addresses truthful advertising, dealer relationships, workplace protections, data privacy and cross-border transfers, intellectual property, and antitrust compliance. On sustainability, companies are encouraged to support low-carbon supply-chain transitions and meet environmental responsibilities in line with host-country climate rules, automotive-sector emissions targets, and the UN Framework Convention on Climate Change.
🔗 Read more → Ministry of Commerce (Guidance, Guidance Explanation)

EU Publishes Authorization and Recognition Application Requirements for ESG Rating Providers
Commission Delegated Regulation (EU) 2026/1119, which specifies information in authorization and recognition applications for ESG rating providers, was published in the Official Journal. The requirements cover ownership, governance, management, staffing, methodologies, internal controls, conflicts of interest, and separation from potentially conflicting activities. Applicants must submit information in machine-readable form, assign unique references to supporting documents, and provide a senior-management attestation of completeness and accuracy. Additional information applies to applicants seeking authorization to endorse ratings from providers outside the EU or to provide benchmarks. The Regulation entered into force on September 2 and applies from July 2, 2026.
🔗 Read more → EUR-Lex (Delegated Regulation (EU) 2026/1119)

Unlock a focused set of AI strategies built to streamline your work and maximize impact. This guide delivers the practical tactics and tools marketers need to start seeing results right away:

Stay ahead of the curve with these top strategies AI helped develop for marketers, built for real-world results.

Download the Free Report

Dr. Oetker Agrees to Restrict 2050 Climate Neutrality Advertising
According to Deutsche Umwelthilfe (DUH), Dr. Oetker issued a penalty-backed cease-and-desist undertaking to restrict advertising that it would achieve “complete climate neutrality” by 2050 unless it adequately explains how the goal would be achieved. DUH argued that the claim lacked a transparent emissions-reduction plan, verifiable interim targets, and concrete measures, including for supply-chain methane emissions. The matter was resolved out of court without a judicial finding that the advertising violated the law. DUH also noted that new EU consumer-protection requirements applying from September 27 will tighten the rules governing claims about future environmental performance.
🔗 Read more → DUH (Press Release)

Complaint Targets Barclays Over Financing Linked to Bangladesh Coal Plant
Three complainants filed a complaint with the UK Office for Responsible Business Conduct alleging that Barclays breached the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct through underwriting linked to the Rampal coal-fired power plant near the Sundarbans, which span Bangladesh and India. The complaint alleges that Barclays failed to conduct adequate environmental and human rights due diligence when underwriting securities for entities financing or developing the project. It also questions whether that activity was consistent with Barclays’ environmental, human rights, and net zero commitments.
🔗 Read more → King’s College London (News Release)

Study Links Nature Litigation to Valuation Declines and Sector Spillovers
A Banque de France working paper reports statistically significant stock-market reactions associated with nature-related litigation and evidence of broader sector effects. Analyzing a non-exhaustive sample of 48 cases involving 22 listed companies from 1996–2025, the study reports cumulative average abnormal returns of -1.30% around complaint filings and -1.76% around rulings or settlements over an 11-trading-day window. Within the sample, complaints produced larger reactions in European cases, while rulings or settlements produced larger reactions in North American cases, although the cross-regional difference was not statistically significant. The study also found evidence of negative sector spillovers around rulings or settlements.
🔗 Read more → Banque de France (Working Paper)

Catch up on previous editions → ESGLitigation.com

Enjoyed this issue? Please share it with your colleagues.
Have feedback or collaboration ideas? Contact us at [email protected]