Exxon Mobil has filed a lawsuit against California, claiming that two new climate laws infringe upon its right to free speech and are "counterproductive" in addressing global warming. The oil giant, which is one of the world's largest polluters, argues that the state laws require it to disclose more than it wants to about its carbon emissions and financial risks.
Under the California Climate Accountability Package, large companies operating in the state must report their planet-heating emissions and climate-related financial risks by 2026. Exxon claims that this would force it to "serve as a mouthpiece for ideas with which it disagrees" - essentially, forcing it to speak out against its own business practices.
The company already voluntarily reports its emissions and climate risks using different methodologies than the state's preferred frameworks. However, under one of the laws, Exxon would have to use a methodology developed by the World Resources Institute and business network World Business Council for Sustainable Development, which Exxon says is "misleading" and "counterproductive".
Exxon argues that the law requiring it to disclose its global emissions footprint should only apply to emissions created within California's borders, as most of its operations are outside the state. The company also claims that another law requiring companies to disclose the threat of climate change to their business operations is too vague and would force it to speculate about unknown future developments.
The lawsuit seeks to block the enforcement of both laws, which Exxon claims constitute an overreach by California officials. Supporters of the laws say they will "pull back the curtain" on greenwashing by companies like Exxon.
This latest move from Exxon comes as other business groups have already challenged similar climate disclosure rules in federal courts. The US Securities and Exchange Commission was also working on new federal climate disclosure rules before facing legal challenges.
Under the California Climate Accountability Package, large companies operating in the state must report their planet-heating emissions and climate-related financial risks by 2026. Exxon claims that this would force it to "serve as a mouthpiece for ideas with which it disagrees" - essentially, forcing it to speak out against its own business practices.
The company already voluntarily reports its emissions and climate risks using different methodologies than the state's preferred frameworks. However, under one of the laws, Exxon would have to use a methodology developed by the World Resources Institute and business network World Business Council for Sustainable Development, which Exxon says is "misleading" and "counterproductive".
Exxon argues that the law requiring it to disclose its global emissions footprint should only apply to emissions created within California's borders, as most of its operations are outside the state. The company also claims that another law requiring companies to disclose the threat of climate change to their business operations is too vague and would force it to speculate about unknown future developments.
The lawsuit seeks to block the enforcement of both laws, which Exxon claims constitute an overreach by California officials. Supporters of the laws say they will "pull back the curtain" on greenwashing by companies like Exxon.
This latest move from Exxon comes as other business groups have already challenged similar climate disclosure rules in federal courts. The US Securities and Exchange Commission was also working on new federal climate disclosure rules before facing legal challenges.