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flag California’s climate disclosure law for big companies will take effect Jan. 1, 2026, despite a federal lawsuit.

flag On October 29, 2025, the Ninth Circuit denied a request to delay California’s Senate Bill 261, which requires large companies with over $500 million in annual revenue to disclose climate-related financial risks starting January 1, 2026. flag The court scheduled oral argument for January 9, 2026, but will not block the law’s implementation. flag A new federal lawsuit by ExxonMobil challenges the law’s First Amendment implications, but legal experts expect little chance of success. flag Companies must prepare for compliance, as the law’s effective date remains unchanged despite ongoing litigation.

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