Exxon sues California over climate laws, alleging free speech violations

Exxon, an oil firm consistently ranked among the world’s top contributors to global carbon emissions, is suing the state of California over two climate-focused state laws, arguing that the rules infringe upon the corporation’s right to free speech.

The 2023 laws, known collectively as the California Climate Accountability Package, will require large companies doing business in the state to disclose both their planet-heating carbon emissions and their climate-related financial risks, or face annual penalties.

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The California law also requires companies to report their global emissions footprint. But Exxon argues that the rule should apply only to emissions created by company activity within California’s borders, since the a vast majority of Exxon’s business operations occur outside the state.

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Last year, business interests including the US Chamber of Commerce, California Chamber of Commerce, and American Farm Bureau Federation sued California over the same two laws. A judge denied a motion from the business groups to block the laws, but the case is still proceeding with a trial date expected in October 2026.