Issue - September 9, 2025

Good morning. It’s Tuesday, September 9, and this week’s ESG Litigation Weekly covers lawsuits over the halted $5 billion Revolution Wind project, a Swiss court hearing Indonesian fishers’ climate case against Holcim, Germany’s draft law on greenwashing and sustainability labels, and more.

⚖️ ESG Casefile

D.C. Circuit Vacates Injunction on Terminated EPA Climate Grants
The D.C. Circuit Court of Appeals vacated a district court order that had required the Environmental Protection Agency (EPA) and Citibank to continue funding $16 billion in climate grants awarded to five nonprofits under the Greenhouse Gas Reduction Fund. EPA terminated the grants in March 2025, citing concerns about conflicts of interest and inadequate oversight. While the appeals court found the nonprofits’ claims to be contractual in nature, placing jurisdiction in the Court of Federal Claims, it held their constitutional arguments lacked merit. The court emphasized the government’s duty to ensure accountability in managing large public funds.
🔗 Read more → US Court of Appeals for D.C. Circuit Ruling (PDF)

Rhode Island, Connecticut, and Orsted Sue Over Halted Offshore Wind Project
Rhode Island, Connecticut, and developer Orsted have filed lawsuits against the Trump administration after federal officials stopped the nearly complete Revolution Wind project, which was set to power 350,000 homes. The states argue the Bureau of Ocean Energy Management lacked statutory authority or justification to issue its stop-work order, while Orsted is seeking an injunction to resume construction. The administration cited national security concerns but did not specify them. The $5 billion project was expected to deliver power by 2026.
🔗 Read more → AP News, Office of the Attorney General Connecticut

Swiss Court Hears Indonesian Fishers’ Climate Case Against Holcim
The Cantonal Court of Zug has concluded hearings in a lawsuit filed by four Indonesian fishers against Swiss cement producer Holcim, with a decision still pending. The plaintiffs seek compensation for climate-related damage, funding for flood protection, and faster CO₂ reductions, arguing that Holcim’s contribution to climate change has worsened flooding on Pari Island. The case marks the first time individuals from the Global South directly confronted a corporation in a Swiss court over climate harms. The court has not indicated when it will issue its decision.
🔗 Read more → Call for Climate Justice

US Sues Southern California Edison Over Deadly Wildfires
The US government has filed two lawsuits against Southern California Edison (SCE), seeking more than $77 million in damages for the Eaton and Fairview fires, which killed 21 people and destroyed thousands of structures. Federal prosecutors allege SCE’s negligence in maintaining its power lines caused the fires, burning over 20,000 acres of national forest land, destroying facilities, and harming wildlife habitats. The suits aim to recover suppression costs, environmental rehabilitation expenses, and other damages, while officials called for cultural change at SCE to prioritize safety and accountability.
🔗 Read more → US Department of Justice

Chevron and Exxon File Opening Brief in Supreme Court Over Louisiana Coastal Damage Suits’ Forum
Chevron, ExxonMobil, and affiliates have filed their opening brief and a joint appendix in the US Supreme Court (Chevron USA Incorporated, et al., Petitioners v. Plaquemines Parish, Louisiana, et al.). Previously, the Court agreed to review whether lawsuits brought by Louisiana parishes over coastal damage from World War II–era oil production should proceed in state or federal court. The companies argue the cases belong in federal court because their crude oil extraction was directly tied to wartime contracts requiring the refinement of aviation gasoline for the US military.
🔗 Read more → US Supreme Court (Brief of Petitioners, Joint Appendix)

🏛️ Regulatory Developments

Germany Moves to Tighten Rules on Environmental Advertising and Online Finance Practices
The German government has approved a draft law introducing stricter rules on environmental claims and consumer protection in financial services. Broad terms such as “sustainable” or “climate-friendly” will only be allowed if substantiated, and forward-looking claims like “fully recyclable by 2030” must be backed by realistic, public plans. Products marketed as “climate neutral” through carbon offsets will be prohibited, and sustainability labels must be state-recognized or third-party certified. The law also bans manipulative online design features in financial contracts. A transition period applies until September 27, 2026.
🔗 Read more → Bundesministerium der Justiz und für Verbraucherschutz’s Press Release, Draft Law (PDF)

California Releases Draft Checklist for Climate-Related Financial Risk Disclosures
The California Air Resources Board (CARB) has issued a draft checklist to guide companies in complying with SB 261, which requires US firms with over $500 million in annual revenue doing business in California to publish climate-related financial risk reports beginning January 1, 2026. Reports must address governance, strategy, risk management, and metrics, and may follow TCFD, IFRS S2, or other approved frameworks. Companies must make them available on their websites and post the report’s URL on CARB’s public docket.
🔗 Read more → Draft Checklist (PDF)

Spain Proposes State Pact on Climate Emergency
Spanish Prime Minister Pedro Sánchez has called for a State Pact on Climate Emergency, urging cooperation across political parties, all levels of government, and civil society. The proposal outlines 10 commitments, including permanent funds for disaster recovery, strengthened fire brigades, a new civil protection agency, reforestation with resilient species, water resilience measures, climate shelters, and support for rural areas and green jobs. The government will also present the initiative to France, Portugal, and the European Commission to explore collaboration.
🔗 Read more → La Moncloa

EPA Withdraws Proposed Effluent Standards for Meat and Poultry Industry
On January 23, 2024, the EPA proposed revisions to effluent limitations guidelines (ELGs) and standards for the meat and poultry products sector, seeking comment on stricter nitrogen limits, new phosphorus controls, updated pollutant standards, pretreatment requirements, and additional options such as chloride and E. coli limits. After reviewing public input, EPA decided to withdraw the proposal. Citing statutory discretion, the agency pointed to concerns about food supply, inflation, and industry stressors such as avian flu and supply chain disruptions. EPA also found that proposed options risked unintended increases in air pollution and solid waste.
🔗 Read more → Federal Register

House Republicans Vote to Overturn Biden-Era Energy Restrictions
House Republicans passed three Congressional Review Act resolutions to repeal Bureau of Land Management rules limiting coal, oil, and gas development on federal lands. H.J. Res. 104 overturns restrictions on future coal leasing in the Powder River Basin, which holds about 30% of US coal reserves. H.J. Res. 105 reverses the North Dakota Resource Management Plan, which restricted more than 4 million acres from coal leasing and oil and gas development. H.J. Res. 106 overturns the Central Yukon plan in Alaska, which restricted over 13.3 million acres. Conference Chairwoman Lisa McClain said the moves reverse “radical regulations” and support American energy.
🔗 Read more → House GOP, Statement of Administration Policy (PDF)

🧼 Greenwashing Watch

UK Watchdog Upholds Four Cruise Ad Greenwashing Cases
The UK Advertising Standards Authority (ASA) upheld four rulings against cruise ads that used absolute or unsubstantiated green claims. Among others, the challenged ads included statements such as “LNG, the world’s cleanest marine fuel”. The ASA found the claims lacked clear bases and robust substantiation in light of full life-cycle impacts and other environmental effects of cruising. The advertisers were told the ads must not appear again in the same form.
🔗 Read more → ASA Rulings (Barrhead Travel, Cruise Circle, cruise 1st and SeaScanner)

TTC to Vote on Stricter Rules for Fossil Fuel Advertising
The Toronto Transit Commission (TTC) board will vote on September 10 on staff recommendations to strengthen its advertising policy against misleading fossil fuel promotions. The proposal would require companies to prove environmental benefit claims are backed by “adequate and proper testing” before ads are approved for buses, subways, or stations. The move follows new federal greenwashing rules under the Competition Act and a 2024 TTC motion reviewing ads from Pathways Alliance and Canada Action.
🔗 Read more → TorontoToday, TTC Staff Report (PDF)

💡 Insight of the Week

South Africa’s Landmark Climate Disaster Lawsuits Challenge Government Liability
Two major lawsuits in South Africa are testing whether governments can be held liable for climate disaster damages. The April 2022 floods in KwaZulu-Natal killed 544 people, displaced over 40,000, and caused massive economic losses. Tokio Marine and Nichido Fire Insurance is seeking R6.5 billion ($368 million) from state entities, while another insurer filed a R540 million ($31 million) claim for packaging companies. Both cases argue negligence in maintaining stormwater infrastructure. Success could expand government accountability for climate adaptation, but also strain already limited public resources.
🔗 Read more → The Conversation

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