Exxon said to sue California over green disclosure laws

[Lonely Gas Station at Night]
Coast-to-Coast

Exxon Mobil (NYSE:XOM [https://seekingalpha.com/symbol/XOM]) has sued California over two of the state's laws that require large companies to publicly disclose their greenhouse gas emissions and climate-related financial risks, Bloomberg News and Reuters reported on Saturday.

According to Reuters, Exxon (NYSE:XOM [https://seekingalpha.com/symbol/XOM]) filed a complaint in the U.S. District Court for the Eastern District of California on Friday, arguing that the two laws - Senate Bills 253 and 261 - violate its First Amendment rights by compelling the company to "serve as a mouthpiece for ideas with which it disagrees."

The oil giant is asking the court to block California from enforcing the laws and declare them unconstitutional and preempted by federal law, as per Bloomberg.

Exxon (XOM [https://seekingalpha.com/symbol/XOM]) did not immediately respond to Seeking Alpha's request for comment.

Senate Bill 253, titled the "Climate Corporate Data Accountability Act," requires companies with annual revenues above $1B to publicly disclose their scope 1 and 2 greenhouse gas emissions starting in 2026 and their scope 3 emissions thereafter in 2027.

Meanwhile, Senate Bill 261 requires companies with annual revenues above $500M to prepare a biennial public climate-related financial risk report.

According to Reuters, Exxon (XOM [https://seekingalpha.com/symbol/XOM]) in the complaint said the laws force it to adopt California's preferred frameworks for climate reporting, which it views as misleading and counterproductive.

DEAR READERS: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion [https://seekingalpha.com/article/4829984-politics-and-the-markets-102525#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews].

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