Two significant California climate bills, bundled under the title of the “Climate Accountability Package,” have advanced in the California legislature and are now before Governor Gavin Newsom for final consideration. The potential enactment of these pieces of legislation could have substantial implications for businesses operating within the state.
If signed into law, Senate Bill 253, also known as the Climate Corporate Data Accountability Act, would impose a new requirement for the disclosure of Greenhouse Gas (GHG) emissions data—Scopes 1, 2, and 3—by all U.S. business entities, public or private, that have total annual revenues exceeding a billion dollars and conduct business in California.
The Climate Accountability Package is seen as yet another step in California’s ongoing efforts to mitigate the effects of climate change. Given the state’s stature as a global economic engine, the implications of these bills extend far beyond California’s borders. Organizations around the country, and indeed across the globe, will be keenly observing Governor Newsom’s decision.
However, the bills do not come without controversy. Critics argue that they may add an additional layer of reporting complexity for businesses already grappling with multiple disclosures and regulatory requirements at the national and international level. Furthermore, the application of SB 253 to private organizations has been a point of contention, with some arguing against its potential effect on non-public entities.
At this juncture, it remains unclear whether Governor Newsom will give his approval to the proposed legislation. As we await his decision, all eyes are on Sacramento, underscoring the global reach and significant influence of California’s environmental policies.