As part of the Climate Accountability Package, the California Legislature has sent two milestone bills towards Gov. Gavin Newsom’s desk for approval. These bills, known as Senate Bill (SB) 252, SB 253, and SB 261, aim to impose new regulatory measures regarding climate disclosures on companies operating within the California jurisdiction. Should these proposed legislations pass, their influence will extend far beyond local businesses, carrying significant global implications.
The future of climate regulations and corporate responsibilities in California, and indeed globally, hinges on the decision made by Gov. Newsom. SB 253 and SB 261 are particularly noteworthy as they focus on companies “doing business” in the state, irrespective of their domicile. If implemented, these laws would create ripples in business implications far beyond the Golden State’s borders.
The introduction of these upcoming regulations is symptomatic of a growing worldwide trend. More and more jurisdictions are demanding increased transparency from corporations on their environmental footprints and their efforts in combating climate change. Corporate giants, law firms and business entities around the world will indeed need to keep a close eye on the progression of these bills and their potential global reverberations.
For more in depth analysis, you can read more at JD Supra, with commentary by Holland & Knight LLP, who provide a keen observation on the situation.