- SB253 would require California businesses earning more than $1 billion in revenue annually to publicly report their greenhouse gas emissions.
- The law would make California the first location in the United States to mandate carbon accounting for companies, and comes as the Securities and Exchange Commission considers how to regulate corporate climate disclosures.
- Some of the state’s large companies, such as Apple and Salesforce, have expressed support for climate disclosure regulations.
Governor Gavin Newsom holds a news conference near the Pajaro floods after touring affected areas in Pajaro, Monterey County, California, US on March 15, 2023, as weather river storms hit California.
Taifun Coskun | Anatolia Agency | Getty Images
California Governor Gavin Newsom said he will sign a bill that will require large companies to account for their carbon emissions, including their Scope 3 or supply chain emissions.
State lawmakers approved the bill. SB253, last week. It would require California companies that generate more than $1 billion in revenue annually to publicly report their greenhouse gas emissions.
“That’s over 5,300 companies, so it’s not insignificant, and of course these are multinational companies and some of the most well-known companies in the world,” Newsom said.
The law would make California the first location in the United States to require corporate carbon accounting and is timelySecurities and Exchange Commission Examines how to regulate corporate climate disclosures. The SEC has not yet said whether it will include Scope 3 emissions, which come from a company’s suppliers and are generally the majority shareholder. (Scope 1 emissions come directly from a company’s operations and Scope 2 measures emissions from purchasing electricity, heat, and other energy sources.)
Newsom said he would sign SB253, and touted the state’s leadership on climate issues.
“We’re talking about California,” Newsom said at a climate conference. “It’s not just a state for dreamers, entrepreneurs, and innovators, but it’s a state that has long prided itself on being on the cutting edge and cutting edge. The future happens in California first.” The event of the week took place in New York City on Sunday.
For example, Newsom said, California has led the nation in regulating tailpipe emissions and implementing low-carbon standards.
Newsom thanked the state’s large companies, such as Apple and Salesforce, that have expressed support for climate disclosure regulations. “They see where the ball is going, and they’re going to do the right thing and back it,” Newsom said.
Newsom added a “modest caveat” that before signing the bill, his office needed to “clean up” some of the language in the bill.
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