We’ve been following litigation against California’s climate disclosure laws since early this year. In the last major update, the court dismissed two of the Plaintiff’s three major arguments, leaving only the issue of compelled speech to be decided at trial. Now, the federal trial court has denied the Plaintiff’s preliminary injunction, which would have paused the effective date of the laws pending the outcome of litigation. GreenbergTraurig writes of the decision:
“The plaintiffs sought a preliminary injunction to halt enforcement of SB 253 and SB 261, claiming that the required climate-related disclosures of emissions data violate the First Amendment by compelling speech. They also argued that the regulatory reporting requirements are impractical for businesses. The court denied the request, finding that the disclosure requirements serve a substantial government interest in promoting transparency and addressing climate risks, and that the laws are tailored to those interests.”
The litigation is ongoing, and the injunction’s denial does not mark the final disposition of the case. The Plaintiffs appealed the trial court decision to the 9th Circuit Court of Appeals, with a hearing scheduled for September 15. Additionally, the case is set to go to trial on October 20, 2026, where it will be fully decided on its merits. In the meantime, compliance deadlines in 2026 grow closer. If the 9th Circuit upholds the trial court’s decision, then there will be no relief for businesses subject to the California laws. Reporting will begin while the law’s future remains uncertain.
Our members can learn more about the California climate disclosure laws here.
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