California's Climate Disclosure Laws Overcome Legal Obstacle, for Now

A California judge has ruled that the state's climate disclosure laws can move forward despite opposition from business groups. These laws require large companies to disclose detailed information on greenhouse gas emissions and climate risks. The U.S. Chamber of Commerce and other trade groups had challenged the laws, claiming they violate First Amendment rights by compelling speech. However, the judge’s ruling only addresses the First Amendment issue, and further examination of the laws' implementation will continue.

The new laws, set to take effect in 2026, could impact around 75 % of Fortune 1000 companies, making California’s disclosure requirements a potential standard for many U.S. businesses.