With global climate change significantly affecting numerous industries, the information about stricter regulation measures in the state with the largest U.S. economy is of major importance for many multinational legal practitioners. Last week, California’s Legislature passed two substantial climate disclosure bills: SB 253, also known as the Climate Corporate Data Accountability Act (CCDAA), and SB 261, or the Climate-Related Financial Risk Act (CRFRA) – referred to collectively as the California Climate Accountability Package.
When implemented, the legislation will put California as the first state in the U.S. to introduce mandatory climate disclosure. This move comes in light of recent demands from both investors and regulators to combat climate changes risks, exhibiting an approach that is like the Securities and Exchange Commission’s proposed climate rule.
The CCDAA and the CRFRA will require corporations to disclose their greenhouse gas emissions and any potential financial risks related to climate changes. How the legal and corporate sectors will respond to this ambitious legislative measure will be a point of interest going forward and could pave the way for similar mandates in other jurisdictions.
Taking into consideration the scale of the global climate issue, it’s paramount that legal professionals stay informed about these climate risk legislation updates and the potential repercussions for their firm’s corporate clients. For more in-depth information about these bills and their potential implications, readers can access the source article here.