Ninth Circuit Leaves SB 253 Scope 1-2 In Force; Scope 3, SB 261 Likely Enjoined
The Ninth Circuit's written opinion in Chamber of Commerce v. Sanchez keeps California's Scope 1 and 2 filing in place for November 10, 2026 while signaling Scope 3 disclosures and SB 261 financial risk reports will be enjoined.
On November 9, 2026, the U.S. Court of Appeals for the Ninth Circuit issued its written opinion in Chamber of Commerce v. Sanchez, No. 25-5327 (9th Cir. 2026), the challenge to California SB 253 (Climate Corporate Data Accountability Act) and SB 261 (climate-related financial risk reporting). The panel reversed the district court's denial of preliminary injunctions as to SB 253's Scope 3 emissions disclosures and SB 261's biennial financial risk reports, finding them likely unconstitutional under the First Amendment. Entry of those injunctions, and any severability ruling under SB 253's express severability clause, remains with the district court; SB 261 enforcement has been enjoined since November 18, 2025. SB 253's Scope 1 and 2 disclosures were not enjoined and remain in place, with the first filing due November 10, 2026.
For major-firm clients, the immediate question is which reporting entities must still file Scope 1 and 2 data on that near-term deadline, and how far the First Amendment analysis travels into future state-mandated climate disclosure regimes. Watch the 14-day window for rehearing or en banc petitions, the Ninth Circuit's issuance of its mandate, any certiorari petition, and the district court's severability ruling.