Davis Polk counsel and Environmental practice head Loyti Cheng was quoted in American Banker discussing potential legal challenges to legislation in California that would require larger companies operating in the state to report expansive measurements of their emissions and account for the financial risks of climate change.

Loyti noted that “the bills could face court challenges based on a legal doctrine that bars states from placing undue burdens on interstate commerce.”

She continued, “The legislation’s opponents may also argue that mandating climate disclosures violates the First Amendment’s protection from compelled speech.”

“California could complicate banks’ climate reporting obligations,” American Banker (September 29, 2023) (subscription required)

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