Ceres Reaffirms Support for California Climate Disclosure Laws After Court Makes Split Ruling

BOSTON—Ceres today responded to the U.S. Court of Appeals for the Ninth Circuit’s ruling that California climate disclosure law (SB 253) can proceed with respect to direct emissions (Scope 1 and Scope 2), but that mandatory disclosure of indirect emissions (Scope 3) and of climate transition risk should be enjoined. The ruling delays enforcement of portions of the nation’s most comprehensive corporate climate reporting requirements that were set to begin this year.  

Steven M. Rothstein, Chief Program Officer at Ceres, said:  

"Ceres is excited about the filings of Scope 1 and Scope 2 emissions from hundreds and hundreds of companies.  This will provide valuable information and insights that the millions of California residents, other companies, investors, and others need to make sound financial decisions.

“We believe all portions of California’s climate disclosure laws are clearly in line with the First Amendment. We remain hopeful that these legal challenges will be decided on the merits in the State’s favor, and that the courts will recognize what we have long known: corporate climate risk information is vital to investors and the public.

“As California continues to face devastating impacts of extreme weather—from record wildfires to prolonged droughts—the need for consistent, reliable climate disclosures has never been more urgent. We believe these laws will ultimately be upheld, ensuring that companies will be held accountable for their climate risks and emissions, and giving investors the tools they need to make informed decisions and enabling markets to properly price climate risk." 

Under the law (SB 253), large companies doing business in California were required to publicly disclose all their greenhouse gas emissions. SB 261 required companies to disclose climate-related financial risks. These mandates would provide unprecedented transparency into corporate climate impacts and vulnerabilities, benefiting investors managing trillions of dollars and the public stakeholders who depend on corporate accountability. 

Ceres filed an amicus brief with the U.S. Court of Appeals for the Ninth Circuit in support of the laws, documenting extensive business and investor backing for standardized climate disclosure requirements. The brief highlighted support from 35 businesses, including  advocating for full funding of the laws' implementation and emphasized that "businesses themselves will benefit from the standardized and consistent disclosure guidance that these policies promise." 

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About Ceres 

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.