Exxon, a top contributor to global carbon emissions, is suing California over climate laws requiring disclosure of emissions and financial risks. The company argues the laws infringe on free speech. California officials defend the laws, stating they promote transparency and combat climate change. Exxon seeks to block enforcement starting in 2026.

The lawsuit claims California’s preferred emissions reporting framework is misleading and unfairly targets large companies. Exxon argues it should only report emissions within California’s borders, not globally. The company also disputes the requirement to disclose climate change threats and plans, calling it speculative and conflicting with federal securities laws.

Supporters of the laws say they prevent greenwashing and hold oil companies accountable for their environmental impact. Business groups previously sued California over the same laws, but a judge denied a motion to block them. The US Securities and Exchange Commission was working on federal climate disclosure rules, but those faced legal challenges and were ultimately abandoned.

Read more at Yahoo Finance: Exxon sues California over climate laws, alleging free speech violations