On November 18, 2025, the Ninth Circuit Court of Appeals (the “Court”) granted an injunction halting enforcement of California Senate Bill 261(“SB 261”), the California law requiring certain companies to disclose their climate-related financial risks on or before January 1, 2026, as the Court reviews First Amendment challenges to both SB 261 and its companion law Senate Bill 253 (“SB 253”). Notably, the order does not enjoin enforcement of SB 253, which does not yet have an implementation date.
As discussed further in our prior LegalCurrent here, SB 261 requires companies doing business in California with annual revenue over $500 million to prepare and disclose their climate-related financial risks on or before January 1, 2026. Whereas, SB 253 requires companies with annual revenue over $1 billion to disclose their emissions.
The Court’s decision does not clarify whether the injunction applies to non-plaintiffs and it is not clear whether the California Air Resources Board (“CARB”) will delay the implementation date for SB 261. Companies subject to SB 261 should monitor developments and continue preparing for compliance with both SB 253 and SB 261. We will continue monitoring and report on any updates from the Court or CARB.
If you have any questions about California’s climate-related disclosure requirements, please contact a member of Harter Secrest & Emery LLP’s Securities and Capital Markets group.