"ExxonMobil is suing California over state laws that compel large companies to share a more comprehensive picture of their greenhouse gas emissions, as well as disclose financial risks that climate change might pose to their investors. The oil and gas company claims that the two laws in question aim to "embarrass" large corporations the state "believes are uniquely responsible for climate change" in order to push them to reduce their greenhouse gas emissions."
"ExxonMobil alleges that California is violating the First Amendment by setting specific standards for how certain companies report those emissions and the associated climate risks. Under laws the state passed in 2023, "ExxonMobil will be forced to describe its emissions and climate-related risks in terms the company fundamentally disagrees with," a complaint filed Friday says. The suit asks a US District Court to stop the laws from being enforced."
"It's the latest in an ongoing saga over how transparent companies should be about their impact on the climate. California has set higher standards than many companies follow in their sustainability reports. That, plus the state's enormous economy, has allowed it to raise the bar for corporate climate disclosures even as the federal government moves in the opposite direction."
ExxonMobil has filed a lawsuit challenging California laws that require large companies to disclose comprehensive greenhouse gas emissions and climate-related financial risks. The company contends the laws aim to "embarrass" corporations the state views as responsible for climate change and force firms to report in language they oppose. ExxonMobil alleges a First Amendment violation and asks a federal court to block enforcement. The contested statutes were passed in 2023 and set new standards for how emissions and climate risks are described. California's large economy and stricter state rules have raised disclosure expectations even as federal policy moves differently.
Read at The Verge
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