California Supreme Court Faces Pressure to Block Climate Disclosure Laws
Full Transcript
The California Supreme Court is under pressure from national and state business groups to block new laws requiring companies to disclose their climate impacts. The U.S. Chamber of Commerce and others filed an emergency appeal, arguing that these laws violate the First Amendment by compelling companies to communicate on a controversial topic.
The laws, set to take effect on January first, mandate that thousands of businesses disclose their emissions and assess climate-related financial risks. Senate Bill 261 requires businesses to evaluate their climate risks, while Senate Bill 253 focuses on larger companies, necessitating a detailed disclosure of their emissions.
The businesses involved assert that these disclosure requirements amount to unconstitutional compelled speech, claiming that no state should impose mandates that dictate corporate communication on climate policy.
Their argument highlights the controversial nature of climate change, which they believe should not be dictated by state law. California lawmakers, however, view these laws as essential for transparency in the corporate sector and accountability in the fight against climate change.
Senator Scott Wiener, who authored one of the bills, described the laws as a powerful tool for ensuring that companies take responsibility for their emissions. Environmental advocates celebrated the laws as groundbreaking and necessary for public awareness regarding corporate environmental practices.
The California Air Resources Board has declined to comment due to the ongoing litigation. Legal experts note that similar arguments have been previously dismissed in courts, pointing to Exxon Mobil's failed attempts to use the First Amendment to block climate-related investigations.
In a related case, a federal court upheld the notion that businesses can be required to disclose factual information about their operations. As the Supreme Court reviews the appeal, state attorneys from Iowa and 24 other Republican-leaning states have voiced their support for blocking California's climate disclosure laws, labeling them a radical mandate.
The justices may request a response from California's state attorneys soon, pending their action on the appeal. This situation underscores the persistent tension between regulatory efforts to combat climate change and the interests of the business community, reflecting broader national debates over climate policy.