California Climate Disclosure Laws Survive Preliminary Injunction on First Amendment Challenge: Reporting Obligations Swiftly Approaching

On August 13, 2025, the U.S. District Court for the Central District of California denied a motion for preliminary injunction filed by a coalition of business groups seeking to halt implementation of California’s corporate climate disclosure laws—SB 253 and SB 261. Senate Bill 253 (SB 253 ) 1 requires entities that do business in California and whose total annual revenue exceeds $1 billion to disclose Scope 1 and 2 greenhouse gas (GHG) emissions beginning in 2026 (covering 2025 data), and Scope 3 emissions beginning in 2027 (covering 2026 data). Senate Bill 261 (SB 261), 2 passed as part of the same Climate Accountability legislative package, requires entities that do business in California and whose total annual revenue exceeds $500 million to publicly disclose the business’s