California has passed two pieces of major climate legislation.
The Climate Corporate Data Accountability Act (SB 253) will require public and private US businesses with revenues over $1 billion that do business in California to report their scopes 1, 2, and 3 greenhouse gas emissions. The bill mandates third-party assurance on reported emissions.
The Climate-Related Financial Risk Act (SB 261) will require large corporations to prepare and submit an annual report that publicly discloses their climate-related financial risks and the measures they’re taking to mitigate these risks.
Given that California is the 4th largest economy in the world and that SB 253 requires scope 3 emission disclosures – indirect emissions related to companies’ value chains – this bill will have significant implications for the economy and environment.