Overview
- Exxon filed its complaint Friday in the U.S. District Court for the Eastern District of California seeking to halt enforcement of SB 253 and SB 261.
- SB 253 would require companies with over $1 billion in revenue to report annual greenhouse gas emissions starting in 2026, including indirect Scope 3 emissions from suppliers and customers.
- SB 261 would require companies with at least $500 million in revenue to publish biennial reports on climate-related financial risks and their mitigation strategies.
- Exxon argues the laws compel it to adopt California-preferred frameworks such as the Greenhouse Gas Protocol and TCFD, reach beyond the state’s borders, and conflict with federal securities regulation.
- The company says it already makes voluntary disclosures, while a spokesperson for Gov. Gavin Newsom’s office criticized the lawsuit as opposition to transparency.