Client Alert: Ninth Circuit Puts SB 253 Scope 3 and SB 261 Reporting on Hold
/Scope 1 and 2 reporting under SB 253 remains in force while the case returns to the trial court.
On November 9, the U.S. Court of Appeals for the Ninth Circuit ruled on California’s climate disclosure laws:
SB 253 Scope 1 and 2 reporting stays in force. The November 10 CARB deadline did not change.
SB 253 Scope 3 reporting is on hold. The court found the Scope 3 requirement likely unconstitutional, partly because companies would be reporting data that comes from suppliers and other third parties.
SB 261 (climate risk reporting) is on hold in full.
The ruling is temporary. The case now returns to the trial court, and either side can appeal. The business groups can still appeal the Scope 1 and 2 portion. Scope 3 requirements could return through further court action.
What This Means for Your Business
Regulatory disclosure is not the main reason for a company to seek value chain and supplier GHG information. The value is in what it shows the business: which suppliers carry the most GHG emissions, where resiliency and cost exposure lie, and where procurement can act on it.
