Climate accountability is at the forefront of legal news this week. In a move that seeks to raise the bar on climate regulation, California lawmakers have passed the California Climate Corporate Data Accountability Act, also known as Senate Bill 253. If enacted, the bill will require large businesses operating within the state to disclose their levels of carbon emissions.
The Senate Bill 253 will require all companies in California with annual revenues of at least $1 billion to disclose both Scope 1 and Scope 2 emissions. Direct emissions from owned or controlled sources (Scope 1), as well as indirect emissions from the generation of purchased energy (Scope 2), are both addressed within the bill.
The reality is that the new legislation could potentially have wide-ranging impacts on businesses worldwide. Given California’s status as one of the world’s leading economic powerhouses, companies seeking to do business within the state must now contend with these stringent new requirements.
After being delivered to Governor Gavin Newsom’s desk, the expectation is that the bill will be signed into law soon. Newsom has already publicly announced his intention to sign Senate Bill 253, putting California at the forefront of climate legislation in the United States.
Watch this space for further updates on the enactment and roll-out of this bill, including the specific legal and regulatory implications for businesses in numerous industries.