Companies following the ongoing legal challenge to California’s climate disclosure laws in hopes that the court would strike down or limit the scope of these laws will be disappointed by the order issued by the U.S. District Court for the Central District of California on February 3, 2025. The order dismissed constitutional challenges levied against SB 253, which requires large companies “doing business” in California to annually report their greenhouse gas (GHG) emissions, and SB 261, which requires disclosure of climate-related financial risks. The ruling clears the path for the California Air Resources Board (CARB) to develop implementing regulations for SB 253, which are statutorily required to be issued by July 1, 2025.