California Climate Disclosure Laws – Ninth Circuit Ruling: SB 253 Scope 1 & 2 Disclosures Move Ahead, SB 253 Scope 3 Disclosures and SB 261 Expected to Be Enjoined

On November 9, 2026, the U.S. Court of Appeals for the Ninth Circuit issued its long-awaited written opinion in the challenge to California Senate Bills (SB) 253 and 261. Chamber of Commerce v. Sanchez, No. 25-5327 (9th Cir. 2026). SB 253, the Climate Corporate Data Accountability Act, requires reporting entities to annually report Scope 1 and 2 greenhouse gas emissions beginning in November 2026 and Scope 3 greenhouse gas emissions beginning in 2027. SB 261, the “Greenhouse gases: climate-related financial risk” law, requires covered entities to prepare a biennial climate-related financial risk report. 

Key Takeaways

• SB 253 Scope 1 & 2 disclosures are not enjoined and remain in place. The deadline for reporting entities to file Scope 1 and 2 disclosures is tomorrow, November 10, 2026.
• SB 253 Scope 3 disclosure provisions are expected to be enjoined as the court determined them to be “likely unconstitutional” under the First Amendment to the U.S. Constitution. The Ninth Circuit reversed the district court’s denial of a preliminary injunction with respect to these disclosures, and we expect the district court to ultimately enter a preliminary injunction in accordance with the Ninth Circuit’s opinion. The district court will also address whether SB 253’s Scope 3 disclosure requirements can be severed from the rest of the statute.  SB 253 contains an express severability provision.
• SB 261 disclosure requirements are also expected to be enjoined as likely unconstitutional under the First Amendment. As with SB 253 Scope 3 requirements, the Ninth Circuit reversed the district court’s denial of a preliminary injunction with respect to these disclosure requirements, and we expect the district court to ultimately enter a preliminary injunction in accordance with the Ninth Circuit’s opinion. The Ninth Circuit previously enjoined enforcement of SB 261 on November 18, 2025, pending the substantive review of the request for the injunction.  As such, this ruling is expected to maintain the status quo for SB 261 pending further review.

What’s Next?

• SB 253 Scope 1 and 2 disclosure reporting requirements remain in place, and the deadline for submission for 2025 is tomorrow, November 10, 2026.
• The parties have 14 days to file a petition for rehearing or rehearing en banc.
• The parties may file a petition for a writ of certiorari with the U.S. Supreme Court.
• The Ninth Circuit will issue its mandate to the district court seven days after the expiration of the time for filing a petition for rehearing or seven days after a denial of a petition for rehearing.
• Foley & Lardner LLP will provide a more in-depth alert about the Ninth Circuit’s decision in the coming days. If you have questions about SB 253 or SB 261, contact the authors of this alert or your Foley & Lardner attorney.