Overview
- Exxon filed its complaint on Oct. 25 in the U.S. District Court for the Eastern District of California and seeks an injunction before the laws take effect.
- The suit targets SB 253 and SB 261, which require large companies to report scope 1–3 emissions and to disclose climate-related financial risks on a set schedule.
- Exxon argues the statutes force it to "serve as a mouthpiece for ideas with which it disagrees" and to use the Greenhouse Gas Protocol and TCFD instead of its preferred IPIECA methodology.
- The company contends SB 261 conflicts with federal securities laws and also objects to reporting that extends to global operations rather than activity within California.
- California officials and supporters defend the measures as transparency tools, while a separate business-led challenge continues after a judge denied an earlier bid to block the statutes, with trial expected in October 2026.