Climate Disclosure Laws Survive Initial Court Challenge

Dependent upon revenue, if you are a public or private company doing business in the state of California, laws signed into law this September could mandate your reporting of greenhouse gas emissions.

The laws were challenged in court but, following a federal judge’s decision to allow their enforcement despite a legal challenge, the disclosure laws will continue for now. The U.S. Chamber of Commerce and other business groups argue the laws violate First Amendment protections against compelled speech.

In a ruling issued November 5, U.S. District Judge Otis Wright II denied a motion for summary judgment from the plaintiffs, stating that more information is needed before determining if the rules infringe on constitutional rights. The judge emphasized that the case requires “further development of the facts” but acknowledged that the First Amendment applies to the challenged laws.

The decision means California can enforce its carbon emissions disclosure requirements while the case progresses. However, Judge Wright left the door open for the plaintiffs to file another motion for summary judgment.

According to Agriculture Dive, the laws will require large businesses operating in California to disclose more climate-related information, including carbon emissions data, to increase corporate transparency.