A coalition including the U.S. Chamber of Commerce, American Farm Bureau Federation, and other business groups is suing California over recently enacted corporate climate disclosure laws. The two laws, SB 253 and SB 261, mandate that companies, regardless of their headquarters’ location, report emissions across their supply chain and disclose climate-related financial risks and mitigation strategies. The lawsuit argues that these laws violate the First Amendment, compelling businesses to engage in subjective speech, and exceed California’s jurisdiction by attempting to set a national standard.
Critics highlight the laws’ impracticality and potential to burden businesses with excessive costs. The legal challenge signifies growing opposition to climate-related regulations, highlighting concerns about compliance challenges and the potential impact on businesses, particularly among smaller entities that do not have the resources for comprehensive emissions reporting. The lawsuit aims to prevent the enforcement of these laws, representing yet another constitutionality question in regard to state-enacted initiatives.
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Brian German
Ag News Director / AgNet West