Last week, the Ninth Circuit Court of Appeals granted part of an appeal by the US Chamber of Commerce and other trade organizations, arising out of their challenge to California’s climate disclosure laws. Here’s more detail from PracticalESG.com:

On Tuesday, the Ninth Circuit issued an order temporarily staying California’s SB-261 requiring biennial climate risk reporting by companies “doing business” in the state. Prior to the court’s ruling, companies were to publish their initial SB-261 report by January 1, 2026. This blog from Gunderson Dettmer gives background and explains what happens now:

“The motion was denied for SB-253 (GHG emissions reporting). SB-261 enforcement is now paused while the Ninth Circuit considers whether to reverse the district court’s August decision.

The case is scheduled for oral argument on January 9, 2026 — after the January 1 compliance date — though this date could change or the court could decide on the briefs. During today’s CARB workshop, staff indicated they are reviewing the order, and it remains unclear whether updated SB-261 guidance will be issued.”

The emergency application to the US Supreme Court Zach wrote about Tuesday has been withdrawn, although the industry groups that filed the original application stated they may “renew[] their request for relief if necessary at a later stage of the litigation.”

Members of PracticalESG.com can learn more about California’s climate disclosure laws here.

The case is Chamber of Commerce of the United States of America v. California Air Resources Board. As noted above, the court issued its order at the same time that CARB was holding a public workshop about implementation of the laws. This King & Spalding memo summarizes takeaways from the workshop and says:

It is possible CARB may issue an advisory following the Court’s injunction. In the meantime, while some companies may decide to report on or before January 1, 2026, at least by posting a link on their website, many other companies are likely to wait for further developments from the appellate Court or CARB. Notably, the Ninth Circuit did not stay a second California disclosure law, SB 253, that requires certain companies to disclose Scope 1 and 2 greenhouse gas emissions. Since the Ninth Circuit declined to also stay SB 253, companies should continue to plan for compliance with that law by August 10, 2026 (based on recent guidance from CARB).

We’re continuing to track the ins & outs of these developments – and share practical guidance about what companies should be doing – on PracticalESG.com. If you aren’t already a member of that site, email info@ccrcorp.com, call 800-737-1271, or start your membership online today.

– Liz Dunshee