Business Groups Sue California Over Climate Disclosure Laws

Lawsuit Claims New Mandates Overstep Federal Authority and Infringe Upon First Amendment

Business and agricultural groups, including the U.S. Chamber of Commerce and the American Farm Bureau Federation, have filed a lawsuit against California over new climate disclosure mandates.
The lawsuit argues that the laws, which require companies making more than $1 billion annually to disclose their greenhouse gas emissions, overstep on the federal government’s authority and infringe upon the First Amendment.
The laws also require companies that make more than $500 million annually to report every other year how climate change will impact their finances and how they plan to adapt.
The groups argue that the laws will be too burdensome, could lead to a patchwork of inconsistent laws if more states pass similar regulations, and that the emissions data could contain inaccuracies that would mislead the public.
The lawsuit marks the first major legal challenge to these laws, which have garnered attention from major companies and environmental leaders well beyond California.