California Passes Emissions Disclosure Bill 

The California Legislature passed the Climate Corporate Leadership and Accountability Act which would require Scope 1, 2 and 3 emissions disclosures from all companies operating in the state with more than US$1 billion in revenue. Senate Bill 253 (SB 253) will now head to Governor of California Gavin Newson for signature. Paul Dickinson, Founding Chair of the CDP, said: “From Hollywood films to the digital revolution, California has led the world in critical new technology. They also have a proud history of fiscally material, bipartisan environmental regulation. SB 253 will drive innovation and efficiency throughout the corporate value chain. As Business School 101 tells us, what gets measured gets managed. The world is watching California right now.” The bill aims to increase transparency of corporate emissions, and offer California’s regulatory agencies, investors, and consumers the necessary information to hold polluters accountable. Danielle Fugere, President of As You Sow, said: “The California Legislature’s passage of SB 253 follows stringent regulatory disclosure requirements being developed in the EU and the UK. The SEC has issued draft rules requiring large companies to disclose Scope 3 emissions but has wavered in the face of company opposition. Standing firm on these requirements will help ensure consistency in reporting standards, benefitting companies in the long run and assisting shareholders and other stakeholders in understanding the full extent of company emissions and climate risk.”  

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