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ARTICLE · 12 FEBRUARY 2024

Business Organizations Challenge California's Climate Change Disclosure Requirements As Unconstitutional

Jones Day
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On January 30, 2024, several business organizations filed a complaint in federal court in the Central District of California challenging California's Senate Bills 253 and 261 as violating the

United StatesEnvironment
Elizabeth Burnside
Elizabeth Burnside
Dickson Chin
Dickson Chin
Thomas Donnelly
Thomas Donnelly
David C. Kiernan
David C. Kiernan
Amy Pandit
Amy Pandit
Howard Sidman
Howard Sidman
Eric Tung
Eric Tung
Charles Wehland
Charles Wehland
Olga Gidalevitz Ph.D.
Olga Gidalevitz Ph.D.
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On January 30, 2024, several business organizations filed a complaint in federal court in the Central District of California challenging California's Senate Bills 253 and 261 as violating the U.S. Constitution. As discussed previously, these laws require public and private companies that have revenues above a certain threshold and are "doing business" in California to make disclosures relating to climate change risks, including disclosing not only their own direct and indirect greenhouse gas ("GHG") emissions (i.e., Scopes 1 and 2 emissions) but also GHG emissions from sources that those reporting companies do not own or control (i.e., Scope 3 emissions). The complaint alleges that the laws are unconstitutional in three separate ways.

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