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ARTICLE · 18 AUGUST 2025

District Court Rejects First Amendment Challenge To California Climate Disclosure Requirements

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On Aug. 13, 2025, the U.S. District Court for the Central District of California denied a motion for preliminary injunction seeking to halt enforcement of California Senate Bill (SB) 253...

United StatesEnvironment
Bruce White
Bruce White
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On Aug. 13, 2025, the U.S. District Court for the Central District of California denied a motion for preliminary injunction seeking to halt enforcement of California Senate Bill (SB) 253 (Climate Corporate Data Accountability Act) and SB 261 (Climate-Related Financial Risk Act) on First Amendment grounds. (Chamber of Commerce of the United States of America et al v. California Air Resources Board.)

With this ruling, both statutes — currently the only enforceable climate disclosure requirements in the U.S. — remain on track for phased compliance beginning in 2026.

The case raises important questions regarding the scope of the First Amendment as it applies to mandated corporate disclosures in the climate and environmental, social, and governance (ESG) context. This summary outlines the substance of each law, the procedural history of the case, the details of the court's recent decision and the key implications of that ruling.

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