Ninth Circuit Court of Appeals allows some California climate disclosure requirements to proceed

NOVEMBER 9, 2026 - The U.S. Court of Appeals for the Ninth Circuit today partially granted and partially denied industry groups' request to temporarily block California's climate disclosure laws while the groups' lawsuit challenging them works its way through the courts.

"Today's decision means that investors, consumers, and the public will have access to important information about the climate pollution that companies release directly and the pollution associated with their energy use - but will have to wait longer for the full benefits of California's climate disclosure laws," said Stephanie Jones, Senior Attorney for Environmental Defense Fund. "California's climate disclosure laws are firmly consistent with the First Amendment and will provide information that Californians need to make sound financial decisions as businesses advance clean, affordable energy solutions and climate-fueled disasters grow more costly and disruptive. As the case moves forward we will continue to vigorously defend these vitally important laws."

California's laws require large companies to provide investors and the public with information about their climate-related financial risks and greenhouse gas (GHG) emissions, which will help protect people's financial security amid worsening climate impacts. 

Industry groups are challenging the disclosure laws. Last year, a federal district court denied their request to temporarily block the laws, finding that the industry groups were unlikely to succeed on their claims that the laws infringe corporations' free speech rights.

Today's order by the Ninth Circuit Court of Appeals partially reverses that decision. It pauses enforcement of portions of the laws until the court issues a final decision on the merits of the lawsuit. Specifically, the order allows enforcement of Scope 1 (direct) and Scope 2 (energy use-related) GHG emissions disclosure requirements to proceed while temporarily pausing enforcement of disclosures on Scope 3 (indirect) GHG emissions and climate-related financial risk.

Environmental Defense Fund filed an amicus, or "friend of the court," brief last year in support of the climate disclosure laws, emphasizing the extensive evidence supporting the benefits of such disclosures for people and the environment.