Key highlights from June 2026 in the sustainability space.
1. TotalEnergies found liable for duty of vigilance breach
On June 25, 2026, the Paris Judicial Court's decision in NAAT et al. v. TotalEnergies found the company's vigilance plan incomplete and ordered it, within six months, to extend its risk mapping to cover climate risks tied to its Scope 3 emissions. Rejecting TotalEnergies' argument that downstream emissions fall solely to consumers, the Court drew on foreign environmental rulings recognizing a "very close causal link" between fossil fuel production and combustion — echoing the UK Supreme Court's Finch decision and the Hague Court of Appeal's Shell ruling — to hold that the duty of vigilance extends to these emissions.
Notably, however, the Court declined to prescribe specific emissions-reduction targets or pathways, holding that dictating the content of mitigation measures would exceed its supervisory role under the 2017 law, which remains grounded in corporate self-regulation. It also stayed the remaining claims pending TotalEnergies' revised plan, with no penalty imposed at this stage. As one of the first judgments to assess corporate climate due diligence on the merits, it is likely to shape future climate litigation and the interpretation of due diligence obligations across Europe.
2. European Commission refuses to delay methane rules implementation
In an open letter addressed to the European Commission, eleven EU Member States, together with the energy ministers of the United States, Algeria, Nigeria and Qatar, called on the Commission to postpone the implementation of Regulation 2024/1787 on the reduction of methane emissions.
As of January 1st 2027, the Regulation requires importers of coal, oil and natural gas to demonstrate that production took place under methane monitoring and verification standards equivalent to those applied in the EU, and introduces maximum methane intensity requirements from 2030. The signatories argue that such compliance requirements are not yet feasible, and request a “stop-the-clock mechanism” to allow companies additional time to adapt their supply chains. European Commissioner for Energy Dan Jørgensen rejected calls to reopen the legislation, stating that the Commission would instead issue additional guidance to support industries and Member States in implementation.
3. California’s SB 253 delayed while litigation remains pending
The California Air Resources Board (CARB) has deferred the initial reporting deadline under the Climate Corporate Data Accountability Act (SB 253) for companies with annual revenues exceeding US$1 billion. Covered companies will now be required to report their Scope 1 and Scope 2 greenhouse gas emissions by 10 November 2026.
The postponement comes amid ongoing litigation challenging California’s climate disclosure framework. In November 2025, the Ninth Circuit granted an injunction pending appeal blocking enforcement of SB 261 (the Climate-Related Financial Risk Act), while leaving SB 253’s emissions reporting obligations intact. CARB’s decision to delay implementation reflects efforts to provide greater regulatory certainty and clarify compliance expectations as the litigation proceeds.
4. Commission adopts rules for calculating recycled content in PET bottles
On 30 June 2026, the European Commission adopted an Implementing Act establishing a harmonised methodology for calculating, verifying and reporting chemically recycled content in single-use polyethylene terephthalate (PET) beverage bottles. The rules apply to both mechanical and chemical recycling technologies and are intended to ensure transparent and consistent calculation and reporting practices across Member States, supporting implementation of the recycled-content targets under the Single-Use Plastics Directive.
The Act also clarifies the conditions under which recycled plastic from non-EU countries may count towards the EU's recycled-content targets. By introducing a uniform methodology, the new rules provide greater legal certainty for manufacturers and recyclers, facilitate compliance with recycled-content requirements, and create a level playing field for the plastic recycling sector while supporting investment in recycling technologies.
5. EU Council proposes Sustainable Finance Disclosure Regulation amendments to improve market transparency
On 24 June 2026, the Council of the EU published its negotiating position on revisions to the Sustainable Finance Disclosure Regulation (SFDR), aimed at simplifying sustainability transparency requirements, reducing administrative burdens and increasing comparability for investors.
The proposed reforms would address concerns that the current SFDR framework has led to inconsistent market practices and confusion surrounding Article 8 products (which promote environmental and/or social characteristics) and Article 9 products (which have sustainable investment as their objective).
Although these provisions were originally designed as disclosure requirements rather than product labels, they have increasingly been used by the market as sustainability classifications. According to the European Supervisory Authorities, this has increased the risk of misleading sustainability claims and greenwashing. The proposed framework would introduce new sustainability product categories to replace the current reliance on Article 8 and Article 9 classifications. The Council's position will now be negotiated with the European Parliament before the amendments can be formally adopted.
- Content prepared with the help of Amanda Alden.