California's Climate Disclosure Laws Survive Legal Challenge

A US District Judge has dismissed the US Chamber of Commerce's lawsuit against California's climate disclosure laws, SB 253 and SB 261, which require large companies to report emissions and disclose climate-related financial risks. The judge concluded that the laws do not impose penalties for failing to reduce emissions but for not disclosing the risks and strategies associated with them. In contrast, the SEC announced its intention to not defend a previously proposed climate disclosure rule, effectively ending it under new leadership. Despite the SEC's actions, a significant number of companies still plan to voluntarily disclose their emissions and climate risks. California's regulations, however, continue to advance, with ongoing litigation addressing the Chamber's First Amendment claims. This legal landscape reflects a broader tension between regulatory requirements and corporate transparency efforts on environmental issues.