# Ninth Circuit Narrows California Climate Reporting

The Ninth Circuit kept California’s SB 261 climate-risk disclosure law on hold while allowing SB 253 reporting on companies’ direct and purchased-energy emissions to remain in effect. The court also indicated that SB 253’s supply-chain emissions disclosure requirement is likely unconstitutional. Companies and government contractors or suppliers doing business in California should distinguish between the provisions currently in effect and those blocked or under challenge when evaluating reporting obligations and supplier information needs.

- Companies within SB 253’s scope should assess whether direct and purchased-energy emissions reporting applies to them; the signal does not establish that every contractor or supplier is covered.
- The supply-chain disclosure provision remains subject to litigation, creating uncertainty for contractors and suppliers asked to provide emissions data to customers.
- Because SB 261 remains on hold, organizations should not treat its climate-risk disclosure requirement as currently effective based on this signal; track the litigation for changes to the law’s status.

**Jurisdictions:** sled
**Industries:** Environment
**Topics:** Regulatory Compliance
**Published:** November 09, 2026

### Government Entities
- State of California
- U.S. Court of Appeals for the Ninth Circuit (Ninth Circuit)