On October 29, 2025, the U.S. Court of Appeals for the Ninth Circuit issued an order addressing an emergency request aimed at delaying implementation of California’s sweeping climate-related disclosure requirements under Senate Bill 261 (SB 261) and Senate Bill 253 (SB 253).
The appellate court granted the motion only in part, agreeing to fast-track the case by assigning it immediately to a merits panel and placing it on the January 2026 calendar, but it declined to pause enforcement of the laws before oral argument. As a result, the January 1, 2026, effective date for SB 261 remains unchanged, meaning covered companies must prepare to release climate-related financial risk reports under the statute.
As a reminder:
- SB 253 (the Climate Corporate Data Accountability Act) requires companies with over $1 billion in total annual revenues doing business in California to publicly disclose Scope 1, 2, and 3 greenhouse gas emissions in conformance with the Greenhouse Gas Protocol, beginning sometime in 2026 with respect to Scope 1 and 2 emissions. The statute requires third-party assurance and provides for administrative penalties for noncompliance.
- SB 261 (the Climate-Related Financial Risk Reporting Law) requires companies with over $500 million in total annual revenues doing business in California to publish climate-related financial risk reports, aligned with the Task Force on Climate-related Financial Disclosures framework or an equivalent that incorporates it, and to disclose measures for risk mitigation and adaptation.
Another lawsuit brought by ExxonMobil challenging both SB 261 and SB 253 is pending in the Eastern District of California, but until and unless that court grants injunctive relief, California’s climate disclosure mandates will be effective and enforceable.
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