ExxonMobil has filed a lawsuit against the state of California, challenging recent laws that require large companies to provide detailed information about their greenhouse gas emissions and the financial risks climate change may pose to their investors. The company argues that these laws aim to portray corporations negatively by implying they are primarily responsible for climate change, which conflicts with a broader scientific consensus that attributes climate change to greenhouse gas emissions from fossil fuels.
In its complaint, ExxonMobil contends that California is violating its First Amendment rights by imposing specific reporting standards that the company opposes. According to laws passed in 2023, ExxonMobil must report its emissions and related climate risks in a manner that it claims does not align with its views. The lawsuit requests that a US District Court prevent California from enforcing these regulations.
One of the contested laws, known as SB 253, mandates companies with annual revenues exceeding $1 billion to disclose emissions following the internationally recognized Greenhouse Gas Protocol. Although ExxonMobil already reports its emissions, it disputes the methodology outlined in the protocol, particularly regarding the inclusion of indirect emissions—those stemming from the entire supply chain, electricity use, and product consumption—which are often significant in a company’s total carbon footprint.
The second law in question, SB 261, requires companies with annual revenues over $500 million to disclose potential financial risks related to climate change by January 2026. ExxonMobil criticizes this requirement as “speculative,” arguing that it forces the company to make predictions about uncertain future events.
ExxonMobil is also involved in a separate lawsuit filed by California regarding false claims about plastic recycling and is facing allegations from the state related to its impact on climate change. The company has stated that while it recognizes the risks posed by climate change, it disagrees with how California’s laws interpret and report these issues.
Source: https://www.theverge.com/news/807357/exxon-lawsuit-california-greenhouse-gas-climate-reporting-laws