The U.S. Chamber of Commerce and allied business groups, including Western Growers, are challenging California’s climate disclosure laws, SB 261 and SB 253. On November 18, the Ninth Circuit Court of Appeals issued an injunction blocking enforcement of SB 261, which was scheduled to take effect on January 1. As a result, SB 261 cannot be enforced while our appeal is pending. The court declined to enjoin SB 253 at this stage, likely because its operative requirements do not take effect until later in the year, if not beyond.
SB 261 would require large companies that “do business in California” to prepare and post detailed reports describing “climate-related financial risks” and how they are managing those risks. SB 253 would require covered companies to calculate and publicly report their direct and indirect greenhouse gas emissions according to state-prescribed methodologies. While the appeal is pending, California may not enforce SB 261, but SB 253 remains in effect unless and until a higher court says otherwise.
In parallel, the plaintiffs, including Western Growers, have filed an emergency application with the U.S. Supreme Court seeking an injunction that would bar enforcement of both SB 261 and SB 253 against our members while the case proceeds. We will continue to update members as the Ninth Circuit appeal and Supreme Court application move forward and as the compliance picture for these laws becomes clearer.