During the week of September 11, 2023, the California Legislature made headlines across legal communities by passing a sequence of bills collectively labelled as the “California Climate Accountability Package” (“CCAP”). The CCAP encompasses three key bills: S.B. 252, S.B. 253, and S.B. 261.
The first bill, S.B. 252, applies exclusively to two California state pension funds and will not be elaborated on further.
S.B. 253, known officially as the “Climate Corporate Data Accountability Act” (“CCDA”) emerges as a significant point of interest. Equally notable is the third bill down the line, S.B. 261, or the “Climate-Related Financial Risk Act” (“CFRA”).
If Governor Newsom approves and signs these landmark bills, the implications for the corporate and legal landscapes could be consequential. This decision will be keenly followed across the country, particularly by professionals in corporation law, environmental law, and finance.
The discourse around climate change is rapidly informing the mechanisms of legal and financial systems. This move by the California Legislature resounds in both spheres, demonstrating the importance of being prepared for likely shifts in the climate policy and legislation horizon.
Legal professionals navigating both corporate and environmental landscapes would do well to stay updated on the development and implementation of these bills, charting their repercussions on both local and international scales.
For more detailed information about the California Climate Accountability Package, follow this link.