Exxon files lawsuit against California over climate disclosure laws, alleges free speech violations

ExxonMobil has filed a lawsuit against California, claiming that two state laws requiring corporate climate disclosures violate the company’s First Amendment rights.

The lawsuit, filed in the U.S. District Court for the Eastern District of California, challenges the California Climate Accountability Package, which was passed in 2023.

The law requires large companies doing business in the state to report on emissions, climate risks, and carbon offsets, or face annual penalties.

In its filing, ExxonMobil argues that Senate Bill 253 compels the company to disclose information it fundamentally disagrees with and forces it to report in conformance with the Greenhouse Gas Protocol, a standard the company calls flawed. The company is also challenging SB 261, which requires companies to disclose climate-related risks.

“For years, ExxonMobil has disclosed its worldwide greenhouse gas emissions—and the guidelines it relies on to estimate them—in sustainability reports made available to the public,” the suit stated. “In doing so, ExxonMobil has voiced disagreement with numerous aspects of the GHG Protocol. Starting in 2026, S.B. 253 will compel ExxonMobil to supplement its speech with information ExxonMobil believes will, at best, be unnecessary and counterproductive.”

The lawsuit names officials from the California Air Resources Board, the agency overseeing the state’s air and climate programs, and Attorney General Rob Bonta as defendants.

Gov. Gavin Newsom’s office pushed back on ExxonMobil’s claims.

“Truly shocking that one of the biggest polluters on the planet would be opposed to transparency,” Tara Gallegos, deputy director of communications for Newsom, said in an emailed statement to KTLA. “These laws have already been upheld in court, and we continue to have confidence in them.”

The lawsuit asks a judge to block enforcement of the laws.

“While California might believe that making ExxonMobil report historical emissions for an oil refinery acquired in Canada or speculative business risks for a Kazakhstan pipeline is the best way to spur climate solutions, ExxonMobil disagrees,” the lawsuit stated. “The First Amendment bars California from pursuing a policy of stigmatization by forcing ExxonMobil to describe its non-California business activities using the state’s preferred framing. As applied to ExxonMobil, S.B. 253 and S.B. 261 impose content-based speech regulations unrelated to any legitimate state interest, and the court should block their enforcement as a violation of the First Amendment.”