State-wide Climate Reporting Rules Under Debate in California  

California’s Senate has introduced two bills that will respectively require companies operating in the US state to report their greenhouse gas emissions from across their supply and value chains, and to report their climate-related risks in line with leading standards. The Corporate Climate Data Accountability Act and Climate-Related Risk Disclosure Act have been welcomed by US-based investor network Ceres. Steven Rothstein, Managing Director for the Ceres Accelerator for Sustainable Capital Markets, said: “With the federal government on the verge of requiring climate disclosure for public companies, these California bills demonstrate the growing momentum for mandatory climate disclosure.” The bills would complement the US Securities and Exchange Commission’s (SEC) proposed rule requiring climate disclosure for public companies and global standards expected from the IFRS’ International Sustainability Standards Board. Because the California bills would apply to both public and private companies over certain revenue thresholds it would broaden the coverage of companies required to provide information beyond the SEC’s proposed disclosure standards. Additionally, a California bill has been introduced that would require its state pension funds to divest from fossil fuels. 

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