Overview
- ExxonMobil filed its complaint in the U.S. District Court for the Eastern District of California, asking the court to bar enforcement of the two statutes.
- SB 253 requires companies with over $1 billion in revenue to disclose greenhouse gas emissions across scopes 1–3, with scopes 1–2 due in 2026 and scope 3 in 2027.
- SB 261 requires firms with more than $500 million in revenue to report climate-related financial risks and mitigation strategies, which Exxon says compel speculation.
- The lawsuit argues the laws force the use of the Greenhouse Gas Protocol and TCFD frameworks, amount to compelled speech, reach beyond California, and conflict with federal securities rules.
- California officials and the Air Resources Board have not issued substantive responses in the coverage, as backers like Apple, Ikea and Microsoft face pushback from groups including the Farm Bureau and the U.S. Chamber of Commerce.