Exxon Sues California Over Climate Disclosure Laws

'Exxon Mobil sued California on Friday,' reports Reuters, 'challenging two state laws that require large companies to publicly disclose their greenhouse gas emissions and climate-related financial risks.'

In a complaint filed in the U.S. District Court for the Eastern District of California, Exxon argued that Senate Bills 253 and 261 violate its First Amendment rights by compelling Exxon to 'serve as a mouthpiece for ideas with which it disagrees,' and asked the court to block the state of California from enforcing the laws. Exxon said the laws force it to adopt California's preferred frameworks for climate reporting, which it views as misleading and counterproductive...

The California laws were supported by several big companies including Apple, Ikea and Microsoft, but opposed by several major groups such as the American Farm Bureau Federation and the U.S. Chamber of Commerce, which called them 'onerous.' SB 253 requires public and private companies that are active in the state and generate revenue of more than $1 billion annually to publish an extensive account of their carbon emissions starting in 2026. The law requires the disclosure of both the companies' own emissions and indirect emissions by their suppliers and customers. SB 261 requires companies that operate in the state with over $500 million in revenue to disclose climate-related financial risks and strategies to mitigate risk. Exxon also argued that SB 261 conflicts with existing federal securities laws, which already regul

'The First Amendment bars California from pursuing a policy of stigmatization by forcing Exxon Mobil to describe its non-California business activities using the State's preferred framing,' Exxon said in the lawsuit.

Exxon Mobil 'asks the court to prevent the laws from going into effect next year,' reports the Associated Press:

In its complaint, ExxonMobil says it has for years publicly disclosed its greenhouse gas emissions and climate-related business risks, but it fundamentally disagrees with the state's new reporting requirements. The company would have to use 'frameworks that place disproportionate blame on large companies like ExxonMobil' for the purpose of shaming such companies, the complaint states...

A spokesperson for the office of California Gov. Gavin Newsom said in an email that it was 'truly shocking that one of the biggest polluters on the planet would be opposed to transparency.'

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