Exxon Sues California to Block Landmark Corporate Climate Disclosure Laws

Oil giant ExxonMobil has launched a major lawsuit against the state of California over its groundbreaking new climate disclosure laws.

California recently passed two key laws requiring large companies operating in the state to publicly report all of their greenhouse gas emissions, including indirect emissions from their supply chains and product use.

Exxon argues that California’s strict new rules are illegal for several reasons, likely claiming:

• Unconstitutional Burden: The laws place an impossible or overly expensive burden on companies to track and report emissions globally.
• Overreach: The state is attempting to regulate business activities that happen outside of California’s borders.
• Federal Authority: Only the federal government should have the authority to set such broad environmental reporting standards.

The lawsuit is a direct challenge to California’s attempt to use its enormous economic influence to set de facto national standards for corporate accountability.

Exxon, facing increasing pressure from investors and the public on climate change, is fighting to limit the scope of required public disclosures, making this a high-stakes legal battle with huge implications for the entire environmental movement