Federal Judge Upholds California's Climate Disclosure Laws

A federal judge has denied a request by business groups to block California’s climate disclosure laws, allowing them to remain in effect ahead of a full trial. U.S. District Judge Otis Wright II ruled that the U.S. Chamber of Commerce and other groups failed to demonstrate that the laws, SB 253 and SB 261, violate First Amendment rights. The laws, which require large companies in California to disclose their carbon footprint and climate-related financial risks, represent a significant step in U.S. climate policy. They gained importance after the Trump administration rolled back a Biden-era federal climate disclosure rule. In his ruling, Wright emphasized the public interest in providing investors with consistent climate-risk information and reducing greenhouse gas emissions. He rejected the argument that the disclosures correct misleading environmental marketing or benefit consumers. This decision marks a victory for California as it defends its nation-leading climate policies. The outcome underscores the state’s commitment to transparency in climate-related financial risks, ensuring businesses operating in California continue to comply with the disclosure requirements.

Published: 8/19/2025