IRVING (dpa-AFX) - California's new climate disclosure laws, according to Exxon Mobil Corporation, violate the company's First Amendment rights by requiring it to support what it describes as the state's ideological message, that big businesses are largely to blame for climate change. The company has filed a federal lawsuit against the state.
The lawsuit, which was filed in the U.S Eastern District Court for California, contests two laws that Governor Gavin Newsom signed into law in 2024 Senate Bill.
These regulations mandate that big businesses reveal their financial risks associated with climate change as well as their greenhouse gas emissions, including indirect Scope 3 emissions from transportation, supply chains, and product use.
Although it already reports emissions and climate risks, ExxonMobil contends that California's required framework unfairly singles out large corporations, inflating their environmental impact and seeking to shame them.
The business argues that the laws violate constitutional rights by requiring speech that advances the political agenda of the state.
When the reporting requirements go into effect starting in 2026, the California Air Resources Board projects that over 4,000 American businesses will have to comply.
ExxonMobil is attempting to prevent the laws from being enforced before they take effect, despite the fact that similar free speech challenges have been unsuccessful in court in the past.
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