Environmental Crimes in May 2024: Enforcement Spotlight on ESG & Compliance Failures

The Department of Justice announced a slate of major prosecutions for environmental crimes in May 2024, providing a stark reminder of the regulatory risks facing companies and individuals alike that fail to prioritize environmental, social, and governance (ESG) issues.

The highest-profile case was against TPC Group LLC, which agreed to pay over $30 million in criminal fines and civil penalties stemming from a 2019 series of explosions at its Port Neches, Texas chemical manufacturing facility. The blasts caused mass evacuations, released over 11 million pounds of hazardous substances, and resulted in over $130 million in damage. TPC pleaded guilty to violating the Clean Air Act for failing to follow safety procedures that could have prevented the uncontrolled release.

The TPC case was one of several prosecutions of emissions fraud schemes, in which defendants tampered with vehicle pollution control systems to bypass emissions standards. In one case, a Washington company was charged with removing emissions controls from hundreds of diesel trucks over a multi-year period, charging customers over $500,000 for the illegal service.

Companies also faced charges for mishandling hazardous waste and polluting waterways. AMVAC Chemical Corporation, a pesticide manufacturer, pleaded guilty to illegally transporting tens of thousands of containers of toxic waste materials across state lines without proper labeling or manifests. And two trucking company owners in Ohio were convicted for dumping 7,000 gallons of ammonia into a river, killing over 43,000 fish.

Perhaps most disturbingly, the May enforcement actions included several defendants involved in shocking cases of animal cruelty and wildlife trafficking. One group was charged with smuggling millions of dollars' worth of live European eels, while another produced and distributed "animal crush" videos depicting the torture of monkeys.

For compliance and ESG professionals, the prosecutions serve as a sobering case study in the catastrophic risks of environmental violations – both in terms of criminal liability and threats to worker safety, public health, and biodiversity. Companies would be wise to redouble their commitment to robust environmental management systems and rigorous regulatory compliance.

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