Archive · 16 Nov 2025
Business Groups Ask Supreme Court to Pause California Climate Reporting Laws
Imagine California made a new rule that says big companies need to tell everyone how much pollution they make and how climate change might affect their money.
Some business groups, like the Chamber of Commerce, think this is like forcing companies to say things they don't want to say, which they believe is against their free speech.
They've asked the highest court in the U.S., the Supreme Court, to stop these rules from starting.
They believe these rules are unfair and could cause problems for many companies.
California says these rules are important to help everyone understand how companies impact the climate and to encourage them to make changes.
Lower courts haven't agreed to stop the rules yet, but the business groups are hoping the Supreme Court will.
This is similar to how the government sometimes asks companies to share important information.
Business groups, led by the U.S. Chamber of Commerce, have asked the Supreme Court to temporarily halt new California climate reporting laws.
The laws require companies with over $1 billion in revenue to report carbon emissions and those with over $500 million to disclose financial climate risks.
Business groups argue these laws infringe upon companies' free-speech rights through compelled speech.
California contends the laws increase transparency and encourage climate action, asserting commercial speech has fewer protections.
Lower courts have not yet blocked the laws, and reporting requirements are set to begin soon, with potential civil penalties for non-compliance.
- Who
- Business groups, including the U.S. Chamber of Commerce and ExxonMobil
- What
- Asked the Supreme Court to pause new California laws requiring companies to report emissions and climate-risk information.
- When
- Friday (emergency appeal filed)
- Where
- U.S. Supreme Court (appeal filed)
- Why
- Business groups argue the laws violate free-speech rights and will inflict irreparable harm on companies.
Business Groups
California
Constitutional Rights
Business Groups
The laws violate free-speech rights by compelling companies to report emissions and climate-risk information.
California
The state argues that commercial speech is not protected in the same way as other forms of speech under the Constitution, and these disclosures do not violate the First Amendment.
Scope of Impact
Business Groups
The Chamber of Commerce estimates the emissions reporting law will affect about 5,000 companies.
California
State air regulators estimate the emissions reporting law will apply to roughly 2,600 companies, and the climate risk disclosure law will apply to more than 4,100 companies.
- Challenged Laws
- California laws requiring companies to report emissions and climate-risk information.
- Primary Petitioner
- U.S. Chamber of Commerce
- Reporting Requirements
- Annual direct and indirect carbon emissions for companies with over $1 billion in annual revenue; biennial disclosures of financial risks from climate change for companies with over $500 million in annual revenue.
- Reporting Start Dates
- Expected to start early next year, with emissions reporting beginning in 2026 and 2027.
- Legal Basis of Challenge
- Violation of free-speech rights.
- State's Rationale
- Increase transparency, encourage emissions reduction, and facilitate climate action.
- Potential Penalties
- Civil penalties for non-compliance.