Highlights

• ExxonMobil files lawsuit against California over two climate disclosure laws passed in 2023.
• The company claims the laws are unwarranted, unfairly blame large corporations for climate change, and infringe on free speech rights.
• Senate Bills 253 and 261 demand that top companies disclose emissions and climate-related financial risks publicly.

ExxonMobil has taken legal action against the state of California over two climate disclosure laws introduced in 2023.

The oil and gas company claims that these regulations violate its free speech rights by forcing corporations to accept the notion that large businesses are squarely responsible for climate change.

Filed in the U.S. Eastern District Court for California, the lawsuit seeks to stop the laws from taking effect next year.

Read More: TotalEnergies Grilled by Paris Court, Faces €20,000 ‘Greenwashing’ Fine

In its complaint, ExxonMobil averred that it has long shared its greenhouse gas emissions and climate-related business risks. However, the company disagrees with California’s new requirements, which it says are designed to shame large corporations rather than promote transparency.

Under Senate Bill 253, companies of a certain size must publicly disclose their direct and indirect emissions, including emissions from employee travel and product transport.

ExxonMobil objects to the reporting method and says it unfairly targets businesses based on their global scale rather than their operational efficiency.

The second regulation, Senate Bill 261, mandates that firms earning over $500 million annually publish information on climate-related financial risks and outline their strategies for managing them.

The oil giant claims the rule compels companies to make speculative predictions about the future impact of climate change and post them publicly, which it views as unreasonable.

Also Read: Climate Lawsuits Rising in Nearly 60 Countries, Says Report

Responding to the lawsuit, a spokesperson for Governor Gavin Newsom’s office said it was “truly shocking” that one of the world’s largest polluters would resist measures designed to increase transparency in environmental and financial reporting.

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Source: abc News