Table Of Contents
California To Require Large In-State Firms To Disclose Carbon Footprints
Gavin Newsom, the Governor of the state of California, is willing to sign a law into force that would require large companies to make some disclosures.
This new law will mandate that they disclose their respective carbon footprints.
Governor Newson is putting California state government ahead of the federal regulators in terms of corporate climate risk management.
The State Senate has already approved the bill in question.
The terms of this new law make it essential for corporate giants to make a disclosure on greenhouse gas emissions. This means that the final nod will come from Newsom.
This Monday marked the start of “Climate Week” in New York. The Climate Week is a week where events coinciding with the U.N. General Assembly will take place.
The governor was asked whether he would sign the bill. He said, “Of course I will sign that bill.”
He has also stated that, “We have some cleanup on some little language.”
According to this new legislation, companies making more than $1 billion a year will be affected. These companies should be primarily operating in-state.
They measure multiple categories of emissions. There is one category that includes a complex system of supply chains and end-users (Scope 3). Governor Newsom spoke of “a lot of opposition” to the bill.
The Securities and Exchange Commission has not yet come up with its own guidance.
Multinational companies (think: Apple and Microsoft) are in support of the Bill.
However, the California Chamber of Commerce stands against the legislation on grounds that it will increase costs and paperwork for firms.
Read Also:
