Ninth Circuit Mixed Ruling on California Climate Disclosure Laws

The Ninth Circuit’s latest opinion splintered the arguments it could decide. While the court found that certain disclosure provisions of California’s Climate Corporate Data Accountability Act (SB 253) and Climate‑Related Financial Risk Act (SB 261) do not violate the First Amendment, it left open several substantive questions about the state’s ability to demand comprehensive environmental data from private firms. The decision underscores the limits of state climate‑policy disclosures that may be viewed as compelled speech. For multi‑national and U.S.‑based clients, the ruling signals that, while some disclosures remain permissible, other clauses—especially those requiring attribution to actual greenhouse‑gas emitters—may be challenged. Firms should re‑examine their climate‑reporting frameworks to identify which questions are safe under the current Ninth Circuit framework and which might need revision.