ExxonMobil accuses the state of California of violating freedom of expression

ExxonMobil is suing the state of California over state laws that force large companies to share a more comprehensive picture of their greenhouse gas emissions, as well as disclose the financial risks climate change may pose to their investors.

The oil and gas company claims that Two laws are involved It aims to “embarrass” big corporations that the country “believes are uniquely responsible for climate change” in order to get them to reduce greenhouse gas emissions. there overwhelming Scientific consensus Greenhouse gas emissions from fossil fuels cause climate change by trapping heat on the planet.

ExxonMobil claims California is violating the First Amendment by setting specific standards for how some companies report those emissions and associated climate risks. Under laws passed by the state in 2023, “ExxonMobil will be forced to describe its emissions and climate-related risks in terms with which the company fundamentally disagrees,” a complaint said. foot He says Friday. The lawsuit asks the U.S. District Court to stop enforcing the laws.

It’s the latest in an ongoing saga about how transparent companies are about their climate impact. California has set higher standards than many companies follow in their sustainability reporting. This, combined with the state’s tremendous economy, has allowed it to raise the bar on corporate climate disclosures even under current conditions The federal government is moving in the opposite direction. ExxonMobil’s accusations that the state is forcing companies to adopt its views on climate change also come on the heels of a torrent of allegations that ExxonMobil Misleading consumers About the impact of its products on the environment.

One of the laws ExxonMobil is suing, SB 253, requires companies doing business in California with annual revenues of more than $1 billion to disclose their emissions in accordance with internationally recognized standards set forth in the EPA. Greenhouse Gas Protocol. The company already shares data on greenhouse gas emissions publicly, but says it does not agree with the Greenhouse Gas Protocol’s methods. The big conflict revolves around requirements to include emissions from a company’s supply chain, electricity use, and consumer use of its products – which are… “Indirect” emissions. These often constitute indirect emissions The majority of a company’s carbon footprintSB 253 would require full disclosure by 2027.

However, ExxonMobil’s lawsuit claims that including indirect emissions leads to double counting. It would force the company to claim the tailpipe emissions of cars and trucks that burn their fuel, for example, while owners of those vehicles might also claim those emissions on their reports.

The other law at issue, SB 261, stipulates that companies earning more than $500 million in annual revenue need to disclose the financial risks they face due to climate change, such as how… Coastal flooding or more extreme weather It may impact their business, as early as January 2026. The lawsuit describes such disclosures as “speculative,” and requires “the company to engage in careful guesswork about unknown future developments.”

Under the Biden administration, the SEC proposed similar rules at the federal level, which it did Eventually weakened After facing opposition from industry over indirect emissions disclosure requirements. this year, second Under the Trump administration Announce that it He will no longer defend those rules In court.

Separately, ExxonMobil is involved in another case suit California sued her last year On plastic pollution. This lawsuit alleges that the company “deceived Californians for nearly half a century by promising that recycling could solve the ever-growing plastic waste crisis.” Plastic is made from fossil fuels and is It is difficult to recycle; Less than 10 percent of plastic waste is ever recycled. ExxonMobil then filed an application Defamation The California Attorney General sued in January over disputed recycling claims.

California provided another suit In 2023 against several oil and gas companies including Exxon, alleging that their “deceptive and harmful conduct was a material factor in causing these devastating impacts of climate change in California,” including rising temperatures, drought and wildfires. Over the past decade a series of Investigations At ExxonMobilbesides Peer-reviewed researchthe company’s own scientists have shown how He accurately predicted climate change while publicly dismissing the issue.

ExxonMobil’s latest lawsuit now says the company “understands the real risks associated with climate change and supports ongoing efforts to address those risks,” but California laws will force it to “describe its emissions and climate-related risks in terms with which the company fundamentally disagrees.”

“These laws are about transparency. ExxonMobil may want to continue to keep the public in the dark, but we are prepared to litigate aggressively in court to ensure the public has access to these important facts,” Christine Lee, a spokeswoman for the California Department of Justice, said in an email to the California Department of Justice. Edge. Officials at the state regulatory agency who are named as defendants in the lawsuit declined to comment on pending litigation.