California governor says he will sign climate bill on businesses and carbon footprint

NEW YORK (Reuters) – California Governor Gavin Newsom said on Sunday he would sign legislation requiring major companies to disclose their carbon footprints, potentially putting the state ahead of federal regulators in managing companies’ climate risks.

The state Senate approved the bill mandating disclosure of greenhouse gas emissions last week, leaving Newsom with the final say.

When asked at the beginning of “Climate Week” in New York, an eventful week that coincides with the United Nations General Assembly, whether he would sign the bill, Newsom replied: “Of course I will sign this bill.”

“We have some amendments to some simple phrases,” he added, without giving details.

Newsom acknowledged there was “a lot of opposition” to the bill that would require companies earning more than $1 billion annually and operating in the state to measure emissions categories including a complex category tied to supply chains and end users, known as Scope 3.

The Securities and Exchange Commission has not yet issued its own guidance.

Multinational companies including Apple (AAPL.O) and Microsoft (MSFT.O) have expressed support for the bill, but the California Chamber of Commerce said it would increase costs and paperwork for companies.

Measures to manage environmental, social and governance factors have sparked controversy among US politicians in recent years. The new California legislation could still be challenged in court, the lawyers said.

Last week, the state of California filed a lawsuit against major oil companies, alleging that they underestimated the risks posed by fossil fuels.

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