Two Bills Related to Climate Reporting Pass California State Legislature

Two bills related to climate reporting recently passed the California state legislature and will become law if they are signed by Governor Gavin Newsom.

Under SB-253, the “Climate Corporate Data Accountability Act,” both public and private U.S. entities that “do business in California” and that have annual total revenues of more than $1 billion would be required to disclose Scope 1, 2, and 3 greenhouse gas emissions data.

SB-261, “Greenhouse Gases: Climate-Related Financial Risk,” is a companion bill to SB-253 and would apply to companies with more than $500 million of annual total revenues. This law would mandate certain disclosures about climate-related reporting risks as well as companies’ measures for mitigating and adapting to those risks.

Governor Newsom has until October 14, 2023, to decide whether to sign or veto the bills.