Exxon sues state over climate disclosure mandates

Exxon Mobil has filed suit in federal court challenging two California laws that would require the oil giant to report the greenhouse emissions resulting from the use of its products globally.

- DOUG SMITH AND SUSANNE RUST

EXXON'S suit names state Atty. Gen. Rob Bonta and members of the Air Resources Board as defendants.

The 30-page complaint, filed Friday in the U.S. District Court for the Eastern District of California, argues that the laws violate the company's free speech rights by requiring it to "trumpet California's preferred message even though ExxonMobil believes the speech is misleading and misguided."

State Senate Bill 253, the 2023 legislation known as the Climate Corporate Data Accountability Act, requires the California Air Resources Board to adopt regulations by this year to mandate public and private companies with more than $1 billion in annual revenue to begin publicly disclosing their emissions across three "scopes."

Scope 1 emissions are defined as direct greenhouse gas emissions from a company and its branches. Scope 2 includes indirect emissions, such as electricity bought by the company. Scope 3 are emissions from the company's supply chain, including waste, water usage, business travel and employee commutes, which account for about 75% of a company's greenhouse emissions for many industries. Reporting begins in 2026 on scopes 1 and 2 and in 2027 on scope 3.

The attorney general's office and Exxon Mobil Corp., also known as ExxonMobil, did not respond to requests for comment Saturday. Tara Gallegos, a spokesperson for Gov. Gavin Newsom, said the laws have been upheld in court "and we continue to have confidence in them."