Ninth Circuit Enjoins SB 261's Climate-Related Risk Reporting Requirements, Declines to Enjoin SB 253
On November 18, 2025, the Ninth Circuit temporarily enjoined the implementation of California Senate Bill 261 ("SB 261")—California's climate disclosure law—but rejected a similar challenge to Senate Bill 253 ("SB 253")'s separate emissions disclosure framework.
The Ninth Circuit issued an emergency injunction pending appeal staying the enforcement of SB 261, the state's climate-related financial risk disclosure law. The court, however, declined to stay enforcement of SB 253, which establishes corporate greenhouse gas emissions reporting obligations. The order temporarily halts the implementation of SB 261's reporting requirements but leaves SB 253's separate emissions disclosure framework intact.
SB 261, which was signed into law in October 2023, requires large companies "doing business in California" to publish on their website a report evaluating a host of "climate-related" risks related to their business and detailing steps on ways in which to mitigate those risks. SB 261 set January 1, 2026, as the deadline for submission of the first reports. The Ninth Circuit's injunction suspends that deadline pending the outcome of the appeal.
Litigants challenged SB 261 and SB 253 in January 2024, bringing multiple claims against California officials, including a claim that the compelled reporting obligations ran afoul of the First Amendment. The district court narrowed the case to a single First Amendment compelled-speech challenge against both laws and denied the plaintiffs' motion for a preliminary injunction. The plaintiffs appealed, and on November 18, 2025, the Ninth Circuit issued an emergency injunction staying enforcement of SB 261. As a result, the January 1, 2026, reporting deadline has also been stayed.
In the same lawsuit, the plaintiffs also challenged SB 253. SB 253, which was also passed in October 2023, requires companies to begin annual public reporting of their Scopes 1 and 2 emissions beginning in 2026. The California Air Resources Board has tentatively set an August 10, 2026, deadline for those reports. As with SB 261, the plaintiffs challenged SB 253 under the First Amendment. In the same order enjoining enforcement of SB 261, the Ninth Circuit declined to enjoin enforcement of SB 253 pending appeal.
Oral argument on the merits is set for January 9, 2026, in San Francisco. It is worth noting that a separate challenge—which also includes First Amendment claims, among others—was filed by another plaintiff in late October of this year. In that case, a hearing on the temporary restraining order with respect to both laws is set for December 4, 2025, in the Eastern District of California.
The court's order means that, for now, SB 261's climate-related financial risk reporting requirements are on hold, but SB 253's emissions disclosure mandates remain in effect. Companies subject to SB 253 should continue to develop emissions inventories and internal governance systems necessary to meet upcoming reporting deadlines, while those covered by SB 261 may pause publication efforts pending further judicial guidance.
