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California Climate Disclosure Update: Ninth Circuit Ruling on SB 253 and SB 261

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    California Climate Disclosure Update: Ninth Circuit Ruling on SB 253 and SB 261

    • 2 min read
    California Climate Disclosure Update: Ninth Circuit Ruling on SB 253 and SB 261

    The Ninth Circuit declined to block SB 253 Scope 1 and Scope 2 emissions reporting requirements, while finding challengers are likely to succeed on First Amendment claims related to Scope 3 and SB 261 climate risk reporting.

    A recent Ninth Circuit ruling has added another development to the evolving implementation of California’s climate disclosure laws, SB 253 and SB 261.

    What the Ninth Circuit Ruled on SB 253 and SB 261

    For companies subject to SB 253, Scope 1 and Scope 2 emissions reporting remains in effect, with the current reporting deadline of November 10, 2026. The Ninth Circuit declined to block these requirements, finding that they withstand the First Amendment challenge at this preliminary stage.

    The court reached a different conclusion on SB 253 Scope 3 and SB 261 climate risk reporting, finding that the challengers are likely to succeed on their First Amendment claims and directing preliminary relief from these requirements. Further proceedings are required to implement the ruling, including consideration of whether the Scope 3 provisions can be separated from the remainder of SB 253.

    What the Ninth Circuit Ruling Means for Companies

    While the legal process continues, companies should continue to meet requirements currently in effect. Given the evolving status of Scope 3 and SB 261, companies may wish to continue preparations while monitoring further developments.

    ISS-Corporate will continue to monitor developments in California and other U.S. states advancing climate disclosure requirements.

    Prepare for changing SB 253 and SB 261 requirements with ISS-Corporate’s climate services »

    California Climate Disclosure Updates & Timeline:

    Authors:

    • SD

      Sara Derian

      Sustainability Advisory
    • JL

      Jessica Lobo

      Sustainability Advisory