U.S. nonprofit advocacy organization Ceres has responded to a U.S. Court of Appeals for the Ninth Circuit ruling allowing California’s Scope 1 and Scope 2 emissions reporting requirements to proceed while directing that mandatory Scope 3 emissions and climate transition risk disclosures be blocked. The ruling delays enforcement of portions of the state’s corporate climate reporting requirements that were set to begin in 2026. SB 253 requires large companies doing business in California to disclose greenhouse gas emissions, while SB 261 requires disclosure of climate-related financial risks.
Ceres Chief Program Officer Steven M. Rothstein welcomed the continued Scope 1 and Scope 2 reporting and defended the laws’ consistency with the First Amendment, arguing that climate disclosures help investors make decisions and markets price climate risk. Ceres previously filed an amicus brief supporting both laws in the same court, documenting business and investor backing for standardized reporting, including support from 35 businesses for full implementation funding.