The US District Court for the Central District of California has denied a motion by the US Chamber of Commerce and other plaintiffs seeking to block enforcement of two key California climate disclosure laws, Senate Bill 253 (emissions disclosure) and Senate Bill 261 (climate-related financial risk reporting).
In a ruling issued, the court acknowledged that both statutes regulate commercial speech but concluded that the plaintiffs had not demonstrated a likelihood of success on the merits of their First Amendment claims. The request for a preliminary injunction was therefore denied, leaving the laws on track for their first compliance deadlines in 2026.
Under SB 253, companies will be required to report Scope 1 and 2 greenhouse gas emissions in 2026, with Scope 3 disclosures following in 2027. SB 261 mandates that firms submit climate-related financial risk reports by 1 January 2026.
Legal observers note that the Chamber of Commerce and its co-plaintiffs could still appeal the decision or pursue the case at trial. However, unless further judicial relief is granted, businesses within the scope of the laws are expected to continue preparing reporting systems, supplier engagement processes and governance structures in order to meet the deadlines.
California’s Air Resources Board (CARB) is due to hold a virtual public workshop on 21 August 2025 to discuss key definitions, minimum reporting requirements under SB 261, and the broader regulatory timeline. The session will offer companies an opportunity to raise compliance concerns and provide input before final rules are adopted.
