EDF Goes to Court to Help Defend California Climate Risk Reporting Laws That Protect People from Financial Damage

(October 24, 2025) Environmental Defense Fund is going to court to help defend two California laws that increase corporate transparency and help protect people from financial damages caused by climate change.

The laws, SB 253 and SB 261, require large companies operating in California to disclose their greenhouse gas emissions and other information about the risks they face from climate change — a vitally important step for investors and other Californians who need accurate information to make sound financial decisions. The U.S. Chamber of Commerce and other corporate associations filed a lawsuit seeking to overturn the laws, claiming that these informational reporting requirements infringe on corporations’ free speech rights. EDF yesterday filed an amicus brief, (“friend of the court” brief), in the U.S. Court of Appeals for the Ninth Circuit in support of California.

“Extreme weather events fueled by climate change, like this year’s Los Angeles fires, threaten people’s health and safety, our environment, and cause hundreds of billions of dollars in damage,” said EDF Senior Attorney Stephanie Jones. “Our economy is stronger when people have the information they need to make informed investment choices. California’s laws provide this transparency, protect investors and all Californians, and are firmly consistent with the Constitution.

California’s SB 261 applies to companies with annual revenues of at least $500 million a year. Those businesses will be required to disclose information about their climate risk management starting January 1, 2026. SB 253 applies to companies with annual revenues of at least $1 billion a year, which will also have to disclose their greenhouse gas emissions starting later in 2026.

The Chamber of Commerce and its allies are asking for a preliminary injunction to block California from implementing these laws while their lawsuit moves through the courts. A federal court in California has already ruled against that request. The laws’ opponents are now asking the Ninth Circuit to overturn the lower court’s decision.

EDF’s amicus brief supports California’s arguments against a preliminary injunction and provides evidence on the benefits of the laws – protecting investors, including anyone with a retirement account or other savings in the stock market; informing people; and potentially leading to emissions reductions: 

“Investors need information about whether and how a company is assessing and addressing any physical risks it faces from a changing climate — such as risks posed to its operations by extreme weather events, prolonged heat, and sea-level rise — as well as its transition risks … Absent requirements for consistent and verifiable disclosures, consumers are unable to distinguish accurate claims about businesses’ climate progress and practices from incomplete and misleading ones … Transparency on and management involvement in analysis of emissions and climate-related financial risk will lead to more companies prioritizing emissions reductions.” (EDF amicus brief, pages 19-20, 5, 38)

You can read the entire amicus brief here.