Legal Brief Highlights Business Group Support for California Climate Disclosure Laws

BOSTON—Ceres today filed an amicus curiae brief in the United States Court of Appeals for the Ninth Circuit, highlighting business and advocates’ support for California's groundbreaking climate disclosure laws that aim to improve market transparency. The brief demonstrates longstanding support from companies and investors for these laws, which require large companies doing business in California to disclose information about their greenhouse gas emissions and other climate-related financial risks. 

The brief, filed in response to a lawsuit brought by the U.S. Chamber of Commerce and other trade associations seeking to block the laws, documents years of advocacy from major corporations and institutional investors calling for standardized climate disclosure requirements.  

"California's climate disclosure laws represent a critical step forward in ensuring investors and markets have access to consistent, comparable information about corporate emissions and climate-related financial risks," said Steven Rothstein, Chief Program Officer at Ceres. "The support from businesses and investors demonstrates that these disclosures are essential tools for efficient capital investment and effective risk management.” 

"Investors, consumers, and other stakeholders deserve better information about companies' climate-related financial risks," the brief states, citing a letter from 35 businesses supporting full funding of the laws' implementation. "Businesses themselves will benefit from the standardized and consistent disclosure guidance that these policies promise."

The brief argues that SB 253—the Climate Corporate Data Accountability Act—and SB 261—the Climate-Related Financial Risk Act—regulate commercial speech and serve California's substantial interest in ensuring investors receive reliable information. The laws require companies with more than $1 billion in annual revenue to disclose indirect and direct greenhouse gas emissions, while companies with more than $500 million in revenue must publish biennial climate-related financial risk reports. 

The full brief is available here. 

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.