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Fashion Backs California Climate Reporting Rules

A group of apparel and footwear industry bodies have declared their support for proposed legislation which would require large firms operating in California to report Scope 3 emissions. The American Apparel & Footwear Association, the Accessories Council, The Council of Fashion Designers of America, and Fashion Makes Change jointly published a letter of support for the Climate Corporate Data Accountability Act (SB 253). The proposed act requires firms with more than US$1 billion in gross revenues to report their greenhouse gas emissions annually from 2026 in line with the GHG Protocol, including Scope 3 emissions from across their supply chains. It is accompanied by the Climate-related Financial Risk Act (SB 261), which would require firms operating in the state with annual revenues above US$0.5 billion to disclose their risks in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures, as well as the measures being adopted to mitigate and adapt to them. The US Securities and Exchange Commission’s proposed climate risk disclosure rule only requires firms to report Scope 3 emissions if they have set Scope 3 reduction targets or if Scope 3 emissions are considered material. The trade bodies said SB253 was consistent with the principles of the THREADS Protocol, which they released in January to demonstrate and define terms for the fashion industry’s support for policies which address sustainability and social responsibility issues. “The initial direction to enforcing agencies to assess the status and feasibility of assurance levels for Scope 3 reporting shows crucial adjustability and the safe harbor for good faith reporting of Scope 3 emissions demonstrates this legislation is designed to help companies succeed at a difficult task where imperfections are virtually guaranteed,” the associations said. Both bills are expected to be voted on in California’s state legislature in September.

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