New California climate laws (SB 253 and SB 261), requiring large U.S. companies to disclose value chain emissions and climate risks, have survived a legal challenge from the U.S. Chamber of Commerce. A federal judge, Otis Wright II, rejected claims that the regulations violate constitutional rights and extraterritoriality rules.

Key Provisions of the Laws:

🔹 SB 253: Applies to companies with $1 billion+ in revenue doing business in California, mandating disclosure of Scope 1, 2, and 3 emissions.
🔹 SB 261: Requires companies with $500 million+ in revenue to report on climate-related financial risks and adaptation measures.

The Chamber of Commerce argued that the laws force businesses into subjective speech and that Scope 3 emissions are difficult to quantify. However, the judge ruled that the laws only require disclosure, not emission reductions, and dismissed claims that they aim to “shame” companies.

While the ruling supports California’s position, the case remains open, and legal challenges could continue as the California Air Resources Board (CARB) finalizes reporting requirements.

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