California Climate Reporting Rules Encounter Court Skepticism

California environmental disclosure requirements for companies with business in the state met a questioning Ninth Circuit panel Friday, as the court considers whether to extend a freeze on climate risk reporting.

SB 261, which mandates biennial reports on financial risks from climate change, raises concerns that California is seeking information some companies deem controversial, Judge Jacqueline Nguyen of the US Court of Appeals for the Ninth Circuit said at a hearing. Business groups challenging the 2023 law have said it compels contentious speech in violation of the First Amendment.

“How do you provide the scope of information that seems ...